BE LECTURE 1.ppt
Transcript of BE LECTURE 1.ppt
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Organizations and their
Objectives
BUSINESS ENVIRONMENT LECTURE 1
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Classroom rules
NO late comers will be accepted in class.
Keep your phones in your bag and put in
silent/airplane mode.
Ask questions if you need to clarify or if youdont understand
All forms of cheating in the assignment willbe penalised.
100 per cent attention in class is desired
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What is an organization?
ARRANGEMENT OF PEOPLE, pursuing
COMMON GOALS,ACHIEVING RESULTS
and STANDARDS OF PERFORMANCE
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Legal Forms of Organisations
Types Features Disadvantages
Sole Traders One ownerInformal
IndependentClose customercontactFlexible and fast
Total personal liability
Financial limitations
Limited capability
Lack of cover
PartnershipsGeneral/managingpartner, Limited,Industrial Partners
Legal personalityTwo or more ownersProfit/loss sharingMay have limitedliability
Extended liabilityDissolution incapableLimited CapitalConflicts
CorporationsLegal personality
Artificial personality Exist in law but
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Special Types of Organisations
PARTNERSHIPS
Limited Liability
Partnerships.
The partners liabilitydo not extend to
the partnerspersonal property
CORPORATIONS
Public Limited
Companies (plc)
Private LimitedCompanies (Ltd)
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Advantages of Large Organisations
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Advantages of Small Firms
SmallFirms
Flexible
Easy toorganize
Closer to
customers/employees
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Raw material producersPrimarySector
Intermediary and final productmanufacturersSecondary
Sector
Product distributors and servicesector
TertiarySector
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Private Sector
Set up for
personal gain
Public Sector
Set up for the
interest of thecommunityand are fundedwholly orpartially by thegovernment
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Special Organizations
Cooperatives. Voluntary linkingtogether among buyers, producers orretailers into a trading organization
Voluntary Organizations. Non profit,dependent upon members and
supporters to survive. Green Peace
Charitable Organizations. should berecognized by the UK govt. Organized
for philanthropic purposes
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THE CORPORATE IDENTITY
Objectives
Goals
Mission/Values
Vision
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Coca-Cola: Mission
Our Mission
Our Roadmap starts withour mission, which isenduring. It declares ourpurpose as a company
and serves as thestandard against whichwe weigh our actions anddecisions.
To refresh the world...
To inspire moments ofoptimism and happiness...
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Coca-Cola: Vision
Our vision serves as the framework for ourRoadmap and guides every aspect of our business
by describing what we need to accomplish inorder to continue achieving sustainable, qualitygrowth.People: Be a great place to work where people are inspired
to be the best they can be.
Partners: Nurture a winning network of customers andsuppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference byhelping build and support sustainable communities.
Profit: Maximize long-term return to shareowners whilebeing mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-movingorganization.
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Pepsi: Mission
Our mission is to be the world's premierconsumer products company focused on
convenient foods and beverages. We seek toproduce financial rewards to investors as weprovide opportunities for growth andenrichment to our employees, our businesspartners and the communities in which we
operate. And in everything we do, we strivefor honesty, fairness and integrity.
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Pepsi: Vision
"PepsiCo's responsibility is to
continually improve all aspects of theworld in which we operate -environment, social, economic -creating a better tomorrow than
today."Our vision is put into action through
programs and a focus onenvironmental stewardship, activities
to benefit society, and a commitmentto build shareholder value by makingPepsiCo a truly sustainable company.
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STAKEHOLDERS
Regardless of the type of business, there areunits, individuals and other entities thathave interest (affected by the actions anddecisions) with the company. They are whatwe call as
STAKEHOLDERS
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TYPES OF STAKEHOLDERS
ExternalStakeholders
ConnectedStakeholders
InternalStakeholders
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Stakeholder Mapping
Who should we satisfy?
What should we do to/for ourstakeholders?
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Prioritizing Stakeholders
ExpectationsLevel of
Satisfaction
Power Compatibilityof Interest
Conflicts
easur ng er ormance o
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easur ng er ormance oOrganisations
Exhaustive
Taken from
stakeholders
ReliableRepeatable
Revisable
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CORPORATE SOCIAL RESPONSIBILITY
Organizations have a distinct dutyto act ethically and for the sake
of the community where theyoperate.
They should do good for thesociety where they live in.
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ENVIRONMENTAL RESPONSIBILITY
Abide by environmental regulations
Waste handling
Ecological balance
Energy conservationGreen concerns
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BUSINESS ETHICS
Business ethics relates to issues ofsocial responsibility and issues of
business practice.
Issues of fairness, honesty,
integrity and social harmony
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Compliancebased
IntegrityBased
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Ethical Pressures
Extortion
Bribery
Grease Money
Gifts
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Management Responsibilities
Employee Treatment. E.g faircompensation,
Recruitment and Selection
Safety and Health
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Consumer Responsibilities
Consumer welfare and protection
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LECTURE
CONSUMER PROTECTION
O C O G
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OFFICE OF FAIR TRADING
ConsumerRegulation
Enforcement
Markets and PolicyIntitiatives
CompetitionReinforcement
T d D i ti f d
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Trade Description of goods
Any indication direct or indirect about
1.Quantity, size or gauge of goods2.Method of production or manufacturing3.Composition
4.Fitness for purpose, strength orperformance5.Other physical characteristics6.Test Results
7.Approval or conformity to certainstandards8.Place and Date of Manufacture9.Manufacturer
ommon enses regar ng
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ommon enses regar ngtrade description
1.False/incomplete information
2.Making false statements relating toservices, accommodation or facilities
3.Making misleading statements as to theprice of goods
C Ill t ti
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Case Illustrations
T d D i ti f S i
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Trade Description of Services
Any offense to make false statementsdeliberately and recklessly.
The statement in question must be false to amaterial degree.
The falsity of a statement is judged at thetime the statement was made.
Defenses Under Trade Descriptions
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Defenses Under Trade DescriptionsLegislations
a. The commission of the offense was due to
1.A MISTAKE2.RELIANCE ON INFORMATION SUPPLIED TO THEDEFENDANT
3.THE ACT OR DEFAULT OF ANOTHER PERSON
4.AN ACCIDENT OR SOME OTHER CAUSE BEYONDHIS/HER CONTROL
b. That he/she took all responsible precautions andexercised all DUE DILIGENCE to avoid the
commission of such offense.
Such precautions must be more than a token ofgesture.
S l f G d t C
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Sale of Goods to Consumers
A sale of goods is a transactionwhereby a customer obtainsownership of goods in return
for the price.
f S f
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Implied Terms of the Sale of
Goods Act
IMPLIED TERMS. These are terms that areautomatically part of a contract whetherthey were mentioned or not.
CAVEAT EMPTOR. Let the buyer beware. Thebuyer also has responsibility to be careful intheir purchases.
e.g. buying medicines, checking the productinformation, examining performance asneeded.
SATISFACTORY QUALITY
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SATISFACTORY QUALITY
1.Fitness for the purpose for which thegoods of the kind are commonly supplied
2.Appearance and finish
3.Free from defects4.Safety
5.Durability
Prod ct Liabilit
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Product Liability
NEGLIGENCE.
A mistake committed by one party as a resultof not being careful.
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To prove that a supplier/manufacturercommitted negligence, the complainant
(plaintiff) should show three things.
1.The existence of a duty of care by thedefendant.
2.A breach of that duty by the defendant.
3.Injury or damage suffered by the plaintiffas a foreseeable consequence of the breachof the duty of care.