Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Emerging issues in ethical dimension of business
Ethical issues and problems in business
Business and ethical issues
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Emerging issues in ethical dimension of business
Issue # 3: Political and Legal Environment
How CAPSIM Works: The business simulation is relatively unaffected by external factors such as politics. The only time CAPSIM required additional decision-making was in regards to the ethical dilemma of offshore cost-cutting. Not once did CAPSIM require the teams to make additional decisions in regards to changing labour, tax, regulatory and other legislations. CAPSIM Stakeholder Prioritization: The stakeholders affected by the lack of political changes would be the top management, employees, customers, suppliers and competition. These stakeholders will have relatively predictable expectations about the CAPSIM business environment as there will not be any major changes that will ever disrupt
…show more content…
A major example would be the 2016 US Presidential Election. This election has shown its importance in the global economy by means of the stock market responses, the US-China business relationships, the drastic decline of the Mexican currency and the potential threat to the North American Free-Trade Agreement (NAFTA). A less drastic legal repercussion would be in terms of the Canadian Anti-Spam Legislation (CASL) for email marketers. This is not mentioned in CAPSIM when one is allocating funds to email marketing expenditures, but would require a lot more attention when it was being done in the real world. In short, CAPSIM creates a closed-off, and relatively predictable world when it comes to the political and legal environment. Unfortunately, that makes the simulation quite different from the …show more content…
While this makes working on the simulation less complicated, it also gives that supplier a lot of bargaining power over how it prices its materials. In regards to the Porters Five Forces Model, this basically means that team Andrews is unable to bargain for cheaper costs for its materials, which means that there is a lower overall profit margin. (Porter, 2008). Customers also have strict preferences about the kind of sensors they want to purchase, which further places Andrews in a worse-off situation. Specifically, when preparing for round 4, (involving the ethical dilemma), having just one supplier became a major weakness for Andrews. Being involved with a supplier that has been known to violate labour laws, brings forth a great social and financial
There are many stakeholders in this case and each stakeholder could be affected in various situations.
The suppliers bargaining power is generally strong because of the big monopolies and the high importance of purchasing components and operating system, therefore it decreases the profitability of the market players.
In general, will help reduce the risk of getting into legal problems. As mentioned earlier, Andrews will be facing a profitability concern in the market. Competition is on a rise and the only way Andrews can compete in the market besides developing a competitive advantage in business ethics, would be to reduce costs. However, if Andrews continued its business operations with the previous supplier, there will definitely be more risk of legal issues as that supplier has a bad track
The 5-Force Industry Analysis first introduced by Michel Porter, Harvard Business School professor, a quarter-century ago. This theory examines the suppliers, buyers, product substitutes, existing firms’ rivalry and new entrants in a firm’s product market.
...not provide the company with opportunities to analyze its internal strengths and weaknesses like that of the SWOT analysis. In short, Porter’s five forces model is related to the threats of the company resulted in the current market scenario.
Porter’s Five Forces Model is a widely used tool by strategists to develop a competitive analysis, from which they will be able to develop strategies (David, 2013). When looking at Delta, it would be beneficial to look at the external forces this will help top management develop strategies to combat external factors, threats from external factors could potentially harm Delta. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces: 1) Rivalry among competing firms, 2) Potential development of new competitors, 3) Potential development of substitute products, 4) Bargaining power of suppliers, 5) Bargaining power of
In order to make the most logical and beneficial purchases, it was first important that I fully understood the terminology used within the stock market. Words such as blue chip stock, mutual fund, stock splits, and ticker symbol would all prove incredibly important for me to understand if I was to do well within the game. For example, the first stock I bought, Disney, taught me the definition of a ticker symbol - in Disney’s case, DIS. This enabled me to quickly identify other stocks by their ticker symbols as well, and I soon became familiar with the term. In addition, when I bought Coca-Cola, I soon learned its financial importance as a reliable blue-chip stock, as it and other stocks like it proved profitable for me. My class was also required to buy a mutual fund, and in doing so I learned how exactly a mutual fund differs from a stock, the positives and negatives of buying one, et cetera. In addition, my knowledge of the history that places like the NYSE contains proved incredibly important towards my success within the game. Because I learned about the NYSE’s foundation and the many people who worked to make it what it is today, I was able to fully appreciate the importance of the stock market as I moved through the simulation. This, in turn, helped me take the Stock Market Game seriously and not waste any of my money on stocks that I considered
For our Global Business module we were tasked to efficiently manage a company throughout a 4 year trading cycle in the Global DNA Capsim Simulation. Managing an organization involves many components and the Capsim simulation provides the utilization of 4 main decision making areas which are Research & Development, Marketing, Production and Finance. Since there were 4 decision making areas, we were required to work in a team and compete against other teams in the class as well as computer simulations.
middle of paper ... ... For instance, if customers stopped buying a product or investors withdrew their investment because of a greedy pursuit of profit. The future of an entire business collapses. In addition to this, maximizing the profit by just binding to the rules of the game is not enough since the rules of the game are not always fair, thus primary and secondary stakeholders should be considered while making money.
Individuals have their own personalities that can influence their enthusiasm and productivity within an organization. In addition, individuals also form groups and are part of teams that work together to reach a common goal within organization. According to Gibson, Ivancevich, Donnelly, and Konopaske (2009) dedicated and cohesive teams can have a tremendous impact on organizations effectiveness and the global market. However, all of this happens within the frame-work of office politics and can hinder or enhance the organization’s effectiveness. Therefore, it is important to not only understand individuals, but also groups, teams and office politics within the organization. This will help leaders to plan, organize and motive individuals and groups for the best possible outcome for the organization.
Porter’s Five Forces model can be used as the framework for the industry analysis and development of business strategy. Three of the five forces refer to rivalry from external sources and the other forces are from internal threats. The five forces are the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute of products and services, and the intensity of rivalry among competitors in an industry (Dess, Lumpkin, Eisner, & McNamara, 2014, pg. 49).
From my perspective, the usefulness of CAPM is directed towards efficient investment decision making and strategic management. Moosa (2013) remarks CAPM to be a supportive model in ‘evaluating the performance of managed portfolios and for investment purposes’.
Stakeholders are interest of an individual or groups that directly or indirectly affected by the organisation’s activities, policies and objectives (Henry Frechette, 2010). Stakeholders can be divided as internal (managers and employees) and external (shareholders, customers, and suppliers) (BPP F9). Different stakeholders may have common interests or conflict interests with company. Company board members or management must take care about stakeholders’ interest. They can’t make the decision based on their own interest or their relation with others organisation. Conflict of interest will arise when interests of organisation act in concert with managers’ personal interests or interests of another person or organisations, (Anon, no date).
Something that may come to everyone’s mind nowadays and the number one thing that is looked at after a presidential election and every New Year is stock. Stocks determine the health of the economy, the money people are willing to invest, take risks on and win back or lose, but because of the crash, it discouraged people from investing in stocks and instead a huge amount of withdrawals happened leading to the economic collapse that occurred. The U.S. government began to worry it would run out of gold because everyone began to turn the couple dollars they still had into gold, so the Federal Reserve decided to increase the value of the dollar. Banks began to fail and lose savings; people had to withdraw the money they had left, leaving banks no other choice but to shut down. In turn, everything in the present and the future is judged through the stocks as they hold a high importance in industrialized economies showing the healthiness of said countries economy.
Substantive and Procedural Law – Substantive laws are the social rights and duties of people, and procedural law are guidelines through which government bodies or courts deal with breaches in substantive law. E.g. substantive law would state that hitting someone with a car and driving off is a crime, while procedural law would define how the courts could try and sentence in the case.