Business - Society and Planet Management

Question: Discuss about the Business, Society and Planet Management. Answer: Introduction The adoption of global operations among various companies has played a critical role in improving their operations in the market. Both Coca-Cola Company and Wal-Mart Incorporation have adopted strategies aimed at producing high-quality products and services and venturing into new markets. Since their inception, the two firms have been at the forefront of creating numerous employment opportunities to the people. Moreover, the move by the both businesses has resulted in the improvement of economic development and growth in many countries (Buettner, 2012). The multinational businesses have adopted policies and practices that are similar as well as those that are distinct to the specific organization. Describe the two companies that have been researched Coca-Cola Company is an American multinational company that manufactures non-alcoholic beverages. The organization was formed by John Pemberton in 1886 during the industrial revolution. Coca-Cola Company undertakes the manufacturing process, retailing and marketing of soft drinks. The company operates globally and has employed 123, 200 workers across the world. As at 2015, the firm received revenue amounting to the US $ 44.294 billion. The continuous generation of high revenues has made Coca-Cola a global company and also led to expansion and the development of new divisions in several countries (Littunen, 2012). The current chief executive officer of the firm is James Quincy. Coca-Cola Company has built a popular brand of soft drink that has performed exemplarily in the world market. The company produces syrup concentrate that is sold to the bottling companies for processing and distribution to the customers. Wal-Mart Incorporation is an American global retailer. The company deals with diverse products such as grocery items, electronics, clothing, and health and beauty product among others. The organization was formed in 1962 by Sam Walton. Wal-Mart is the largest company by revenue in the whole world (Perkins, 2013). According to the 201 financial reports, Wal-Mart received revenue of US $ 482.13 billion in that financial year. The tremendous growth of Wal-Mart over the years has been attributed to the policy of producing affordable and customer-oriented products and services. The current chief executive officer is Doug McMillan who has steered the company to success using transformational leadership. Wal-Mart has opened subsidiaries such as Wal-Mart Canada, Amigo Hypermarket, and Jet.com. The major trading partners of Wal-Mart include Canada and China. What differences are evident between the two companies in terms of the range of issues dealt with in the reports and the depth of coverage on specific issues? Coca Colas Issues and its coverage Wal-Marts issues and its coverage One issue that has faced Coca Cola Company is the launching of healthy beverages as well as the normal soft drink. Since the start of the production of healthy beverages, the public have shown concern on whether the products have a significant impact on the health of the consumers. According to Pendergrast (2013), the company has in the recent years launched new versions of soft drinks such as minute maid and Dasani. The company has however ensured that the new products are safe for human consumption. Moreover, the company has adhered to the regulations of the Food and Drug Agency. One problem that Wal-Mart has encountered in their operations is negative influence on small and medium sized retailers (Kampf, 2013). Although Wal-Mart has created job opportunities for many people, the company has led to poor performance and underdevelopment of small sized retailers due to stiff competition. Wal-Mart has however, adopted effective strategies aimed at reducing the impact of the problem. The company has been providing funds to the upcoming retail shops in order to improve their operations. Another issue that the Coca Cola company has faced accusation of destruction of the environment. In 2004, the company was forced to shut down the Kerala division due excessive use of water that was interfering with the water table. Moreover, the packaging used by the company has also been opposed by human rights activists and environmental bodies. The bottles are non-biodegradable hence cause environmental pollution. However, the company is on a journey to adopt biodegradable bottles. Corruption scandal has also hindered the performance of Wal-Mart. The company was accused of corruption in 2012. The managers of the company were accused of giving bribes to Mexican officials in exchange of construction permits. The move violated the codes of conduct of business organizations. The company has embarked on a mission of eliminating corruption through enforcing proper behaviour as well as sacking corrupt officials. The company has also experienced criticism relating to language issues. Having refused to print the coca cola label in Catalan language, there was a massive demonstration in 2014. The demonstrators accused the company of discrimination of minority language. The companys label is found in 135 languages (Hollander, 2015). The company promised to print the labels in Catalan language as a measure of showing respect and recognition to minority languages. Wal-Mart has also faced several lawsuits based on labor relations. The company has been accused of providing low and unsustainable wages, inadequate healthcare and poor working conditions. In 2013, the company was accused of harassing the employees through creating a harsh environment for the workers. The National Labor Relations Board filed a suit against the company. Wal-Mart has tried to avoid the lawsuits through creating a sustainable environment for the workers To what extent can these differences be explained by the country or industry differences? What other explanations might there be? Coca-Cola (Country/Industry Differences) Wal-Mart (Country/Industry Differences) Development Coca-Cola Company has adopted measures aimed at promoting development in its operations. The company has established subsidiaries in several countries in different parts of the world. The company receives revenue of over US $ 44 billion annually (Luthans, 2014). However, the revenue of the company is smaller than that of Wal-Mart. Wal-Mart has recognized the importance of development. Being one of the largest retail companies, it generates revenue of over US $ 480 Billion annually. The presence of high revenue has enabled it to steer development and also initiate corporate social responsibility programs at a higher level compared to Coca-Cola. Culture The organization culture that Coca-Cola has adopted has ensured the implementation of a higher number of corporate social responsibility programs more than Wal-Mart. The company produces high quality soft drinks that are tailored towards the taste and preferences of a particular country. The company has therefore built good relations with the clients. Although, Wal-Mart is more successful than Coca-Cola, the culture of the company less effective than that of Coca-Cola. The culture of the company only focuses on the provision of low cost commodities while not developing a good relationship with the customers. Regulations In regards to adherence to the laws and regulations, Coca-Cola has faced several lawsuits on the safety of the newly introduced beverages. The company has failed to follow the regulations and laws on international law through enforcing monopoly in the international market. Wal-Mart on the other hand adheres to the laws and regulations on commercial activities in the international market. Wal-Mart has faced a lower number of lawsuits compared to Coca-Cola. This has created an enabling environment that has resulted into sustainability. Market Maturity Coca-Cola is more mature in terms of market adaptability than Wal-Mart. The company was founded in 1886 hence it has adapted to various market structures and changes in economic development. Wal-Mart has a lower market maturity. The company was founded in 1962 and therefore it has not effectively adapted to market changes(Meeks, 2011). The situation has hindered its level of sustainability. Technology Coca-Cola has a higher technological advancement than Wal-Mart. The company has adopted sophisticated technology that is used in the manufacture and bottling of the non-alcoholic drinks. The company has therefore embraced viable social responsibility programs. The technological infrastructure of Wal-Mart is not advanced. The industry has not adopted sophisticated technology since they do not undertake product manufacturing. Limited technology has also hindered the implementation of social responsibility programsAssess the apparent quality of the social accounting approach utilized by each company according to Zadek et al.s (1997) criteria. Zadek Criteria Coca Cola Company Wal-Mart Inclusivity The company has recognized the need to adopt the concept of inclusivity. The firm makes critical decision making after consulting the stakeholders of the organization. The employees, investors, shareholders, executives and the customers are included in making tangible decisions in the business. Through inclusivity, the organization has managed to improve its operations. Wal-Mart has also adopted inclusivity in its operations. The retail giant has adopted strategies aimed at appreciating the contribution of each individual in the stakeholders. For example, the consumers take part in decision making and policy making (Chuang, et. al., 2011). Moreover, both internal and external environment play a vital role in the operations of the organization. Comparability Among other soft drink manufacturing companies, Coca Cola is the most popular brand of soft drink. Other competitors such as PepsiCo has not been managed to control a large share of the market. Wal-Mart is the largest retailer by revenue. The company has therefore experienced a steady growth in revenue over the years. The organization had a revenue of U.S $ 482.13 billion. The amount is higher than that of its competitors such as eBay. Completeness Another feature that has ensured the success of Coca Cola Company is the completeness of its operations. The company follows the regulations set by the FDA as well as other federal policies. Wal-Mart incorporation believes in producing high quality but affordable products. Hence, despite the low price of its products, the commodities are complete and ready to be used by consumers. Evolution Coca Cola company has adopted new trends in order to remain relevant in the market. The company has introduced new brands such as Sprite, Fanta and healthy beverages. One measure that Wal-Mart has undertaken to improve its operations is the adoption of online marketing. The consumers can buy goods online and the company will deliver the goods to their destinations. Management policies and systems Coca Cola company is under a focused management that aims to improve its operations. Some of the policies that have been adopted included the production of high quality non-alcoholic drink that is tailored towards the taste and preference of the consumers. According to Wal-Marts policies, the company should aim at improving the lives of the people through provision of affordable but high quality products. Under the leadership of CEO, Doug McMillon, the company has adopted an efficient management. Disclosure Coca Cola is focuses on the provision of healthy drinks at affordable rates. The organization also has adopted policies that help in running its operations. Wal-Mart company is committed to providing diverse products and services that are tailored towards the need of the consumers (Michelson, 2013). The company also adheres to the federal laws and regulations. External verification Coca Cola company is a public trading company that is registered with the federal agencies. The company also adheres to the international laws on trade. Wal-Mart is a company that is recognized by the relevant federal agencies. The organization aims at changing the lives of the people through creating job opportunities. Continuous improvement Coca Cola company has undertaken a continuous improvement approach through the production of diverse non-alcoholic beverages. Moreover, the company has adopted advanced technology that is used to produce high quality soft drink (Dhar et,. al., 2015). Wal-Mart has recognized the importance of training of employees. The workers are trained regularly on how to work efficiently. Moreover, the company has also diversified its products. Several products ranging from health care, electronics as well as home delivery programs. Discuss the extent to which the social reports reflect the values of your selected companies. Coca-Cola Company is focused on providing products and services that are tailored towards the need and preferences of the consumers. One of the main factors that have determined the success of Coca-Cola Company is its policy of customer focus. The company has recognized the importance of producing goods and services that are focused on the needs and preference of its clients. There are strategies that the company has adopted in their quest to produce high-quality products. One way adopting a customer-focus approach is through involving the customers in decision making. Coca-Cola Company allows the clients to make sensible decisions concerning the operations of the business. Through allowing the customers views on the affairs of the company, the customers feel that they are part of the company (Armus, 2012). The clients, therefore, will develop a good rapport with the business. The company produces high-quality products ranging from soft drinks and healthy beverages. The products such as Fanta, Sprite and Diet Coke are of high quality. Sustainability According to the social reports, Coca-Cola Company is committed to attaining sustainability. The company has implemented various strategies and policies aimed at making it sustainable in the presence of competition from other soft drink manufacturers. According to Crandall et., al., (2012), one way through which the company has used to attain sustainability is through changing the lives of the people. The company has provided numerous job opportunities for people in different nations across the world. The organization has also ensured proper use of the resources to prevent waste. Effective Communication within the organization Communication plays a significant impact on the operations of an organization. Coca-Cola Company has therefore adopted an efficient communication system in the organization. The organization has been promoting upward communication. The managers and supervisors interact freely with the workers. The company also promotes teamwork. Through teamwork, the company has created an enabling work environment that has led to the achievement of goals and objectives. The company also promotes communication between the customers and the organizations. Hence the customers can ask questions and get feedback from the company agents worldwide. Wal-Mart has embraced a unique culture that aims at changing the lives of the people through providing affordable products and services (Matusitz, Reyers, 2011). In the organization, free interaction is allowed irrespective of the job position that a worker holds. Moreover, the company has recognized the value of teamwork. Each division is expected to embrace teamwork so as to effectively achieve their goals and objectives. Adherence to the laws, policies, and code of ethics One factor that has led to the success of Wal-Mart Incorporation is adherence to the laws, policies, and code of ethics. The company undertakes an awareness program in which the workers are encouraged to adhere to the laws, policies as well as work ethics. Illegal activities such as corruption and discrimination are not encouraged by the organization. Moreover, the business follows the federal laws that have been enacted by the international bodies. Since Wal-Mart is a multinational body, it has adopted an international focus. The products and services are tailored towards the needs and preferences of the international market (Perkins, 2013). Hence, the company undertakes an evaluation of the cultural and religious beliefs of every country in the quest to provide products that satisfy individual taste. Moreover, the company adheres to the international laws on multinational trade. Technological Advancement and innovation Wal-Mart has also adopted modern technology in its operations. A larger percentage of the companys marketing is undertaken in the online platform. Moreover, advanced technology has led to the adoption of sophisticated equipment that can be used to efficiently store the products in the departmental stores before sale. Through innovation, the company is heading towards a bright future. Briefly, reflect on your groups discussions of these companies. In what ways did the ideas presented by your group confirm your conclusions or present another perspective to you? According to our groups discussion, the company that had brought a significant impact on the economy is Wal-Mart. Although Coca-Cola Company has also made a significant contribution towards development and sustainability, Wal-Mart was found to have fully embraced sustainability. We found that Wal-Mart has adopted strategies aimed at improving the lives of the people. Coca-Cola Company, on the other hand, was also determined to become a global soft drink giant through the production of high-quality products. The groups decision, therefore, confirmed my conclusion that Wal-Mart had highly participated in sustainability efforts as compared to Coca-Cola Company. According to my conclusions, the role that Wal-Mart has played in the contemporary society has changed the lives of many people. Wal-Mart has also become one of the leading employers in the world through employing over 2.2 million workers. In summary, the presence of business organizations can bring a great impact on the economic growth and development in a country. Both Coca-Cola Company and Wal-Mart has provided job opportunities to the people in different parts of the world thus stimulating economic growth. According to Martone (2013), business organizations should ensure that they adopt strategies aimed at improving the lives of the people through corporate social responsibility programs. References Armus, S. (2015). Coca-Cola Company. France and the Americas: Culture, Politics, and History: a Multidisciplinary Encyclopedia, 1, 273. Birkinshaw, J. (2012). Entrepreneurship in multinational corporations: The characteristics of subsidiary initiatives. Strategic management journal, 18(3), 207-229. Buettner, R.(2012). 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