Management analysis of Ecostore

  • Category:
    Business
  • Document type:
    Case Study
  • Level:
    Undergraduate
  • Page:
    4
  • Words:
    2622

Management analysis of Ecostore

Introduction

In the current business environment, several organizations have been faced with sustainability issues and several questions have been asked on what extent does a company becomes sustainable. This report looks at the history and sustainability practices and strategies adopted by ecostore, a Zealand based company. The report analyses the management analysis of the company and provides the role of organizational behavior, role of human resource management and also offers the reasons as to why the company engages in international business. The report ends by providing some recommendations on what the company should do so as to remain sustainable

History of Ecostore Company

Ecostore is a company based in New Zealand and brides itself in using sustainable and safe minerals and plants based ingredients in the production of its products. Some of it products include soaps, body wash and other baby care product. Ecostore was started in 1993 by Malcon and his wife Kelanie in their home at New Zealand. Both of them could have been utilizing organic and sustainable gardening practices on their family property for several years but to they came to realize that they were still exposed to various toxic chemicals through their body care and cleaning products they have been using. This led to the formation of ecostore. The motivation behind the formation of ecostore was come up with healthier products free from any toxic or chemical substances. Under the guidance of an expert, both Kelanie and Malcon developed laundry products with the philosophy of having health first in mind and the company has been producing health products till date (Malcolm Rands, 2013).

Their main focus was to create loyalty among the customers and make them consume much of their products and for sure much of the customers have been commenting in the company’s website that their
dermatitis, eczema, asthma and other allergy diseases had disappeared after consuming ecostore products. With time, their customer number increased thus it also lead to the growth of number of carbon miles that transported their products from and to Freemans Bay. This made them to relocate to Auckland place in 1997so as to allow them open another retail store in Freemans Bay. By 2002, the company had expanded its operations and started producing various household cleaners, baby care and body care products. By the end of 2005, ecostore had expanded its production to countries like New Zealand, Australia and USA

As far as innovation and research is concerned, the company has done some extensive research so as to ensure that there is production of health and environmental friendly products and is continuously looking for ways of improving the way in which they produce their products

Sustainability strategies adopted by ecostore

The company uses plant-based materials from the palm kernel oil and palm oil in the production of their products as an alternative way to using petrochemicals. The petrochemical industry has heavily contributed to environment pollution and has had much impact on the aquatic environment.

Palm oil has been regarded as highly efficient raw material by oil producers and is very effective crop if effectively managed. With the introduction of new technology, most companies considered as a renewable alternative to petrochemical, which also assist in alleviating poverty in some of the developing countries (Laszlo, 2003). Nonetheless, the ever growing palm industry has led to the expansion of palm oil plantations which has become a threat to tropical forests, the home of endangered species, and also rights of local community.

Ecostore is committed to ensuring that the palm oil they use in the production is used responsively and does not contribute to deforestation or endanger human rights in any way. The company was among the first companies to join Roundtable on Sustainable Palm Oil (RSPO) in 2007. This is an association involving various organizations in palm industries that have come together to implement global standards for palm oil. RSPO ensures that fundamental right of the plantation workers, small scale workers and their families and the local communities are protected

Ecostore is also committed in ensuring that their approach to sustainability is built upon RSPO certification and takes full responsibility of ensuring that it engages with its suppliers and manages its supply chain. It is important for the company to trace its supply chain back to the source that meets sustainability and the requirements of RSPO and also those of the company. The company progress on sustainability is available on the company’s website in order to support the company’s transparency (Maris, 2010).

Ecostore’s action plan towards sustainability

Ecostore works closely with its suppliers as this has enabled them to trace the source of its palm oil products through its supply chain. It also takes full responsibility of its suppliers so as to ensure there is a proper sourcing of raw materials, assisting companies and local communities to deliver sustainable products

Role of organizational behavior in Ecostore

Organizational behavior offers some insights and solutions to various existing problems within the organization. In Ecostore, the following are some of the major roles played by the organizational behavior

Globalization— as a result of globalization, Ecostore is no longer confined to Australia alone. The roles played by managers within the organization are expanding beyond the borders therefore managers have to deal with problems of unfamiliar laws, languages, management styles, work ethics etc. The HR functions of hiring, training etc. have totally changed and have a acquired a global perspective therefore organizational behavior assist the management to be flexible and proactive as this enables them to execute the organization on an international perspective

Management of diverse workforce-Ecostore is a heterogeneous mix of labor force in terms of gender, age, race etc. Therefore management of diverse workforce has become a major challenge to the organization. Managers must deal with groups and also individuals who belong to various ethnic cultures and must have control over their behavior so as to come up with desired results. In this case, organizational behavior helps the managers to deal effectively with the diversity of the workforce by increasing diversity skills, promoting awareness, enhancing culture and diversity of skills and also encouraging gender diversity (Banerjee, 2012).

Enhancing quality and productivity- in the current market, most industries have a challenge of excess supply and in the end create a lot of competition to a bigger extent. Nearly all the managers within the organization are facing the challenge of enhancing the quality and productivity of goods being offered by the organization. In Ecostore, programs such as total quality management and business process reengineering are being practiced so as to achieve these ends. Therefore, organizational behavior helps Ecostore managers to motivate their employees, as they are they impair the implementation of change within the organization.

Enhancing customer service- Most of the employees in Ecostore work in production sector which are very demanding and require continuous interaction with the clients of the organization. The management within the organization must ensure that employees do everything possible to ensure that their customers and other stakeholders are satisfied. The behavior and the attitudes of the employees affect customer satisfaction in one way or another. In this regard, organizational behavior in Ecostore helps the managers in improving the customer service thus leading to improved organizational performance.

Enhancing people skill- Organizational behavior assists in bettering the management of the organization as this improves the skills of its workforce. It offers some important skills that employees can use in enhancing their work such as job designs that creates and enhances teamwork within the organization

Change and Innovation-Organizational behavior has contributed much in innovation and change within the organization. As it can be seen, employees can either be instruments or hurdle of change. Organizational behavior plays a critical role in fostering new ideas and techniques that promotes change and innovation by enhancing creativity among the employees within the organization.

Work life balance- It becomes very hard for those organizations that do not help their employees achieve work life balance to retain their highly talented employees. In such a case, organizational behavior assists the organization in designing flexible jobs that helps their employees in dealing with work life balance issues.

Promotion of ethical behavior- At one point in time, Ecostore has been faced with lots of dilemmas especially when defining what is right or wrong. It is through the organizational behavior that assisted the management to create a working environment that is ethically healthy and increase job satisfaction, work productivity and also organizational citizenship behavior

Creating conducive working environment- Organizational behavior assists in creating a good working environment especially during the time when there are a lot of pressures unlike before. Organizational behavior helps in developing human strength, resilience and also fosters vitality within the organization.

Ecostore’s Human Resource Management practices

The following are some of the Human resource management practices adopted by the company (Chandra, 2011).

Proper recruitment and selection practices, for instance, zero effect recruitment, total quality recruitment and right first time recruitment

Broader system of remuneration, for instance, providing the staff with bonus packages for those willing to be multi-skilled

Flexible job design and teamwork where the company encourages cohesiveness and designs jobs that empower employees toward the achievement of its goals

Training and development, for instance front office and public relation staff are continuously trained so as to enhance their social and interpersonal skills that enable them serve the customers effectively.

Employee involvement- the employees are continuously informed about what is happening within the communication and changes that might likely affect them

Performance appraisal regarding reward systems, for instance, assessing the customer feedback in order to identify extra work done by employees and which one of them deserves to be rewarded.

Role of international business to the company

In any business environment, international business is all about transactions involving two or more countries. The reasons why companies such as ecostore is so much unto international business is to increase their customer base since international markets are profitable when carefully entered. In the current business world, most companies whether small or big, are affected by competition and global events since most of them sell their products or source their suppliers from the foreign companies (Mullins, 2007).

Several companies engaging in international businesses are involved either in exporting or importing more than any other business transaction. According to most of the international business experts, importing of goods and services involves a logical process that has a natural structure, and can be seen majorly as way of understanding the business environment of a target country, using proper marketing mix, creating a marketing plan basing on the mix, executing through a strategy and coming up with control measures that ensures that the plan has been dully followed and implemented. The process of exporting should be evaluated, reviewed and modified regularly in order to use the mix and also to take into considerations changes that might affect the competitiveness

Another major reason as to why the ecostore is much unto international business is to enhance its networking and interaction with other companies in foreign markets especially that practices sustainability in their businesses. This view looks at the manner in which ecostore interacts and networks with other companies to gain competitive advantage in the global markets. Some of the ways of connection is using same components or subcontractors, sharing the cost of carrying out research or working together in same legislative framework.

Since ecostore majorly deals with palm oil in the production of its products, it is much unto international business so as to source raw materials that from companies that are practicing sustainability in their operations. Supplies that have adopted the element of sustainability have chances of interacting much with the company (Pearse, 2012).

Role of technology management in ecostore

At ecostore, technology management involves organizing, coordination and management of activities so as to achieve its objectives. One of the main aims of technology management is to reduce the operational costs and improve its operations. The technical team within the organization is tasked with analyzing customer needs and specifies the kind of technologies to be implemented. After this process of analyzing, what is found will be beneficial to both the organization and the customers thus leading to growth of the organization.

Technology management in ecostore assists in elimination of duplication as it automates the flow of information within the organization. It has a setup of management information system which sends any potential threats or opportunities to the management. It has come up with Flow integration solution which has improved the organization’s data accuracy, cleared growth path and has saved a lot in time for its staff.

Conclusion

As mentioned above,Ecostore was started in 1993 by Malcon and his wife Kelanie in their home at New Zealand. It is a company that brides itself in using sustainable and safe minerals and plants based ingredients in the production of its products. Some of it products include soaps, body wash and other baby care product. Some of its HR practice includes Proper recruitment and selection practices, broader system of remuneration, flexible job design and teamwork, training and development and employee involvement. It also comprises of performance appraisal in line with reward systems, for instance, assessing the customer feedback in order to identify extra work done by employees and which one of them deserves to be rewarded. The company uses plant-based materials from the palm kernel oil and palm oil in the production of their products as an alternative way to using petrochemicals (Simmons, 2011).

One of the major reasons as to why the ecostore is much unto international business is to enhance its networking and interaction with other companies in foreign markets especially that practices sustainability in their businesses. Some of the ways of creating connection is using same components or subcontractors, sharing the cost of carrying out research or working together in same legislative framework.

Recommendations

The company should strive at carrying out comparative component analysis of every product as compared to leading brands so as to ensure that it achieves proper environmental rating thus improving its image (Jonash, 2010).

The company should carry out independent environmental testing so as to ensure that its products are suitable for grey water and septic tanks systems. 

Since packaging has been one of the impending problems facing the company, it should aim at reducing waste as much as possible by adopting the use of recyclable and a mix of recycled materials during packaging

References

Afuah, A., 2009. Strategic Innovation: New Game Strategies for Competitive Advantage. Routledge.

Banerjee, S.B., 2012. Corporate Social Responsibility: The Good, the Bad and the Uglyd. Edward Elgar Publishing.

Bruton, G.D., 2010. The Management of Technology and Innovation: A Strategic Approach. Cengage Learning.

Chandra, P., 2011. Human Resource Management. Tata McGraw-Hill Education.

Cullen, J.B., 2013. Multinational Management. Cengage Learning.

Fallan, K., 2016. Designing Worlds: National Design Histories in an Age of Globalization. Berghahn Books.

Frankel, C., 1998. In Earth’s Company: Business, Environment, and the Challenge of Sustainability. New Society Printers.

Horngren, 2010. Sustainability Management. FK Publications.

Jonash, R.S., 2010. Greenovate!: Companies Innovating to Create a More Sustainable World. IXL Center.

Laszlo, C., 2003. The Sustainable Company: How to Create Lasting Value through Social and Environmental Performance. Island Press.

Malcolm Rands, M.T., 2013. Ecoman: From a Garage in Northland to a Pioneering Global Brand. Random House New Zealand.

Maris, L., 2010. Live Green, Calgary!: Local Programs, Products & Services to Green Your Life and Save You Money. Rocky Mountain Books Ltd.

Mullins, L.J., 2007. Management and Organisational Behaviour. Financial Times Prentice Hall.

Pearse, G., 2012. Greenwash: Big Brands and Carbon Scams. Black Inc.

Simmons, P.J., 2011. The Green to Gold Business Playbook: How to Implement Sustainability Practices for Bottom-Line Results in Every Business Function. John Wiley & Sons.

http://www.ecostore.com.au/