The number of eco companies has been on the rise due to global awareness on the need to use products which are safe for both mankind and the entire plannet in general. Ecostore is one example of an ecocompany that was founded on the basis of great enterprenuer spirit. Ecostore has thus embraced the «go green» course through manufacturing products that are safe for the human consumption as well as the environment. Ecostore provides a good example of companies embracing the “go green” initiative which ensures sustainability in the future. Ecostore Company has been on a remarkable growth in Australia. The management of the company has taken various strategies in fostering its growth through HRM, organization behaviour, international business and Information Technology. However despite the company achieving success in its “go green” course there is a lot that needs to be done in order to ensure the company’s gradual growth.
Table of Contents
Executive summary 2
1.0 Introduction 4
2.0 Background 4
53.1.0 Human Resource Management
73.1.1 Role of organisation behaviour
73.1.2 International business
83.1.3 Information technology
4.0 Entrepreneurship and innovation 9
5.0 Recommendation 11
6.0 Conclusion 12
7.0 Bibliography 14
Ecostore Australia is a company that specialises on merchandises that are healthier for both the human beings and the environment. Founded in the year 1993 by Malcolm and Melanie Rands in NewZeland. The main goal for the company was to provide the New Zealand citizens with essential products that guarantee healthier living. It was also founded on a course- related business that was to foster the company’s resource accumulation for its non-profit organisation’s course known as fairground foundation. This paper thefore seeks to highlight on Ecostore Company structure, major stakeholders, leadership style and management strategies in relationship to enterprenuership, innovation and sustaiability.
Over the years the ecostore has developed to a research and development company which has also furthered the company’s course of venturing into the manufacturing industry.However, ecostore’s guiding principle over these years remains creation of end products that are good for the environment and the users as well (Deng & Ji 2015). The company has put a lot of focus on the individual health issues in its product development. Thus, the company ensures that the least number of ingredients and concentrations are used in its end products. On the other hand, it ensures that it does not use any bulking agents in its end products hence ensuring that the products produced are quite affordable.Ecostore is reported to be distributing its products to the majority of the organic stores and supermarkets located in New Zealand. It deals with a wide range of products from laundry, skin care, dish and hair cleaning products. In Australia alone, the company’s products estimated to be in an estimated 800 supermarkets and 300 health stores.
Ecostore Australia has built its reputation on being a health and environmental cautious organisation (Albino, Balice, & Dangelico, 2009). In this case, the company in Australia is known to guarantee products which are predominantly made from mineral based ingredients and plants which ensure the health and safety of both the people and the planet.
One significant importance of Ecostore as a Company in the international business landscape is that it has it has availed a wide range of eco-friendly and healthier body care, household cleaning and organic gardening products to the global market. It has also looked after the well-being of the both the planet and people (Sung-Joong Kang & 신진옥, 2010). In Australia, the most significant importance of the Ecostore company, is that it has helped further the course towards sustainability through its Fairground Foundation a non-profit arm of Ecostore. On the other hand Ecostore has also inspired Australia to take up precautionary approach for the manufacturing companies in the country in order to foster sustainability.
3.1.0 Human Resource Management
One relative theory evident in Ecostore Company is the Resource-Based Theory. In this case, the green initiative which the Company has focused on is the resource used by the company to give it a competitive advantage in the market. The company’s green initiative has led to it producing products which are cautious on the human and environmental wellbeing. This has therefore led to more customers opting for these products compared to the other competitors in the market. One strategy that the company has implemented under its Human Resource management is strategic recruitment and training that is driven by the company’s principle of sustainability (Susan M. Harris 2007). Thus, the company looks for potential employees with qualifications of a common sustainability purpose as that of the company (Tan, 2012). The company ensures that its recruitment and training process is carried out strategically to measure the potential employee’s ability to take up the sustainability and green initiative principle required by the company (Wagner, et al. 2010). Consequently, the company’s training is structured to ensure that the candidates are trained on sustainability and the green initiative which are the main values of the company.
Company structure management is another strategy adopted by Ecostore to help foster its green and sustainability culture. In this case, the company ensures that the products being produced by the company are sustainable to the core. Thus, the company’s management has created it ethical standards based on sustainability and the green initiative. Its HRM sector, in this case, has placed these ethical standards as the bar which the employees have to strive to achieve in the course of their undertakings within the company (Liebert 2008).
Additionally, Eco store HRM implemented the strategy of sustainable management. Its HRM gauges the workforce performance depending on sustainability and green initiative variables. its HRM also allocates some sustainability and green initiative responsibilities to the organisation workforce. The human resources department correspondingly uses an overall sustainability and green initiative assessment in the company’s workforce which cuts across all the company’s department gauging the workforce ability in adopting sustainability and green initiative culture in the organisation and their ability to produce results (Sung-Joong Kang & 신진옥, 2010).
3.1.1 Role of organisation behaviour
Ecostore’s organisation behaviour has been the driving force for the company; it has improved the goodwill of the company to its customers. Through Ecostore’s transparency and authenticity organisation behaviour, it has been able to further the customers trust for the company and also steer its reputation (Ashkanasy, et al. 2002). Ecostore openly welcomes potential customers to visit the company’s website where it provides a wide range of legitimate and authentic information about the company (Rands 2016). Thus, a potential customer is able to dig deep into every ingredient used in its products and the verified third-party health impact of all its products (Papadopoulos et al. 2014).
Pro-environmental initiative is another form of organizational behaviour that propels the company green initiative principle. This has enabled it to be cautious about the impact of the company’s products on human health and environmental conservation. This initiative has further encouraged the company’s employees to adopt and champion a green behaviour in line with the company’s goals and visions. In this case, the company has ensured that the compliance with the green behaviour is part of the company’s norms for its workforce (Oba & Ibikunle, n.d.). The company has also adopted the mind-set that the environment and the human body are bound to be protected regardless whether this course is profitable or not. Therefore, the organisation established the Fairground Foundation which is dedicated to this course.
3.1.2 International business
One principle that the company has focused on in relation to international business is the absolute advantage theory. The resources used in manufacturing Ecostore products are efficient and can be locally found it is more efficient for Ecostore to manufacture these products compared to its competitors (Naditz, 2008). Through this theory, the company has been able to save on its production cost, therefore, injecting finances on other areas which foster company’s operations in general. The strategies adopted by Ecostore in relation to international business include ensuring that all products are in line with its green initiative as well as its operation being in line with its sustainability course (Gan, et al. 2008). Thus, the company ensures that it does not compromise with its green initiative in any of its productions. Consequently, the company ensures that its production processes and company’s operations are in line with its sustainability principle as well as the regulations of markets they seek to venture into. Through research and development, the company has been able to implement these strategies by finding sustainable ways for its operations both locally and internationally (Klumpp, 2016).
One significant contribution of sustainability that Ecostore carries out in the international business is furthering the course of the green initiative. This particular sustainability action creates value in the organisation and the industry in general. It is evident that through sustainability organisation are able to increase their shareholder’s values in the company. Sustainability leads to good reputation which then results in an increase in the company’s overall value (Susan M. Harris 2007).
3.1.3 Information technology
One theory that Ecostore embraces in its organisation in line with its information technology is the centralised IT governance theory (Reynolds & George 2009). This theory reflected on the organisation’s preferences, for instance, it enabled the organisation to adopt green technology in its production sector, therefore, ensuring that its production remains to be green and per the company’s principles and values. External IT governance mechanism theory on the other hand enables the company to use varied technology from extensive to the limited ones. Hence, the company used this information technology framework to integrate its information technology sections with the company’s green practices and operations (Soo 2011). Through information technology, the company has been able to embrace various strategies which foster its operation and overall success. One significant strategy taken up by the company in line with information technology is digital marketing. Through this strategy has enabled Eco stores to revamp it marketing enabling it to use multiple marketing channels in order to advertise its products to a wider market margin (Bruin 2016).
On the other hand, information technology has also enabled the company to embrace computerised mechanised production as a strategy that improves on the companys overall production. Through this strategy, the company has been able to use state of the art machines which have significantly impacted the company’s production sector while also saving on the production time and manpower. Through embracing information technology Ecostore has been able to adopt “green IT. This has fostered sustainability in the company through embracing different technological framework which fosters sustainability and the green initiative in the production process (Tripoli 2009). This has fostered sustainability in the company through embracing different technological framework which foster sustainability and the green initiative in the production process.
4.0 Entrepreneurship and innovation
Entrepreneurship is the creating, launching and running a new business which essentially starts small but gradually grows (Drucker 2006). Ecostore is now one of the global businesses which are attributed to have formed on an entrepreneural spirit. The founders of Ecostore Malcolm Rands and his wife Melanie founded the company from their rural home in NewZeland. The idea about the company was generated from this couple sustainable organic gardening practices. This entrepreneural spirit has now resulted in the company venturing into international markets with the most significant one being the Australian market (Rands 2013).
The founders acknowledged that their home village which was an eco- village in the interior in NewSealand had a significant inspiration in the creation of the company. On the other hand, the founders claimed that the realisation to the number of toxins that human beings are exposed to also inspired them further to form the company (Garcia et al. 2015). Evidently Eco-innovation has played an essential part in entrepreneurship. For instance, Ecostore’s founder’s innovative touch of coming up with eco-friendly soaps, skin care and other household essentials led to the enterenership through which has latterly turned out to be a sustainable business. Therefore bringing out a clear corelation between entrepreneurship and innovation and how green inventions have specifically led to successful entrepreneurship courses. This is attributed to the global course on going green where the world is now extremely cautious on the effect of some of the essentially used products on human health and the environment in general (Susan M. Harris 2007).
Green products are in great demand a factor which has created a great niche which entrepreneurs are trying to take advantage of by coming up with more eco-innovations (Bruin 2016). It can be argued that the innovation diffusion theory played a major role in the establishment and success of Ecostore. This particular theory has been utilised by the company to create awareness on the importance of taking up the green approach. In this case, the theory specifies how five distinct categories of adopters can adopt a particular innovation, new product and technology ( Drucker 2006). For the case of Ecostore, the company has perfectly used this theory to create the public awareness on sustainability and the green initiative which has led to the an increase in the demand of their products co. For instance, the company has been able to venture into countries such as Australia and put its mark in the green household essentials industries (Dietsch & Philpott, 2008). The company course on innovation is increasing daily though embracing information technology and sustainability strategies in improving its production. In this case, the company’s production has now ventured into producing ultra sensitive essentials such as; dish liquids, glass surface spray and laundry liquid (Rands 2016).
Ecostore is still moving towards a sustainable future despite adopting some sustainability strategies. The company’s sustainability course if far from being achieved especially the environmental sustainability issue. The company’s HRM should therefore further the course of embracing sustainability in the organisation operations in terms of selection and recruitment. Its HRM should ensure that the company’s workforce understands the relationship between economic, society and natural environment. The company, therefore, should implement the green corporate culture in all of the company’s departments in order to ensure that sustainability cuts across all of the company’s operations. The HRM should also realign and consolidate its strategies in line with those of sustainability (Caputo, Ducoli, & Clementi, 2014). The company’s HRM should be involved in the formulation of sustainability policies and principles to be adopted by the company. On the other hand, the HRM future plans should also incorporate the sustainability framework having that Ecostore falls in the eco-friendly manufacturing industry which is significantly dependent on sustainability (Deng & Ji, 2015).
On organisation behaviour, the organization should incorporate a style and sytem that fosters change. The organisation, therefore, should consider going for an organisation leadership style that if flexible and one that easily accommodates change (Daniel 1990). In this case, an organisation leadership that should be optimal It should make sure the organisation leadership style blends with the organisation model (Angeles, 2014). Under information technology strategy, the company should ensure that it embraces this strategy having that the company’s green initiative, and sustainability course is significantly dependent on information technology (Albino, Balice, & Dangelico, 2009). The company’s production is also dependent on information technology thus it should ensure that it embraces information technology in all its departments to improve productivity through the use of state of the art equipments.
In conclusion, the Ecostore is a company that specialises in eco-friendly products. As evidently seen the company is determinant on sustainability and green initiative. The company has taken strategies in line with sustainability and green initiative in order to foster its operations. Ecostore is also a management sound company as it covers all its departments and equips them adequately. In my opinion if ecostore improves on its mangent aspect more so HRM it will expound and be a recognised multinational in the years to come. Most companies ain the 21st century are profit oriented thus their sustainability concept is not prioritised. With an increased need for ecofriendly products ecostore is meant to dorminate the eco market for years to come.
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