Sustainable Management in Ecostore Australia

Question: Describe the Report for Sustainable Management in Ecostore Australia. Answer: Introduction Ryan (2016) explains sustainability as a process under which enterprise implements different techniques through which environmental resources and natural systems are protected for the coming generations. Growing social and environmental issues are affecting planets ecosystems where water, land and air are being increasingly polluted with the activities of human and companies. As per World Centric (2016) report, tropical forest species are being extinct at a rate of nearly 5-10% every decade and it is being predicted that in the coming 30 years, one-fifth of species living currently will vanish. Australia is experiencing high rate of environmental degradation due to activities undertaken by entities present in manufacturing, construction and transport sector. As per research, 11% of total particulate emissions and 17% of total carbon emissions in 1997-1998 was produced by Australian companies which are still found to be very prominent to environmental degradation (Australian Bureau of Statistics, 2009). The purpose of the study is to understand how Ecostore Australia is implementing viable processes to improve the lives of people and to promote sustainability. The structure of the study has been divided in different section where after analyzing the importance of Ecostore in Australia various theoretical concepts related with fields like organizational behavior and HRM will be discussed. Based on analysis, recommendations and conclusion will be made. Importance of Company to Australia and International Business Cosmetics and skin care industry is considered among one of the most developing sector throughout the globe where the total worth of emerging and developed nations like Australia, China, India, New Zealand has a sectorial market value of $60 billion (U.S. Commercial Service, 2015). Though in countries like China, India and Russias cosmetics segment is less than even 3% of total value Australia has experienced a strong demand of net value of $ 2.8 billion (U.S. Commercial Service, 2015). Importance of skin care and cleaning items are greatly impacted by consumer behavior of people where men and women give high importance to personal appearance. The median age of people residing in Australia has been found to be 37 years and with increasing ageing population they are looking for the products that extend their youth appearance with minimum side effects (U.S. Commercial Service, 2015). Ecostore, New Zealand based company, has been operating its activities in several parts of globe like A ustralia and Asian markets with nearly 200 household and skin care items (U.S. Commercial Service, 2015). The company in 2005 attained mark of green tick production which portrays that items offered by the entity are 100% sustainable, natural, organic, ge-free and fair trader (Harris, 2007). Figure 1: Increase in demand of Ecostore items in New Zealand (Source: Harris, 2007) A survey was conducted on analyzing the performance of Ecostore after attaining the green mark certificate in New Zealand where it was found that demand for laundry items like liquid 500 ml increased from 219 to 282 units from October 2004-2006 (Figure 1). As per recent studies the requirements for ecological items in household and cosmetic items have increased where 65%, 62%, 60%, 53%, and 50% of people residing in China, India, Indonesia, Singapore and Japan is desiring to have sustainable items (The Statistical Portal, 2016). Ecostore has expanded its international transactions to varied economies where nearly 2000 outlets in Australia the company has opened several thousand stores in USA, Hong Kong and Singapore (Ecostore Company Limited, 2016). Theoretical Underpinning and analysis for Ecostore Australia HRM Buta (2015) has claimed human resource management as a strategic approach to improve the performance of company where people are inspired to work hard for the sustainability of the entity. Moreover, the concept of human resource management can be explained as processes under which capable people are hired, motivated and maintained at the work environment (Mat and Awadh, 2013). Recruitment in entities can be undertaken by two techniques, internal and external where under the former talented personnel are hired from within the corporate environment while in the later newcomers are approached for required designation (Indabawa and Zakari, 2014). Mohammed, Mat and Awadh (2013) argues internal technique of hiring people as efficient as compared to external as it results in higher employee commitment and development where companies are helping them at career advancement. Past studies undertaken in this field claims that entities that implement realistic job previews where applicants are of fered with every minute detail regarding the post are effective in attracting capable personnel at the enterprises (Mohammed, Mat and Awadh, 2013). Realistic job preview assists in deriving higher employee satisfaction regarding work and reduces the level of absenteeism as detailed information regarding the jobs results in assigning people as per their capabilities and interest. On the other hand, hierarchy and task structure has been equally found effective in deriving better human resource management where inability to approach higher authorities for problem-solving and improper communication model can lead in poor work culture (Hollyforde and Whiddett, 2002). Enterprises in order to be sustainable must be efficient implementing change management in its process as per flexibility present in external environment. Companies in order to make employees capable of initiating tasks with flexible environment must introduce on-the job and off-the-job training programs with techniques like classroom instructions and simulation (Ahmad, Jehanzeb and Alkelabi, 2012). Ecostore for hiring capable and committed employees uses internal and external procedures where job-seekers are informed regarding the openings and designation through online websites (EBOS Group Limited, 2007). Realistic job previews are offered by the company where they are informed regarding the company being highly contributing towards community development and implementing natural process throughout the production of items. Social media platforms like LinkedIn, Facebook and Meetups are extensively utilized by the company to make people aware regarding new openings for the stores (EBOS Group Limited, 2007). The hierarchy and task structure of company are simple where people are encouraged to share their issues with higher management. On the other hand, Ecostore Australia implements various induction and training initiatives for making people aware of its various certified products where they can serve the people requirements efficiently. Moreover, business units through Customer Service program Total Service and Support are helped to know the product expertise, post-purchase and technical support (EBOS Group Limited, 2007, p. 13). In order to retain personnel in corporate environment they are remained regarding the contribution made by enterprise in people life and environment. Additionally, they are offered with short-term and post-employment benefits where in 2007 the group throughout different stores across paid $2925 and $188 million as compensation to employees (EBOS Group Limited, 2007). Organization Behavior Uddin, Luva and Hossian (2013) claim that enterprises in order to perform efficiently in this complex and ever-changing environment requires leaders or managers who are capable of maintaining proper work culture with people. Creating good relationships with employees improves corporate culture and inspires people work on their capabilities to have desired tasks outcomes. Ahmad, Jehanzeb and Alkelabi (2012) opine that leadership processes that enterprises implements at its work culture have direct impact on personality of people where negative or positive reinforcement strategies implemented by managers drives innovation at companies. Companies often are found to utilize responsible management approach like triple bottom line and stakeholder engagement at its process to have better sustainability (Uddin, Luva and Hossian, 2013). However, Hollyforde and Whiddett (2002) argues that adopting sustainable means at organizational process entirely depends on enterprises were they as per thei r shared values or principles are conducting their activities. In the reference of Uddin, Luva and Hossian, (2013) organizational culture is highly impacted by vision and desired outcomes a company want to attain in the coming years. Recent studies have proved that companies to have better brand image among consumers are implementing sustainable techniques with which minimum wastage of raw materials is used along with achieving its desired outcomes (Uddin, Luva and Hossian, 2013). Ecostore vision and mission has always promoted giving importance to people health at where according to United Nations Environmental Program nearly 80, 000 chemicals are used by enterprises throughout the globe while 1000 of them are created every year (Ecostore Company Limited, 2016). As per research, no mandatory inspection of these items is required before selling them however, Ecostore has always followed precautionary principle (Ecostore Company Limited, 2016). Stores available throughout the regions of New Zealand and Australia are employing well-known scientists who supervise a team of people involved in developing items with maximum safety ingredients (Ecostore Company Limited, 2016). Additionally, the company for its Australian operations has been received highest number of certificates that ensures that its every activity is undertaken with the help of organic elements. This way the company is ensuring sustainability in its processes. International Business A company while expanding its operations to other economies requires understanding the external conditions present in new regions like government intervention and how they can undertake their activities in the economy properly (Daniels, 2007). Contractor (2007) has pointed out various concepts of internalization like David Ricardos theory of comparative advantage and Raymonds Vernons product life cycle that are required to understand the difference of operating activities in local and international terms. Some of the key modes to start operations in other nations are direct exporting, strategic alliances and Foreign Direct Investment which includes their own benefits and complexities (Daniels, 2007). Ecostore has expanded its activities to different regions of the globe like Australia, South Korea, China, Singapore and Japan (Ryan, 2016). From last recent years, the entrepreneurs have utilized strategic alliances like mergers to enter the new areas where they started selling off thei r shareholdings to other entities (Ryan, 2016). Information Technology Information technology with better connectivity options through internet and online platforms like LinkedIn has undergone numerous changes. Moreover, expansion of entitys activities to various parts of globe has made communication and connectivity complex where lack of proper information technology can result in operations failure (Oliveira and Martins, 2011; Ryan, 2016). Moreover, is highly essential for companies to inform interested parties like shareholders about the processes which can be undertaken with the help of regular emails, meetings, conference and by publishing reports of progress and contribution to sector (Ryan, 2016). Ecostore in order to have better information technology utilizes emailing and conferencing at regular intervals to inform people regarding the modifications or changes taking place at corporate culture (Ecostore Company Limited, 2016). Eurostore Australia implements green principles and organic techniques where recycling process is utilized for having s ustainable packaging of items (Ecostore Company Limited, 2016). For instance, for laundry boxes packaging the company uses PEFC boards that are manufactured from forest found in Whatkatnae (Ecostore Company Limited, 2016). Ecostore bottles are made from high density polythene that can be recycled further to be used for the second time. Clear backing and labels of packaging used by company minimize the percentage of ink and dyes that is normally required at high percentage by other companies (Ecostore Company Limited, 2016). Moreover, the company produces plastic trigger spray that is free from metal parts and can be recycled for further usage. Entrepreneurship and Innovation Entrepreneurship is derived mainly from innovation where people with a motive to transform the industry and through new ideas and concept try to conduct activities that benefit the society (Zahra et al., 2009; Bruin, 2016). Entrepreneurs are often described as risk-takers who are ready to initiate or administer changes to have sustainable business activities that bring positive contribution to peoples life. Entrepreneurs through their risk-taking efficiency and ability to bring positivity in people life inspire others to take similar paths. In 1993 Malcolm Rands started Ecostore at small-scale level in New Zealand with most sustainable and organic gardening practices (Ecostore Company Limited, 2016). However, the owner realized that in spite of maintaining sustainability through organic gardening materials, people are still exposed to toxic substances and chemicals by use of cleaning and body care items. Malcolms with a philosophy of health first focused to expand its activities in N ew Zealand, Australia and several other parts of globe (Ecostore Company Limited, 2016). The entrepreneurs were determined to avoid toxic chemicals in the production of items related with the segment. Normally, testing body care products on animals are common but in Eurostore including Australian stores no such technique is involved. Every items offered by company includes PETA (People for Ethical Treatment of Animals) symbol to inspire and ware people that their cosmetics items are made from organic elements and no animal were harmed throughout the process. Moreover, the company has involved itself in free trade where they buy organic produce from framers to assist them to have financial support (Ecostore Company Limited, 2016). Innovative technologies like measuring scoops inside the laundry powder container and auto dish tab boxes promotes innovation and assist the company to attain sustainability (Ecostore Company Limited, 2016). Additionally, Ecostore Australia items are create d over several months under direct supervision of Scientists ensuring that people health, safety and environmental standards (Ecostore Company Limited, 2016). Companys innovation and sustainable measures not only have strong brand image among people but is also motivates employees and other players to implement sustainable measures at their business model. Recommendations Human Resource Management: Maintaining proper workforce at enterprise has become essential for better profitability where they must be inspired from within to contribute positively in increasing earning of companies and doing well to society. Companies in order to have sustainability must enforce performance appraisal mechanism where people are motivated to perform well through better reward system. This way they will be encouraged to promote the vision of the company which this will offer self-satisfaction and improved employee engagement. Organizational Behavior: Managers leading the enterprise must be competent and capable of taking efficient decisions related with finance, environment and social outcomes that reduce unnecessary wastes. Implementing sustainable models like Triple Bottom Line will help the enterprise to have better profitability, corporate culture and environment. International Business: Companies for having good brand image and market share among the consumers must include sustainability measures throughout the process that will help it to grow its operations efficiently in other new areas too. Preparing managers for administering foreign cultures involved in global transactions can help the entity to have greater sustainability. Entrepreneurship: In order to have sustainable development, enterprises must try to build long-term relations with parties involved in the entire process beginning from employees, consumers, shareholders and government agencies. It can be ensured that proper compliance with guidelines offered by institutions like ISO that encourages people to reduce waste and to be have eco-friendly mechanisms of coming up with offers and services are being implemented. Conclusions Ecostore has been operating its activities in various parts of globe including Australia where it is inspiring people and entities to implement ecological measures of producing items to attain sustainability. Cosmetics and skin care industry is considered among one of the most developing sector throughout the globe where the total worth of emerging and developed nations like Australia, China, India, New Zealand has a market value of $60 billion. Figure 1 has illustrated increase in sale of Ecostores items after it attained Green tick which illustrated that it implements sustainable methods in manufacturing its various products. With rising complexities in environmental degradation people are preferring eco-friendly items where enterprises like Ecostore Australia are helping them to have healthy products. After going through human resource, organizational behavior, informational technology, international business and entrepreneurship policies of Ecostore it has been observed that the company has created a sustainable business model which ensures healthy life and reduces wastage of resources through better packaging techniques. Moreover, it implements scientific approach while producing the items and ensures no animal are harmed during the production which has helped the company to have sustainable development. Reference list Ahmad, A., Jehanzeb, K. and Alkelabi, S.A.H. (2012). Role of Learning Theories in Training While Training the Trainers. International Journal of Academic Research in Business and Social Sciences, 2(11), pp. 181-189. Ahmad, A., Jehanzeb, K. and Alkelabi, S.A.H. (2012). Role of Learning Theories in Training While Training the Trainers. International Journal of Academic Research in Business and Social Sciences, 2(11), pp. 181-189. Australian Bureau of Statistics. 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