The following assignment is about analyzing the marketing environments and the management issues of a company. The main issues of sustainability of the company are also the topic that has to be discussed during the topic. The chosen company for the discussion is Desso that is situated in Australia. In the first place, the background information of the company has to be provided. The entire international business environment and a PESTEL analysis has to be dine on the company. The mode of operations in which the company operates and the rivals it has to face also has to be discussed in this assignment. The important planning and strategies have to be made so that their visions and missions can be understood in the course of the discussion. Their future plans and the ways they are coping up to retain the sustainability have to be described to understand the matter deeply.
The chosen company of this assignment is Desso. It is located in Australia. The company is famous for manufacturing carpets of the highest quality. They prepare different types of carpets that cater to the needs of different fields. The types of carpets that they produce are used in different needs like in the commercial sectors, hospitality, marine, aviation, sports and many others. These are very useful to the organizations as the beautiful carpets help to increase the beauty of the floors in the offices. Many people come from abroad to visit the offices for different needs and such beautiful carpets adorn the floors. This creates an aesthetic impact on the minds of the visitors and in turn, praises the makers of the carpets.
The management team and the organizational structure of the company is very well governed and well maintained. At the top of the tree of hierarchy is the Supervisory board that is headed by the Chairman of the company that is headed by Eric Joost Ernst. The investment partner company for this organization is the Bencis Capital Partners. At the next level, there is the Executive Board where the CEO and CFO of the company are positioned. The CEO of the company is Alexander Collot d’Escury and the CFO of the company is Tom Francken. The Executive board makes the company’s policies in the product branding and marketing field.
The sustainability of an organization depends largely on the international business environment. Global business environment is a measure stick by which the local organizations fix their policies (Hill, Cronk and Wickramasekera 2013). All the emerging and established organizations should evaluate the current business environment and keep themselves updated with that.
Australia is also progressing in terms of adapting to the changes caused by the international business environments. There are many big international business organizations in Australia like the Wesfarmers, QBE Insurance, Amcor, IBIS World, EBSCO have been very successful in their quest to dominate their respective industries (Baker 2014).
The environmental factors are very much important in deciding the course of development of business in many ways. These environmental factors include Political, Legal. Economic, Socio-Cultural and Technological factors. In short, this analysis is called the PESTEL analysis (Jurevicius 2013).
The political scenario has to be evaluated of the country and see if the country is politically stable. Australia is a politically stable country so there will not be such huge problems for the development of Desso from political side (Jurevicius 2013).
The economic factor is very important in the sense that the company has to fix the prices of the products at an affordable rate so that they can avail more customers in their favor. It has to be made sure that the carpets produced by Desso could be affordable by the people who want to use it for residential purposes. (Jurevicius 2013).
Desso has to analyze the socio-cultural aspects of the industry (Jurevicius 2013). They have to assess the area they will be operating their business and prepare a demographics and psychographics chart for their target consumers and also look to the cultural issues that may be cross-cultural problems.
In the age of digital disruption, Desso must try to attract their popularity over social media and they should also use updated technologies to produce their goods in faster and cost-effective ways (McQuivey 2013).
The laws that are made in the certain country for the business organizations by the government, must be maintained by Desso. Desso should also look to make new laws for the company and they should always abide by these laws to avoid legal problems (Jurevicius 2013).
The environmental factors include agriculture, tourism and others. Desso should adjust with the surrounding environment and look to expand their business in those circumstances for a better future of the company (Jurevicius 2013).
Competition is a very important aspect in the modern day business. Every company wants to gain competitive advantage over one another. The rival companies within the market manufacturing industry of Desso are companies like Brintons, Feltex Carpets, Godfrey Hirst Carpets, Carpet One and some others. In order to beat them, Desso has to produce best quality products and a wide range of products as well (Baker 2014).
The company has realized that in the modern era, almost 90% people spend their times indoors so it is very important that they should use healthy interiors. The vision of Desso is to be the world leader in making products that are responsible in flooring. It would deliver outstanding value in design and functionally it will cater to the wellbeing of the people. Their tagline is ‘The Floor is Yours’. They want to mean that they give their entire focus on customer satisfaction only.
Their mission is to become the global leader in becoming the best provider of carpets to all the areas they cover.
They have targeted to maintain the sustainability of the organization so they have put some important values on some of their products that would be effective. They have adopted corporate strategies keeping in mind the goals they want to attain Galpin and Lee Whittington 2012).
The visions or goals of the company have been discussed earlier that they want to become the top manufacturers of carpet in the industry. They have adopted some plans for achieving that. They have tried some strategies which include operational excellence, innovation, expansion and communications (Rothaermel 2015).
They are trying relentlessly to satisfy the needs of the customers so they have given special focus on the operational excellence of the company. They maintain the best resources to supply their customers the best products.
Three of the most crucial aspects of their innovation strategies are creativity, functionality and cradle to cradle. New excellent designs and producing health friendly carpets for their customers is their main goal.
Desso wants to expand its marketing activities in Asia so that they can capture the markets like China, Japan, India, UAE and others. They want to expand it in Latin America as well. They want to develop their market channels as well.
They want to create a smooth communication system between them and their customers. This will help to address the problems the customers are facing and solve their problems through new ideas. This will be a great booster for reinventing their organization (Wang and Feng 2012).
Desso has been able to plan their development in new ways. These ways surely can be called innovative and modern. Their development planning includes certain strategies as making communication bonding stronger between the customers and manufacturers. They will also look to strengthen their strategies by expanding their markets across the continental borders. This will lead to a modern global business planning strategies (Rothaermel 2015).
Corporate sustainability is of immense importance in directing the way in which the company is going (Benn, Dunphy and Griffiths 2013). The development of a company can be measured only if it has achieved proper sustainability in all the sectors. Their Cradle to Cradle to plan has been a success as it has been able to deliver the customers a healthy carpet that would be helpful to maintain its reputation. The present customers would also recommend about this company and the company will be able to bring sustainability to their ventures.
The Human Resources management in Desso has employed some effective competitive strategies that have been able to give Desso a better place in the industry over their rivals.
The HRM has been able to set its focus on innovating new ways of manufacturing carpets. They deliver their goods in many sectors like sports, aviation and others. New innovative products will be welcome by all the customers (Pisano 2015).
HRM department has been strengthening on enhancing the quality of their products every time. They ask for customer feedbacks and try to improve their negative points. This relentless effort in improving the products has helped in improving the company’s brand image (Apps and Erazo 2012).
HRM department have looked to recruit new, talented and qualified faces in the company so that the energy level of the new employees could be reflected in their productivity. Thus, the recruitment strategy has helped them to flourish altogether (Breaugh 2013).
Desso has always looked for building an effective workforce who would be able to cater to the needs of the company. They look for qualified, energetic, talented, skilled employees and recruit them after verifying their technical skills (Chinomona 2013). These employees are the nerve centers of the company. They give their level best to implement and execute the plans taken by the hierarchy. The company also looks after them very well and fulfills their needs and pay them handsome amount. They maintain a good working atmosphere and employee-employer relationship (Sparrow and Cooper 2013). This way, they develop and manage their workforce who brings in the desired success.
The role of sustainability is very important in HRM activities as well (Van De Voorde, Paauwe and Van Veldhoven 2012) Some sustainable practices have been incorporated into the HRM activities to enhance the working abilities of the department within the organization. The HRM has been given the power to take the necessary steps to improve the brand image.
Desso has set a great example of leadership management before the entire industry (Sharma and Jain 2013). Their corporate governance style has much to do with the daily doings of all the departments. The leaders of the organization have kept a sharp eye on every step and its implementations. The senior management has always encouraged the employees to work better and give their best efforts and seen them as a family. This has motivated the employers so much and their reports are reflected in the annual profits of the organization. The mission Cradle to Cradle has really brought an evolution in the organization and taken them ahead of their planning, resulting in fantastic turnovers.
Some effective leadership traits have been followed in Desso to obtain the goals in their favor. Their leaders have been emotionally stable, very enthusiastic, tough-minded, highly energetic, intuitive, matured, team-oriented and charismatic (Pieterse, Van Knippenberg and Van Dierendonck 2013).
The employees have been motivated by the leaders all the way so that the employees have been able to produce good results for the organization (L?z?roiu 2015). The leadership in Desso has been charismatic in style. The leaders are very much enthusiastic and responsible about their roles. Their tough-mindedness and energetic behavior has been transformed into the employees. The leaders have enforced the team oriented methods to complete a work (Pieterse, Van Knippenberg and Van Dierendonck 2013). This has been very effective in incorporating in sustainability to the organization as the right approach to any work never fails in its purpose.
The operations management has been very effective in Desso as the company has sustained a continuous growth in its industry (Krajewski, Ritzman and Malhotra 2013). The operation managers have discussed the matters with the employees and the HR managers about how to improve the production of the company. The goods have earned a good reputation in the market so that the company has earned a good spot. The communication between the operations management and the other departments has worked in the development process (Krajewski, Ritzman and Malhotra 2013).
Desso introduced the initiative Cradle to Cradle and later the Take Back campaign that catered to their supply chain management systems (Stadtler 2015). The supply chain management systems have helped the company to engage the implementation of new technologies, and helping the company to develop in the global business market. They have secured the health of their customers that has been very much effective for their reputation.
In the field of using new technologies, Desso has been a pioneer when they introduced the Cradle to Cradle initiative (Sherratt 2013). This included the use of non-toxic materials to produce their goods that would not harm the health of their customers. This new technology did a lot to improve the company’s brand image. These new innovations have helped a lot to retain the sustainability of the company (Monczka 2015).
Conclusion
After a thorough research on the matter of sustainable marketing and management, the chosen company Desso has been focused to analyze the findings. Different scenarios have been used to see how the company has coped up with the challenges in front of them and how they have come successful. The scenario of leadership effects, operations management, value chain management, analyzing the various environment factors, the proper planning and strategies taken by the company all have been discussed in the course. The background of the company has helped to understand the matters better in terms of their product variants. The international business environment has been understood with the above mentioned effects in the context.
8. References
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Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate sustainability. Routledge.
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Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review, 93(6), pp.44-54.
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