Capability Development And Community Empowerment

Forces In and Outside of Business Firms

Discuss about the Capability Development and Community Empowerment.

Large corporations have become an economical, environmental, cultural and political force, which is unavoidable in the environment of today’s globalized world (Ansari et al., 2012). Moreover, large corporations and industries are highly influential on the everyday lives of billions of people around the world. While prioritizing the industries for their influence on shaping the world, IT industries would be the first priority. IT industries have major power in shaping the lives of the people. While considering telecommunication sector, it has made human life easy by reducing communication gap with people existing in far distance. People do not have to wait for long time in communicating with each other like the past days. People can communicate with each other even if they are in long distance and oversea the country. With the invention of telephones, Smartphone and internet, people can communicate with each in long distance within a fraction of time. The evidences can be found from the corporations like Samsung, Apple, Microsoft and BlackBerry (Ansari et al., 2012). The easy user interfaces of the products of these companies are easily accessible for the people.

While considering automobile industries, it has provided incredible freedom to the people towards their physical movement. Moreover, with the innovation and advancement, automobile industries are offering more safer and comfortable journey to the people. Furthermore, with the advancement in design, automobile sector has enhanced the sophistication in human life. Moreover, automobile sectors have huge contribution in world economy by developing quality of the world. Automotive industries account for 80% of sales and growth, which have major contribution to the economy of the world (Morris et al., 2012). Moreover, automotive industries are also removing the unemployment rate in the world by employing people in it manufacturing, sales and engineering departments. Moreover, the invention of hybrid cars has major contribution in protecting world from harmful impacts. For example, the hybrid cars of Toyota Company consume less energy and emit less carbon footprint towards protecting the world environment (Geng et al., 2014).

Food and beverage industry is also highly responsible for shaping the world. Food and beverage industry provides highly nutritious foods to the people towards providing them healthy life. Moreover, with the advancement in the decoration of the hotels and restaurants, people can also have fine dining experience in their life towards spending some quality life. For example, the Mandarin Oriental hotel in Hong Kong offers world class dining experience towards making the life of people so personal (Geng et al., 2014). On the other hand, healthcare industry administers care, treats and diagnoses millions of people from newborn to terminally ill people.  Structured healthcare organizations provide foundation of healthy lifestyle of the world people. Moreover, good healthcare and education induction highly contributes on rural development. For example, top healthcare company Abbott is highly focused on providing top-level medical services towards improving the quality of people life. They are providing their medical service to more than 150 countries by including the rural health life (Morris et al., 2012).

Financial Management

The role of work in today’s world has changed due to economic condition and changes in social demands. In today’s competitive business world, organizations are confronting changing and dynamic business environment. Some of internal and external forces, which are described below, force these changes:

The natures of employees have been changed over a passage of time. Different generations have expressed their work value at different ways. The old generation workforces are more loyal towards their employers, whereas the new generation employees are more loyal towards their careers. Moreover, the profiles of the employees are also changing so fast, as the new generation employees are highly educated. These employees put more emphasis on employee value and are more likely to question the management authority (Lockett et al., 2014). Therefore, the complex behavior of the new generation employees is forcing the management to change their management practice.

Finance is the prime factor for any organization towards it success. Without money, organizations do not have any existence. Therefore, successful financial management builds the success of organization in long run. In this way, success financial management can lead to changes in business operation like purchasing raw materials, proper fund distribution and introduction of new assets (Battilana & Casciaro, 2013).

Successful business organizations need to keep themselves abreast with the changes in technology. In order to upgraded, organizations need to change their production process with the changes in technology (Jiao et al., 2013).

Every organization is to export its products to the environment. Therefore, organizations are to face severe competition in the market. Organizations mostly face two types of competition in the market. One is the offering of same product by other organization and two is the customers, who are not buying the products (Michel, 2014). Therefore, this situation forces organization to change their business operation for bringing uniqueness in their products and modifying the expectation of the customers.

Political forces have direct influence on the business practice of organizations. Political forces outline the business framework towards its day-to-day operation. Political forces like Government policies, tax policies, Government decisions and political stability have direct bearings on the business framework and stakeholder expectation of the organization (Battilana & Casciaro, 2013).

Customer satisfaction is the ultimate goal of any organization. It measures the effectiveness of the products and services offered by organization. It seems to be the major performance indicator for any business (Michel et al., 2013). Therefore, the intension of enhancing customer satisfaction leads organizations to introduce innovative products, incorporate new technologies and adopt new business practice.

Technological Capacity

Legal and Regulatory environment play a significant roles towards determining the success of any organization. Government imposes taxes on business for promoting economic growth and cushioning consumers from exploitation. According to Gomes-Casseres, (2015), Tax Law highly controls the business behavior, where organizations must have to report their financial status to the Government. Based on the financial status Government imposes taxes on business, which organizations are liable to pay for economical growth of country. This law forces business to choose accrual method of accounting principle towards maintaining transparency with the Government. On the other hand, Haidar, (2012) opined that Labor Laws defines the regulations, which defines the way of organization regarding their employee treatment. This law incorporates minimum wage regulations, employee protection rules and wage garnishing rules. These organizations are to set their salary structure and workplace culture as per the law set by the Government.

Barkemeyer et al., (2014) revealed that environmental law highly guides the business behavior towards protecting the environment. This law restricts organizations to perform any business practice, which can harm the environment. This law forces organizations to dispose of their hazardous materials without harming the surrounding environment. On the other hand, Michel, (2014) opined that report law of business controls the ways of demonstrating the financial report to the investors and Government. This law forces organizations towards meeting the standards of transparency purpose. Reporting law is quite similar to that of tax law, but is more concerned with preventing misconduct and fraud. Haidar, (2012) pointed out that Zoning Law restricts organizations for operating business in certain specific areas or zones. Moreover, intellectual and property law restricts an organization to copy the invention, design and artistic work of another organization.

References

Ansari, S., Munir, K., & Gregg, T. (2012). Impact at the ‘bottom of the pyramid’: The role of social capital in capability development and community empowerment. Journal of Management Studies, 49(4), 813-842.

Barkemeyer, R., Holt, D., Preuss, L., & Tsang, S. (2014). What happened to the ‘development’in sustainable development? Business guidelines two decades after Brundtland. Sustainable Development, 22(1), 15-32.

Battilana, J., & Casciaro, T. (2013). Overcoming resistance to organizational change: Strong ties and affective cooptation. Management Science, 59(4), 819-836.

Gomes-Casseres, B. (2015). The three laws of business combinations: how to create value by remixing assets. Strategy & Leadership, 43(5), 18-23.

Geng, Y., Fujita, T., Park, H. S., Chiu, A., & Huisingh, D. (2014). Call for papers: Towards post fossil carbon societies: regenerative and preventative eco-industrial development. Journal of Cleaner Production, 68(0), 4-6.

Haidar, J. I. (2012). The impact of business regulatory reforms on economic growth. Journal of the Japanese and international economies, 26(3), 285-307.

Jiao, H., Alon, I., Koo, C. K., & Cui, Y. (2013). When should organizational change be implemented? The moderating effect of environmental dynamism between dynamic capabilities and new venture performance. Journal of Engineering and Technology Management, 30(2), 188-205.

Lockett, A., Currie, G., Finn, R., Martin, G., & Waring, J. (2014). The influence of social position on sensemaking about organizational change. Academy of Management Journal, 57(4), 1102-1129.

Michel, A. (2014). The mutual constitution of persons and organizations: An ontological perspective on organizational change. Organization Science, 25(4), 1082-1110.

Michel, A., Todnem By, R., & Burnes, B. (2013). The limitations of dispositional resistance in relation to organizational change. Management Decision, 51(4), 761-780.

Morris, M., Kaplinsky, R., & Kaplan, D. (2012). “One thing leads to another”—Commodities, linkages and industrial development. Resources Policy, 37(4), 408-416.