Conducting Ecostore Management For Curves Of Innovation

Background

Describe about the Conduct Ecostore Management for Curves of Innovation.

Environmental management concept is a positive attempt to control the human interaction and impact with the elements of environment for preserving the important natural recourses. According to Wilson (2015), environmental management solely concentrates on the gradual process of development of the human welfare for both the future and present generation. Various administrative operations of an organisation implement, develop and monitor the relevant policies, rules and regulations of an organisation. The purpose of this report is to analyse the organisational behaviour and HRM practices within Ecostore. This business report will also deal with the international business of the concerned company with proper implication of information technology. At the end of this report, there will be effective recommendations, which may help the management of Ecostore to develop the entire business structure and process in future.

Ecostore, a renowned company of Australia and New Zealand started its business operation with organic and sustainable gardening practices and ignored toxic chemicals while producing the products (Ecostore.com.au 2016). The major focus of Ecostore involves the priority of their customers and their health first. The owner of this company has started the business in Auckland with a minimum range of baby care and body care products. However, within five to seven years because of popularity, Ecostore has launched its outlets in the supermarkets of New Zealand, Australia and United States. Malcolm Rands, the co-founder of Ecostore, expands the business throughout the world however; the main concentration was always Australia.

In order to build a perfect and sustainable brand with relevant and adequate purpose can be a formidable and complex task in today’s competitive business world (De Freitas 2015). Ecostore has been succeeded to maintain a fast and constant growth in New Zealand with household cleaning and body care products. Ecostore is successful to maintain a strong kind of sustainable vision since 1993 and with this [potential strategies this company has opened more than 2100 outlets in various cities of Australia. The major focus of Ecostore is to produce eco friendly product and with this policy the company has achieved AU$35 million annual turnover in the industry. The adopted strategies of Ecostore are completely different from the existing and traditional capitalism model of business operation.

According to Kennedy et al. (2016), theory of sustainability involves critical forms of society and economy, which is lasting and have enough potential to be judged and evaluated on global scale. The business operation of Ecostore clearly claims global justice in between the existing generations. Theory of sustainability not only discusses a trivial concepts and association in between economic, environmental and social policy. However, it also determines a perfect balance against various competing interests such as economic growth, which is established in short period, relevant questions regarding employing strategies in order to resolve the encountered challenges and the ultimate decision making process of the higher management (Chipps 2013). While the theory of sustainability deals with the constant development of the sustainable communities, which are pervaded with the important rhetoric of social and environmental equity. However, the practices of sustainability within an organisation still depend upon the outmoded systems and procedure relies upon exploitation and privilege that are masked by significant coded logic of the instrumental rationality (Johnstone and Hooper 2016).

Sustainability related strategies and issues

Ueda and Ueda (2012) have mentioned that organisational behaviour involves a proper and adequate insight and vision towards the effective solution to the several challenges, which are encountered by the organisation in a particular industry. Organisational behaviour helps the management of an organisation to become proactive, flexible in order to execute and enable the business functions of it in global manner. As Ecostore expands its business outside of Australia, therefore, a proper organisational behaviour helps the higher management to maintain and manage the work force diversity, as it has become a global concern. The managers of Ecostore has to deal with the various issues related gender, age and race in order to exercise a perfect control in order to channelize the behaviour and attitude of every employees in the desired direction. Sharma and Sharma (2013) have mentioned that organisational behaviour incorporates insights into the existing skill, talent and knowledge of the employee, which the employee can use to make potential team and design the task in short period and systematic manner.

Brown (2013) has stated that organisation behaviour also helps the supervisors and quality manager of Ecostore to develop the productivity and quality of the offered products in this era of increased competition. With effective employing of organisational behaviour, the managers empower their employees, as the employees are the main concern and forces to implement the transformation. As the behaviour and attitude of the employees largely influence the customer relationships and satisfaction, therefore, the managers of Ecostore improve the entire organisational performance and customer services with proper incorporation of organisational behaviour. Lukic (2013) has mentioned that organisational behaviour involves a basic process of better management of the business operation with constant improvement of the skills and knowledge of the employees. Organisational behaviour plays a vital role in the entire management process of the business of an organisation. Even organisational behaviour affects upon the individual, structures of the organisation and the performing team of Ecostore as it involves adequate and relevant knowledge in order to make this company to work in more appropriate manner within the industry than before (Casadesusâ€ÂMasanell and Zhu 2013). Ecostore has increased the division of labour and specialisation in order to manage both the internal and external environment. Organisational behaviour also helps Ecostore to economise the basic transaction costs of controlling the market and to extent power. However, because of globalisation, Ecostore encountered several challenges and resolved it with proper implication of potential strategies (Ecostore.com.au 2016).

Role of organisational behaviour

Human Resources practices at the company:

Human Resources (HR) practices of an organisation determine the size of workforce of a company and its basic priorities. As opined by Parsons (2013), the major focus of HR includes the segmentation of function, geographical location and business unit of organisation.  The recent studies have clearly stated that a potential and effective HR of a company can curve out maximum share of the company in a particular industry (Heikkurinen and Bonnedahl 2013). However, here are controversies and arguments regarding this statement; still the impact of HR executives and their actions are articulated with proper implication of strategies. In order to build a fundamental business case, which require a clear and transparent understanding of business function, which the HR serves and the other working relationships with the existing business leaders. HR of Ecostore can help the company to achieve the targeted goal with proper involvement of the business leaders in the entire process of governance and planning. This kind of basic involvement ensures the alignment of the overall business function and the opportunities in the competitive market.  Goyal et al. (2013) have stated that HR also helps to incorporate a sophisticated workforce analytics and forecasting of their fundamental process with the collection of significant business data, workforce segmentation in order to implement an appropriate HR philosophies within the company. 

As Ecostore provides chemical free eco-friendly products to its customers in order to reduce and evaluate the fundamental impact of the offered products on the health of the customers, therefore, the HR department has strict observation on the resources of raw materials to the ultimate packaging of the products. Te management and the leaders of Ecostore reflect their motto that their main concern is to serve people with maintaining of their health (Cohen et al. 2013). Each product of Ecostore is scientific proof and if there are any kind of problems arrives because of the ingredients of some products, then the managers and HR take effective measures to resolve the problems in short period as it may hamper the brand image of the company. The HR of Ecostore recruits appropriate staffs for the company, who selects healthier and safer international resources to produce eco- friendly products for the customers. The skincare products of Ecostore are perfect for those, who are suffering from any kind of allergies and skin diseases. The HR department of Ecostore minimises the basic administrative works in order to help them to focus on ultimate decision support, leadership improvement, executive coaching process and workforce planning. According to Exter (2013), HR makes an organisation agile and flexible in order to allow core adaptive movements with a strict maintenance of structural model.

Human Resources practices at the company

Role of international business at the company

Theory of absolute advantage involves the basic ability of an individual, company ad country to produce some products at cheap price per unit than the price of other products offered by different company. As opined by Pecoraro and Uusitalo (2014), theory of absolute advantage also deals with the determination of simple comparison of various labour productivities, as there is possibility for a party to possess completely no advantages at all. The management of Ecostore strictly follows this particular theory during its business expansion, as according to this theory, there is a rule of no trading process with the other existing and competitive parties in the market. However, Hawkins (2014) has argued that this theory has the potentiality to be compared with the basic concept and ideas of comparative advantage that refer to the ultimate capability of an organisation to produce some products at very low opportunity cost. On the other hand, theory of comparative advantage states the fundamental ability of party helps to manufacture products at low margin as there is opportunity cost of other products. However, in the case of Ecostore, comparative advantage can be attained with a trade deficit as they have to export the products in international level.

The packaging strategy of Ecostore captures most of the international market as they effectively use recycled plastic from New Zealand’s roadside collection. The long-term and potential strategy of recycling helps the company to hold a strong position in the international market. Precautionary approach strategy involves the exclusion of those ingredients, which are toxic for the human usage. Performance excellence strategy helps the management of Ecostore to undertake the efficiency testing process of every offered products to the customers and to select an alternative raw materials if the chosen elements were not safe (Ecostore.com.au 2016).

With the constant changes in the demand and criteria of the customers, ecostore also bring changes in their entire business process. The quality management of this company is solely focused on offering something new, innovative ad interesting product to the customers in order to survive in this competitive market. The media strategy of ecostore engages the social media marketing manager, community partnership manager and the videographer, who promotes and advertise the existing and new products in various social media platform such as, Facebook, LinkedIn, Twitter, blog and official webpage of ecostore. As everyone has social media account in present days, therefore, it is easy for an organisation to capture the attraction of the new generation clients (Leung et al. 2015).  With the proper communication strategy, the management of ecostore inspires, informs and enables the relevant shopping guidelines to avoid products, which are made of toxic chemicals. Both of these strategies help to improve the social media pages and the online content as it provide relevant information to the customers.

The campaign strategy of ecostore engages few doctors, skincare experts and the quality managers on order to assure the customers that their offered products are skin friendly and most rusted sustainable brand in Australia. With the conferencing and emailing strategy, ecostore interacts with its loyal customers across the world. However, with proper application of these strategies the market of ecostore increases from 34.24% to 54% in this continuing year with promoting a deeper notion and sense of wellbeing and purpose (Ecostore.com.au 2016).

According to Hawkins (2014), innovation stimulates the fundamental process of transformation and with effective innovation; employees can foster techniques and ideas in order to promote change and innovation with the constant development of the employee’s creativity. Diffusion of innovation theory refers the reason, process and requirements of the completely new concepts and ideas according to the expansion of technologies in this competitive age. Creativity is an important par, which mainly motivates an entrepreneur to start up a completely new business with modern technology, business innovation model, marketing process, customer segmentation and attracting design and structure of the organisation. As opined by Leung et al. (2015), challenges also motivates an entrepreneur as in more of the case, they have tried something, which might be seem as impossible and stupid at the initial stage. The latest trends in the market motivate an entrepreneur to start up a new business. Similarly, the founders of ecostore have started its business with the mineral-based ingredients in 1993, during which it was next to the impossible. With the constant innovation, ecostore reduces the waste with the recycled raw materials and plastics. There are also innovations in the labelling and packaging process of ecostore as the staffs use only water-based adhesive and eco-friendly inks to label every product. Because of environmental innovation in its every step from producing the products to the packaging and labelling, Ecostore enjoys several certifications such as Diamond Enviromark, ISO14001:2004 and carboNZero. All these certification suggests the creativity and innovation of ecostore has been evaluated with relevant legal requirements of Australia in order to establish environmental targets, programs and objectives.

The management of Ecostore in order to cope up with the social, health and environmental concern adopts all the above-mentioned strategies in order to highlight the basic requirement for potential sustainability practices within an organisation. However, there are few relevant recommendations, which may improve the contribution of ecostore to sustainability.

The quality management of Ecostore should design more environmentally friendly, safer and healthier products with the help of ecodesign experts.

Ecostore should reflect its corporate commitment towards the gradual climate changes by reducing the environmental footprints of the offered products and the business operations.

Ecostore should improve more advanced labelling strategy than before in order to reveal the existing sustainable advantage of the products.

Ecostore should ensure the social compliance with proper implication of supply chain management.

Conclusion

Governments of Australia and New Zealand implement completely new regulations for the organisations while they are busy to incorporate new strategies for developing the products according to the raising expectation of the consumers and stakeholders. Therefore, it is necessary to evaluate and assess the existing sustainability practices of Ecostore as it holds the position of leading consultant on the field of sustainability through its unique, interesting and vast global network. All the sustainability strategies are adopted after thorough analysing the particular dependencies and risks in order to make informed decisions. Although Ecostore perfectly maintains its sustainability strategies both in the Australian market and throughout the world, still the provided recommendations may improve the present business operations of the concerned company and may help to retain its position in the specific market.

References

Brown, R., 2013. Managing the “S” curves of innovation. Journal of Consumer Marketing.

Casadesusâ€ÂMasanell, R. and Zhu, F., 2013. Business model innovation and competitive imitation: The case of sponsorâ€Âbased business models.Strategic management journal, 34(4), pp.464-482.

Chipps, R.S., 2013, December. It’s not about the planet-Embracing eco-design, driving competitive advantage. In Design Management Symposium (TIDMS), 2013 IEEE Tsinghua International (pp. 23-29). IEEE.

Cohen, M.J., Brown, H.S. and Vergragt, P. eds., 2013. Innovations in sustainable consumption: New economics, socio-technical transitions and social practices. Edward Elgar Publishing.

De Freitas, F.T., 2012. Industrial Design Strategies For Sustainable Development. A Case Study of the Packaging Industry in Singapore(Doctoral dissertation).

Ecostore.com.au (2016) Home Page Available at: https://www.ecostore.com.au/ [Accessed on Sep 10, 2016]

Ecostore.com.au (2016) Kinder to our planet Available at: https://www.ecostore.com.au/pages/kinder-to-our-planet [Accessed on Sep 10, 2016]

Exter, N., 2013. Employee engagement with sustainable business: How to change the world whilst keeping your day job. Routledge.

Goyal, P., Rahman, Z. and Kazmi, A.A., 2013. Corporate sustainability performance and firm performance research: literature review and future research agenda. Management Decision, 51(2), pp.361-379.

Hawkins, J., 2014. Honouring innovation. Renewable Energy Focus, 15(3), pp.40-43.

Heikkurinen, P. and Bonnedahl, K.J., 2013. Corporate responsibility for sustainable development: a review and conceptual comparison of market-and stakeholder-oriented strategies. Journal of Cleaner Production, 43, pp.191-198.

Johnstone, M.L. and Hooper, S., 2016. Social influence and green consumption behaviour: a need for greater government involvement. Journal of Marketing Management, 32(9-10), pp.827-855.

Kennedy, A.M., Kapitan, S. and Soo, S., 2016. Eco-warriors: Shifting sustainable retail strategy via authentic retail brand image. Australasian Marketing Journal (AMJ), 24(2), pp.125-134.

Leung, Y.M., Morgan, K.J., White, B.J., Ward, J.M. and Chilvers, B.L., 2015. Washing oiled marine birds in New Zealand—do we have a detergent that can be used?. New Zealand Journal of Marine and Freshwater Research,49(2), pp.318-322.

Lukic, R., 2013. Sustainable cost management in retail. Revista de Management Comparat International, 14(2), p.268.

Parsons, A.J., 2013. Building innovativeness in large US corporations.Journal of Business & Industrial Marketing.

Pecoraro, M. and Uusitalo, O., 2014. Exploring the everyday retail experience: The discourses of style and design. Journal of Consumer Behaviour, 13(6), pp.429-441.

Sharma, M.N. and Sharma, C.S., 2013. Studying green purchasing intentions through environmental motivation.

Ueda, J. and Ueda, M., 2012. Sustainable Technology Research and Demonstration Center for Earth Structures. Sustainability, 4(10), pp.2639-2649.

Wilson, J.P., 2015. The triple bottom line: Undertaking an economic, social, and environmental retail sustainability strategy. International Journal of Retail & Distribution Management, 43(4/5), pp.432-447.