business management assignment sem1


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question 1- csr of AirAsia
question 2- How does the external environment which consists of economic environment, technological environment, socio-cultural environment, domestic business environment, global business environment and political-legal environment affect the success and failure of today’s businesses? Provide suitable examples and detailed explanation.
question 3- In recent years, many countries that previously used planned economies have moved to market economies. Why do you think this has occurred?
question 4-Describe FOUR most common ethical challenges that business people face in conducting their business. Support your answers with suitable examples.

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business management assignment sem1

  2. 2. Question 1 Businesses can improve the quality of life of a society as organizations competing with one another to find better solutions to challenges and production new type of goods and services through research and development will fix the life of society. Attracting attention in business will lead society to improve talent as the merchants providing an emotional bond with customers. Example, when the roti canai seller show their skill in front of public, more people will be influenced to be a skilful roti canai seller as they always dream to be the one. Businesses also make the society to be easy to buy what they desire. If there are no businesses, people would have to plant paddy field, vegetables and livestock animals at the front of their house. The local business entity that I want to discuss is AirAsia. The organization has contributed to enhance the quality of society life by their goods and services. They give society to fly to another country at lowest fares. It could encourage people to gain experience from other country and raise more knowledge. In 2011, they used their aircraft to lift individuals out of political hot spots while also sending supplies to areas that were hit by natural disasters. In early February, in the thick of the Arab Spring, they were the first airline to respond to distress calls seeking means to evacuate Malaysians stranded in Egypt. Over a period of five days from 3-7 February 2011, they operated eight rescue flights from Cairo and Alexandria, in Egypt, to Jeddah in Saudi Arabia, and one from Jeddah to Kuala Lumpur. They flew 1,200 guests on three Airbus A340 flights from Cairo to Jeddah and around 860 guests on five Airbus A320 flights from Alexandria to Jeddah. They also flew 320 guests on an Airbus A340 flight from Jeddah to Kuala Lumpur, the first batch of Malaysians to return home from the beleaguered country. In total, they helped to return to safety 2,380 Malaysians affected by the political turmoil. This rescue mission was led by our Deputy Group CEO, Dato’ Kamarudin Meranun, who went personally to Jeddah to make sure the entire operation was carried out smoothly. In March, AirAsia SOS systems were reactivated when Japan was hit by the 9.0 magnitude earthquake then tsunami followed by the nuclear power station meltdown. The Malaysian government launched an aid campaign and AirAsia quickly responded by lending RM4 million worth of cargo space for the transfer of supplies. Once again, our Deputy Group CEO was involved in the mission. He collaborated with Datuk Abdul Azeez Abdul Rahim, President of Putera1Malaysia club, to deliver relief supplies to the Malaysian Embassy in Japan. In September 2011, Typhoon Nesat unleashed its devastating force on the Philippines, leaving a trail of destruction in its wake. It was followed by another typhoon, Sendong that hit the Philippines in December. In both instances, AirAsia lent its aircraft to lift supplies of food to the affected people in partnership with organisations such as CREST Malaysia, Philippine NGO Metro Ministries and the United Nations World Food Program.
  3. 3. Question 2 Economic environment is directly affect the success or failure of business. For example, if the economy is in recession, the business processes become slow as low demand from customers. The unemployment also will rise and household consumption will reduce as people tend to save for uncertainty economic condition. The firm must remedial their businesses to reposition their money by diversify their business overseas or embark reducing shift work of the workers. In the recession of economy, government would reduce taxes that they charge to company. This reduction help to improve firms business back to recovery and economy will rise again. That is how the economic environment affects the business. Technology is an industrial arts, applied science, engineering process, and invention or procedures. There are two forms of technology which are pure invention and innovation. Business also influences by technology environment or information and communication technology. With ICT the way business conducted has totally changed. Internet makes people easy to communicate in real time. Firms can secure order from customers through ecommerce or get supply from suppliers. Technology would speed up decision making in company as through the easily communicating systems. The pace of change of technology is rapid. So, the technology product will easily obsolete. Example, the model of phone will easily expired in human desire as the model is assume to be old compared to the new one for the next day. Customers enjoy the wider range of goods and services, businesses today have no choice to manage technological changes every day. Failures of businesses to cope with economy changes will loss in the battlefield of businesses. Furthermore, technology can effect businesses as it open new business especially ICT. Socio-cultural environment is highly related aspects to demographic, religion and cultural trends of the country. Business opportunity is depends on society’s popular cultures. The consumer will demand for durable goods, retailing services, leisure and entertainment. For example, the Chinese New Year celebrations give the retailer chance to sell as many more oranges and wax duck. As for Muslim, the food producer will provide Muslim halal products. For Christmas and Halloween there would be the opportunity to sweet retailer and gift sellers to gain profit. The conclusion is socio-cultural environment will also affect the failure or success of business as the retailer get profit or loss with the change in socio-cultural environment. Family is basic part of society from the birth of a person and up to death which can affect businesses. Personal decision of buying and selling of goods are may affects from family. In the culture of a family, it may happen that parent does not allow using any product, and then sale of such product will decrease. So businessman must analyze different families’ needs. Many occasion of family like marriage of any family member, can increase the demand of goods. Educational institutions are also main part of societies. They provide good knowledge, education, awareness, thinking, what should students buy or not to buy. Suppose if a student is habitual to drink tea and if his teacher advice him that this is harmful to his health after his guidance students can avoid to drink tea after this the sale of tea will decrease.
  4. 4. Religion is also effects the business socially. Religion means the system in which group of persons trust in God. Different religions have different principles, rules and regulations in which they sacrifice to use some products and to eat some food. In Hindu religion, they never use leather products. They affect the sale of leather industries. So, businessman must analyse the targeted audience and after listening their religious thoughts, he should produce the goods. Domestic business environment also can affect the victory or the defeat of businesses. In domestic, all entrepreneurs that just entered new business ventures have to analyze their competitors’ information. Competitors are person or group that can fulfill same customers need and have potential to serve. In the fast food business, KFC and MCDONALD are competitors. Each will try to fight together maintain their profitable and market share. They will go for creative advertisement and always improve quality of services to win the fight. Actually, the more number of competitors, the smaller the profit margin for a business. Unless the business is huge, the small competitors will not even matter. If the domestic business environment is cooperation, the business will easily to thrive. Global business environment can affect the success of business. Globalization is for loosening of trade barriers among the nations. Globalization make an openness for more trading activities with every country. Organizations that penetrate global will serve bigger market which more make them get more revenue as more demand. Munchy’s is the biscuit organization base in Johor Darul Takzim has been a successful company as they export their products trough all ASEAN. House of healin, Gamogen, has export their products to European and they enhanced a gross profit. Business nowadays must obey to rules and regulations enforced by the government or local authority. The businesses must take license to make sure that the business is safe to be going on and they must to pay taxes to government. They also have to comply with environ mental rules and regulations to preserve the nature surrounded the business workplace especially factories. For the organizations that interested to venture business in overseas, they should be able to avoid themselves from break the rules. On the other hand, business and society cannot thrive without some regulation and must take account of the needs of all stakeholders. The role of business legislation is to regulate the rights and duties of people carrying out business in order to ensure fairness. Rules also protect people dealing with business from harm caused by defective services. Legislation would ensure the treatment of employees is fair, protect investors, creditors and consumers. Dealings process between business and its suppliers will be regulated. Furthermore, government can control a level playing field for competing business by fix the price such as TNB. Over the years, regulations have piled up and up. This has hurt business, doing real damage to our economy. And it is done harm to our society too. In fact from internet, a government of a country helped house builders by cutting down 100 overlapping and confusing standards applied to new homes to less than 10. These reforms are estimated to save around £60 million per year for home builders, equivalent to around £500 for every new home built.
  5. 5. Question 3 The reason certain countries that used planned economies have moved to market economy are the governments want to produce more entrepreneurs in their country. They wanted to encourage entrepreneurs to be creative and capitalize their maximum potential. Furthermore, they desire to have a more develop country as restrict their citizens will not try to make research for new productions and brands. Citizens in their country become lazy and sometimes the workers refuse to work to protest. The citizens were not rewarded for any hard work they made. Their salaries still the same. This will contribute to slow of development of nation. When the market economy introduced, people will feel free and diligent to work Market economy will lead to healthy competition as they are free to decides on what good and services to produces, how they are to be produced and for whom these goods and services will be distributed in the mission of achieving more profit. So, many countries have decided to change from planned economy to market economy to build contest between entrepreneurs as the competition will donate success to country. People in their country also willing to get freedom to pay the quantity of goods and services they want. Planned economy is not suitable for the people as all the resources are state-owned. They will suffer with the restriction and quality of their live will not improve. That is why some countries have moved to market economy. Planned economy will reduce the invention and innovation in country as citizens not have power to their own products. Therefore, the technology become lower and the country is hard fight with other countries in side of technology. As the world today really value a country development through technology, the country switch to market economy.
  6. 6. Question 4 One of the ethical challenges is conflict of interest whereas the action that gives benefit to a group or person and harm another person. A conflict of interest causes an employee to experience a struggle between diverging interests, points of view, or allegiances. Conflicts of interest are generally forbidden in company codes of conduct or employee handbooks. As example, a male manager date with a female employee who reports to him, an employee works part time in the evening for a company that makes a product that competes with the products of his full time employer and a purchasing agent hires his brother-in-law to provide vending services to the company lunch areas. Integrity is one of the fundamental values that employers seek in the employees that they hire. It is the hallmark of a person who demonstrates sound moral and ethical principles at work. People who demonstrate integrity draw others to them because they are trustworthy and dependable. Honesty and trust are central to integrity. The ethical challenge of honesty and integrity is when employees or customer bring back home supply product and the employees doing something that are not right to do in work time. Third is loyalty versus truth issues. The loyalty is good when we loyal to the good people but when it comes to bad people, the person have broken the ethic. When there are illegal work done by employer and the employees know the secret, they must think properly wether to be loyal or truth. The simple example is a worker in the restaurant reveal the secret that chef use a disgusting ingredients in foods that their serve to customers. The worker must have decides to be loyal to the firms or tell the truth to customers. Lastly, the ethic challenge is whistle blowing. Whistle blowing is a kind of tell the truth the wrong doing of a person firm through media or government. The firm will get the action from government then. The whistle blower will make the firms being suspended and the employer get caught. Example that I got from internet that the Founder and editor-in-chief of WikiLeaks, Edward Snowden has informed the public about Mr. Assange’s organization has been responsible for over 1.2 million leaks to date since the website’s creation in 2006. Then Mr. Assange has spent the last year holed up in the Ecuadorian embassy in London, where he is seeking political asylum from charges against him in Sweden.