General External Environment
Luxottica is a company which designs, manufactures and distributes all kinds of eyewear. Luxottica is an internationally expanded company and its network is distributed in more than 150 countries. Due to the retail network of Luxottica there are more than 9000 stores which includes OPSM, Pearle Vision, LensCrafters, Sunglass Hut and many more. A major advantage to the company is that the entire value chain is covered from design, product development, manufacturing, logistics and up to distribution by Luxottica. Over two decades it has been producing sun and ophthalmic lenses. There are about six facilities in a few different countries (Italy, China, Brazil, and United States) which designs, manufactures and distributes eyewear (Luxottica 2018a). The purpose of this report is to get an understanding about specific external environment, ethics, CSR and organisational culture of Luxottica.
Definition and Discussion of Impact of General External Environment
The general external environment includes sociocultural, technological, economic, political or legal and global conditions in the society where the organisation functions (Robbins et al. 2016, p. 34).
Following the report which was given by the year 2017, technology has high impacts on Luxottica Company due to the fact that it mainly majors on innovation programs. The company has introduced the 2000 new models on new material processing program for the purpose of giving the collections in their markets. The analysis based on the major investigations gives more strength in understanding the company infrastructure on bases of the supply chain management as well as the company IT department platform (Xue, Liang, and Boulton, 2008 p.67). The impact of the technology on the basis of the Luxottica is that it has led to the connection of the company to the external market. It has as well brought the consumers and suppliers together and finally connecting the stores close to the customers through online digital selling. The impacts of online selling are basically on the basis of making sure that the customers use the easiest way to get all the goods from all parts of the world through online purchase. The company has presented the future store for the market digital integration of the tannable physical experience of the transformation process. Through the technology assumed by the company, the barriers such as limitation of the physical space as people make their way to purchase from the company are broken down through online and digital buying of the goods from the company.
Definition and Discussion of Impact of Specific External Environment
The specific external environment consists of organisations, groups and individuals with whom it interacts as it conducts its business. Factors in the specific environment have a direct and immediate effect on the organisation’s operations and performance. The specific environment includes customers, suppliers, competitors, industry regulators and government agencies, employees and labour markets, interest groups and strategic partners for most of the organisations (Robbins et al. 2016, p. 37).
The Luxottica Company and its French competitors have been subjected to form of the investigation regarding the pricing as well as the sales activities within the industry phenomenon. In 2017, the company received a statement regarding the French Competition Authority. The statement was allegedly on the basis of the company objectives preliminary on anti-competition activities but the statement to the company did not fullest anticipate the decision made by the authority (Ghosh, Willinger and Ghosh, 2009 p. 433). The company requested for the additional information regarding the kind of proceedings which had already been contacted in 2016 so that it can evaluate the competitors’ potential strategies to increase their sales. The company is under pressure because if it is not complete and integrate the strategies in a successful way as it will not be able to expand their business and the future profit growth and therefore being at the risk as compared to those of the competitors. In the basis of the growth strategy, the company has made some expansion strategies in acquisition programs resulting in the disruption of the actions which the competitors have taken to win the company.
Definition and Discussion of Impact of General External Environment
Definition and Discussion of Impact of Ethics and Corporate Social Responsibility
Corporate social responsibility (CSR) can also be also known as social responsibility. An organisation’s intentions to go beyond its legal and economic obligations act in ways that are good for the society. Organisation’s view of its social responsibilities influences what they decide to do and how they decide (Robbins et al. 2016, p. 52).
Ethics commonly refers to a set of rules or principles that defines right and wrong conduct. The utilitarian view of ethics defines ethical behaviours solely on the basis of outcomes or consequences. The rights view of ethics defines ethical behaviour as behaviour that respects and protects people’s individual liberties and privileges, including the rights to privacy freedom of conscience, free speech and due process (Robbins et al. 2016, p. 54). The justice view of ethics focuses on choosing actions that fulfil principles of procedural, distributive and compensatory justice (Robbins et al. 2016, p. 55).
Social responsibilities can be divided into three; meeting social obligations, being socially responsive and being socially responsible. Social obligations define their social responsibilities only in terms of doing what the law requires and what is required to meet the economic goals. Socially responsiveness refers to the social actions done due to the demand and due to the social pressure. Socially responsible organisations consider how the society can be affected by the organisation and its operations (Robbins et al. 2016, p. 52).
Looking at the perspectives of ethical leadership, the company has shown great support for the Valore D association linked to the Italian business categories. The Luxottica has contributed to helping the association with the promotion diversity for the creation of the annual female talent leadership program. This has resulted in the ethical support of the economic contributions for the action favour affecting the people through fund launching program. The company has looked into some trade unions which enables it to have different employees’ donations especially supplements for the more working hours for the employees (Wilkins, 1983 p. 24). Gender equality is one of the ethics in leadership mostly displayed by the company through which the women have taken to about 63% of the company headcount. 50% of the managerial role is represented by the women and therefore it is clear that the company is looking for development of the initiatives which help in promoting the talents and the leadership ethics. The company is trying to show the capability of the female readership with the organization. It is actually trying to set an example from other companies that female gender leadership can make it through the leadership and make good progress of the organization. Through the use of the female lead, the company has shown a high level of progress as well development capability in realizing its strategic goals. There has been the establishment of the Italian managers training programs aimed at making sure that most of the female managers are ventured into the operation management of the company (Schwepker, 2015 p. 292). In September 2017, the company marked a great step in signing the contract of manifestos which basically reflecting the female employment strategies. The document contained information regarding the definition of the actions to be considered in making sure that there is more female gender diversity in the company. The company impacted on 64% of the contracts being permanent with total employees 54,382 employed permanently. The remaining percentage of the employees is suggested to be fixed in terms of seasonal connected contracts especially in the retail business operation practices of the company.
The company is basically defining the social responsibility goal for the future sustainability of its environment which has been inspired by so many global initiatives such as United Nations 2030 visions and agenda. Reflecting on the GRI content of reference, it has been clearly indicated that consolidation introduction to non-financial statement has taken the first phase of the reports communicated by the company in the basis of social responsibility and its environmental sustainability. The company has involved the group for the purpose of relating issue which may result in the energy and water consumption matters (Robbins, DeCenzo, Coulter and Wood, 2016). In addition to the social set up on responsibility, the company has ventured into better waste treatment programs as well as proper monitoring of the carbon footprints. This has resulted in the improvement of the employees’ health and safety. This has resulted in a successful supply chain management for the company in relation to its logistic activities simply because the working conditions are made to the best. Social responsibility of the company has brought about the gradual extension of the Luxottica commercial subsidiaries on the retail group. By the October 2017, the Luxottica Company had held an induction session which was attended by the directors and the top management members which were aimed at giving the directors the updates regarding the activities which were carried out through the corporate social responsibility. This resulted in the fact that in January 2018, the company gave an assurance of the event of calendar corporate in the basis of the 2018 fiscal year as evaluated through the company website.
Organisational culture is about the values and beliefs which are carried out in an organisation by the workers and how they are interacted with each other (Organisational Culture n.d.). An organisation’s culture is a system of shared meaning. By understanding the culture of the organisation, one can know whether it is a place that encourages teamwork, rewards innovation (Robbins et al. 2016, p. 46).
Following the respects of the people, rights are the basis of the supply chain program of the company. The company has come up with some of the orientation programs to implement the principle of human rights. The Luxottica Responsible principles define the manufacturing standards set for the suppliers of the business in adherence to human rights especially in the workplace. In respect to the People Orientation, the company has made sure it implements the policies within the company that will be guidelines for the working conditions of the employees. In the first place, for the purpose of catering for the human rights, the company has banned child labor. The company has a principle that states that no one under 16 years should be employed in the company (Pagell, Krumwiede, and Sheu, 2007 p. 2005). The work is considered to be young by the company and should be at school at the moment until the age qualifies him/her to the company. The company has given the workers to have their own organizations as well as forming the associations according to their decisions and the company has no option for the interaction of such associations. The company has imposed a policy of banning any form of the enforced labour within the company. People Orientation practice has set all the workers free to perform their daily activities without pressure. It has come to the attention of the company that there could be a form of discrimination within the workforce. The company has set a stern warning and banning any form of discrimination and serious measures are taken to whoever is found in the wrong part of the discrimination policy.
Conclusion:
The basics of the Luxottica company relationship with other companies especially the competitor companies have drawn the level of success of the company. The report has shown the clear relationship of the company with external and internal factors. This has been represented through the way the company relates to the other companies, how it responds to the people orientation in the basis of the human rights compliance as well ethical consideration when it comes to the employment sector. In addition, there have been keen analyses of the company technology applications in dealing with its operations. There have been analyses on how technology has impacted the development of the company as well as how it has resulted in the fast establishment of the company. The report clear has indicated some of the innovation based on technology techniques taken by the company in making sure that it caters for the customers’ sustainability. To mention but a few, the company has ventured into online selling and purchase mechanism in which the customer can do purchase the product of choice through online and the same product delivered on the agreed date. This is one of the technology innovations by the company that has resulted in its expansion and development. Following this online purchasing method, the company has been able to gain so many customers worldwide.
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