TASK 2 (P2.1, P2.2, P2.3)
(P2.1) Ecolab’s economic progress is to drive economic growth for their shareholders, employees, customers and communities. This will provide the potential output of the company and the growth and development will give more opportunities to the company to produce more vital resources to contribute to the world and meet the demands and satisfaction of the people.
During the year 2011, Ecolab drove their business sales and earnings growth and attracted returns for shareholders. They expanded their relationships globally, provided exceptional customer service and earned new business. Their growth was developed by their delivered new product pipeline; it improved the performance, environmental benefits and cost savings.
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They improved their equipment to help their customers meet the obstacles they face with their technology and service reach. Ecolab have gained the financial ability to fund their growth and development and encountered a clear focus on distributing excellent results that provides a positive impact to the customers, shareholders, and the world.
(P2.2) A business environment influences the development, performance, and outcome of a business which involves the law and government, the owners, the competitors, the market and the social and economic trends.
There are two policies that can bring impact on to the activities of Ecolab Inc. which are:
Monetary Policy
Monetary Policy refers to what the government does to influence the amount of money and credit in the economy, what will happen if money and credit affects interest rates and the performance of the economy. This policy ensures the price stability and general trust in the currency.
As Ecolab continues to supply vital resources to the world, an increase in cost may grow rapidly by the demands of suppliers and customers which can lead to inflation. To stabilize the prices and moderate long-term interest rates, Ecolab must implement the monetary policy to achieve stability, increase employment and gain long-term interests.
Fiscal
Monetary Policy is another policy used in Keynesianism which is a list of protocols designed to regulate the economy by setting the amount of money that is in circulation and controlled interest levels. The Federal Reserve system, also known as the central banking system in the U.S., which holds control of this policy. Monetary policy has three tools used by the Federal Reserve to enforce this policy. Reserve Requirement is the first tool that determines the lowest amount of money a bank must possess and is not able to lend out. The second way to enforce monetary policy is by using the discount rate or the interest rate a bank will charge.
Electrocorp should also find sources for cheaper depository capsules to continue practicing safe environmental operations at lower costs. Our planet is the one and only home that we have, and practicing environmental friendly operations is the ethical obligation of all of us no matter where on the planet we are located. Thus, continuing to be mindful of the environment and taking precautions to protect it at lower costs, will save the company money, prevent adding to pollution for future generations and add value to our reputation as responsible corporate
It is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
...r standards of appearance, sustainability and safety, which improves the eco-design standards. The E&E sector supports 25 million jobs and generates value added of € 135 billion.
Originally established under the name Economics Laboratory, Ecolab Inc. was incorporated in 1923. Founded on strong core values, based on environmental responsibility and determinism to be the industry leaders in water, hygiene, energy technologies. Ecolab Inc. has stood the test of time by promoting and enforcing a deep-rooted ethical corporate culture through the commitment to community involvement, governance and financial performance, health, safety and environment as well as social responsibility. (http://ecolab.com/about/corporate-responsibility). Ranked as #5 on Corporate Responsibility’s list of Best Corporate Citizens, and on the Forbes' list of America's Best Employers, Ecolab Inc. leads the industry laying claim to numerous other prestigious accolades directly related to their core
Monetary policy is the mechanism of a country’s monetary authority (usually the central bank) taking up measures to regulate the supply of money and the rates of interest. It involves controlling money in the economy to promote economic growth and stability by creating relatively stable prices and low unemployment. A monetary policy mainly deals with the supply of money, availability of money, cost of money and the rate of interest to attain a set of objectives aiming towards growth and stability of the economy. Here are some of the monetary policy tools:
Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009).
The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions.
According to federalreserveeducation.org, the term "monetary policy" refers to what the Federal Reserve, the nation 's central bank, does to influence the amount of money and credit in the U.S. economy, (n d). The tools used are diverse but the main ones are:
Worthington, I. and Britton, C., 2006. The business environment. 1st ed. Harlow: Financial Times Prentice Hall.
...eople constitute a rich untapped potential. The company seeks to harness this core’s energy in their change agenda of competing with the world’s best thereby achieving the impossible
Continuous monitoring of these variables is an important marketing function. As a corporation today, Ecover is also sensitive to macro environmental changes. Some of the PEST factors that affect Ecover are discussed below. Political: The 'Po Marketing strategy is deeply affected by political trends.... ...
The increase in prices is known as inflation. This macroeconomic objective aims at keeping prices as low as possible. Economists normally would like to understand the changes of what is happening in the purchasing power of consumers. The price stability can be measured by looking into the (CPI) which is the index of the prices of representative basket of consumer goods and services. According to StatsSA, (2016) the inflation rate averaged 9.27 percent from 1968 to 2016. Consequently, the report states that the consumer prices index in South Africa increased by 6 percent year-on-year in July of 2016.The economists however, argue that the inflation figure obtained was one of the lowest ever experienced by south Africa due to the fact the cost of electricity and fuel remained constant. This shows that South Africa at the moment is currently doing well; however only because inflation is very dynamic and changes so it can not be guaranteed that it will remain the same
Environmental factors cater for the protection of the environment. A business must carefully be able to look at its surroundings to see for benefits and ensure that its daily production does not interfere with society.
Ecobank encourages its work force to be creative. This is because it is through innovation that the bank can survive in an environment which is now being characterized by cut throat competition. Unproductive habits are not encouraged at all.