Power Point With Min 10 Sides From The Paper Attached

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The Presentation Template is located in Course Resources. A minimum  of 10 slides is recommended as it aligns with the number of subjects in  the outline. However, the recorded length of the presentation cannot  exceed 20 minutes.



Recommendations for Effecting Organizational Change at Shopsmart


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Recommendations for Effecting Organizational Change at Shopsmart

Business Profile

Shopsmart Inc. is part of the US’s wholesale industry and has annual sales of about $300 thousand. The company employs more than 30 people on site and has remained small for many years due to management aspirations. The company was incorporated in 2011 and is located in Sacramento, CA. The company operates in a market that can be described as monolithically competitive with differentiated products.

Mission and Visual Statements

Currently, the company has no express mission statement. However, the company can use the following as the mission and vision statements, respectively:

1. Mission- To help people save money by making rational decisions on what to buy

2. Vision- To be the most preferred shopping destination for all customers in the US.Power Point With Min 10 Sides From The Paper Attached

Legal Ownership

Shopsmart is a privately owned company dealing in selling daily use merchandise on wholesale terms. This means that its ability to take control of the market is limited. It also means that unless the organizational structure is changed to align with its mission and vision, it will remain a pipedream. Therefore, a fundamental strategy change that is needed is first to convert the company into a public company. While a private company has its separate legal identity from the members, its market activities are limited because of the limited capital scope. As a public company, Shopsmart will be keener on ensuring that shareholders, who are the essential stakeholders, earn a good profit year after year, making it become a shopping destination of choice. Therefore, the company should float an initial public offering (IPO) and have an extended ownership portfolio for better performance in the future.Power Point With Min 10 Sides From The Paper Attached

Corporate Social Responsibility

After establishing a new business model, the company needs to invest heavily in corporate social responsibility to enhance the economic, social, and environmental impact, showing its commitment to meeting client expectations and end supply chain abuses. Commitment to CSR is a crucial driver for any company’s success (Hohnen, & Potts, 2007). Shopsmart is a small company and has not done much with regard to CSR in the past. Therefore, it needs to put a budget that will help build its brand in the market by appealing to some of the needs of communities where it operates while striving not to get into debt. First, the company can have an outlay of about $5 million spread over ten years while adjusting it every year depending on the prevailing conditions. Alternatively, the company can spare 10-15 percent of its annual profits towards charity and other CSR projects such as environmental protection. Whatever the company chooses, it must be to the more significant benefit of society.Power Point With Min 10 Sides From The Paper Attached

Apart from environmental impacts, the company’s CSR should also focus on:

1. Upgrading workers careers in retail and training of suppliers locally farmers

2. Collaborate with seafood suppliers to enhance sustainability standards aimed towards eliminating unethical labor practices among their suppliers. The company should collaborate with industry experts, NGOs, suppliers, and own research to offer solutions to risks around social issues experienced in the supply chain.

3. Invest in sustainability to build client trust, improve supply security, manage cost structures, attract new and qualified talent and generate new revenues, thus maximizing business value.

4. Work towards robust support to lower carder suppliers, taking measures against human trafficking and illegal labor practices in the supply chain.

5. While investing in CSR, the company should also strive to ensure that 80% of its waste materials have been diverted from landfills.

6. Invest in renewable energy so that most of its operations are powered by renewable energy.Power Point With Min 10 Sides From The Paper Attached

Code of Ethics

According to Jalil et al. (2010), code of ethics are guiding principles established within an organization to ensure that professionals engage in a manner that exuded not only decorum but also honesty and integrity. The current code of ethics includes acting with integrity, leading with integrity, and expecting others to work with integrity. However, there is no pragmatic way of ensuring that the company employees adhere to ethical standards. For this reason, the firm must come up with a service charter that defines what is expected of every employee on duty and so on.

Currently, the company prioritizes legal compliance by all stakeholders. The company has set up global ethics manual guided by the vision statement of promoting its ethical culture among all stakeholders globally. The company is also committed to following guiding principles in its code of ethics that include following the law, reporting company practices in an honest and trustworthy manner, behaving with integrity, and always consulting the Global Ethics office on matters regarding ethics. The company guides its members to make the right decision by ensuring it is consistent with company beliefs and would encourage others to know about it.Power Point With Min 10 Sides From The Paper Attached

Regulatory Agencies

Shopsmart operates under both the retail and wholesale markets. Under retail, several sub-sectors include groceries, clothing, and furniture, among many, with different regulatory challenges. However, the company does have all the categories mentioned above. Thus, the most crucial regulations to look at include the national labor impositions of minimum wage and overtime pay laws, compliance costs, and legal liabilities to the retail industry.

The federal entities that Shopsmart will operate under including the ‘U.S. Department of Labour’ (DOL), ‘Federal Trade Commission’ (FTC), and the U.S. ‘Department of Homeland Security.’ On the same note, the taxes department will ensure that Shopsmart remains a responsible corporate citizen by paying taxes as required. The FTC and DOL will help Shopsmart with guidance on contract restrictions with workers, including how much to pay, how long they work. DOL imposes labor certification procedures allowing Shopsmart to face charges against the laid down labor standards in any country. On the other hand, FTC has been responsible for consumer protection and regulation of inter-business competition, thus maintaining retailer-consumer relationships.Power Point With Min 10 Sides From The Paper Attached

The Current Organizational Structure of Shopsmart Inc.

Shopsmart is a small business and runs as a sole proprietorship. As such, it does not have the detailed organizational structure that is expected of a limited liability company. To resolve this problem and prepare for an IPO that will increase functions and roles, the company must develop a working organizational structure that cognizes the various aspects of doing business. For instance, the company must adopt a hierarchical functional structure that supports a pecking order and function-based structure. According to Csaszar (2012), the hierarchy feature involves the vertical lines of authority, where apart from the CEO, other employees have a direct superior. Directives come from top management levels to middle managers up to the rank-and-file workers at the stores.

Conventionally, the function-based structure includes groups of employees that perform specific functions, including the HRM, IT, marketing, and supply chain, among many more involved in companies’ daily operations. The hierarchical structure will help Shopsmart influence decisions from corporate managers, which affect the entire organization. An example includes introducing policies and strategies created at the headquarters and passed to regional managers, down to the store managers. The advantage includes effective monitoring and control. Nonetheless, a significant disadvantage of creating the hierarchical structure will be the limited organizational flexibility. IT will also be hard for the low-level management to adjust to business practices because of bureaucracy.Power Point With Min 10 Sides From The Paper Attached

In the long-term, the company will develop a nuanced organizational culture that will help employees’ behavior that later establish the firm’s ability to add value to retail service. Such cultural aspects include service to customers, respect for every individual, striving for excellence, and acting with integrity. Shopsmart must always prioritize customers in all its operations while valuing every employee’s role towards the success of the business. The company must also strive to excel by improving individual workers, teams, and organizations while promoting honesty, impartiality, and fairness virtues in the decision-making mechanisms.Power Point With Min 10 Sides From The Paper Attached











Csaszar, F. A. (2012). Organizational structure as a determinant of performance: Evidence from mutual funds. Strategic Management Journal33(6), 611-632.

Hohnen, P., & Potts, J. (2007). Corporate Social Responsibility. An implementation guide for business.

Jalil, A., Azam, F., & Rahman, M. K. (2010). Implementation mechanism of ethics in business organizations. International Business Research3(4), 145.Power Point With Min 10 Sides From The Paper Attached

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