Essay Sample on The Decision of LG Corporation

The LG Corporation intends to construct a new corporate headquarters on the Hudson River in New Jersey, a move that has raised concerns about environmental wellbeing, among other issues. Those issues must be addressed through the right channels and lines of action drawn to make sure there are no stumbling blocks in the future. The CEO intends to bring a new shareholder on board; this even calls more for the analysis of the situation in the company and the business at large. In this paper, the focus will be a thorough analysis of the situation that the business is facing and the available resources that the company can use. The following will be discussed; business environment,response, sustainability, and external internal resources, company image,and communication.

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Business Environment

This entails all the aspects that surround a business ranging from the internal and the external factors that affect the normal running of a business venture. They include the employees of the business, customers, the company's leadership and management, the supply and demand chain, and the regulation of these processes. It also involves the market trends, which influence the production and market power of the products and services offered by the company (Worthington & Britton, 2009). Without the factors mentioned above, the business will not achieve its objectives and thus go to ultimate failure. Action from the government is essential as they formulate policies and plans that can either make a business thrive or prevent it from succeeding and thus limit its success story.

Governmental action, as observed in the previous paragraph, can have positive and harmful effects. The government has put across policies that dictate land use policy and how specific resources are to be used by various investors. For instance, building on riparian land cannot be accepted as it will interfere with the nature of the place, thereby degrading the land and may have more adverse environmental effects. The government's increase in taxes will affect the business's financial muscles, and they will have to come up with elaborate plans to stay afloat. Political challenges such as unrest in the country will hinder the operations of the company, making it to stop operations until it is safe to do so. The action is thus a threat to the existence of the company.

Sustainability

Apart from affecting the company's environment, government actions, and political challenges also influence the company and business's ability to sustain itself. Sustainability of a business is the ability of the business to support itself when the situations get tough. It involves the plans set in place to ensure that it bounces back to its feet when the situations get worse. These plans may involve where to get money and how to fund the business's essential services (Bansal & DesJardine, 2014). It consists of the coordination of the various processes that affect the running of the business to ensure that the business is running ethically without any issues affecting it. Simply put, it is a business approach that necessitates the creation of long-term value by considering the company's social, ecological, and economic conditions.

Government action and plan will affect the company's sustainability plans, which experts in the business sector say that it is vital that every company acquires one. They opine that sustainability plans to fuel the company's longevity in the market and its existence in general. The growing need for expectations of transparency in corporate responsibility and obligation for general clarity calls companies to adopt sustainability plans. Government policies on the environment would require the company even to strengthen its sustainability plans to ensure they reduce the pollution on the environment. Strict government policies and actions may force the company to shut down operations for failure to comply with the required sustainability concerns. The effect may thus be positive on the sustainability of the business.

Internal Resources of the Company

The internal resources of the company influence the operations of the company both positively and negatively. They include the company's staffing, corporate culture, funding and finance, and the technology used by the company. The company employees are a critical aspect of the company as they determine the company's ability to reach its goals and meet its objectives. Their strength is thus essential, as it is what determines their input in the job. The company’s ability to take risks is also considered under its internal resources as well as innovation (Zhang & Wu, 2017). These internal resources are what distinguish a business from the competition with its rivals in the market. A company with weaker internal factors will not survive the tough competition from rivals.

A government plan that will affect the well-being of the employee’s strength and ability to report to work will affect the company's internal resources. The issue may be political unrest or a certain policy like cessation of movement by the government, which will prevent the employees from getting to their places of movement. Other government policies that affect the company's corporate culture are also stumbling blocks to the company's internal resources. They prevent the advancement of the company and thus may cause it not to achieve its goals. However, the company is always prepared to deal with whatever challenges may be handled their way by the government policies. They are thus prepared for the next line of action, like funding the company or getting a replacement for people to step in for those who are absent.

Communication

Communication is an integral part of any organization and company. It is through it that information trickles down from the top management to the subordinates. The owners of the business communicate to the managers who then do the same to their juniors until the final unit of the employees. It is through communication that people learn of a change in management, and company objectives, among other daily activities that are related to the running of the company (Schoop et al., 2010). Other forms of communication involve the company and its investors and shareholders. The shareholders and investors are informed of the new changes in the company that needs their input, especially regarding investment decisions and financing too. Any issue that will affect the balance in the company would necessitate informing the shareholders.

Communications to shareholders are usually done through meetings where the management informs the investors of the notice to attend the meeting with the urgency and the purpose of their meeting. An important factor, like the government action on the operations of the company, will call for a meeting to discuss the way forward for the company. The shareholders and the investors must be informed of the decision to build the new corporate office on the Hudson and the take on the government, which opines that the move may be environmentally unfriendly. The company may be forced to make difficult choices concerning its new decisions. The shareholders and the board of management of the company have been informed of the meeting, and there is hope that all of them will be able to attend.

Company Image

The company image involves and deals with the reputation of the company according to the market and on the faces of its competitors. It is essential that the company always recognizes and maintains its image to attract not only customers but also investors who will finance its ambitions and objectives and plans. Once the company's image is destroyed, it may discourage investors and end up losing all its investments (Wiedmann et al., 2011). A government action that violates the image of the company would prove fatal to its existence. It is, therefore, essential to maintain it always by observing the policies set by the government.

The government's action to question the company's decision was not negative at all, as it enabled the company to follow its sustainability plans. It made the company profess its sustainability plans and follow them up. The only negative aspect was the negative publicity the company received. Still, it can be used to advertise the company even further and get more investors and the market for the products produced.

Response

There are several potential causes of action to the condition in the current business environment. The response may be due to economic or environmental situations. Economic factors can affect the business in many different ways. Working on the demand and supply of any company, the prices of the products will be affected most by these laws of demand and supply. The company will invest in a product that is likely to meet the lowest competition. The competition is little when the amount. The market is either low or moderate. When the demand is low, the prices will also below, and when the supply is low, the price will go up to curb on the low amount. The marginal utility and total utility may also affect the company's call to action (Grappi et al., 2013). This is the amount of consumer satisfaction delivered by the organization. If the company evaluates and finds out that there is a higher satisfaction likely to be delivered, the company will set to act on delivering the project.

The bank and money also may affect the decision made by the organization either to invest in the project or to ignore the investment. The policies created by the banking system also affects the action likely to be taken. The growth of the economy also greatly influence the decision of the company. When a large amount of resources is invested in the appropriate channels that may take a long term to upgrade, the company may consider making the investment decision into the company. The general prices of the goods and services in the economy may also be a call for the company. These prices are likely to affect the price of the raw materials and other machinery used in the production or manufacture. The organization must consider these factors before investing in any of the projects.

Impact

The courses of action may have a different impact on the business. When well evaluated, the sequences may lead to positive effects that may lead to the growth of the market. One of the impacts is the foretelling of profits. The company can foretell how much returns they will get from the company if the resources are rightly invested and the plan correctly evaluated. Another impact is that the company can measure management performance. The plan drawn will require the management to put in their efforts, and this will clearly show how much the administration can do to improve the status of the organization. The business can also appraise new business proposals. Basing on how the company will respond to the blueprint drawn, it will work positively or negatively on the previous recommendations that have been made by the organization.