Analysis of Organisational Aspects - Kmart New Zealand

This report analyses the cultural, ethical and social behaviour of Kmart New Zealand in the retail industry. It also discusses the strategies implemented by the company and its sustainability. The report concludes that the company is able to maintain its sustainable position with the help of strategies formulated by the management.

Running head: ANALYSIS OF ORGANISATIONAL ASPECTS
ANALYSIS OF ORGANISATIONAL ASPECTS
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Executive Summary
This report is based on the analysis of the cultural, ethical and social behaviour that is
depicted by an organization in the industry. The company that is taken into consideration for
this analysis is Kmart New Zealand, which operates in the retail industry of the country. The
strategies that have been implemented by the company during the years of its operations are
also analysed in the report in detail. The report is concluded by stating that the company is
able to maintain its sustainable position with the help strategies that are formulated by the
management.

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Table of Contents
Introduction....................................................................................................................3
Section 1 – Ethical, social and culturally appropriate behaviour that is present in the
organization................................................................................................................................3
Section 2 – Professional behaviour that exists in the organization................................4
Section 3 – Discussion of two motivational theories.....................................................5
Section 4 – Sustainability of the business......................................................................7
Part 1 – Discussion of the strategic decision making process....................................7
Part 2 – Examples based on the organization.............................................................8
Conclusion......................................................................................................................9
References....................................................................................................................10

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Introduction
The first discount store of Kmart was opened in Henderson, Auckland in the year
1988. The opening and setting up of the entire store was the start of a new revolution in the
retail sector of New Zealand. The organization is known in the industry for delivering
products at the lowest prices with the help of more than 200 stores all across New Zealand
and Australia. The company and the management together has worked hard for the purpose
of providing the products and services at low prices to the customers. The management of the
company has been working hard to ensure that the lowest prices can be effectively provided
to the customers. The company operates around 20 stores in the country. Kmart expanded its
operations from Australia to New Zealand in the year 1988 (Kmart.co.nz., 2018).
The report will be based on the analysis of the ethical issues and behaviour of Kmart.
The professional behaviour of Kmart will also be analysed in detail. The self-motivation
based activities of the company will be analysed. The sustainability of the operations of
Kmart will be also be discussed in detail in the report.
Section 1 – Ethical, social and culturally appropriate behaviour that is present in the
organization
Kmart has shown high levels of commitment in the process by which the company
conducts its business operations with integrity. The organization has been operating with the
highest levels of integrity by complying with the regulations and obligations that are set by
the authorities. The company has been following the ethical sourcing code which is based on
the ways by which business operations can be conducted in an effective and sustainable
manner. The ethical sourcing code that has been set by the company applies to vendors and
factories which are involved in the process of manufacturing of the products that are offered
by the company (Baumgartner & Rauter, 2017). The organization thereby expects that the

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suppliers will be loyal towards the entire operations that are conducted. Kmart is always
committed towards working with the suppliers who are able to implement the ethical
sourcing code easily.
Kmart is committed towards introducing the various initiatives that are based on the
reduction of environmental impact of the activities that are conducted by them. The company
has also tried to increase the environmental initiatives that are taken by the customers,
suppliers, teams and various stakeholders. The corporate social responsibility based report of
the company has been able to prove that Kmart has been successful in fulfilling the
responsibilities that are related to the impact of organizational processes on the environment
(Durand, Grant & Madsen, 2017).
Kmart is responsible for the creation of better culture within the organization in which
people are provided with the same amount of respect, opportunities and rights. The company
aims at ensuring that the customers are provided with the highest level of experience which
can help Kmart to increase its customer base. The major goals that are set by the company are
based on the creation of an inclusive culture, helping the communities to thrive (Dyer et al.,
2015).
Section 2 – Professional behaviour that exists in the organization
The employees and the management of Kmart has shown high levels of professional
behaviour which has helped the company to create a competitive advantage in the market.
The professional behaviour of the employees has provided satisfaction to the customers. The
services that are provided by the company to the customers are important to create a position
of the Kmart. The company has further enhanced its professional behaviour with the help of
the loyal customer base. The organization has also started its online platform which has been

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helpful in increasing the customer base and further to increase the reach of the products in the
industry (Hill, Jones & Schilling, 2014).
Section 3 – Discussion of two motivational theories ee
The first motivational theory that can be considered for individual improvement in
Kmart is Maslow’s Hierarchy of Needs. The five stages that are described by Maslow in the
Hierarchy of Needs are as follows,
Physiological needs – This stage is based on the basic needs of water, air, food,
shelter and clothing. These are mainly the basic amenities of life of an individual. These
needs can be fulfilled by the products that are offered by Kmart.
Safety needs – This stage includes those needs which are environmental, physical and
emotional safety of the individuals. The security of job and financial security is based on this
stage of the Maslow’s hierarchy.
Social needs – The social needs are based on the love, care and affection of the
individuals who are a part of the society.
Esteem needs – The self-esteem needs are mainly of two types which are internal
esteem needs which include, self-respect, competence, freedom and achievement and the
external esteem needs which include, power, recognition, status, admiration and attention
(Meyer, Neck & Meeks, 2017).
Self-actualization needs – This stage mainly includes the needs that are related to the
urge which leads an individual to become what he or she has the capability of becoming. This
further includes needs for self-contentment and growth of the individuals. The desire for
gaining more knowledge is also related to this stage of the Maslow’s hierarchy.

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The needs theory based Maslow’s Hierarchy is related to the ways by which the
company is able to fulfil the needs of the individuals which includes the employees and the
customers. The products and services that are offered by the company are capable of
increasing achieving the needs of the employees by fulfilling each of the stages. The basic
needs of the employees need to be fulfilled first. The safety needs will then be fulfilled by the
security that is provided by the job. The social security and recognition is the next step which
can also be provided by the company. The self-esteem of the employees will be affected by
the ways by which they are able to work within the organization. The capability of the
employees is affected by the opportunities that are provided by Kmart to grow in their careers
(Morschett, Schramm-Klein & Zentes, 2015).
The second theory that has been considered for the analysis is Herzberg’s Two Factor
Motivation Theory. The job factors that are described by Herzberg are divided into two
categories that are, hygiene factors and motivational factors. The two categories can be
analysed with respect to the organizational operations in the following ways,
Hygiene factors – These factors are essential for providing motivation to the
employees in the organizations. These factors are not based on positive
satisfaction for a long-term. However, the absence of these factors can also
lead to dissatisfaction among the employees. The pay structure of employees
is a part of the hygiene factors. The policies and the procedures of the
company affect the employees and their work process. The benefits that are
provided to employees, the status and the relationships of employees are all a
part of the hygiene factors (Popkova et al., 2015).
Motivational factors – The hygiene factors are not enough to motivate the
employees. The motivational factors are thereby able to provide the highest
level of satisfaction to customers. These factors can motivate employees so

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that they are able to provide superior performance. The motivational factors
can thereby be termed as the satisfiers as well. The various areas that are
covered by the motivational factors are, recognition, promotional and growth
based opportunities, meaningfulness of work and the responsibility (Sakas,
Vlachos & Nasiopoulos, 2014).
The two factor theory depicts that Kmart needs to identify the factors that are able to
motivate the employees so that they are able to provide their best performance. The
organization needs to formulate strategies which can be helpful in motivating the employees.
The management can provide recognition for the achievements that they are able to make.
The motivational factors will play an important role in providing the benefits to employees
(Wheelen et al., 2017).
Section 4 – Sustainability of the business
Part 1 – Discussion of the strategic decision making process
Strategic decision making process plays an important role in the maintenance of
sustainability of the organization. The strategic process of decision making has been able to
optimise the competitiveness of the companies. The organizations in the modern business
environment have broader set of responsibilities as compared to the earlier companies. The
range of the stakeholders of modern organizations is high. The company thereby needs to
provide the highest levels of satisfaction to all the stakeholders. The engagement of the
leaders and employees within the decision making process is important for the purpose of
taking the best possible decision. The decisions and the strategies that are formulated by the
management can thereby affect the sustainable operations of the organizations (Theriou,
2015).

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Strategic decisions are mainly decisions that are taken for the long term operations of
the organizations. These decisions are helpful in the successful operations of the companies
which can help them in moving forward. The three main things that are a part of the strategic
decision making process are, long-term forward movement of the company, selection of the
proper markets for the products of the organizations. The tactics and products that are
required by the company to achieve success in the target market. The long-term success of
the organizations is thereby totally dependent on the strategic decisions that are made by the
management. The factors related to innovation and technology influence the strategic
decision making process (Trigeorgis & Reuer, 2017).
Part 2 – Examples based on the organization
The major strategy that has been implemented by Kmart is mainly based on the ways
by which the company is able to provide the products and services to customers at the lowest
prices. The new CEO of Kmart had conducted extensive market research which was related
to the ways by which the brand can be rejuvenated in an effective manner (Kmart.co.nz.,
2018). The research and development team was engaged for the purpose of examining the
customers and their preferences. The company then moved its strategy of providing
discounted products to the promotion of special offers that can be provided to the customers.
This had helped Kmart to move forward with the help of its initiatives. The strategic
decisions were thereby important for formulating plans that can prove to be effective for the
successful operations of the company in the long term. Kmart was able to reach to a new
position in the market within two years of the implementation of the strategies. The changes
that were made in the operations were able to create a different position for Kmart in the
retail industry of New Zealand within a short period of time (Kmart.co.nz., 2018).

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Conclusion
The report can be concluded by stating that Kmart has been successful in operating in
an ethical manner in the industry. The motivational factors have also been able to provide
encouragement to the employees so that they become more productive. The strategic
decisions related to the changes in operations that have been taken by the company have been
able to increase the profitability and the revenues. The company has been successful in the
formation of a strong position in the retail industry.

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References
Baumgartner, R. J., & Rauter, R. (2017). Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner
Production, 140, 81-92.
Durand, R., Grant, R. M., & Madsen, T. L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), 4-16.
Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2015). Strategic Management: Concepts
and Cases. Wiley Global Education.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Kmart.co.nz. (2018). [online] Available at: https://www.kmart.co.nz/about-kmart [Accessed
15 Jun. 2018].
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, 17-44.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international
management (pp. 978-3658078836). Springer.
Popkova, E. G., Abramov, S. A., Ermolina, L. V., & Gandin, E. V. (2015). Strategic
effectiveness evaluation as integral part of the modern enterprise management. Asian
social science, 11(20), 16.

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Sakas, D., Vlachos, D., & Nasiopoulos, D. (2014). Modelling strategic management for the
development of competitive advantage, based on technology. Journal of Systems and
Information Technology, 16(3), 187-209.
Theriou, N. G. (2015). Strategic Management Process and the Importance of Structured
Formality, Financial and Non-Financial Information. European Research
Studies, 18(2), 3.
Trigeorgis, L., & Reuer, J. J. (2017). Real options theory in strategic management. Strategic
Management Journal, 38(1), 42-63.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy. pearson.

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