Luxottica: Analysis of External Environment, Ethics, CSR and Organizational Culture

Management
ASSIGNMENT 1 PART B
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Contents
1.Introduction........................................................................................................................................2
2.Task 1:................................................................................................................................................2
2.1 Definition & Discussion of impact of General External Environment...............................................2
2.2 Analysis & Evaluation of Impact of Technological Factor for Luxottica............................................3
3.Task 2:................................................................................................................................................3
3.1Definition & Discussion of impact of Specific External Environment................................................3
3.2 Analysis & Evaluation of Impact employees Factor for Luxottica....................................................4
4.Task 3:................................................................................................................................................5
4.1Definition & Discussion of ethics & CSR of organisation...................................................................5
4.2Analysis and evaluation of Ethics & CSR for Luxottica......................................................................6
5.Task 4:................................................................................................................................................7
5.1Definition & Discussion of culture of organisation...........................................................................7
5.2Reporting, analysing and evaluating personal insight of quiz ‘What’s the Right Organisational
Culture for Me?.....................................................................................................................................8
6.Conclusion..........................................................................................................................................9
7. References.........................................................................................................................................9

1.Introduction
In this report the concept of general environment, specific environment, dimension of ethics
and corporate social responsibility as well as culture of Luxottica is presented along with
detailed analysis and evaluation of impacts of all the aspects of environment in which the
organisation operates.
2.Task 1:
2.1 Definition & Discussion of impact of General
External Environment
According to Robbins, Stephen P., et al. (2015) the general environment of a firm includes
sociocultural, technological, economic, political/legal and global aspects of society within
which a firm operates and alteration in these elements impact general environment which
ultimately influences the firms thereby further impacting a firm’s specific environment. The
socio-cultural element consist of cultural and demographic attributes of society like under
cultural elements comes customs, values, preferences and behaviour while under
demographic characteristics comes gender, education, income, race, ethnicity etc. These
elements of general environment influences social trends that affects firms products, services
and attitude of workforce within firms that is of value for society. Like preference of
customers towards green and ethically sourced products have resulted from cultural aspects
of society. Another component of general environment of firm is technological that shapes
scientific developments and consist of knowledge, application utilised to transform resources
into products/ services and is related to product/ technological procedure in firms which
results into creation of new product or improvement in the features or abilities of existing
products. Example, cloud and big data technology have facilitated inventory management.
Another element of general environment of firm is economic aspect that is related to
economic well being of nation where the firm operates and consist of existing economic
systems, situation and cycles. Economic systems include capitalist, socialist or combination
of both such as Australia is capitalist and China is socialist. Economic situation include
interest, inflation rate that influences cost, demand of product/services of firm and economic
cycle includes period of growth or fall. Also political/legal aspect is another element of

general environment of firm that includes legislative and government systems in which a firm
operates and consist of political stability, government rules, norms etc which influence
decision making and planning in firms. Example consumer protection, employee health and
safety regulation influences policies and practices of firms. Another element of general
environment is global aspect that include global event or change and institutional force that
impacts trade and business operation. Example, internet is global aspect that has enabled
advanced communication and transport and has reduced geographic barriers between firms
activities as well as enabled exchange of product or resources due to globalisation.
2.2 Analysis & Evaluation of Impact of Technological
Factor for Luxottica
According to Glor (2015) in the technological dimension of general environment of Luxottica
various automation and robotics process is integrated in their manufacturing procedure with
incorporation of computing and big data which has helped to improvise speed, flexibility,
quality and productivity of their manufacturing process and has even improved their
operational excellence with exploitation of new technology and digital tools so as to attain
high level of factory digitalisation. Luxottica also use Digital Transformation Program to
recognise manufacturing requirement in advance and monitor real time production data so as
to improvise work and employee safety and this even enables employees to resolve issue
rapidly with more proactive measures than ever before. Another example of impact of
technological aspect of general environment dimension on Luxottica is evident in their retail
brand LensCrafters which uses technological advancement tool like AccuFit Digital
Measurement for digital transformation and innovation to enhance customer fulfilment
through associating services with iPads which enhances customers omnichannel encounters
along with other tool such as ClarifySM which enhances customers digital eye examination
experience in numerous locations (Luxottica Company, 2018)
3.Task 2:
3.1Definition & Discussion of impact of Specific External
Environment