Organisational Behaviour: Value Creation and Stakeholder Engagement

This essay discusses the organisational behaviour of All Seasons, a clothing business, and how its organisational structure enables value creation and stakeholder engagement. It explores the company's sustainable practices, marketing strategies, financial management, and engagement with internal and external stakeholders.

Running head: ORGANISATIONAL BEHAVIOUR
Organisational behaviour
Name of student
Name of University
Author note

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Assessment 2 : Essay
Introduction
The essay is prepared to discuss about the organisational behaviour considering the
clothing business named All Seasons. The management of a proper organizational structure is
considered to enable creation of value, furthermore, ensure management of people, financial
aspects and facilitate the marketing efficiency. It will also discuss about how the
organisational structure assisted in the proposition of value as well as defined the roles of
internal and external stakeholders associated with the business functioning at All Seasons.
Value proposition
Considering the case study of the assignment, the business organisation named All
Seasons has been a major producer of fine woollen knitwear in Australia that has managed
production of clothing items by sing fine quality Merino wool. This kind of wool has been
sourced from the various wool growing regions and the product quality has been maintained
consistently, which has raised the satisfaction level among the clients and ensured acquiring
huge turnover of more than $70 million every year (Osterwalder et al. 2014). The fine quality
Merino wool has been sourced to make sure that the manufacturing and production processes
remain aligned with the positive environmental impact and at the same time, remain long
lasting as well as convenient for usage by the customers. The company has moved beyond the
sustainable practice to prevent harmful impact on the environment and even made sure to
enhance the level of biodiversity through reduction of chemical inputs, restoration of carbon
to the soil and improvement of animal welfare too (Lenssen et al. 2013). The supply chains
have also been negotiated with by the business to ensure that the wool does not get
contaminated with the presence of other wool, furthermore ensure, management of standard
processes associated with the cleaning, colouring, design, spinning and production of final

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clothing items that cannot create any harm to the external environment. This is how the
organisation has created valued and at the same time, managed sustainability with the
adoption of environment friendly practices to prevent any ecological harm (Payne, Frow and
Eggert 2017). This is how the organisation has managed to ensure value creation, which has
benefited both the business as well as the clients effectively for All Seasons in Australia.
Organisational structure
The organisational structure, as it could be seen from the previous assignment portion,
has been subjected to the management of various departments including the marketing,
financial, human resources department and also ensure stable business functioning with the
management of sustainable business practices aimed at preserving the nature and create some
positive impact on the environment as a whole (Sengupta, Bamel and Singh 2015).
Considering the various dimensions of the organisation, it is found that the structure of the
organisation enables managing the departments at different levels to facilitate the functions
and processes along with improving the business efficiency too.
Value creation in terms of marketing, people management and financial management
In terms of marketing, the company has developed an online website where the
products and services can be checked by the customers, furthermore, gain accessibility to
these prior to making a purchasing decision (Åkesson et al. 2016). One of the unique feature
of the website has been the virtual reality system, which has helped in allowing the customers
to develop an unique avatar wearing the clothing item that they want to purchase based on
their size, shape of body and image to model. The website managed by the company has not
only facilitated the marketing activities, but also has streamlined the purchases and processes
associated with the delivery of clothing items to the customers (Whittaker et al. 2015). The
company has also tried to keep the third party involvement minimal, due to which, the factory
itself is a centre for distribution, which allowed for shipping the orders directly to the retailers

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and also the customers while making purchases online. The independent retail outlets are the
places where the products and services have been supplied to in Australia and also in North
America, Europe and United Kingdom, which has also favoured the marketing actions and
ensured attraction of new and existing customers as a whole (Jewell, Moore and Goldstein
2013).
The Administrative Theory represents management of departmentalisation, which
ensures management of various activities of the business in various departments to achieve
the common or shared purpose. The purpose and activities have been categorized into
different groups and departments, which further allows for accomplishing the tasks
effectively and within quick time too (Edvardsson et al. 2014). According to Chick and
Handfield (2014), this kind of theory proposed by Henri Fayol laid emphasis on the
management of behavioural factors and ensured minimisation of task time while at the same
time, improved the efficiency of the workforce through effective operational management at
different departments of the organization. This favoured the proper structuring and ensured
that the tasks remain organised and processes are standardised by following the top down
approach. This would also facilitate the management of people at the organisation and deliver
the best performance to achieve the aims and objectives efficiently (Frow et al. 2014).
People management
The management of people at All Seasons meant managing the human resources,
i.e., the employees who are highly skilled and knowledgeable in the management of design to
cutting and machine related operations needed to facilitate the production nit. The staffs were
paid good wages and even were kept motivated and encouraged with the management of
rewards, which further empowered their behaviours and roles to perform to their potential
within the workforce. Due to this, the level of turnover of employees has reduced to a large

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extent, while aiming at expanding the business operations in the global locations too for the
purpose of creating a large customer base and to ensure higher revenue generation and
competitive advantage in business too (Carroll and Buchholtz 2014).
Due to the sustainable practices’ management by All Seasons, a positive mind set has
been created among the people as well as the different shareholders or investors. Many of the
Government bodies and regulatory frameworks have encouraged the business to undertake
environment friendly approaches by supporting the company with the help of funds and
through investments, which could allow for the creation of value along with positively
creating ecological impact. The financial manager has used the funds appropriately, which
has also reduced the cost of capital along with increase in value of the organisation. The
major components of financial management for the company include planning, controlling,
organising and directing along with facilitating the process of decision making too (Bourne
2014). Due to the adoption of sustainable and environment friendly practices, All Seasons has
managed to keep the costs of operations and processes lowered to keep the project within
budget.
As stated by Van de Ven, Ganco and Hinings (2013), the contingency theory
represents a leadership style that has influenced the ability of the manager to adapt to the
environmental changes to survive within the volatile industry. This has helped the managers
or leaders of the organisation to gain freedom to make decisions according to the present
situation, furthermore remain focused on the actual goal or objective to follow the ethos of
sustainable practices required to reduce the negative ecological impact. The financial
decisions are also based on how effective the sustainable practices have been, which has not
only reduced the costs incurred while managing the business operations and processes, but
also has influenced people to deliver funds and make investments to maintain a good
financial condition.

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Financial management
The company has also made the financial decisions by considering the interests of the
shareholders or investors, which has further helped in the increase in net worth along with
raise in working capital to ensure growth, development and prosperity of the business as a
whole. The financial decisions were also made on behalf of the management of funds in the
inventory management along with bank deposits and short term investments too, which often
affect the overall business performance and liquidity too (Eskerod and Huemann 2013). This
is how the management of finance has supported the proposition of value and delivered
greater number of benefits along with maintenance of colouring, machining, design and
construction of the final garments in a sustainable manner.
Stakeholder engagement
From the perspectives of any organisation, the engagement of stakeholders is critical
to the success of any business in terms of proposition of value and benefits along with their
relations with the management of business effectiveness. To ensure that the stakeholders,
both internal and external stakeholders are engaged properly, it is important to conduct the
stakeholder mapping process at first and then ensure management of resources acqusitions,
allocation, funding, and partnership as well as manage addressing of issues that are needed to
be overcome as well.

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The internal stakeholders are those who are part of the organisation and their nature of
impact on the organisation has been direct while the external stakeholders are the ones who
are not part of the organisation but have been affected with the various activities managed
within All Seasons in Australia. According to Freeman and Moutchnik (2013), the
management of internal stakeholders is critical to the success of any business and thus the
employees, owners of the organisation, Board of Director, managers and also the investors or
shareholders have been the major internal stakeholders associated with the management of
business functioning.
On the basis of individual analysis, the employees have been associated with the
proposition of value and benefits as they have performed their tasks within the workplace and
made sure to follow the organisational policies, principles as well as aligned with the legal
aspects to follow the rules and regulations while working at the company. The manager, on
the other hand, made sure to keep the workforce consisting of the employees motivated,
which also favoured the efficiency of the workforce. The leadership aspects are critical for
influencing their behaviours, furthermore, make them empowered to achieve the overall

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vision and mission quite comprehensively. There are shareholders or investors, who make
investments on the organisation for gaining a good amount of return on the investments made
by them (De Brucker et al. 2013). This has improved the working capital and at the same
time, ensured raising the overall financial condition to assist in managing the business
operations within the allocated budget.
The managers are also the internal stakeholders who manage the entire department
consisting of team members and it could be sales manager, General Manager and also the
departmental manager of the organisation. The Board of Directors of the organisation are
associated with the management and governing of the entity that has been incorporated,
furthermore, ensured smooth business functioning by aligning with the business policies and
principles. Considering the case study of All Seasons in Australia, the Board of directors,
managers and governing council could also govern the way or approaches undertaken by the
organisation to manage sustainable practices required to reduce the ecological harm to the
environment as well.
Based on the statements of Eskerod and Huemann (2013), the external stakeholders
are not influenced by the working environment of the organisation and also has not been a
part of the organisation, though, they manage the financial information and ensured
improvement of overall business performance, revenue generation capability and even has
maintained a good liquidity ratio too. The customers are considered as the most important
external stakeholders, whose needs have been fulfilled by All Seasons to ensure high level of
client satisfaction and generation of increased revenue structure too. The suppliers of the
company are those people who have supplied raw materials and resources to the organisation
for facilitating the processes of manufacturing, production and delivery of goods and services
to the customers. The regenerative farmers are the suppliers who have followed the
environment friendly practices for reducing the negative impact on the environment and even

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maintained proper biodiversity, managed restoration of carbon to the soils and enhanced the
welfare of animals too. The other external stakeholders have been the Government and
competitors within the marketplace, who have been associated with the management and
allocation of resources along with maintenance of business functions and processes that are
controlled by the laws, rules and regulations introduced by the Government regarding tax pay
and other duties levied on the business (Fooks et al. 2013). The company has made sure to
pay the right amount of money to the suppliers for delivering the supplies and even allowed
paying the tax to the local authorities, which also enabled combining the internal and external
stakeholders, thereby, forming the trade union. The company’s environment friendly
practices also ensured reducing negative environment impact and preserved the natural
resources require to manage biodiversity properly and maintain stable business functioning.
All these activities when managed properly, would ensure fulfilling the corporate social
responsibilities and also make the business sustainable within the concerned industry much
conveniently (Fooks et al. 2013).

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