Understanding Contemporary Organizations

This study explores the value creation process of Knitwear, focusing on key aspects of value proposition and the contribution of internal and external stakeholders. It also discusses theoretical aspects of management and their implications for improving business practices.

Running head: UNDERSTANDING CONTEMPORARY ORGANIZATIONS
Understanding Contemporary organizations
Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Organizational value creating process.............................................................................................3
Key aspects and their interaction for creating value proposition....................................................4
Contribution of internal and external stakeholders on value proposition........................................7
Theoretical aspects of management.................................................................................................8
Conclusion.......................................................................................................................................9
Reference list and bibliography.....................................................................................................10

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Introduction
In the globalized business environment, sustainability has become one of the important
concerns for the companies (Payne, Frow and Eggert 2017). In order to understand the needs as
well as improving the customer satisfaction, value proposition brings the significant impact on
business growth. The purpose of this study is to shed light on the value creation process of
Knitwear, which is an Australia based fine woolen wear selling company. Highlighting the key
aspects of value proposition process the involvement of internal and external stakeholders in
terms of involving the value proposition process have been highlighted. In the end of this study,
different theoretical aspects related to the management practices have been highlighted which
can bring significant impact in terms of improving the business practices in the particular
organization.
Discussion
Organizational value creating process
Value creation is being considered as the primary aim of every organization. By creating
the values to for the customers the organizations get the chance for selling its products and
services in right way (Manninen et al. 2018). It is also true that based on the value creating
process, future availability of investment capital can be ensured. Examining the situation of
Knitwear, it has been identified that the company aims to satisfy both the logical and emotional
appeal of the customers. Knitwear was established in the year 1962 in South Australia. Within
few years of establishment, the family owned business has gained large customer segment with
business expansion in UK, Europe and North American markets. Analyzing the value creation
process in the company, it has been identified that introducing the environmental sustainability

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initiatives by reducing the carbon emission and chemical uses in its manufacturing process, it
aims to reduce the impact of historical damages.
The garments which are being produced by the company ensures the right quality so that
satisfying the needs of the customers, loyalty can be maintained. It has been identified that the
primary aim of value creation process of the company to ensure the community improvement by
introducing different environmental sustainability initiatives. Analyzing the operational process
of the company, it has been identified that proper utilization of resources can be considered as
one of the important characteristics of the company that has contributed in the value creation
process. In order to reach to its potential customers both the online and offline business
initiatives have brought the drastic impact on its sales rate. Including diversified ranges of
products and developing the distribution channel through independent retail stores have brought
significant impact in terms of ensuring its effective team work.
Analyzing the fundamental principles of the company, it has been identified that
Knitwear creates its value by involving the regenerative farmers who maintain the sustainable
practices by contributing in the animal welfare. Producing the standard quality of wools and
without compromising with the economical benefits, the company aims to set the great example
for the community. Therefore, analyzing the current value creation process of Knitwear, it can be
said that ensuring the societal as well as economic benefits, the company has ensured the
customer satisfaction. By continuing this, it can also be said that by delivering long lasting
standard quality of products without harming the animals, the company has successfully
developed its image in the market.

4UNDERSTANDING CONTEMPORARY ORGANIZATIONS
Key aspects and their interaction for creating value proposition
Value proposition is being considered as the statement that brings the significant impact
in the workplace by solving the challenges faced by the customers (Hardyman, Daunt and
Kitchener 2015). Every aspects of value proposition brings the significant impact in terms of
developing positive interaction with the customers by introducing effective service and products
in the market. Therefore, it can be said that in order to satisfy the perspectives of the customers,
the value proposition is being introduced. it is true that in order to create value proposition in an
organization structure of the company, people management system, marketing and financial
management bring the influential impact in case of delivering satisfactory impact on the
business.
Organizational structure
In the competitive business environment, organizational structure can be considered as
the important key factor that influences the strategic direction in an organization (Heikka and
Nätti 2018). In order to develop a unique value proposition designing process of the organization
is important as it helps to drive the organizational culture. Analyzing the organizational structure
of Knitwear, it has been identified that it is a manufacturing organization which has a standard
hierarchy. In order to develop sustainable relationship with the stakeholders, the organizational
structure plays an important role for shaping the organizational attributes. In order to determine
the sustainable growth by focusing on core value based branding process, the structure of the
company can help to develop corporate communication as well as reputation of the management.
People management system

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People management system in the organization brings the vital contribution in terms of
ensuring the engagement of individuals in the growth process in the company (Agrawal and
Rahman 2015). Analyzing the situation in Knitwear, it has been identified that in order to ensure
the standard quality of products, based on the capabilities as well as skills of the staffs they are
being appointed in the production process. In order to develop strong interaction with the staff,
standard reward and recognition structure have been introduced by the company, which has
brought significant impact in terms of reducing the high customer turnover rate.
Marketing
Marketing is the only process in which the interaction with the customers can be done
directly. Analyzing the marketing practices of Knitwear, it has been identified that following the
virtual reality, online business practices have been adopted by the company. With the creative
website designing process, the company has focused on introducing its diversified ranges of
products to the customers. In order to bring improvements in its services, the company has also
improvised its interactive nature through the official website. In order to introduce its unique
Avatar, size, shapes and images of its products have been displayed through its website for
providing the physical pleasure to the customers.
Financial management
In order to successfully maintain all the operational processes in the workplace, financial
structure of the company is very important (Chandler and Lusch 2015). With the help of proper
financial support, customer interaction regarding strategies can be properly implemented in the
workplace. Analyzing the financial status of the company it has been identified that introducing
standard quality of diversified products in the market, the company has developed its large

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supply chain. Not only in the Australian market, but also it has developed its independent retail
stores in Europe, UK and North American market. Improving the interaction process, the
company has developed corporate support office, which manages accounting and information
technology related operations.
Contribution of internal and external stakeholders on value proposition
Stakeholders play a significant role in the strategic planning process. In case of increasing
the investment as well as sales rate of the company both the internal and external stakeholders
are important (Aitken and Paton 2016). Analyzing the internal and external stakeholders of
Knitwear, it can be said that suppliers, customers and retailers are the external stakeholders who
have important contribution in the sales rate of the company. On the other hand, employees and
directors are the internal stakeholders of the company. In order to enhance the opportunity as
well as creating value in the company, the contribution of both the internal and external
stakeholders are important.
Internal stakeholders
Employees: Employees can be considered as the backbone of the company. Introducing the
highly skilled employees with standard quality of products, the company successfully maintains
its commitment for providing the good quality products in the market.
Directors: Directors focuses on identifying the benefits from the products which are being
offered by the company and describe those benefits to the managers.
Managers: Mangers also play an important role for maintaining the entire business operation in
the company (Barrett, Oborn and Orlikowski 2016). It is true that Knitwear does not have large
marketing team, in this situation the managers play an important role for managing human

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resource, accounting, marketing and information technology practices, which indirectly impacts
on creating the values of the company in the global market.
External stakeholders
Customers: In terms of increasing the value of the company in the market customers are being
considered as the important contributors. In the customer centric business practices, customers
are the second voice of the company. In terms of introducing new products or services in the
market, highest priorities are bring given to their benefits.
Suppliers: In terms of maintaining the distribution channel through independent retail stores,
suppliers are important (da Costa Fernandes et al. 2019). The row materials for the products are
being collected from the regenerative farmers, who produces the products by reducing the
chemical input and carbon emission. Therefore, in case of creating the environmental value in
the market, the suppliers are very important for Knitwear.
Retailers: Retailers also have positive contribution in the value proposition of the company. In
case of Knitwear, with the effective contribution of independent retailers, the company has
gained the chance to expand its business in the global market.
Theoretical aspects of management
Organizational theory can be defined as the social unit that can help to manage the needs
of individuals and help them to pursue the collective goals. The organizational and management
theories are being developed by highlighting the division of labor, contingency theory,
bureaucratic theory and rational system perspective (Shafritz, Ott and Jang 2015). On the other
hand, the modern management theories mainly focuses on maximizing the business production
with the effective uses of human resources. Therefore, it can be said that theoretical aspects of

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management theory mainly highlight the efficiency and potentiality of the workers that can bring
significant impact on business growth. Analyzing the situation in Knitwear, it can be said that in
order to improve the engagement of individuals as well as the structure of the company,
theoretical implications of rational organization system can bring the evolutionary progress in
the workplace. By specializing the labor roles in the company as their association in terms of
increasing the business output needs to be appreciated properly. By continuing this, it can also be
said that in the modernized business practices, defining the responsibility can bring more
professionalism in the business operations (Shafritz, Ott and Jang 2015). By continuing this, it
has been identified that Knitwear needs to focus on expanding its administration process. In the
corporate support office of Knitwear, accounting, information technology operation and
marketing operations are being handled. In this situation, improving the administrative
management can bring significant impact on its managerial processes.
In the administrative management theory a process is being indicates that helps to
manage the information thorough the proper involvement of people. Improving the distribution
as well as storage process on the company, the administrative management helps to deal with the
needs of the customers (Thompson 2017). By supporting this, it can be said that in terms of
improving the value proposition in the particular organization, the administrative management
theoretical implication is required in terms of introducing the work division in proper manner.
On the other hand, in order to introduce the effective performance as well as increasing market
revenue, this theoretical implication in the company can help to manage the situation.
Conclusion
In this study, it can be conclude that in order to satisfy the needs of the customers and
developing strong reputation in the market, creating value proposition is very important.

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Analyzing the value proposition of Knitwear, it has been identified that ensuring the
environmental sustainability the company aims to add values in its business operations. In order
to bring the betterment in its business operations, effective implications of administrative
management and rational organization system, the company can be able to create sustainable
position in the market.
Reference list and bibliography
Agrawal, A.K. and Rahman, Z., 2015. Roles and resource contributions of customers in value
co-creation. International Strategic Management Review, 3(1-2), pp.144-160.
Aitken, A. and Paton, R.A., 2016. Professional buyers and the value proposition. European
Management Journal, 34(3), pp.223-231.
Barrett, M., Oborn, E. and Orlikowski, W., 2016. Creating value in online communities: The
sociomaterial configuring of strategy, platform, and stakeholder engagement. Information
Systems Research, 27(4), pp.704-723.
Chandler, J.D. and Lusch, R.F., 2015. Service systems: a broadened framework and research
agenda on value propositions, engagement, and service experience. Journal of Service
Research, 18(1), pp.6-22.
da Costa Fernandes, S., Martins, L.D., Campese, C. and Rozenfeld, H., 2019, July. Representing
the Value Proposition of Product-Service Systems (PSS) in a Value-Based Perspective.
In Proceedings of the Design Society: International Conference on Engineering Design (Vol. 1,
No. 1, pp. 3091-3100). Cambridge University Press.

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Hardyman, W., Daunt, K.L. and Kitchener, M., 2015. Value co-creation through patient
engagement in health care: a micro-level approach and research agenda. Public Management
Review, 17(1), pp.90-107.\
Heikka, E.L. and Nätti, S., 2018. Evolving value propositions in knowledge-intensive business
services. Journal of Business & Industrial Marketing, 33(8), pp.1153-1164.
Manninen, K., Koskela, S., Antikainen, R., Bocken, N., Dahlbo, H. and Aminoff, A., 2018. Do
circular economy business models capture intended environmental value propositions?. Journal
of Cleaner Production, 171, pp.413-422.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science, 45(4),
pp.467-489.
Shafritz, J.M., Ott, J.S. and Jang, Y.S., 2015. Classics of organization theory. Cengage Learning.
Thompson, J.D., 2017. Organizations in action: Social science bases of administrative theory.
Routledge.