Business Report: Understanding Business Challenges for Baskin Robbins

This report analyzes the business operations of Baskin Robbins, focusing on various challenges and opportunities. It explores the impact of climate change on the ice cream industry, highlighting how seasonal changes and regional variations affect sales and production. The report also examines the ...Read More

Understanding Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Q1. Effect of climatic change on global business.......................................................................3
Q2 Reasons of negative impact of social media on productivity, sales and profit....................4
Q3 Communication problems arise in international business due to cultural difference............5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business is a word but it carries many complications while operations. In society there
are various factors which affects business in positive or negative manner. There is important role
of manager to understand what is the need of customer and then modify its policies. In this report
Baskin Robbins is ninth world's largest ice cream chain (Bracci and Vagnoni, 2011). This
company was launched in 1945 by Burt Bsskin and Irv Robbins. This report talks about changes
that affects business operations such as global, climatic change and changing role of social media
in current scenario.
Q1. Effect of climatic change on global business
Baskin Robbins is company which has varieties of ice creams and shakes. Before
launching any new ice cream flavour in market, research and development department of
company has to analyse that flavour will work or not. Ice cream is more popular in summers as
compared to winters. There is change in flavours also as per country need. It is important that to
make product successful there is important role R&D department. Sometimes there are
possibilities that company has to modify the taste of ice cream and shakes. Baskin Robbins has
many outlets all over the world, so it is important to consider climatic factors an important
aspect. This company is globally well known and have good brand value so this has impact on
economy of country also. Climatic factors that affects business are- Summer season: There is change in weather this affects sales of company also. The
company has to plan its purchase and production related activities accordingly. Company
has to perform various analyse to know feedback of their product and services. In UK
summers are not so hot while in India summers are so hot. So there is change in demand
of India and UK (Cordano and et. al., 2010). Change in price of goods and services: Change in climate affects price of goods and
services. Price of ice creams and shakes in summers are more as compared to winters.
Hence there is impact of climate on sales and production of company, management of
company ahs to take corrective measures to increase sales. There is change in plans and
policies of company as per climate changes. It is important to consider all the factors
related to climate so this will provide edge over others. Demand and Supply balance: As per change in climate, there is variations in demand and
supply. In summer company has to focus on production so that they can satisfy the need

of customer. Manufacturing manager has to consider place before manufacture specific
flavour. There are possibilities that some flavours are liked in UK so company focus on
it. Company has to make its policies flexible so that they can be modified as change in
external environmental. This will help company to raise its goodwill and satisfy
customer's need (Deng and Chi, 2012). Government interference: Business runs in society and trhere is impoeratnt role of
government in framing policies related to company. There is change in plans and policies
as change in climate. There are different strategies and policies as per political parties.
Though there is no direct relation between government change and climatic factor. But in
case if any flaws by company there is important role of country and comopany cannot
operates their operations.
 Customer perception: Baskin Robbins have varieties of flavour in ice cream and shakes.
But they launch there flavours as per culture of country. There is thought that ice creams
and shakes are the product of summers, but these days consumers are ready to consumein
winters as well. In UK ice creams are ever green product while at the same time in India
these are more preferable in summers.
Q2 Reasons of negative impact of social media on productivity, sales and profit
Social media is away through which company can contact large number of people at the
same time. It is important to make proper use of social media this has impact on sales and profit
in positive manner. Social media is very active these days. These days there is important role of
social media in enhancing profits and sales of company. Social media is away which is used by
company to promote sales of organisation. There are various options for social media such as
Facebook, YouTube, official Website, Television, etc. company has to spend some specific
amount on advertisement so people came to know product and services. Baskin Robbins
launches new product and services and it is important to convey those product with its
characteristics to public (Low, Chen and Wu, 2011). Social media is important to know that this
is the only to contact large number of people.
But there is positive as well as negative effect of social media. Management of company
has t first choice which method has to use which help them to convey the actual message. Social
media is an impersonal method of advertisement so it is not necessary that people are taking it
seriously. There must be feedback taken to know what people think about changes this will help

organisation to make necessary changes in product and services. Reasons which negatively
affects profits, sales and productivity are- Impersonal way of communication: Social media is way through which company can
contact large number of people at a time. But there is no one to solve query of person.
Advertisement at Facebook is one of the best example of advertisement through social
media. When consumer is watching advertisement on You Tube and he/she feels some
query regarding it then there is no body to solve it. This makes social media lesss
preferable. Old age people are not much aware about social media so this does not work
in their case (McNamee, Pearson and Boer, eds., 2015). Lack of updated information: There are many advertisement on social media but there is
no specific and updated information. Company prepares advertisement and plays in for
longer time, because there is need of huge investment for advertisement. This affects the
sales of product in negative manner manner. This makes consumer not to prefer social
media as a way to gather information. There are sometimes information which is not
possible practical, so consumer think that it product does not work. Culture of consumer: Baskin Robbins is the company which operates in different
countries and have numerous products. So management of company have help of
different mediums to contact with consumer. It is important that management of
organisation has to take care of culture, religions and emotions of customer. This impacts
a lot to sentiments of company and affects sales of company.
 False presentation: This is the major drawback which affects sales and profit in negative
way. Many times there are advertisement which shows false image of product in front of
consumer. If consumer after watching advertisement through Social media purchase
product then it breaks the trust of consumer and he/she does not prefer to purchase it
again and this affects the other consumer demand also in negative way (Suleiman and et.
al., 2012).
Q3 Communication problems arise in international business due to cultural difference
Communication is the most important way which is used by company to communicate
their product and services to company. This is important to make public aware about m
modifications in product. Many times old product gets innovated in new with some
improvements. It is essential to make this communication so that company can raise their sales.

Apart from this there is important role of communication between superior and
subordinates in the company. Subordinates have to convey their problems and query to superiors
while top level management has to deliver informations and policies to subordinates. If there is
communication gap in organisation, there may be chance of miscommunication. There are
various reasons which affects business operations. Some of examples are: cultural differences,
language barrier, etc. Manager of company has to take actions to minimise the negative effects of
such problems. It is important that manager has to create good environment in organisation and
respect religion of other person (Weske, 2012). This will provide confidence to employees as
well as consumer and it impacts business in positive way. Workplace etiquettes: There is an environment in company. There is important role of
manager in maintaining good environment in company. This will help company to make
employees comfortable while working and this affects business in positive manner.
Culture within the organisation effects the business attitude of employees. When new
person joins company then there will be proper induction so he/ she can know about
inside world of organisation. This is beneficial in making him/ her to be part of company
and creates long relations. Politics: There is politics in organisation, which creates different groups in company and
affects performance of consumer in negative way. It is important that there must be
changes in teams working so that employees are also familiar with each other and they
respect each other. This will reduce the communication gap in company and there will be
no confusion regarding accountability. Politics affects organisation in negative awy and
employees get diverted to other issues. This will give rise to personal issues as well.
 Sources of communication: Baskin Robbins is a company which has outlets all over the
world so there are difference in culture and tradition of employees. But to operates
business in better way there are various methods of communication. Company must use
different personal way of communication so that there is no gap and one can understand
thoughts more quickly and properly (Zott and Amit, 2010).
Company must take appropriate actions to overcome these issues so that they can make
good image in that market. This will motivate employee also to perform well and provide more
satisfaction to employees. There is important role of manager to provide assistance to personnel
so that they personal in best way and respect culture of others. There is important role manager

in improving ways of communication so that there is less cultural barriers in organisation. If
there is no proper management within organisation than this will affect business operations also.
Employees are not ware of their main goals and targets.
CONCLUSION
After discussing above points it is clear that there is change in operations of company and
the role of manager is increasing. This report says that there is need to analyse all the aspects of
environment carefully and then take corrective measures to overcome them. It is important to
accept changes happening in environment, this will provide chance for company to satisfy need
and demand of customer and compete with outer world. The role of social media is increasing
day by day but at the same time there are various problems associated with it.
REFERENCES
Books and Journals
Bracci, E. and Vagnoni, E., 2011. Understanding small family business succession in a
knowledge management perspective. IUP Journal of Knowledge Management. 9(1).
p.7.
Cordano, M. and et. al., 2010. Understanding cultural differences in the antecedents of pro-
environmental behavior: A comparative analysis of business students in the United
States and Chile. The Journal of Environmental Education. 41(4). pp.224-238.
Deng, X. and Chi, L., 2012. Understanding postadoptive behaviors in information systems use: A
longitudinal analysis of system use problems in the business intelligence
context. Journal of Management Information Systems. 29(3). pp.291-326.
Low, C., Chen, Y. and Wu, M., 2011. Understanding the determinants of cloud computing
adoption. Industrial management & data systems. 111(7). pp.1006-1023.
McNamee, T., Pearson, M. and Boer, W. eds., 2015. Africans investing in Africa: Understanding
business and trade, sector by sector. Springer.
Suleiman, B. and et. al., 2012. On understanding the economics and elasticity challenges of
deploying business applications on public cloud infrastructure. Journal of Internet
Services and Applications. 3(2). pp.173-193.
Weske, M., 2012. Business process management architectures. In Business Process
Management (pp. 333-371). Springer, Berlin, Heidelberg.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range
planning. 43(2-3). pp.216-226.
Online
7 Ways Climate Change Affects Companies. 2018. [Online]. Available
through:<https://www.investopedia.com/financial-edge/0210/7-ways-climate-change-affects-
companies.aspx >.