Contemporary Developments in Business and Management: Vitasoy Report

This management report provides an in-depth analysis of Vitasoy Corporation, focusing on its external environment, corporate social responsibility (CSR) practices, and ethical considerations. The report begins with an executive summary and table of contents, followed by a PESTEL analysis of Vitasoy's business environment, considering political, economic, social, technological, legal, and environmental factors in Hong Kong and Australia. The report further examines Vitasoy's ethical practices and CSR initiatives, evaluating their relevance, impact on policies and decision-making, and effectiveness in addressing sustainability and stakeholder needs. The analysis includes recommendations for improvement and concludes with a summary of the key findings and implications for Vitasoy's future growth and sustainability. The report highlights Vitasoy's commitment to healthy lifestyles, plant-based products, and responsible business practices within a competitive market environment.

Running head: MANAGEMENT
Management
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Executive Summary
The report has thrown light on analysing the external environmental analysis of Vitasoy
Corporation which helps in analysing the overall applicability and issues faced by the
company in the market of Hing Kong. Furthermore, the different corporate social
responsibility practices have been analyzed which helped in identifying the various kinds of
approaches which have been adopted by the company in order to improve the overall scenario
effectively. Additionally, it has been noticed that the company is looking forward by
encouraging the progress and there has been inclusion of the sustainability related practices
which will be beneficial for the overall growth of the firm.

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Table of Contents
Task 1.........................................................................................................................................2
PESTEL Analysis of Vitasoy Beverage Company................................................................2
Task 2.........................................................................................................................................9
Ethics and Corporate Social Responsibility...........................................................................9
Introduction............................................................................................................................9
Analysis of Relevance of Ethics and Corporate Social Responsibility..................................9
Implication of CSR and Ethics on Policies and Decision-Making Approach.....................13
Evaluation of Effectiveness of Response towards CSR Practices by Vitasoy.....................15
Demonstration of Areas of Effectiveness in CSR Activities...............................................18
Recommendations................................................................................................................20
Conclusion............................................................................................................................22
References................................................................................................................................23

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Task 1
PESTEL Analysis of Vitasoy Beverage Company
1) Political Environment
The governments are the external factors which create huge influence and impose the
overall requirements on Vitasoy Beverage Company. It has been seen that the tax related
policy is easy and convenient which leads to political stability in the overall economy. The
major opportunity gained by the Vitasoy is that there is inclusion of presentation of the
growth opportunities (Anton 2015). There are different regulations on food safety regulations
such as Food and Drugs Regulations and Frozen Confections Regulations which are followed
by the company to improve the intergovernmental cooperation.
Figure 1: Political Aspects of Hong Kong and Australia
(Source: Brammer and Pavelin 2016)

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Additionally, the trend of intergovernmental expansion has been able to foster stable
business environment and it helped in increasing the international cooperation in the different
areas. Moreover, there is high transparency in the political system and aspects of the country
which assists Vitasoy in increasing profitability in the competitive business environment. It
has led to increase the business opportunities and lower risks for Vitasoy in performing the
business (Cha, Yi and Bagozzi 2016).
2) Economic Environment
The performance of Vitasoy is directly linked to the economy wherein the company
have various opportunities for growth along with expansion which is based on the overall
economic stability of the developed countries such as Singapore (Chaudhri 2016). The
economic stability is one of the major opportunities as the tax rate of the country is
progressive in nature which contributes to 16.5% as Hong Kong and Australia follows
territorial principle of taxation as the individuals are being taxed when the income is earned
at Hong Kong and Australia.
Figure 2: Tax Rate of Hong Kong and Australia
(Source: Chen et al. 2016)

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Due to the low rate of inflation in the market in Hong Kong and Australia, it helps in
improving the economic performance of the economy such as it increased the investment. It
helped in providing a climate which is stable and more favorable and it includes the sustained
economic growth of the economy as well (Chen et al. 2016).
Figure 3: Inflation Rate of Hong Kong and Australia
(Source: Chen et al. 2016)
3) Socio Environment
In the present era, the higher health consciousness is the major threat to Vitasoy
Company as there are different concerns relating to content of salt, sugar and other fat related
contents in the products which are sold by the company. However, the respective social factor
can be taken into consideration to improve the different products and services sold by them to
address the respective concerns (Cheung 2016). Furthermore, Vitasoy can take advantage of
the busy lifestyles of the consumers around the entire world as they prefer the ready to cook
food items and health drinks which will be one of the major opportunities for the company.

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Figure 4: Birth Rate in Singapore
(Source: Crowther and Seifi 2018)
Additionally, the organization has the opportunity as to continue in enhancing the
quality of the product and maximizing the revenues of the company which will be
increasingly discriminating the attitudes about the quality of the products among the
customers. In the economy of Singapore, the individuals prefer simple lifestyle and health is
the utmost priority of the customers (de Jong and van der Meer 2017). Vitasoy needs to
introduce beverages which will be healthy as it will be helpful in gaining stronger customer
base in the competitive business environment. There can be carbonated fruit juices which will
be helpful in targeting the school and college students which will be helpful for aligning the
different products and services to change their marketing strategies to change in the consumer
behavior.
4) Technological Environment
The business of Vitasoy is partly dependent on the technological aspects in which it
has been noticed that based on moderate research and development investments in the
industry, the company Vitasoy can boost the own research and development activities as it

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will improve the competency of the business project (Edinger-Schons et al. 2018). The
increasing automation in the business is the other aspect which can be helpful in enhancing
the business performance. The improvement in the knowledge management systems can be
treated as the opportunity for including innovation in the different activities which will be
appropriate for improving the competitiveness of the business in an effective manner
(Edinger-Schons et al. 2018).
Figure 5: Technological Aspects in Singapore
(Source: Edinger-Schons et al. 2018)
Additionally, Vitasoy has adopted the social media technology as to connect with the
audiences and it helped the company in increasing the sales of the company appropriately.
There is different introduction of the new faces for the brand promotion which is appropriate
for them in handling the overall operations successfully. From the diagram, it can be
identified that more than 55% of the population is using the mobile devices which will be

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helpful in improving the overall appropriateness of the firm (Fifka, Kühn and Stiglbauer
2018).
5) Legal Environment
The compliance has become an integral part of the business all around the world and
especially for the ones which are operating in the international environment. Vitasoy
Beverage Company is trying to retain all the rights which are related to the business and it
has been developed with patented process (Flammer 2015). The moderate rate of the different
regulatory changes has provided with opportunity for Vitasoy to grow with the overall
expectation that the current strategic decisions will be helpful in satisfying the different needs
of the customers. Lastly, the company can improve the different products and services as to
address the different regulations regarding the safety of the product along with health effects
as well.
Figure 6: Legal Aspects of Vitasoy

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(Source: Grayson and Hodges 2017)
6) Eco-Environment
The different customers in the competitive business environment which helps in
improving the sustainability standing. Vitasoy can improve their waste disposal strategies
such as recycling as to gain more support from the customers. On the contrary, the change in
climate poses a threat to the supply chain of Vitasoy, however the organization can diversify
the global supply chain as to minimize the exposure of risk to the change in the climate. From
the above analysis, it can be identified that the supply chain of the company can be used as to
attract and retain more customers in the market (Ioannou and Serafeim 2015).
Figure 7: Environmental Aspect in Hong Kong and Australia
(Source: Jamali, El Dirani and Harwood 2015)

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Task 2
Ethics and Corporate Social Responsibility
Introduction
As commented by Jiang and Wong (2016), the Corporate Social Responsibility and
Ethics is a self-regulating business model which is helpful for the companies to be socially
responsible such as for themselves, stakeholders and the public. It is the broad concept which
can take any forms that depends on the industry and company. Additionally, Kiełkowska et
al. (2018), have opined that with the help of the different CSR programs along with volunteer
effects, the business can benefit the society while boosting the own brands. The activities
related to CSR will be helpful in forging the stronger type of bond between the corporation
and employees. It is assisting in improving the morale of the employees and employers and
they feel connected with the world thereafter.
In case of Vitasoy Beverage Company, proper analysis is required to be done which
will be helpful in understanding the overall influence of the same on policies and procedures
along with decision-making within Vitasoy which is the beverage organization. Furthermore,
there should be critical analysis of evaluating the effectiveness of the response of the
organization towards the different practices of corporate social responsibility (Kiliç, Kuzey
and Uyar 2015). Lastly, there should be inclusion of the recommendations which is required
to be demonstrated in response to the organization.
Analysis of Relevance of Ethics and Corporate Social Responsibility
As commented by Kim et al. (2017), in the present scenario the world’s population of
growth and the food system in the present scenario is complex which continue to pose
challenges to the environment along with sustainable supply and production of the food.

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Vitasoy is seeing an increase in the wealth and demand for wellness in the markets wherein
the company is operating. There are different challenges related to health which are
associated with sedentary lifestyles which are becoming more prevalent with the rising risks
from obesity, hypertension along with other heart diseases.
As to become one of the keys along with innovative player in the food and beverage
industry, Vitasoy rises to the respective kinds of challenges through proper sustainability
vision wherein they tried to make the right products which are nutritious, tasty along with
plant based food items that will be compatible with the healthy life style of the community
and making the products in the right manner with the help of prioritising the efficient
resources consumption while minimizing the environmental impact effectively (Lim and
Greenwood 2017). Vitasoy aims in maintaining the leadership approach in promoting the
superior quality of the life with the help of proper production of great tasting and high-quality
nutritious products which will be helpful in satisfying the different customers in the markets.
In order to become effective in the performing the different operations, it is essential
in nature to make the different resources compatible which will be essential in managing the
different lifestyle of the different individuals through managing the overall compatibility of
the lifestyle of the individuals in the competitive business environment appropriately. In
order to address the different challenges and guide the overall sustainability aspects of the
organization, the company has tried to establish Two-Pronged Framework as to better
integrate sustainability with nature of the business and it will be helpful in enabling the
company to set the different targets which will be helpful in ensuring that the nature of the
business and which will be suitable for the sustainable growth of the company (Lins, Servaes
and Tamayo 2017).