Relationship Between Internal Internal Audit-Myassignmenthelp.Com

Question: Discuss About The Relationship Between Internal Internal Audit? Answer: Introducation There are seven external forces or the factors that have laid down a huge impact upon the business operations of Goodwill. These forces are the key factors that influence the marketing and the business efforts in an in-depth manner. For any business organisation, it is very much essential to have a proper analysis of these factors so that the organisation do not face external risk and can have long term sustainability (Honderich, 2016). The seven forces comprises of competitive environment force, economic environment force, political and legal environment force, technological environment force, sociocultural environment force, demographic environment force an environment force. The competitive forces are the competition that exists between the organisations in the market. The competitive forces that have impacted Goodwill comprise of both domestic as well as the international players. There are two domestic competitors i.e. Second Life Recycling and Mid-Atlantic Clothing Recycling (B rimmer, 2012). These organisations give competition to Goodwill in respect with the donations for cloths. There are other competitors that influence the business functions of Goodwill comprise of CenterState, NPC, American Trust, etc. (Owler, 2017). These organisations pose a direct impact upon Goodwill and also because of a tough competition from such organisations; Goodwill has to suffer a lot of business crisis. The second external environmental force is the economic environment which comprises of wealth, productivity, interest rates, inflation, income and employment. These are the factors that have a great influence upon the behaviour of the individuals and the business organisations. From the economic point, Goodwill has been influenced as they key reason behind the shutting down of the store was the financial crisis which ultimately have an impact upon the business. Because of the various factors behind the cash flow crisis such as paying salaries to the employees, decreased rate of donations and various other factors has resulted in shut down of the Goodwill store. The third environment force is the political and legal environment which impacts when there are formation of regulations and laws implemented by the government that has a direct impact on the way a business operates. The political and legal forces for goodwill comprises of the factors such as according to the collective agreem ent policies and regulations, the company was required to offer a notice of period of 30 days to 60 days to the employees before they are planning to shut down the store. But there was a sudden shut down of the stores without any prior information. Such incidents considers as voiding of the set regulations and laws of the agreement. Thus, there were a number of legal suits against the store that has impacted the functioning of the organization (Brazo, 2016). The fourth force is technological environment force which has impacted Goodwill, its market opportunities new markets and business functions. The technological force has impacted Goodwill as relying upon the free donations, the organisation has not ensured that it is technologically updated and hasnt taken use of innovative and pioneering technologies. This laid a negative impact upon the business functions. As there were less returns, ineffective balance of business function such as collection of donations and their assembling and resale. Thus, lacking on the grounds of technological platforms, the organisation failed to manage the financial crisis and thus it shut down. The fifth force is the sociocultural environment force which impacts the business organisations by the various cultural and social practices as well as traditions and beliefs of a particular society (Bekkers and Wiepking, 2011). There are various cultural values, beliefs and traditions which govern the society as we ll as also the business function. In case of goodwill, being an organisation working for good societal cause, it was essential that the organisation always remained ethical as well as moral in all its business operations. But taking away of the jobs of hundreds of people with sudden shut down without any prior info is one of the most unethical and socially immoral actions of the company (Ross, 2016). Thus, it has violated the beliefs and values of the society which had developed a completely deteriorate image of the organisation as it has not only ruined the organisation financially but also socially which can be an extreme negative factor for its other branches. The sixth environment force is the demographic environment force that relates to the characteristics of the total population which are used by the business organisations for segmenting the market that comprises of race, gender, income, ethnicity and age (Michel and Rieunier, 2012). There is also an impact of this force on G oodwill as there were many a times as it was found that from the basis of gender, the women were found to be more active in donations in comparison with male individuals. The second factor that impact Goodwill is the perception of the donor in respect with the people who are getting from such donation as if they are of same culture, them n there is more number of donation and if there is difference in culture or race, the level of donations is less. The next and the last force is natural environment force that of the comprises of the impact led down because of the raw materials, natural resources and the various other forces that can impact the business environment. The influence on Goodwill of the natural environment force is that at the time natural calamities there is an impact on the working of such organisations such as the support of the various organisations, government and various other institutes are given to those regions instead of these organisations (Snipes and Oswald, 2010). Explain what management philosophy (classical or behavioral) would be most suitable for Goodwill and why? There are two renowned management philosophy theories i.e. classical management theory and the behavioral management theory. The behavioral management theory is in concern with the human behaviour and human relations various the various human dimensions of work are addressed. The theorists of behavioral management theory believes that there is a need to have a better understanding of the human behaviour so that there can be improved productivity, enhanced level of motivation, decrease conflicts and higher expectation level in the business organisations (Brazo, 2016). The theorists of behavioral management believe that the organisational employees are not just the workers but the individuals, the key assets and resources of the organisation which are required to be developed (Beach and Lipshitz, 2017). The key emphasis of this theory is on the satisfaction and development of the employees rather than just organisational benefits. The second important theory is classical management the ory that explains that there is just a single or one best way to manage the tasks, employees as well as performances. There are two parts of this theory i.e. classical administrative and classical scientific. According to the classical scientific, the entire focus is upon increasing the organisational efficiency and productivity where the managers find one best way for managing organisational functions (Simon, 2013). The second is classical administrative where there is focus on entire organisations rather than just on productivity (Honderich, 2016). There is more of bureaucracy rule which is there upon the employees and they are required to just follow the orders. According to this theory of management, the organisations take sole decisions irrespective of the impact upon the employees and thus there are several negative outcomes of implementing this theory in the organisation (Vasu, Stewart and Garson, 2017). In case of Goodwill, the organisation is required to incorporate and implement the bureaucratic management theory instead of the classical management philosophy. The primary reason behind recommending the bureaucratic management philosophy is that because of a sudden shut down of the store as well as snatching the jobs of hundreds of people has raised a voice against the company among the individuals (Ross, 2016). To have efficient and successful working in future, it is essential that Goodwill must consider about the employees in a more emphasized way. If Goodwill will take use of the bureaucratic management philosophy then it will be able to take better decisions which do not have such negative impacts upon the employees (Maag, 2016). With bureaucratic management philosophy, the employees will be treated as the assets and their needs and recognitions will also be considered. Thus, consequences of taking decisions related to shutting down of the stores without any information to the employees and fierceness from the side of employees will not take place in bureaucratic management of the employees. Thus, it is concluded that the behavioral management philosophy would be more suitable for goodwill in order to manage its business, organisational management and the employees (Frederickson and Ghere, 2013). What business-level strategy would you recommend for Goodwill and why? The primary reason behind the failure of Goodwill and shutting down of the stores was financial crisis or cash flow crisis. This was because of the inadequacy to attract cash inflows. Thus, to overcome the crisis and to have better functions in future, there was is a need to have change in the business level strategy. The key competency of any organisation should have its major emphasis upon the satisfaction of the references and needs of the customers and attaining more than average returns and to accomplish this purpose, the organisations take use of the business level strategies. The business level strategies help the organisations in achieving competitive benefit as well as offering value to the customers by exploiting core competencies. The most preferable strategy recommended for Goodwill is the Integrated Low Cost/Differentiation Strategy (Brazo, 2016). With the advent of globalization, there are number of organisations that have started implementing the integrated low cost/di fferentiation strategy so that they can adapt the various environmental changes as well as can learn innovative technology to provide differentiated products and services but at low cost (Honderich, 2016). With the help of this strategy, Goodwill can have improvement in its various competencies that comprises of having increased adaptability to the several environmental modifications and changes, developing new skills and technologies and effectively leveraging the key competencies across all the product lines and business units that enables Goodwill to offer the customers with more differentiated products at low price. Therefore, the customers will realize benefit in both through the low cost products as well as with value based product features (Brazo, 2016). With the help of the integrated low cost/differentiation business level strategy Goodwill may be capable enough to overcome its cash flow crisis by consistently reducing the costs and adding differentiated feature to attract more number of customers. Through this strategy, Goodwill be able to have efficiency in majorly three factors and the first is accessing flexible manufacturing systems. Goodwill can work on flexible manufacturing system which is a process that is controlled by the computers and is used to produce a diverse set of products in flexible and moderate quantities. As there are products gained from the donations, so Goodwill has an opportunity to segregate those products or have their recycled manufacturing so that there can be offered new and diversified products to the customers and more sales can be generate through auctions of selling of those products (Mcfarland, 2016). It enables Goodwill to take the advantage of low cost as it would take no cost to sell the produ cts directly or very low cost to make a few changes in them and sell. It will enhance the ability of Goodwill to engage in an integrated differentiated/low cost strategy and to earn more revenue. This strategy will also help Goodwill in developing information network among the various stores of the companies. The strong information networks enable the various chains or stores of the company to develop effective co-ordination of the interdependencies that are there among the external and internal value creating activities for enhancing the level of responsiveness and flexibility (Ross, 2016). In case of goodwill, there was no information passed to the employees regarding the shutting down of the stores of goodwill and this was because of ineffective in formation network. If the company will adopt such integrated business level strategy then it will result in better flow of information. The next advantage and reason because of which Goodwill must implement the integrated low cost/diff erentiated strategy is achieving total quality management systems. There is establishment of these systems for improvement in the internal value-creating activities performance. It helps in fetching the attention of the customers by offering them differentiated and low cost advantage. Thus, from the overall analysis, the most recommended business level strategy which can benefit Goodwill the most is integrated low cost/differentiated strategy (CBC News, 2016). Explain in detail the kind of structure Goodwill likely had- traditional or modern? There are two kinds of organisational structure i.e. traditional and modern. The traditional organisational structure demonstrates the structure as hierarchical where there is flow of power in a vertical and upward manner and the workforce is departmentalized. There is a chain of command which is required to be followed by the employees and have to work in accordance with that. The structure is disciplined, organized and hierarchical. In the modern organisation structure, there is a boundary-less organisation that possesses high level of collaboration and strong networking with each other (March, 2013). There are continuous innovations and operations take place on growing technologies. There is acceptance new business challenge and opportunities as well as there is frequenting setting up of goals. In case of Goodwill, if analyzed, it has been identified that there the organisation possesses a traditional organisational structure rather than modern structure. It can be analyzed becaus e of the various facts that came into existence (Mcfarland, 2016). The first most important factor that shows the existence of traditional structure is the involvement or no engagement of the employees in the decision making. The employees heard the news of the shutting down of the stores of Goodwill by other people or when the visit the store very next day. Such incidents prove that the decision making at Goodwill is completely without the consideration of the employees (Ahrne, Brunsson and Seidl, 2016). The second factor that shows traditional organisational structure is the information network, opposite to the modern organisational structures, there does not take place an effective flow of communication as there are no direct information networks and thus the employees were not informed regarding the financial condition of the organisation as well as its planning to shut down the stores (Ashkenas, et al., 2015). Thus, such like in traditional structures, the higher authorities take decisions similarly it happened at Goodwill and the employees just needed to follow the same. At Goodwill, each and every department has its particular and fixed regulations and rules that every employee with a specific job description has to follow (Grace, 2016). The employees also have accountability to their superiors and works upon a single strategy that has been set in the annual year of the organisation with no flexibility to mold or have modifications in the business functions as per the need of t he situation (Hatch and Cunliffe, 2013). There is high level of rigidity in the decision making at Goodwill which demonstrates that the structure is extremely traditional. Because of the increased level of rigidity and no space for flexibility, the organisation not able to manage the challenges and had to face huge cash flow crisis. This was one of the outcomes of working on traditional organisational structure in a globalized economy. Thus, it can be stated that Goodwill had more likely to worked and function upon the traditional organisational structure which being one of the factors behind the failure and shutting down off the store of Goodwill (Verle, et al., 2014). Was there good governance at Goodwill (south Ontario branch)? Explain why or why not. Good governance is the approach for making as well as implementing the decisions in the organisation. It is not related only to correct decision making rather having a best possible approach for decision making. There are various characteristics of good governance that impacts good decision making. Good governance has majorly eight different aspects that comprises of being inclusive and equitable, effective and efficient, responsive, transparent, accountable, consensus oriented and participatory and follow the rule of law (Grindle, 2012). The basic aim of implementing good governance is that the voice of the vulnerable among the society are been considered in decision making, had consideration towards the minorities an there is minimized corruption (Mcfarland, 2016). Working in good governance also means that the organisation is responsive towards the future as well as present needs of the society and the masses. But it can be said that there was no existence of food governance at th e South Ontario branch of Goodwill. This can be analyzed by evaluating the Goodwill with the various lenses of good governance (Suyono and Hariyanto, 2012). Accountability at Goodwill The organisation lacks at the aspect of accountability as the reports, data and the other information never disclosed the actual performance if the organisation. As well as the sudden shut down of the store has raised certain questions from the society and the employees which were left unanswered. Thus, in respect with accountability, Goodwill does not have good governance (CBC News, 2016). Transparency at Goodwill In respect with transparency, the decision making process of Goodwill was neither able followed nor understandable by the individuals. They were not able to see that how and why the decisions were made which shows that there was lack of information, consultation and advice in resect with decision making. Thus, in respect with transparency, Goodwill does not have good governance. Follow up of Rule of Law at Goodwill Follow up of the rule of law states that the decisions are in accordance with the legislation and are consistent. But in accordance with the various employment related laws, Goodwill has violated all the laws as there was no information or notice passed to the employees of a minimum time period informing bout the crisis following at Goodwill. Thus, the sudden shut down of store and unemployment of the employees was against the rule of law. Thus, in respect with follow up of rule of law, Goodwill does not have good governance (Fowler, 2013). Responsiveness at Goodwill This means that there must be responsiveness for serving the needs of the community and developing a balance in the revenues earned, decision making and responsiveness towards the society. But because of the decisions of Goodwill most of the societies suffered a lot which shows an irresponsive behaviour. Thus, in respect with responsiveness, Goodwill does not have good governance. Inclusiveness and Equitability at Goodwill All the organisational as well as community members do not feel that their interests are met by the decision making process of Goodwill. There can be seen equity and inclusiveness from the point of offering opportunity to the individuals for employment (Ross, 2016). Efficiency and Effectiveness at Goodwill There cannot be seen efficiency and effectiveness in the working and decision making process of Goodwill as it does not able to cope up with the cash flow crisis in an efficient manner and as a result there was shutting down of the store. Thus, in respect with efficiency and effectiveness, Goodwill does not have good governance (Gray, 2016). Participation at Goodwill There was no involvement or participation of the employees and the community in the decision making process as there was no flow of information to the members neither there was offered an opportunity to give recommendations. Thus, in respect with participation, Goodwill does not have good governance. Consensus Oriented work at Goodwill The decisions taken at Goodwill were not consensus oriented which led to number of conflicts and the employees had a revolt against the unethical decision making of the organisation. Thus, in respect with consensus oriented decision making, Goodwill does not have good governance (Mojtehedzadeh, 2016). References Ahrne, G., Brunsson, N., Seidl, D. (2016). Resurrecting organization by going beyond organizations.European Management Journal,34(2), 93-101. Ashkenas, R., Ulrich, D., Jick, T., Kerr, S. (2015).The boundaryless organization: Breaking the chains of organizational structure. John Wiley Sons. Beach, L. R., Lipshitz, R. 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