Personal Integrity and Social Responsibility

Question: Discuss about the Personal Integrity and Social Responsibility. Answer: Introduction This report is discussing about the impact of the market benefits that will be including the aspects regarding increased sales quantities due to increased market demand, increased prices due to quality and reputation, cost reduction because of increased effectiveness, increased productivity as well as reduction in future costs in relation with environmental cleanup, internal control as well as ethics breach. In this context, the soft drinks market in the Kingdom of Saudi Arabia has been undertaken and the impacts of the aforementioned market benefits have been discussed concerning the soft drinks market. The soft drinks market in the Kingdom of Saudi Arabia is having a steadfast growth in recent years. There has been an increase in the sales quantities due to the growth in the market demand for carbonates in the Kingdom of Saudi Arabia. Carbonates are recording a strong value growth of 7% in 2016. This is mainly due to the increasing young population within the Kingdom of Saudi Arabia that are having a growing enjoyment regarding Western foods as well as beverages like carbonates. Growing consumption is being fuelled as well by the marketing and promotional activities of market leaders like GBO PepsiCo. Saudi Arabias young population is having an expectation of continuous growth that is happening very rapidly (Kotler, 2015). At the same time, there is also occurring a rise in the countrys internet penetration where the Saudi customers are having an interest in the latest trends and is interested in incorporating these aspects within their personal lifestyles. In this context, revenue having an expectation of showcasing annual rate of growth of 14.6% that will result in a market vol ume of US$208m in 2021. In 2017, user penetration is at 9.0% and is having an expectation towards hitting 11.3% in 2021. Impact of increased prices due to quality and reputation There is an increase in prices because of the improvement in quality as well as reputation within the market for carbonates in the Kingdom of Saudi Arabia. The sale of soft drinks was having an expectation for experiencing a continuous robust growth that led to a gradual increase by 52.6% in local currency-value until 2016. It has been observed from researching the market that the customers in the Kingdom of Saudi Arabia are having loyalty towards a brand and are having growing interest regarding products that are considered being new as well as innovative. Therefore, keeping this aspect in mind the soft drink manufacturers in Saudi Arabia are focusing on the improvement of quality as well as reputation of the different carbonate brands (Elfenbein, 2015). As the demand regarding soft drinks is rising, the soft drink companies are also increasing the prices of their products. They are quite confident of the fact the carbonates have been able to create a successful brand identity for t hemselves in the Saudi Arabian market. By considering the hot and arid climate there, as well as the rehydration aspect, the soft drinks sector is becoming a part-and-parcel of the Saudi Arabian society and is being regarded as one of the most dynamic sectors within the country (Johanson, 2015). Through the aspect of updating the technologies used within the soft drink companies in the Kingdom of Saudi Arabia, there is a possibility towards increasing efficiencies at reduced costs. To streamline the process of production that uses high-quality technology as well as cutting-edge methods will be leading towards reduced total costs as well as increased profitability. Moreover, the process to recycle as well as reuse the soft drink cans and bottles is considered one of the significant ways for cutting costs as well as improving efficiencies (Hollensen, 2015). The soft drink companies can have a drastic improvement to their entire strategies of business by examining their present business methods to find areas that need redefining, improving as well as reorganizing. Through the elimination of the business practices that are considered being redundant, outdated as well as needless, soft drink companies will be observing the fact that their processes of production are getting impro ved, productivity is getting increased as well as profits are getting expanded. Increased productivity An increase in productivity will be allowing the soft drink companies in the Kingdom of Saudi Arabia for producing increased output in respect of the same input level and therefore, resulting in higher Gross Domestic Product. In this regard, it can be stated that the aspect of job performance will be playing a significant part in explaining the aspect of productivity since staffs receiving appropriate compensation as well as having satisfaction related with work-hours will be working in a less stressful way, thus increasing productivity. Total Quality Management is considered to be another factor for increasing productivity that assists in increasing the market shares as well as return-on-investments (Dale, 2015). Since, staff involvement as well as satisfaction is playing a significant role in organizational productivity, it is essential in respect of the managers within the soft drink companies in the Kingdom of Saudi Arabia in initiating the implementation of the TQM philosophical aspects in their daily dealings (Oakland, 2014). The use of technological aspects assists in maximizing the productivity of business thus, creating the platform for realizing organizational success. In this regard, it can be stated that business productivity software makes sure that the soft drink companies in the Kingdom of Saudi Arabia possess the tools for overcoming the challenging aspects to execute on the strategic aspects daily as well as thriving in the present economy. Ethical behaviour as well as corporate social responsibility will be bringing essential benefits regarding a business organization. It assists in attracting consumers to the products of the company that results in sales boost as well as incurring profits. It also attracts increasing number of investors as well as maintaining high share prices in respect of the soft drink companies in Saudi Arabia (Hartman, 2014). It can be stated that the soft drink companies that sets out to function within its individual ethical guidelines will be at a reduced risk to face fine in respect of poor behaviour and will be less likely in finding themselves towards the breaching of laws that is concerned with the necessary behavioural aspect (Nill, 2015). Therefore, unethical behaviour will be damaging the reputation of an organization that will be resulting in reduced future costs. Conclusion The report is inferring that the different market benefits will impact the soft drinks market in the Kingdom of Saudi Arabia in various ways. In respect of the impact of increased sales quantities due to increased market demand, the annual growth rate has been 14.6% that will be resulting in a market volume of US$208m in 2021. In respect of the impact of increased prices because of quality and reputation, the soft drink companies are also increasing the prices of their products since these companies are being able to create a successful brand identity amongst the customers in the Saudi Arabian market. To increase productivity, the aspect of Total Quality Management as well as business productivity software is being used in the soft drink companies. For reducing the future costs in respect of breach in ethics it has been seen that the unethical behavioural aspects damages the organizational reputation. Reference Dale, B. (2015).Total quality management. John Wiley Sons, Ltd. Elfenbein, D. W., Fisman, R., McManus, B. (2015). Market structure, reputation, and the value of quality certification.American Economic Journal: Microeconomics,7(4), 83-108. Hartman, L. P., DesJardins, J. R., MacDonald, C., Hartman, L. P. (2014).Business ethics: Decision making for personal integrity and social responsibility. 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