Ethics And Social Responsibility Business Essay

Carlsberg Brewery Malaysia Berhad was established in December 1969. It has been around 43 years since it was established. Currently it is active in beverage industry. The products of Carlsberg included Carlsberg Green Label, Carlsberg Gold, Carlsberg Special Brew, Kronenbourg 1664, Kronenbourg 1664 Blanc, Somersby Apple Cider, Asahi Super Dry, Danish Royal Stout, Corona Extra, SKOL beer, SKOL Super beer, Jolly Shandy Lemon and non-alcoholic Nutrimalt drink. The type of business ownership is public Limited Corporation. The main rival of the firm are Guinness Anchor Berhad and Asia Pacific Breweries (Singapore) Private Limited. Carlsberg Green Label beer is currently competing with Guinness Stout from Guinness Anchor Berhad and Tiger beer from Asia Pacific Breweries Private Limited. In year 2002, the market of the Carlsberg Brewery Malaysia Berhad is 40.5 %, Guinness Anchor Berhad has 20.2% of market, Asia Pacific has 14.7% of market. Luen Heng Agency Sendirian Berhad and Spanish Cellar Sendirian Berhad stand market for 0.8% and 0.6%. The subsidiaries of Carlsberg Group are distributed globally, so it is proven that the company is active internationally. Currently, it has around 700 employees in the company.

Carlsberg Company has produced more than 40 breweries over the world. The Carlsberg Brewary Malaysia Berhad is subsidiary of Carlsberg brewery in Denmark. After Carlsberg carry forward to Malaysia, it stimulated beer industry in our country. Besides that, the Carlsberg Brewary Malaysia Berhad gives tangible and intangible profit to our citizen. The production of Carlsberg is also able to fulfill different customers.

Part 2: The Manager as a Planner and Strategist

Part a

Vision:

Regardless of the occasion and place, our Brands shall be the customers’ preferred choice.

Mission:

Carlsberg Brewery Malaysia Berhad is a Dynamic provider of the beer, stout and beverage brands, Bringing people together and Adding to the enjoyment of life.

Major goals:

To maintain the Carlsberg Green Label and obtain the highest percentage of market share for the next 5 years.

To capture back the largest possible amount of smuggled beer, converting the purchasing of smuggled beer to purchase of Carlsberg Green Label for the next 5 years.

To develop alternative advertising strategies for Carlsberg Green Label. “Nice One: Great Beer, Great Stories” that celebrates the beer drinking culture of storytelling.

To intensify product positioning to overcome the effects of competitors’ positioning activities.

To enhance the image of Carlsberg as a global provider of enjoyment over the next 5 years.

Part b

Yes, the firm is living up to its mission, vision and goals. Carlsberg Green Label beer has more than 50% share of the Malaysian Beer Market since it was locally introduced in 1972. Although Malaysian Government has banned radio, television and outdoor advertising, the firm still has some alternative way of advertising. The firm spend about ten percent of its annual revenue on advertising and promotion campaign every year. It had launched a campaign called “Nice One: Great Beer, Great Stories” that celebrates the beer drinking culture of storytelling. The campaign is generally targeted at a larger audience rather than just the Chinese market. The main methods that the firm uses are press advertising, cinema and in-store advertising. With cinema advertising, it can create a powerful visual effect and build positive brand imagery further. Besides that, the firm had practiced some product-positioning strategies such as sponsoring of neon-light banners for business outlets like pubs, coffee shops and restaurants throughout Malaysia.

Part 3: Organisation Structure

Part a

The basic organization structure of Carlsberg Brewery (M) Berhad is functional structure. It means that employees in the company are grouped together according their occupational specialties. In the functional organization structure of Carlsberg Brewery (M) Berhad. The top position of the company is managing director followed by different department which includes marketing department, sales department, finance department, supplies and logistics department, human resource department, and general manager department. Each department has its own staffs which they will work according the functions of their department. There is not much interaction between the departments.

Part b

The organizational structure match with the strategies of the company. However it can be improved to bring maximum benefits to the company.

For market strategies, Carlsberg Brewery (M) Berhad provides a wide range of beer varieties, included light, mid and full strength beers. Besides premium beers, Carlsberg Brewery (M) Berhad also produces lower-priced beers so it can be affordable by more customers and increases their approach to the market. The strategic business unit, Carlsberg Green Label is applying a multi-market approach in its market strategies which means the company will not only target on specific market segment. For example, the company is targeting from group of young consumers to old consumers and also both gender of consumers.

For product strategies, Carlsberg Green Label is currently employing product-positioning strategies are as follows:

Sponsoring neon-light banners for business outlets throughout Malaysia. 

Sponsoring Maybank Malaysian Golf Open 2012 

Sponsoring UEFA EURO 2012â„¢ competition at Trophy Sunway Pyramid Shopping Centre on 7 April.

In marketing, Carlsberg Brewery (M) Berhad is effectively promoting the quality of Carlsberg Green Label to the Malaysian market, hence it is improving and maintaining the current quality of the beer. Research and development is carried out on the current taste preference to evaluate the quality expectations of beer in the Malaysian market. In addition, due to the ban of advertising alcoholic drinks in the media, Carlsberg Green Label has been relying on other forms of indirect promotion. The integrated marketing communication strategies currently used by Carlsberg Green Label include promotion through logo placements such as, sponsorship of sport events and sponsoring banners and signage at coffee shops.

In pricing, Carlsberg Brewery (M) Berhad is using one-price strategy. Same price for every purchasing of Carlsberg Green Label under the same conditions and in the same quantities for all customers. This makes the pricing process easier and is convenient for management. In addition, customers will not feel unfairness and bias over another customer because of different pricing issue. Besides, Carlsberg Brewery (M) Berhad is maintaining its price because of the high beer price in Malaysia and the cases for smuggled beer. Furthermore, price change may affect the reputation of the company, which may lead to outflow of customers to the competitors.

On the other hand, Carlsberg Green Label is distributed to every convenient retail outlets in Malaysia. For example, supermarkets, coffee shops, pubs, convenient stores like 7-11. Carlsberg Green Label is also distributed as a licensed product for in every single night entertainment outlets in Malaysia.

The above strategies clearly shows that, there are varies of tasks to be perform by different department of the company. As a suggestion, Carlsberg Brewery (M) Berhad should not totally arrange their organizational structure to be functional. Although each department has different tasks and functions accordingly, but they share the same missions and visions of the company. Departments can share opinions and cooperate in some details of projects, communication between departments is essential and helpful in achieving missions and visions of the company.

Part 4: Leadership and Motivation

In Carlsberg Brewery (M) Berhad, the health and safety condition of employees is paramount. The company acknowledge the importance of good health and safety practices on overall business performance and are committed to making continuous improvements to occupational health and safety measures at workplace. There is a Carlsberg’s Health and Safety Policy, which stated the company are committed to taking steps to prevent and control risks that may affect the health and safety of employees. The Group’s Central Occupational Health and Safety (OHS) Committee is the organization that ensure the main purpose of the Health and Safety Policy are reached. Safety environment is promoted to create awareness of the need for safety checks and drills to be adhered to in line with local and Group OHS standards. The policy indicate that continuous improvements should be made to enhance the company’s overall OHS standards.

In Carlsberg Brewery (M) Berhad there is a Learning & Development (L&D) programs. L&D initiatives focusing on train up leaders leadership coaching training workshops. There is an external one-on-one coaching sessions for managers over a period of six months to sharpen the leadership skill of the management team. A mentoring system was introduced for more experienced managers to mentor younger managers to help build relationship and team work. More development opportunities and structured training for employees are created by the Carlsberg Sales Academy (CSA) since it was launched.

Besides, Carlsberg Brewery (M) Berhad initiatives to continue build up great people. The Carlsberg Accelerated Leadership Development Programme (ALDP) are designed for the individuals with leadership capabilities. They will be promoted into key management positions as part of the Company’s succession planning strategy.

Carlsberg Brewery (M) Berhad provides platform to build up the relationship between employees. For example Thirst for Great Carlsberg Hour was introduced in 2011, participation of employees help to inculcate the culture of the company among the employees. C-day an event of Carlsberg was organized to acknowledge and reward employees. Activities are organized for the purpose strengthen the relationships between employer and employee and drive up the performances of employees.

Furthermore, Carlsberg Brewery (M) Berhad also giving out rewards for great performances. Example: In recognition of the outstanding achievements of East Malaysia and Duty Free Sales teams and the excellent performance they performed in 2010, the senior management team took the teams on a team-building and sales incentive trip to Macau. Supply Chain Department also took a day-off in June 2011 enjoying great team-building moments. Excitement and surprises for the Supply Chain team during a day of great fun and great teamwork at Sunway Lagoon Theme Park.

Continuous Improvement and LEAN (CI-LEAN) of Carlsberg Brewery (M) Berhad encourages ideas from the shop ¬‚oor which contribute to increased productivity, cost savings and efficiency. It involves all parties making continuous improvements and ensuring the smooth implementation of effective and sustainable systems. Carlsberg Brewery (M) Berhad provides opportunities for exchanging experiences across country. In 2011, Carlsberg Malaysia initiated an exchange to Holsten Brewery in Hamburg Germany, which is a part of the Carlsberg Group. Six members of the Supply Chain Department saw ¬rst-hand the CI-LEAN practices undertaken in Europe.

In overall Carlsberg Brewery (M) Berhad,

Offer a competitive and flexible opportunities to attract and retain the right people

Provide a wide range of career and personal development opportunities

Reward short-term financial performance

Provide incentives to progress long-term business goals

Reward individual effort that performs excellently

Part 5: Managerial Control and Change

Part a

The output control used by Carlsberg Malaysia is to come out with one or more performance standards. For a successful company, the target set usually more than one in order to achieve a better result. In year 2011, Carlsberg Malaysia establishes plenty of goals for year 2012. The target falls in different categories such as Research and Development, procurement, logistics, consumers and customers, communities, brewing and bottling, and lastly sales and marketing. For example, Carlsberg Malaysia plans to make some improvements in year 2012 in sales and marketing. They plan to conduct e-Learning training on Marketing Communication policy to all Marketing personnel, creative, PR and event agencies. Besides, in order to avoid causalities caused by drinking alcohol, Carlsberg Malaysia plan to deliver a good message by communicate with the company’s guidelines on “No drink and drive” to all sales and marketing employees. Lastly, they also develop collaterals to increase the awareness of the “No drink and drive”.

Line managers and local Human Resources department are in charge for recruitment in Carlsberg Malaysia. Methods such as interviews and a standard test are used by them to evaluate the candidate. This standard test is a list of personality questionnaire, numerical and verbal ability test. Discrimination in terms of gender, race, age, disability is not allowed in Carlsberg Malaysia. They promote diversity. Process used by Carlsberg in recruitment includes the following steps:

1. The analysis in job value: Role and responsibilities are the main point to be analyzed.

2. The profile of the job: Provides profile with detailed description on the job and qualification required.

3. Candidate sourcing: Candidate sourcing is to target the right pool of candidates for every vacancy position.

4. Job interviews: A number of interviews may be asked to attend, depending on the complexity and level of the position.

5. Test or assessment: Standard test package being applied. Verbal feedback usually gives based on candidate’s results.

6. “Grandfather” interviews: Final interview that is informed to attend only for selected candidate

7. References: To check the facts from the candidate’s application or obtain information on the candidate’s performance.

8. Contract

9. Introduction: Introduce the roles of candidate, it will be informed before the job started.

Part b

The recruitment process is time-consuming and energy consuming. Let’s said a company has 100 of applicant to interview in a day, the process of recruitment may make the interviewer and related employees to have a stress feeling and busy throughout the day. Imagine if all the 100 people need to be analyzed using all the steps in recruitment process, this may consume a lot of time and energy. Besides, the staff may be doing something meaningless when the people who apply for the job is qualified but already get a new job in another company. I suggest that Carlsberg Malaysia can simplify the recruitment process by removing some steps such as candidate sourcing and test of assessment. This is because those information and ability of the applicant can be obtained by interviewing them.

Part 6: Ethics and Social Responsibility

Carlsberg Corporation is a well known company which produces alcoholic related products such as beer and it has become the one of the most preferred beer brand in Malaysia. Selling alcoholic products is one of the causes which lead to alcohol abuse that cause a lot of social issues including fighting and drunk driving. As a response to that, Carlsberg corporation have taken a lot of action to control and reduce alcohol abuse to maintain the reputation of the company. From the CSR(Corporate Social Responsibility) report 2011 of Carlsberg corporation, there is a lot of information about the contribution of it to the social.

The business ethics of Carlsberg Corporation is to create a fair and transparent business practices which it allows the public to know more about the information of the company. To ensure ethical business conduct and compliance with laws at the global level, Carlsberg Brewery (M) Berhad adheres strongly to the Carlsberg Group Business Ethics Policy and Guidelines. 200 employees have undergone training which equips them with the necessary policies to ensure ethical business relationships with customers, suppliers and stakeholders.

The Carlsberg Corporation also practices 3R which are Reducing, Recycling, Reusing that saving the resources and reduce the damage to the environment. In 2011, 87.2% of the solid wastes including paper, plastic and aluminium generated from operations were recycled. Furthermore, the Carlsberg Corporation worked together with its business partner in Japan and has successfully started brewing Asahi Super Dry locally to reduce carbon footprints.

Besides that, The Carlsberg Corporation is also advocating Responsible Drinking by introduced the Enjoy Responsibly campaign in 2011 in order to cultivate employees and consumers about the importance of drinking responsibility. “Be Safe”, “Be in Control”, “Drink Smart and Stick to Age Limit” -are the highlights of this campaign. Flyers on safe and proper drinking tips had distributed to the participant to increase the awareness of the participant. Sales employees of Carlsberg Corporation are providing taxi call cards, stickers for sales vehicles and personal breathalyzer devices to ensure responsible drinking behaviour.

Moreover, The Carlsberg Corporation also provide educational opportunities for the younger generation by involving in various fund raising including “I Love Chinese Education” East Malaysia Charity Concert and The Carlsberg Hua Zong Education Fund. In the concert, RM2.6 million were collected for more than thirty Chinese schools in East Malaysia for academic purposes and upgrades of facilities and infrastructure. In order to improve the English language’s proficiency, Carlsberg Malaysia’s English Essentials programme was launched for Tamil primary school. In conclusion, the Carlsberg Corporation has successfully done a lot of social responsibility to reduce its damage to the natural environment and social environment.