Limitation To Stakeholders Expectation Commerce Essay

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The report is an assessment tool as part of our organisation and management paper. The business that was interviewed was pizza palace the owner started this business to provide service to the people, to make profit and to open up branches of the business in Auckland. The main purpose of the research interview was to identify the internal and external challenges the business faces, give the recommendations to those challenges and what improvements will occur after those recommendations are put in place. By completing this project I have learnt on the management concept and how to apply them in real life.

Firstly a letter of request was written to the business requesting for a research interview, a date and time and what questions will the interview be based on were written in the letter. Then a questionnaire was made, questions were based on what type of challenges a business faces. After the interview was conducted a letter of thanks was written to thank the manager for their time spent in the interview and this research interview has made me learnt what problems a business can undergo.

New Zealand is multi-cultural country where there are many types of organisation who employ people of different nationality. Any organisation would have to face challenges internal and external. The three levels of managers are put in place in organisations for the planning and controlling. Strategic plans are taken by the top level managements. Tactical planning is made by middle level management and operational planning is done by the bottom level management. Organisations also face problems such as internal and external problems. Internal problems are problems within the organisation and external problems are problems outside the organisation. Organisation ethics is how an organisation ethically responds to internal and external stimulus. Work ethics is important in any organisation in order for an organisation to work effectively. Some of the recommendation to the problems faced by the business is to promote business by advertisement, employ more skilled staff, and give deals on meals and to provide the best customer service. Action plans such as improvement in the condition of the business must also be considered

All in all the three levels of management are important for an organisation because they are responsible for the planning and controlling and the smooth running of an organisation.


Economic reason to start the business- There are wide number of people who enjoy products from Fiji Islands, thus, selling these items will generate a high level of revenue. Accordingly, a large number of individuals are inclined to purchase the products and as a result, the business will generate a higher profit. The owner will retain these profits and utilise it toward the expansion of the business into the wider Auckland area.

Social Reason -Food for Less provides service to the individuals in Auckland. Considering the decent prices of the imported products, the customers save a lot. This leads to a higher customer satisfaction and in turn, Food for Less is also satisfied.

Personal Reason- this was to generate profit and expand the business, to give competition to businesses like Get Fresh and Pack n Save. All businesses start small and will have challenges. Eventually, we find ways to reduce these challenges by working effectively and efficiently.


The company's goal is to open up more branches in 5 to 7 years in New Zealand so they can provide service to the people and earn more profit.

Stakeholders Expectation

Customers expect to get the best service provided to them, quality food at decent prices and the shopping environment to be clean and well organised.

Employees-They expect to have a decent pay, and most importantly, they require fair treatment and respect so they feel comfortable and safe in the working environment.

Limitation to stakeholder's expectation

Due to less funds the business is not able to employ more staff

Due to less staff working in the business, the business is not able to provide the best service (for example, there are long waiting times for customers to be served, this in turn, triggers customer dissatisfaction)

The profits are just enough to meet the businesses short-term obligation such as bills and employee wages. There is not enough profit to allocate toward other expense. Therefore, the business has not been able to upgrade. A business should be upgraded every six months to keep the customers interested. For example, the menu is same; there are no special promotions, and no marketing or advertising to generate sales. Furthermore, there is a need of an interior upgrade.

External Environment

A business does not operate in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies.

Main Factors

The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes.

The other factors that can affect the business are:

Social - how consumers, households and communities behave and their beliefs. ( For Example, changes in attitude towards Fiji Products. Food for Less imports food items from Fiji and most people find Fiji products to be of low quality.

Legal - the way in which legislation in society affects the business. Example changes in employment laws on working hours. (

Economic - how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and global economic factors. Food for Less has to pay tax to government so most of their profit is used up paying tax (

Political - how changes in government policy might affect the business example when a new government enters they change policies and requirements have to be met by business(

Technological - how the rapid pace of change in production processes and product innovation affect a business. (

The Internal Environment

An organization's internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behaviour. Although some elements affect the organization as a whole, others affect only the manager. ( In Food for Less, some of the internal problems faced were due to insufficient funds. For example, the manager was not able to employ more staff and hence the workload increased. Consequently, Food for Less is not able to employ their staff at the minimum wage rate.


Ethical Perspectives of Decisions

To perform your job in your workplace, you must examine what are the ethical dimensions as you deal with your superiors, peers, Subordinates and others connected with your work.


Values are core beliefs, which guide or motivate attitudes and behaviour. They are the established ideals of life that members of a given society regard as desirable; Ethical Values are directly related to our beliefs concerning what is right, good and proper. They impose moral obligations and are concerned with our sense of moral duty.

The 10 core ethical values are:-

(i) Honesty

(ii) Integrity

(iii) Promise keeping

(iv) Loyalty

(v) Fairness

(vi) Concern and Caring for others

(vii) Respect for others

(viii) Responsible Citizenship

(ix) Pursuit of excellence

(x) Accountability


In order for Food for Less to be an ethical organisation they should act on the best interest of their customers, as the saying goes, "customer is always right".


Promote business with advertisement-In order for Food For Less to increase their profits advertisement is important, with advertisement the business will be promoted, people will be attracted to come to the store. Some of the affordable media they can use to advertise is radio and newspaper they can even use Facebook.

Employ more skilled staff-Every customer needs the best service to be provided to them. So if skilled staff is employed better customer service will be provided, with better customer service customers will tend to come back to the store.

Give deals on meals- if Food for Less provides specials and discounts more customers will be attracted, increase in customers will lead to more profit

Provide the best service to customers -customers need to be provided with the best customer service because the ways you provide service to the people reflect the image of the business.

Action Plans for future

Planning for the future of the organisation is important. Food For Less needs to improve and have a better system for record keeping to be able to achieve accuracy of record keeping. Food For Less also needs to employ skilled staff, or alternatively, provide customer service training to its staff. This will help them provide better customer service and in turn increase productivity, as there is a direct relationship between customer satisfaction and profit. Food for Less also needs to upgrade the business such as the interior of the business, to make it attractive so customers feel the environment is safe and are comfortable when shopping in the store.

2.1 Terms of reference

Our tutor Mrs Seema has given us assignments where we had to write a letter of request for a research interview, questionnaires were prepared for this interview, a letter of thanks was also written and finally a report had to be made on the findings. This report was due on the 6th of December 2012. This research will discuss on the internal and external problems an organisation faces.


The reason why I am doing this project is to find out the problems faced by businesses and what are their planning and controlling methods and to give recommendation on their problems

2.2 Methodology

Firstly a letter was written to the participants requesting for a research interview giving them the time and day of the interview, a questionnaire was prepared which had eight questions relating to the internal and external problems of an organisation. After the interview was conducted a letter of thanks was written to thank the interviewee.

3.0 Food For Less

Interviewee is a Store Manager


External environment - competition by other similar organisation-Some of the similar organisations involved in retail of similar products are; Countdown and Pack n Save. These two organisations are well developed and have been operating for a long time. Countdown and Pack n Save have many employees who provide the best service to their customers. It becomes very difficult to compete with such developed organisations.

Internal environment - can't employ staff due to fewer funds- Food for Less is a small and developing business with fewer profits it becomes difficult to employ more staff due to fewer funds therefore the customer service is not up to standards.

Recommendation Given

Give specials and discounts-when deals are given on meals customers are attracted to come to shop because they are provided with goods at the best prices, if there are more customers there will be more profit, more profits will improve the funds of the business and the business will be able to afford for more staff, more staff means better customer services.

Promote business with Advertisement- By advertisements a business is well promoted, many people who don't know about Food for Less can get to know about it. Advertisement is also a tool to attract customers. If television advertisement is expensive there are other sources of advertisement media like newspaper and radio who can do advertisement at a cheaper rate.

Employ more skilled staff-in order for any organisation to be successful skilled staff are very important. This staffs should know their work and provide the best customer service.



Every organisation has to have a planning and controlling system. There are three levels of planning system which is controlled by different levels of managers in an organisation these managers help an organisation to operate effectively. An organisation has to also follow ethics in order to be in good terms with the customers. In this research it discusses on the internal and external problems which affect the performance of an organisation, and how the three levels of management perform the planning and controlling tasks.