Talking about organizational ethical behaviour, there are about four components which exist in a company that contribute significantly to ethical behaviour being friendly in a company. Both internal and external rewards of an ethical company are tied to the organization’s business and culture. With regard to support and reliability framework of each of the four fields needed for ethical habit, then the organizational behaviour will be apparent across the organization (Brandt, 2007). The company, workers, and stakeholders will get both internal and external benefits. As in the case of Tata tea, the responsibilities of the employees can vary from internal, such as whistle blowing to the extraordinary activities such as a temporary worker buying all the tea products produced by the boss, simply due to brands that were not focused on. This is considered in cases where the employer was aware that he would pay the worker fully (Brandt, 2007).

The four components that are important in determining organizational ethics include the following:

(i) Written rule of ethics

(ii) Executive and employee training ethics

(iii) Accessibility of advise regarding ethical scenarios

(iv) Strategies for confidential reporting

Paradigmatic Perspectives: My paradigm

This approach is a standard part of functional strategic measures for the company with positive company ethics. With emphasis on reliability and structural support of each of the four areas in ethical behaviour, the organizational behaviour is evident across the organizations (Ray, 2006). In addition, a company will approve necessary requirements for its workers, such as maternity leave as well as paid time off for the relevant workers. Other benefits include on-site caring services for children or flexitime for work hours. In addition, the company can facilitate paid leave for various workers. All these are just but examples of some of the employee rewards that are covered in organizational ethics (Ray, S 2006). Normally, such benefits are not necessary according to the law, but reflect just some of the rewards that are mainly understood by various companies worldwide (Scaria, 2007).

There are various theories and company studies that are quite related to organizational principles and code of conducts. In general, they are varied and diverse in terms of scope. Such studies and theories can vary from personal, teams, leadership, stakeholders, and human resources communication approaches. The structure behind each field is the sharing and understanding of the vision, mission and objectives of the company. Regarding these, the impact of leadership in the company goes unexamined due to obvious understanding of goals and values. Ideals and values within a company generally revolve around business values and theoretical strategies that are selected by several leaders in presenting their issues (Nelson, 2008).

The company is intending to be the country’s most depended beverage organization.

Tata tea wants to realize business and thought management for branded product within the country. Similarly, the organization wants to consider as the most significant leader in tea as well as tea based drink solutions. Along with that, Tata tea wants to control a long term profitable development. There is also the need by the company to introduced enhanced value together with the stakeholders. Finally, the company is seeking to make the place a great working environment for workers (Nelson, 2008).

Company background

The company is currently integrated as a beverage organization that has put in place various strategies to be a world leader in branded products using innovative strategies. With more than 200 years of operation in the sector, the company has managed to evolve in a predominant way in the Indian market to be a brand marketing organization with different influential brands. According to experts, the organization’s yearly turnover is about $ 1.5 billion, meaning that it is almost the second largest operator in tea in international arenas. Its global increase is shown by the fact that more than 65 % of consolidated earnings come from the other markets. Tata keeps a strong focus on consumer brands, hence more than 90 % of turnover is accessed through branded goods. In the past five years, almost all the company’s turnover originated from tea earnings. However, the figure today is almost 70 % , undermining its thriving expansion approaches and offering it a leadership status in the ‘good for you’ drink space (Repenshek, 2004).

The company has expanded tremendously over the last ten years. The company now employs about 3000 individuals with much presence in nearly 40 nations in the world. The company is currently embarking on intensive strides towards realization dependable hydration. For instance, Tata signed an agreement with Pepsi to produce non-carbonated drinks. Tata tea is formally an Indian super brand within India (Repenshek, 2004).

Tetley: This was acquired by Tata in the ear 2000. It is enjoying today a host of 70 nations across the world.

Methodology

Objective approach is the best the method of getting the relevant information because it targets the specific area of study. Unlike subjective approach, objective method also enables the researchers to clearly understand issues surrounding the organization with regard to ethical background.

Literature review

The organization leads the market share in terms of volume inside the country. Some of the hot drinks produced by the company include Kanan, Tata Tea, Gemini, Chakra Gold, and Tetley. On the other hand, offer cold drinks which include Mineral water, non-carbonated beverages, and Chai channels.

The organization was set up in 1983 to form part of Tata group of organizations which is among the most recognized business organizations in India. The company headquarters is based at Kolkata. Initially, it was established in 1964 as a joint investment with British-based James Finlay Company. For the last 40 years, Tata Tea has been taking part in tea extract business activities (Repenshek, 2004).

Tea produced by Tata Company is considered by many consumers as a health beverage that meets the required standards. For example, the product is well known for its anti-oxidant features which have made it a highly consumed drink across the country and the Whole World. In addition, the demands for Tata tea product has been increasing at a rate of 2 percent and is expected to increase further in the near future (Hamel, 2006).

The draconian government labour policies are unfriendly to the company. They cause more harm that good both the organization and labour. Similarly, the labour oriented sector has problems arising from labour itself. Also, there is restricted scalability which grows at a very slow rate. There is supply from more efficient players such as Sri-Lanka, Vietnam and Kenya. Again climate change seems to be affecting negatively tea growing in the region. This leads to increase in tea prices in the region and hampers economic growth (Hamel, 2006).

There is an apparent tendency towards the health drink. Therefore, it is upon the organization to inform the consumers about the facts. Also, the product has special advantage as compared to other popular drinks such as coffee. In addition, Tata Company has the chance to make tea more fashionable and acceptable just like coffee. Opportunity also presents itself for the company to create a new taste and flavour of the product.

The organization is facing a threat of keeping the young generation from being enticed by bigger multinational organizations to more flavoured and aerated drinks. Another challenge presents itself in form of labour issues. Increase in product cost is another major threat facing the company. Also, there a disjointed production process within the organization (Hamel, 2006).

The company is facing a threat of high level market entrants. Similarly, the company is encouraging government laws to manipulate their operations. Another challenge is that the organization can be easily imitated. On the other hand, the supplier bargaining power is very high because of their insignificant numbers. Also, Tata tea is characterized by the low bargaining powers for buyers because of high demand and trust regarding the product taste.

Threat of substitute products is another major threat that the company is facing. Substitute products include cold drinks and coffee. It is hard to convince the current consumers of such products because of their loyalty. Competition is high and poses a challenge to the company. Organizations such as Brook bond, Lipton together with other domestic players are offering a serious completion to the company (Hamel, 2006).

There are close to 50 tea farms in states of Tamil, Assam, Kerela, and West Bengal. A close analysis shows that more than 26,000 hectares of land are under tea farming. This area produces more than 60 million kilograms of black tea on a yearly basis. Again, there is global market for the product. Economic experts have found out that the company is well equipped with an efficient distribution process. Again, the company has a reliable and loyal management staff, research and growth team. In addition, the marketing process of the company is very efficient and focused. Other major competencies include the famous brand name, distribution channels.

Tata has embarked on a strategy to buy leaf organizations and co-operatives to alter the framework of green leaf processing. Along with that is the approach to make sure that un-remunerative activities are given priority to change and if not, they are eliminated. Another business strategy involved re-organization of 20 tea factories in clusters. The company was also advised by the experts to consider branded tea as its propelling product field. Exiting the beverage selling approach and focusing mainly on branded products was also considered as part of the business strategy by Tata Tea Company (Hamel, 2006).

The other approach was the selling off of its share in Barista and avoiding plans to re-enter the business. The introduction of beverages such as TiON across India also was used as a business approach by the company. Aggressive marketing strategies became part of the daily routine of the company in conjunction with anti-corruption approaches. The decision to focus on campaigns such as Gemini and Chakra, and Kanan boosted the performance of the company in its strong holds.

Most of the competitors that the company faces include organizations which operate within the same market and provide similar goods and focusing mainly on the same customers. With regard to competitive processes, it involves the current actions and reactions among various companies that compete for a beneficial position. On the issue of competitive rivalry, the current activities and reactions that take place are among individual organizations and its opponents for a better market position.

Unlike in dynamics, rivalry is characterized by business commonality and recourse resemblance. On the other hand, competitive dynamics is mainly related to high market speed which can be, fast, slow, or moderate. Rivalry is about awareness, ability and motivation, while dynamics is concerned mainly with the impacts of market speed on activities and reactions on all the competitors in the market. Finally, rivalry is characterized by incentives, size and quality whereas dynamics is not. The organization has three main subsidiaries which include Tata tea U.S, Tata Coffee, and Tata U.K. Tata Tea together with Tata sons merged with Tetley organization, while Tata U.K merged with the South African Tea packers.

Before venturing into worldwide market, Tata need to consider the role of ethics in world markets. Since its inception, Tata has always wanted to be a global leader in tea business. The main targets are South America, Africa, and West Asia. Plans are under way for the company to start operating in Australia and France. The regional target will be on brands such as Jemca and Vitax.

Political factors focuses on how to and what extend a regime plays a role in the economy. To be specific, political factors are characterized by environmental policies, tax laws, trade restrictions, political stability, labour laws, and tariffs. In addition, political factors may include services and goods that the administration wants to offer or be given as well as those they do not want to offer or to be given. Moreover, the government has substantial control over education, infrastructure, and health of the country. The political perspective has a major control with regard to business management, and consumer spending power. Therefore, TATA must consider factors like:

· The stability of the political situation

· The influence of the government’s stand on marketing principles

· The government’s principle on the economy

· Does the administration have a perspective on religion and culture?

· Whether the government is taking part in trading deals with other countries?

Economic issues include economic development, exchange and interest rates. These factors have a significant impact on the manner in which business undertake its duties and make decisions. For example, interest rates can have an impact on the company’s capital costs. Thus, it determines to what degree a business develops and expands. Normally, exchange rates affect the cost of selling goods abroad and the production of goods that are imported.

As a result, Tata marketing department must take into account trading marketing in both long-term and short-term cases. This in particular applies when considering global marketing. Thus there is need for the organization to look at the following:

· Interest rates

· Employment and inflation levels per capita

· Permanent economic prospects

Some of the social factors that Tata need to consider before embarking on marketing of its products include health, cultural, age distribution, and the rate of population growth. Various trends in social factors have a major impact on demand for the organization’s goods and the manner in which the company undertakes its operations. For instance, an older population may mean that there is less-willing labour force, hence increase in the cost of labour. Also, organizations can alter different management approaches to adapt to such social tendencies.

Both cultural and social implications on businesses differ according to countries. It is therefore very important for Tata to consider factors like:

· Dominant religion

· Attitudes to new goods and services

· If the language affects product absorption into the market

· The amount of time required for consumers to have for leisure

· The responsibilities of men and women in the community.

· Knowing the population lifespan

· Understanding both environmental and technological factors

Technology issues comprises of environmental, ecological aspects. For instance, Tata must know the implications of R&D on the environment. The company can know obstacles to entry, minimum reliable production stages eventually determine decisions related to outsourcing. In addition, changes in technology can compromise on quality and costs, hence leading to product creativity. Tata must understand that technology plays a critical role in competitive benefits. For example, it is the main force behind globalization.

Organizational analysis

Company’s competitive rivalry model

Cutthroat Dynamics

	Slow movement	Fast movement	Standard movement
Competitive benefit	Protected from imitation for a longer period of time	Not protected from imitation for a longer period of time	Moderately protected
Continuity	High	Low	limited
Duplication	Expensive	Fast and affordable	reasonable
Approach	Focuses on competitive act and aims at securing and keeping production benefit	Quick imitation and improvement process	Improvement is continuously looking for large market share

In an ethical perspective, it is quite clear that completion is necessary for quality products. From the above table, it is apparent that the competitors are using similar resources to obtain goods (Tea leaves). The approach is working in aid of approach to:

· innovate goods such as Tea Gold

· offering aggressive marketing

· Modifying or introducing products in R&D such ads green tea. This makes it hard for competitors to get the company’s market share.

· Tata organization is comprised of genuine consumers. In fact more than 50 percent of the market share is controlled by Tata.

· Most of the Tea organizations in India are characterized by competitive benefit of slow market where

· The product requires creativity and improvement

· All organizations prefer to protect their marker interest through maintenance of quality.

· Tata Tea has the advantage of enjoying international market control of more than 38 percent.

· The market is very reliable for the company’s products due to the decision by the users not to alter their preferences for longer periods of time.

The company began with tea processing business and owning of tea farms. This was soon followed by investment in coffee marketing because the two drinks are related. Another approach was the entry into the business of bottled drinking water. Currently, the business is focusing on R&D drinks and is looking for more opportunities with regard to such approach. Tata entered into this investment bearing in mind that it should keep in line with their concentration by providing a fresh beverage for thirsty people. Also, the organization took a careful decision of eliminating the farm business. Also, there were changes related to the impression of the company such that it is not only seen as a tea company but a beverage company. The new approach for the company is to expand and stop limiting its activities only on tea and coffee, but to create a situation in high development areas using a reliable product growth and innovation.

Conclusion

In conclusion, Tata Company has continuously incorporated commercial orientation with commercial sustainability strategies. The purpose of this was to make sure that Tata organization sees that its innovations are implemented for the good of larger group of consumers. To enhance ethics, the process involved a worldwide restructuring process whereby the organization focused on a strategy dubbed ‘good for you” beverages together with coffee and tea. Ready to drink beverages have introduced TiON beverage in Chennai and the plans are underway to have a national launch. Divest approach was to remove itself from retail business and traded off section of Barista out of Chai series of tea distributors in Bangalore. The focus on R&D process led to disruption in tea and coffee marketing. In general, the company’s restructuring process was that of re-branding Tata tea name to improve its image.

Recommendation

Just like any other organization where interaction between workers and employers is necessary, Tata Tea must uphold the principles of organizational ethics. It is clear that any organization that values ethics performs much better in both domestic and global markets well.

References

Brandt, L. (2007). Organizational ethics. OT Practice, 12(21), 15-19. Retrieved from http://search.proquest.com/docview/232423076?accountid=35812

Hamel, R. (2006). Organizational ethics: WHY BOTHER? Health Progress, 87(6), 4-5. Retrieved from http://search.proquest.com/docview/274415031?accountid=35812

Nelson, W. (2008). Addressing organizational ethics. Healthcare Executive, 23(2), 43-43,46. Retrieved from http://search.proquest.com/docview/200325373?accountid=35812

Ray, S. (2006). Whistleblowing and organizational ethics. Nursing Ethics, 13(4), 438-45. doi: http://dx.doi.org/10.1191/0969733006ne882oa

Repenshek, M. (2004). Stewardship and organizational ethics. Health Progress, 85(3), 31-5, 56. Retrieved from http://search.proquest.com/docview/250292298?accountid=35812

Scaria, J. (2007). Tata tea denies encroachment. McClatchy - Tribune Business News. Retrieved from http://search.proquest.com/docview/464403201?accountid=35812

Competitive evaluation:

Business commonality

Resource resemblance

Forces of competitive behaviour:

Motivation

Awareness

Ability

Intercompany competition

Possibility of attacks:

Size of the company

Quality

Likelihood of reaction:

Type of competitive reaction

Regulations

Results:

Market situation

Economic performance