AINLIM is adhering to the Health and Safety Act and it has a Health and Safety Policy. The health and safety Policy states that the business should use the best health and safety practices in order to promote an organisational culture that eliminates harm to persons and damage to the environment.
The business also has a Health and Safety Committee. Some responsibilities of this committee are:
- Regulatory and industrial requirements.
- Training and communication.
- Accident and incident reporting.
The business is adhering to the health and safety regulations by:
- Having trained personnel in place to handle emergencies.
- Treating health and safety as core business.
- Making sure that all personnel are involved in activities and are aware of safe practices necessary for execution.
- Making sure that risks to health are identified and controlled.
The business has a medical/health scheme other than N.I.S for each staff member. The other health scheme includes a medical scheme in which the employee contributes a portion of the required amount. The difference in the required amount asked by the scheme holder is subsidised by the employer. The types of insurance that workers have are N.I.S, Medical Insurance and Life Insurance.
Workers are aware of the health and safety regulations of the business. They are made aware by frequent meetings, video shows, flyers and posters. Health and safety regulations are also displayed in a special place in the department.
Workers are also given breaks everyday. They are given a coffee break from 10.00a.m. to 10.30a.m. and a lunch break from 12.00pm to 1.00pm.
With these health and safety regulations in place, the workers at AINLIM will feel a greater sense of security at work and thus, they will feel comfortable in their work environment. When workers are pleased with their working environment, they are motivated to work to their best abilities and aim successfully for the achievement of the organisation’s goals.
The effects of employment and health and safety constraints on AINLIM
The impact of legal constraints on employment and health and safety may have both positive and negative consequences on AINLIM. These constraints may contribute to additional business costs for AINLIM. These costs may include:
- Supervisory costs regarding a firm’s recruitment, selection and promotion procedure.
- Higher costs related to giving paid holidays, pension contributions and paid leave for sickness.
- Higher costs related to providing protective clothing and equipment to meet health and safety laws.
On the other hand, AINLIM derives benefits from adhering to legal constraints on employment and health and safety.
- Workers feel a greater sense of security and they feel more highly appreciated if they are offered a clear and fair employment contract. This leads to more satisfied and motivated workers. These workers will be much more likely to work to their best so as to help AINLIM achieve its goals.
- A safe work environment lessens the occurrence of potential risks and accidents and time off work dude to ill health or injury.
- Adhering to legal requirements helps AINLIM to avoid expensive court cases and to avoid paying heavy fines.
- Since AINLIM has policies of providing employees with good employment conditions and a healthy environment, it will attract the best employees. It will also benefit from receiving good publicity and good marketing benefits.
The law and consumer rights
AINLIM ensures that products supplied to customers are safe. It does this by quality control tests done by suppliers, I.S.O Certification of suppliers and tests done by the Bureau of Standards. In the business, it is important to ensure that products supplied to customers are safe because this increases consumer confidence and the business can also sell products it knows are safe as long as it meets the above international standards. The business ensures that products are well packaged and labeled. The business ensures that products are well packaged and labeled by telling its suppliers what its requirements are and by confirming to legal requirements of the country. It is important to ensure that products are well packaged and labeled because customers are not duped into believing that the product purchased does anything other than what it is said to do. If a customer returns a particular product or is dissatisfied with the business’s services, the business would conduct thorough investigations as to the customer’s dissatisfaction, and then determine whether it should be replaced or if the customer should be refunded of his/her money. If a customer in the country returns a product or is dissatisfied with a product, the marketing department would conduct thorough investigations as to the customer’s dissatisfaction, and then determine whether the product should be replaced or if the customer should be refunded of his/her money. The business has an email address and a website which customers can use to tell their problems about products or make comments about products. These benefit the business because it enables the business to learn from its mistakes so as to avoid and not to repeat future losses. They also benefit the business because they enable it to generate more customer satisfaction and overall profits for the company. The business also practices after-sales servicing. It does this so as to maintain its competitiveness in the market place. It practices after sales servicing by following up on the performance of products, selling spares for products sold and it also operates a service workshop. The service workshop practices after sales servicing by servicing vehicle, batteries and other miscellaneous within the warranty period of the product which varies from 3 months to a year. After sales servicing enables better customer satisfaction.
The impact of consumer protection laws on AINLIM
AINLIM’s costs may rise in order to meet consumer protection laws. Enhancing the value of control standards by ensuring that products supplied to consumers are safe, ensuring that products are well packaged and labeled and conducting after sales servicing can be expensive. Treating customers fairly and responding to their complaints efficiently helps AINLIM to reduce the danger of legal action by customers. If these practices become well known and extensively publicized that AINLIM is not only prepared to meet the minimum standards laid down by law but to offer consumers a genuinely improved deal in terms of accuracy of claims, quality of products and good after-sales services, then AINLIM will reap the sales and marketing benefits. Therefore, more sales will be gained which will consequently produce more profit.
The law and business competition
The government tries to encourage the promotion of free and fair competition among firms in the country. It is argued that free and fair competition between businesses has benefits for customers since they are provided with a wider choice of goods and services, firms will try to keep prices as low as possible and businesses will compete by improving the quality, style and performance of the product. The government attempts to regulate and promote competition between firms by passing laws which:
- Control monopolies and make it possible to prevent mergers
- Limit or outlaw uncompetitive practices between firms
AINLIM adheres to these laws. Its competitors include the Beharry Group of Companies, Jai Ling, Caribbean chemicals, FCT Technologies and LAPARKAN. It does not participate in monopolistic practices since it tries to offer a variety of products and services. AINLIM also does not engage in uncompetitive/restrictive practices like predatory pricing (when a major firm in an industry tries to stop new competitors joining it by charging very low prices for certain goods).
These laws in place hinder AINLIM from carrying out monopolistic practices, for example, although CCS (Guyana) Ltd. is the authorized distributor of DELL computers in Guyana, it does not monopolise in selling this brand of computers since there are other businesses that sell this brand too. Since AINLIM practises free and fair competition, it will set lower prices for its products than its competitors, thus, giving it a competitive advantage. Hence, with lower prices, AINLIM will incur more sales and thus, incur a higher profit than that of its competitors.
The effect of trade restrictions and trade barriers on AINLIM
Trade restrictions like quotas (to put a legal limit on the amount that can be imported) and embargos (these prohibit trade with other nations. They bar a foreign nation's imports or ban exports to that nation or both) do not affect AINLIM since it complies with legal regulations. However, other trade restrictions like levies and tariffs contribute to additional cost of shipping when importing and when exporting products. Duty free means that there is no added cost for the import/export of the goods. Therefore, if the prices of these duties, levies and tariffs increase then AINLIM would have to pay extra for transport.
The effect of taxes on AINLIM
AINLIM pays income taxes, corporate taxes and property taxes. It pays 46.6% of its profit in taxes.
Taxes will be charged to AINLIM. This will affect AINLIM because if the taxes that it is charged are high, the prices of its products will have to be high to compensate for the loss, and not lead to a major profit loss. This may dissatisfy the customers and cause AINLIM to lose customers as a result of over – pricing. However, if taxes decrease the likelihood is consumers will buy more. Thus, AINLIM would gain more profit with a reduction in the amount being paid for taxes and its products would also be cheaper.
The effects of a change of government on AINLIM
The People’s Progressive Party is currently in control in Guyana. If during the next elections, the government party changes, AINLIM may still not be affected, as the other party would still promote private enterprise because the state controlled businesses are not very efficient. The state controlled businesses do not employ many people. Through privatised companies, more people are employed. This is an advantage to the government as it means less people will be unemployed, therefore, claiming less benefits etc. from the government.
The effects of environmental constraints on AINLIM
The impact a business’s operations has on the environment is a very important aspect of its ethical position. The environment which we live in can be greatly affected by business activity. Air and noise pollution from manufacturing processes, road congestion caused by heavy trucks, business expansion into country areas, emissions of gases that can lead to global warming and the use of scarce resources – these are all ‘environmental issues’ that are of increasing concern to people and governments all over the world. AINLIM helps to protect the environment by disposing of waste in compliance with regulations. It also pays a private garbage company to dispose of its waste for it. AINLIM does not have any pressure groups (organizations that put pressure on businesses and governments to change policies in order to protect the environment) like the EPA, Greenpeace, Amnesty International, Worldwide Fund for Nature etc. It does not have any pressure groups because it complies with environmental laws. AINLIM also does not conduct environmental audits (a check on pollution levels, wastage levels and recycling rates of the business and compares them with previous years and pre-set targets). However, the Health and Safety Department does regular checks to ensure that the workplace is safe. Hand-in-Hand Insurance Company also conducts audits in the company, for example, they check for potential fire threats. The performance of environmentally friendly practices by AINLIM can have several benefits:
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Businesses that aid in reducing pollution can benefit from a real marketing and promotional advantage. Consumers are becoming more aware of environmental issues and there is a growing amount of evidence that most of them will support businesses that adopt an environmentally friendly firm. Hence, by the continuation of this practice of “green” policies, AINLIM is likely to gain the favour of more customers which will increase its sales levels. Thus, with an increase in sales, it will also have an increase in profits.
- Responsible waste disposal by AINLIM will reduce the chances of it breaking laws designed to protect the environment. In this way, it will avoid bad publicity and stiff court fines.
- Businesses that switch to a more environmentally friendly strategy often report an improvement in the number and quality of applications they receive from potential employees. It seems that staff would rather work for a firm that they have pride in and which adopts policies which reflect their own personal views and standards. Hence, with environmentally friendly practices, AINLIM could gain an improvement in the number and quality of applications it receives from potential employees.
However, the adoption of environmentally friendly practices can also be disadvantageous to AINLIM:
- Adopting environmentally friendly practices may increase expenses for AINLIM. There may be a marketing disadvantage since costs will not be kept as low was possible and the prices of its products will increase.
- AINLIM’s profits will be reduced by adopting environmentally friendly methods of waste disposal. Without high profits, AINLIM will be unable to expand and sell its products at cheaper prices.
Social (and cultural)
Age Distribution
The population pyramid below represents the age distribution of the population of developing countries. Since Guyana is a developing country, this pyramid could represent its population. As can be seen:
- A larger portion of the population is below the age of retirement which suggests that there have been high birth rates.
- A smaller portion of the population is above the retirement age.
- There is a lower life expectancy rate.
These changes in age distribution can have various effects on AINLIM:
- There will be changing patterns of demand since younger consumers will demand different types of products than ‘grey’ consumers. AINLIM receives most of its demand from youths and middle aged persons. Therefore, the CCS (Guyana) Ltd. division of AINLIM may increase its supply of computers and other technological products since the majority of the computer-literate population of the country are younger customers. Also, AINLIM’s Vehicle Components Department may increase the amount of vehicles and vehicle spares that it sells since most of the younger persons in the country drive vehicles – older persons are more interested in reading and staying at home.
- The age structure of the workforce may change. There may be increased numbers of youthful employees and reduced numbers of older workers as a result of high birth rates and lower life expectancy rates. The various age ranges of AINLIM’s workforce include 18years-30years, 32-42 years and 42-52 years. It is often said that younger employees are more adaptable and easier to train in new technologies while older workers are often said to show more loyalty to a business and will have years of experience which could improve customer service.
Changes in patterns of employment
Changing patterns of employment is one of the social factors that affects the activities of AINLIM. The main features of changing patterns of employment in Guyana are:
- An increase in the number of women possessing jobs. Hence, this effect can be seen in the gender composition of the workforce of AINLIM. The amount of women that compose AINLIM’s workforce is 60% while the remaining 40% are men. By employing more females and by removing barriers to their progress and promotion, AINLIM can benefit from a wider choice of staff and improved motivation among women workers. However, with more women in the workforce, AINLIM will have to pay more maternity leaves and it will have to provide more staff to compensate for the women taking maternity leaves. Hence, more maternity leaves will mean that AINLIM will have to incur more costs.
- An increase in part time employment. AINLIM offers part time employment since it believes that the need arises for personnel to do non-recurring jobs. AINLIM also offers work study for students and summer jobs for persons. Part time workers can offer AINLIM a greater degree of flexibility by being available at peak times. However, part time and temporary staff may be difficult to mould into a team and may not contribute as much as the other workers as a result.
- An increase in student employment on a part time basis. As mentioned above, AINLIM offers work study for students, both for those who are at, or waiting to go into, higher education.
- Flexible working hours are more common. AINLIM offers flexible working hours so as to accommodate workers who have to leave early and return late from out of town locations.
Ethnic factors
The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Social factors largely involve changes in ethnicity, and other things. Ethnicity is important since it can influence the composition of the workforce of AINLIM and also the amount of persons employed from the different ethnicities. An average estimation of the ethnic composition of AINLIM’s workforce can be seen below.
Amerindians ~ 1%
Europeans ~ 1%
Africans ~30%
Portuguese ~ 1%
East Indians ~ 65%
Chinese ~ 1%
Mixed persons ~ 1%
Consumer attitudes and opinions
This is the feeling of the current trend of what is considered to be in style and popular. These trends run in cycles and this is a good way of predicting what will become trendy and when. This gives AINLIM a chance to prepare. AINLIM can use this to its advantage by anticipating the next trend and releasing a product meeting that need.
Population Size
If the population size of the country increased then there would be more people to buy AINLIM’s products, therefore, increasing its demand and profit level. Alternately, if the population size decreased, AINLIM’s demand would decrease, thus, contributing to lower profits.
Lifestyle Changes
Changes in persons’ lifestyles can affect AINLIM. For instance, if more people are becoming computer literate so as to keep up with technology, then the need for computers will rise as persons will want personal computers of their own and the demand for the computers at AINLIM’s CCS (Guyana) Ltd. will increase. Also, if consumers have more time available for leisure, this means that they will be socializing a lot. With the increased number of cars between all age groups, it makes it easier to go to leisure outlets like clubs. Hence, with the demand for more cars, AINLIM’s Vehicle Component Department will incur an increased amount of sales.
Income Distribution
If the incomes of persons increase, then this would give consumers more spending power. Hence, consumers will but more products. Thus, AINLIM’s demand will increase and in turn it will gain more sales n profit. On the other hand, if incomes of persons decrease, then this will mean that consumers will have less spending power and they will buy fewer products. Hence, this will cause AINLIM’s sales and profit levels to decrease.
Economic
Contributions to the Economy
Taxes
The business pays direct taxes (taxes that are imposed directly on individuals or on companies). The business pays income taxes, corporate taxes and property taxes. For the year 2004, the business paid $60,800,000 in taxes. Taxes are 46.6% of the profit made. 46.6% of these taxes contribute to the economic development of the country because they are used for infrastructural work and debt repayment. Taxes affect AINLIM since paying taxes decreases its profit level. If taxation went up/down then AINLIM’s profit would go down/increase accordingly.
Gross Domestic Product (GDP)
The business not only contributes to GNP, it also contributes to Gross Domestic Product (G.D.P). It contributes to GDP by 20%. It contributes to G.D.P. by providing employment to workers. The incomes of these workers help to sustain the livelihood of a number of families. The business’s products too are consumed by a large proportion of Guyanese customers. Thus, if the GDP goes down, then the incomes of persons will also go down, therefore, reducing their spending power. Hence, if persons’ incomes are reduced, AINLIM will lose customers and profits as it will gain less sales. On the other hand, if the GDP increases, then persons will be able to spend more. Thus, AINLIM will gain more sales and profits as a result.
Inflation
The lower the rate of inflation, the better it will be for AINLIM, as it means that people can spend more and the prices of the products will be affordable. If the rate of inflation was high, people will be spending less, as their income will be less. This will also lead to increased prices of goods.
Inflation will affect employment because if inflation is high, people will be spending less since their income will be low, which means that businesses will not be making enough money, therefore, resulting in the increase of products' prices. If AINLIM is not making a great deal of profit, then it cannot afford to pay its employees, and, therefore, there will be a low rate of employment. Low employment will mean that people will not be able to afford to buy a lot of goods, and so some businesses may become extinct.
Interest rates
During a high rate of inflation, the Bank of Guyana increases its interest rates. This means people cannot afford to take loans to buy products, as products during a period of high inflation are high priced. Thus, with high interest rates, AINLIM will not incur a lot of profits as it would not gain a lot of sales. Alternately, with low interest rates, people will be able to afford more products, thus, AINLIM will generate more sales and more profits. As interest rates drop, consumer spending increases, and this in turn stimulates economic growth.
Unemployment
High levels of unemployment will mean that people will not be able to spend a lot of money, as their income will be low. Therefore, the demand for AINLIM’s products will decrease. This will decrease its sales and may result in the downfall of the business. Alternately, if employment levels are high, people will spend more, thus, causing the demand for AINLIM’s products to increase. This in turn will cause it to gain more sales and generate more profits.
Exchange rates
If exchange rates changed, it would affect the cost of importing, so an decrease in the Guyana dollar would mean that costs for importing would be more and AINLIM would have to incur more importation costs. This will result in AINLIM selling its products at higher prices since it will have to compensate for the increased importation costs. Thus, with higher prices, AINLIM’s profit will decrease as consumers will not be demanding its products as much as before. This in turn will cause its sales levels to drop and simultaneously its profit level will drop.
Technological
The impact of technology on AINLIM
Technology has had a great impact on businesses and will continue to do so. All businesses have to use resources other than labour, so to that extent all businesses are affected by technology.
AINLIM uses Information Technology mainly for communication purposes. They types of technological equipment that AINLIM uses to aid in its technological processes include computers, fax machines, telephones, shredders, scanners and printers. AINLIM benefits from the use of technology since technology facilitates efficiency, it gives AINLIM a competitive edge and it contributes to profitability. However, the use of technology could also be detrimental in communication processes. With the use of technology, AINLIM will have to guard against hackers, it will have to protect its data from unauthorized access and it will also have to ensure that systems are reliable (i.e. it will have to ensure that computer systems being used are in ‘good health’ i.e. free from harmful viruses that can cause hard drive crashes etc. It will also have to ensure that other equipment like fax machines, shredders, scanners, printers etc. are in good working process so as not to hinder the communication process).
AINLIM does not have a website of its own, but its parent company, Neal and Massy Holdings Ltd. has one. AINLIM and Neal and Massy Holdings Limited do not allow customers to shop for products online. Hence, this could reduce AINLIM’s competitive edge, since it may have had more customers if it had enabled online shopping for its products. However, AINLIM’s parent company, Neal and Massy Holdings Ltd. advertises vacancies on its website and it even has an online employment application form for persons to apply for jobs at any one of its subsidiary companies. This is beneficial to AINLIM and to Neal and Massy Holdings Ltd. since it facilitates faster, accurate and more efficient communication between persons applying for jobs and Neal and Massy holdings Ltd.
Technology has also had an impact on the labour force of AINLIM. The labour force has had to be trained to use technology like computers. This is beneficial to AINLM, as persons employed will be more skilled and they will help AINLIM to maintain a competitive edge. However, this also has disadvantages. It is often said that younger employees are more adaptable and easier to train in new technologies while older workers are often said to show more loyalty to a business and will have years of experience which could improve customer service. It is most likely that older persons who are ‘technology-illiterate’ will be disadvantaged and AINLIM will also be disadvantaged to an extent.
The use of technology can also be disadvantageous to AINLIM:
- It contributes to added costs.
- The use of visual display units on word processors and computers can have effects on workers’ eyesight (as a consequence of being exposed to computer glare).
- The use of technology can cause other health problems like suffering from the effects of isolation from physical contact with workers and health problems associated with posture and lighting.
AINLIM keeps up- to- date with technology since its parent company, Neal and Massy holdings Ltd. in Trinidad provides it with regular updates, for example, it provides AINLIM with new software, it finances the buying of new computers and it disposes of obsolete and slow- running technology.
