Placing profits above people isn’t socially responsible but is rather sociopathic and a microcosm of the larger problem that entails the current Capitalistic system that is used across the world. Company Q, is displaying a common capitalistic mind-frame that many companies engage in wherein they would rather focus on lost revenues than assisting the less fortunate. It’s troubling that the company wouldn’t donate day-old products to a food bank. The company does offer some organic foods, and this could be conceived as socially conscious if the food is obtained from traceable sources that are environmentally friendly growers. This social responsible act is overshadowed by the company’s decision to leave the inner city areas because of alleged loss of profits.
Company Q failed to act in a timely manner to stock stores with health conscience and organic foods that were requested by customers for two years. Not only were they not socially responsible by not actively providing the need to the stores in the community, but missed the opportunity to make a profit on high margin foods. Company Q was socially irresponsible when the local food bank asked for day-old products and they denied the donation. Instead, the food was thrown in the trash. B.RECOMMENDATIONS My first recommendation is for Company Q to revisit the opening of the two stores that were closed due to money loss.
Social Responsibility EST1 Task 1 Company Q's current attitude toward social responsibility can best be described as nonexistent. While a business's ultimate goal is to create profit, businesses should enlist community friendly practices to strengthen both the company and the community as a whole. Three areas that Company Q needs to reevaluate are as follows; (1) closing down stores because of the crime rate in that specific part of town; (2) only offering high margin items that are health conscious; and (3) wasting food instead of donating it to local food banks. Company Q has recently closed a couple of stores due to a pattern of lost profits. These two stores were in high-crime-rate areas.
When asked about donating their day old food to the local food bank, the company refused and chose to throw away the food. Their decision came from worries that there could be possible fraud or stealing by the employees who might say they are donating the food, but taking it for themselves. This proves the company has a very poor ethical framework. Mainly showing their lack of trust in their employees. By setting rules beforehand, the company can eliminate
Company Q should also review products they offer, price control factors, and donations to local charities in the community. I will show that by improving on these areas, Company Q will improve their overall view in the community and improve their view with loyal customers and potential customers. The closing of a store creates a large impact on any community. Company Q’s disregard for any social responsibility creates a negative view of the company in areas where they operate. Company Q’s stores were reportedly closed due to their lack in generating profit, being that these stores were in high crime areas raises some concern.
Had those customers already found an alternative store that did provide the requested goods and in turn moved their business? Or did the store not fully understand the demographics in the area and replaced some lower cost staple foods with the higher profit-margin health conscience and organic foods? Were theft and fraud by its employees and customers the reason for losing money? Did Company Q alienate themselves with their respective neighborhood by refusing to
When Kudler makes business improvements, it causes their competitors to either imitate them or get out of the business. Some negative effects a monopolistic competition has on Kudler Fine Foods is that in the long run, profits even out and the company will maintain equilibrium. Entry to this industry is relatively seamless. As new competitors enter the market, the demand curve shifts to the left which thereby reduces economic profit. Productive efficiency is absent in the monopolistic competition.
After evaluating the financial ratios I would tend to agree with that assessment based on the current conditions of the economy. The economy is still showing signs of slow growth and as things continue to improve I would expect shoppers to move away from Wal-Mart and begin to gravitate more toward the seemingly higher quality of products and added prestige offered by shopping at Target. Walmart has also experienced a growing level of consumer backlash related to its employee relations, low rates of pay, a high profile charge of bribery in Mexico, along with slow growth in its Chinese markets that could further damage its potential. Stock Valuation and Growth Based on our calculations, the stocks of Kroger, Target, and Walmart are overvalued. The stock prices we computed were $6.29, $16.84, and $19.10 in comparison to their closing stock prices of $27.89, $61.15, and $69.95, respectively.
While some Americans were unemployed because of the corporations' move, the general population was benefiting from lower prices. Should a town suffer so other Americans can buy cheaper
Because of their consistently low prices on products, their competitors have lowered their prices in order to compete with Wal-Mart. In turn, this has driven overall prices down. Wal-Mart has also created many new jobs and increased tax revenues. Businesses that are located next to Wal-Mart stores have also benefited from them because customers who are shopping at Wal-Mart will stop at other businesses before or after shopping at Wal-Mart ("Walmartstores.com: Economic Opportunity"). Because of the impact Wal-Mart has had not only on the retail industry in the United States, but also globally, I think it is safe to say that Wal-Mart is a very secure company.