They have shown this by closing a few stores in a higher-crime-rate area because they were losing money, by only offering a very limited amount of health-conscience and organic products because they are high margin items and by declining to donate to the local food bank because of worries over lost revenues. Company Q is not displaying an obligation to its stakeholders; particularly the customers, community and employees by not maximizing a positive impact through ethical and philanthropic actions. In order for Company Q is improve their reputation they need to take on a socioeconomic approach to social responsibility. This approach focuses not only on profits but on the benefit of the business to society. Company Q can improve their social responsibility in three areas; customer satisfaction, community outreach and employee trust.
Company Q’s current mind-set on social responsibility appears to be quite negative, uninformed, and antiquated. It would appear that the company chose to close stores in high risk areas without first investigating how they could provide service to this under-served segment of society while still maintaining a profit margin and ensuring the safety of its employees. The company’s veiled attempt to make quick profits by providing only a small, high margin sampling of the customer requested health-conscious or organic products has likely served only to alienate and diminish their customer base. Lastly, the company’s response to the local food bank’s request for donations appears to a feeble attempt to create a valid reason to avoid the extra work that may have been associated with this endeavor. This response likely had the added effect of offending their employee base by suggesting that their employees would utilize the program to steal from the company.
347540Wallace EST 1 Task 310.2.1-05See how we can help Because Company Q is a small, local grocery store in a major metropolitan area it can at times be very over whelming. Big chain stores are putting family owned stores out of business on a constant basis. This reason, along with social responsibility taking hold of companies, brought on by consumers demanding that companies adjust their thinking from a profit-seeking standpoint to being socially and ethically understanding to all consumers in their business ventures. Recently, due to decrease, in sales Company Q had to close two stores in high crime rate areas. Those closures where due to the result of months of losses in profits from those two stores.
If a company’s internal controls are not working properly customers and investors will be more doubtful and have second thoughts on their investments and money being safe which will lead to having less investor and the stocks will drop. It is very important for companies to have their internal controls up to date and making sure they are working properly because this can cause major setbacks financially. But there are some instances were internal controls cannot even stop unethical behavior from happening such as shoplifting in a shopping mall or even a bank
However, if there are not enough suppliers to support these stores, sales will be cannibalized. While an individual customer may not have much power, the overall customer base of the office supply industry has collective power. A large company purchasing a large amount of supplies may have room to negotiate a discount, but the average consumer cannot walk into a store and demand 20% off a product. Also, there are
3) Consolidate debt. If a firm decreases the number of debt holders, it may be able to decrease the direct costs of bankruptcy should the firm become insolvent. 6. There are two major sources of the agency costs of equity: 1) Shirking. Managers with small equity holdings have a tendency to reduce their work effort, thereby hurting both the debt holders and outside equity holders.
Pocketing the difference between price tag, ongoing promotion and cash sales. * Involuntary rotation might not be good for the moral of the employees, lowering their loyalty and increasing their turnover * Lack of charismatic leadership: * Branch managers have no close relationship with their corporate superiors. * Performance evaluation is based on lowering theft percentage, not personal goals to achieve. Those factors result in poor perceived organizational support (OB, p. 110). This perception has a direct effect on employees’ engagement and organizational citizenship behavior towards the goals of the company.
From a standpoint of a shopper I would evaluate the store as a confusing mess that seemed like a sale every time one shops. Sales are advertised but employees don't necessarily push the sales. The management goals reflect the employees' goals to let the products sell themselves. This hurts the company knowing that consumers can shop products on a "take it or leave it" attitude. Most people are aware of the lack of customer service Best Buy does not provide.
It makes since, instead of always wasting the sales person time. If everyone is going to be going into stores just to check barcodes and see where they find the product cheaper or even shop online all the time it doesn’t make sense for a company to be paying employees for unnecessary work. Or work their not able to do at all. It will save the company money instead of paying for such big space that not a lot of consumers are going to. The only downfall I see or disadvantage I see is depending on where those lower rent locations are because some uppity people don’t feel secure in lower rent locations.
Being reactive or proactive is not just a mind-frame, it is also a potential business strategy depending on what the situation calls for. Reactive is when you react to situations affecting your business. For instance, say your competitor lowers the price of their goods. Your natural reaction is to cut down on prices too. This may seem like a viable solution at first, but reacting to situations the same way at all times may not the best solution for your business.