However, a determination should be made regarding the viability of these items in all stores. If sales are low in certain areas, this could lead to loss of profit due to overages. Company Q has also declined a request by local food bank to donate day old products because they fear theft by employees. Company Q could take a few simple steps which would support their need to improve profit, engage their employees in a shared corporate vision, and build a supportive relationship with the community. Recommendation 1 Company Q should establish an ethics program.
Economic: maximizing stockholders wealth and value In regards to evaluating your company on their attitude toward economic social responsibility, I have found that your company has made some good moves, although there could be some improvements made in this area. By closing down the two stores that were losing money you increased the profits at your other stores. This helps the wealth of your stockholders, and shows a good attitude toward economic social responsibility. Considering the high profit margin of stocking health and organic products your company took years to stock the products and still only carries a limited supply. This shows a bad attitude toward economic social responsibility.
To see these benefits, the focus needs to remain on benefiting the community at large and meeting the needs of each individual location. Crime can be reduced within the store by helping provide for the community and offering opportunities to help people work their way off the streets. Consumer spending can be increased by meeting the demands of the area while helping those who cannot afford to spend money on the goods the company sells. Any company would be wise to remember that quite often it is the poor who succeed later in life and become a company’s biggest investors. A focus on those in need is something that helps a company’s reputation for years to come, boosting profits in both the poorest neighborhoods and the wealthiest.
Company Q's Dilemma Nabor Ochoa Western Governors University Company Q's Dilemma The dilemma faced by many businesses today is a dilemma that has existed since the introduction of business. What should come first people or profits? Company Q is facing the same problem in regard to whether or not make donations to local food bank or to dispose of the surplus food to prevent their profit margin from shrinking. Company Q has chosen to put the profits of the company ahead of helping other people of their community when given the opportunity to do so. In the eyes of some, this decision could be seen as an act of selfishness against the citizens of the community; however in the eyes of others it could be seen as a business decision
America began on small businesses and America has to continue to have small businesses to have a good economy. Wal-Mart endangers businesses all over the country because small businesses cannot compete with the superpower on account of Wal-Mart getting goods from places like China. Most people live within thirty minutes of a Wal-Mart and with their lower prices people will continue to shop there without realizing what they are doing to their own economy. Most people don’t realize that saving a few dollars by shopping at Wal-Mart is crippling all the local businesses around their area. Wal-Mart does not care about the American economy because they are thriving the way the economy is now, so American citizens have to stand up for their communities.
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.
One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base. Customers will not have the same shopping experience with large grocery stores. If there are items that customers would like to have available in Kudler stores they are able to communicate that to management. Management can then relay the data to Kathy Kudler who will search the world for the best available items to satisfy the customer. People will not have the loyalty they get from Kudler at other grocery marts.
Competitors – they will be only interested if the Business means “ASDA” is not doing so well as this will mean more business for them , because they are offering the same services within the same area. They can use the financial statement of “ASDA” as a “bench mark” for their own performance. Owners- they are the most important stakeholders, because they have established the business and they devoted a lot of their time for the company success. They are the stakeholders, who have the higher interest for the business to raise on profit and value. Employees and Managers- their interest is that the company provides them with decent live hood.
Through obtaining products directly from local farmers would also lower shipping costs, thus satisfy customer requests, and contribute to the local community, while continuing to be profitable. Consumers still experience a limited product selection during the season, but the overall satisfaction during the peak times will help sustain customer loyalty. As season products change, the employees should stay current as to what products will be available, and when shipments arrive. The more knowledgeable the employee is, the more trust the customer will have in the business as a whole. Empowering employees with experience will allow them to help the public successfully resulting in an overall customer service experience that will set them apart from other local grocery store chains.
When looking at the bottom line, this practice takes an employee away from working the register or counter as well as increases the costs associated with providing goods for no profit. As a manager, I support Kudler’s practice of offering the samples. I see that it makes the customers happy and our employees get to know members within the community. The event offers more social interaction than a traditional grocery store could offer. Although it may cost most to staff this event, my values and ethics tell me I should concentrate on what is most beneficial to my employees and my customers.