Gggggggggghdzrrrh Essay

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Case 1: Knights Apparel 1. The case states that higher wage rates at the Alta Gracia factory have raised the cost per item by 20 percent. Can you see any way in which the philosophy with regard to pay and working conditions at Alta Gracia might lower costs in the long run? Knights Apparel must continue to give the best, fastest and cheapest service to continue to be one of the best distributors and hold a perfect competition. It is not easy to keep quality, cost, price and profit all on their maximum rate but it is possible. If the company keeps their quality on performance wasting will be reduced and in a long run profits will be maximized. Evidence suggests that some higher costs of Alta Gracia‟s employment arrangement will be recovered through operating efficiencies. Employees assume responsibility for their productivity and quality of work, thereby eliminating at least one layer of supervision and reducing costs of waste and defective merchandise. Turnover has been exceptionally low, as has absenteeism, thereby reducing costs of training and backup labor. 2. Do you think Joseph Bozich would have been able to try the Alta Gracia experiment if Knights Apparel was a publicly traded enterprise? I believe if Knights Apparel was a publicly traded enterprise, the CEO‟s dream could be coming true. Most of people think that since it is a public company, most of stakeholders are just focused on the highest profits they could get, and this is not true. They do think in their profits but most of them especially nowadays think on the return to the community once better community means better life and fewer problems overall. “I wanted to do something more important with my business than just worry about winning market share – that seemed kind of empty after what I had been through, and I wanted to find a way to use my business to impact the people

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