Stock-out incurs a cost that is associated with the loss of opportunities as a result of the stock exhaustion. In target supply chain, defective replenishment of shelf is among the common causes of stock-out. This challenge has proven to be very costly for the organization. It has caused uproar from the customers as reported in the press since customers are forced to forego their usual supply to other organizations. In worst case scenarios, frustrated customers can switch their loyalties to other brands after a series of frustrations.
Fraud There are many reasons that someone would commit fraud and only those people will ever know what pushed them to do so. The three main factors that contribute to fraud are opportunity, financial pressure, and rationalization. If the workplace does not have proper controls in place to deter people from wanting to commit fraud, it makes it easier to do so. The financial pressure portion of this can sometime be fueled by nothing more than greed. Mostly this occurs because an employee has financial issues and believes that the company would not miss even a little bit of money.
P.65 Because political and economic factor listed above; In addition, government bureaucrats salaries are very low, inevitably demand bribes from any company that cross their path meaning a long line of officials might require bribes. c. Based on this case and what you have learned in this chapter, what are the consequences of corruption on a country? Ppt
Also, company Q’s only concession to changing policies is to begin carrying high margin, or high cost, products at all of its stores. Company Q has also set a bad precedent for trust within the company. It has effectively labeled its employees as thieves. In all relationships, trust is a two way street. If company Q cannot trust its employees, how can they expect their employees to trust the company?
The cost associated with bribery is the abuse of power by the decision-makers and by officers in their respective position. A significant consequence is that bribery and corruption adds to the cost of doing business but, crucially, without adding corresponding value. Instead of the full contract amount going towards the delivery of the product or service, only a portion is productively employed. Another damaging cost to bribery is the unfair evaluations of a tender or procurement bid awarded to the contractor. Bribery promotes inefficiency and ineffectiveness of the business system and adds to the cost of doing business.
For one its affects people financially. It also puts the safety of civilians in jeopardy. The emotional stress on both families causes problems. So I write to whomever reads this paper, to explain why stealing is wrong with my few reasons. Thieves affect people’s financial situations when they go out and do their wrongful actions.
In terms of consumerism, the good life is damaging to the environment, places too much emphasis on money, and it dwindles the importance of non-market values. According to Annie Leonard’s “The Story of Stuff”, our current materials economy is a commodity chain in which goods go from extraction, to production, to distribution, to consumption, and finally to disposal. The system sounds stable but it is actually in crisis. Anyone with a simple understanding of mathematics can tell you that you cannot run a linear system on a finite planet in the real world. In order for us, the consumers, to get all of our fancy products and up-to-date technologies, a process that we turn a blind eye to takes place.
D1- Evaluate how managing resources and controlling budgets can improve the performance of Tesco. It’s vital for Tesco to manage all their resources and control budgets in order to succeed as a business. Managing resources and controlling budgets gives Tesco more structure and stability essentially leading them to high performance and success. If Tesco fails to manage resources and control budgets then many problems could occur resulting in bad performance and failure of the business. Budgets must be controlled in order for Tesco to make a profit rather than a loss within their business.
Health care in the United States including insurance continues to rise dramatically and even those with insurance are beginning to feel the weight of the cost as premiums increase and copays. Likewise, in socialized medicine countries this cost is being felt in the form of taxes. This rising cost of healthcare adds to another problem of access. Many individuals do not have access to quality healthcare especially in poor and rural areas (Health Care Problems, 2012). The rising cost of healthcare increases this lack of access by cutting people off from care financially.
It’s suitable for Best Buy to adopt Differentiation Strategy, on of Porter’s generic strategies. Because one of Best Buy’s organizational strengths and advantages is having strong market share in retail-market. More-over, Best Buy has low cost advantage over its competitor so it don’t have to put a lot of focus on this segment. Best Buy always very good at getting high volumes of products out of its factory to its stores. But they still need to evolve, to reengineered its supply chain to improve their business.