Cost management 7th edition ch 1,, Strategy; an ethical issue Frank Sill the CEO
ID: 1202704 • Letter: C
Question
Cost management 7th edition ch 1,,
Strategy; an ethical issue
Frank Sill the CEO and founder of environ wearies facing the first big challenge of his young company. Frank began the company on the principle of environmental consciousness in the manufacture of sport s and recreation wear. His idea was develop clothing that would appeal to active people who were concerned about quality, waste in manufacturing and packaging, and the environmental impact of the manufacture of the goods they purchase. Starting with a small shop in Zebulon, North Carolina frank was able to develop his small business through strategic alliances with mail order merchandisers and by effective public relation about his environemintly concerned process. Special advantage for the young firm was frank knowledge of accounting and his prior experience as a CPA in a major public accounting firm and as a controller of a small manufacturing firm.
Enviro wear had reached $25000000 in sales in its year when a disaster set of events put the firm and its prospects in tail spin. One of the key sales managers was overheard by a news reporter telling jokes about the poor quality of the firms clothing, and the news of it spread quickly. Also rumors spread at the same time that the firm was not really as environmentally conscious in its manufacturing and packaging as it claimed. The result was an immediate falloff in sales, and some retailers were returning the goods.
Frank intends to fire the manager and deny publicly any association with the manager’s comments, as well as to defend to the firm environmental record.
REQUIRED:
1) On the basis of porters analysis of strategic competitive advantage, what type of competitive strategy has ENVIRO-WEAR followed? What type of strategy should it follow in the future?
2) What are the ethical issues involved in the case, and how would you resolve them?
Explanation / Answer
Ans:
1:
Esteem chain investigation embraces three parts for advertising in a worldwide focused methodology. The principal identifies with the setup of marketing.Success can be accomplished in commercial ventures by distinguishing development sections inside a general business sector, upgrading quality and focusing working effectiveness. In divided commercial ventures achievement can be accomplished by the making of economies of scale. Enviro wear had come to $25000000 in deals in its year when a calamity set of occasions put the firm and its prospects in tail turn. One of the key deals chiefs was caught by a news columnist educating jokes regarding the low quality of the organizations attire, and the news of it spread rapidly. Likewise bits of gossip spread while the firm was not by any stretch of the imagination as ecologically cognizant in its assembling and bundling as it guaranteed. The outcome was a prompt falloff in deals, and a few retailers were giving back the merchandise. Straight to the point expects to flame the chief and deny openly any relationship with the administrator's remarks, and additionally to protect to the firm natural record.
Strategy follow in futer
· Economies of scale - ease of creation
· Customer information - moving the item blend to take care of changing demand
· Technological development - vacuum pressing arrangement, mass transport
· Infrastructural advancement - stores, transport frameworks
· Factor expenses and accessibility
· Logistics: time required to dispatch requests, security and wellbeing and transportation costs
· Country's base
· Political danger
· Market access
· Foreign trade
· Technological ability.
2:
Ethical issue in this case that manger broke the rule of the company and making rumers about company product .Manager is not following his ethics and this is unethical for company .Moral and ethical representatives are the individuals who settle on choices to the greatest advantage of their bosses collaborators and outside partners notwithstanding themselves. Work environment morals focus on such differing issues as segregation extortion burglary and individual legislative issues. Albeit all individuals are naturally profitable moral representatives can really be all the more monetarily important to their bosses and more esteemed by collaborators and companions. Seeing how morals can improve you a man in the working environment is a strong beginning stage for a pledge to continually doing the privilege thing.Rumors regularly develop in light of the fact that individuals like to be aware of present circumstances. Information is power and that is the reason the general population with minimal measure of force in an association can regularly be the ones to begin and spread gossipy tidbits. It can make them feel critical on the off chance that they're seen to know things that others don't.