What Would You Do?1. Continue Westwind's zero-tolerance policy toward shoplifting. It's the right thing to do-and it will payoff in theend in higher profitability because the chain's reputationfor being tough on crime will reduce overall losses fromtheft.2. Adopt Chris Dykstra's proposed changes and show moreleniency to first-time offenders. It is a more cost-effectiveapproach to the problem than the current policy, plus itstays close to your father's original intent.3. Adopt Chris Dykstra's proposed changes with an evenhigher limit of $50 or $100, which is still less than thecost of prosecution. In addition, make sure the policy isn'tpublicized. That way you'll reduce costs even more and stillbenefit from your reputation for prosecuting all shoplifters. The Wages of Sin?61Chris Dykstra, responsible for loss prevention at WestwindElectronics, took a deep breath before he launched into mak-ing his case for the changes he was proposing in the company'sshoplifting policy. He knew convincing Ross Chenoweth wasgoing to be a hard sell. Ross, the president and CEO, was theson of the founder of the local, still family-owned consumerelectronics chain based in Phoenix, Arizona. He'd inherited notorganized theft rings. They're the ones who are really hurtingus," Chris concluded.There was a long pause after Chris finished his carefullyprepared speech. Ross thought about his recently deceased fa-ther, both an astute businessman and a person for whom hon-esty was a key guiding principle. If he were sitting here today,hed no doubt say that theft was theft, that setting a minimumwas tantamount to saying that stealing was acceptable just aslong as you don't steal too much. He looked at Chris.“Youknow, we've both got teenagers. Is this really a message youwant to send out, especially to kids? You know as well as I dothat there's nothing they like better than testing limits. It's al-most an invitation to see if you can beat the system." But thenRoss faltered as he found himself glancing at the latest financialfigures on his desk-another in a string of quarterly losses. IfWestwind went under, a lot of employees would be looking foranother way to make a living. In his heart, he believed in his fa-ther's high moral standards, but he had to ask himself: Just howonly the company but also his father's strict moral code."I think it's time to follow the lead of other stores," Chrisbegan. He pointed out that most other retailers didn't bothercalling the police and pressing charges unless the thief hadshoplifted merchandise worth more than $50 to $100. In con-trast, Westwind currently had the zero-tolerance policy towardtheft that Ross's father had put in place when he started thebusiness. Chris wanted to replace that policy with one thatprosecuted only individuals between 18 and 65, who had stolenmore than $20 worth of goods, and who had a previous historyof theft at Westwind. In the case of first-time culprits under 18or over 65, he argued for letting them off with a strict warningregardless of the value of their ill-gotten goods. Repeat offend-moral could Westwind afford to be?What Would You Do?1. Continue Westwind's zero-tolerance policy toward shop-lifting. It's the right thing to do-and it will pay off in theend in higher profitability because the chain's reputationfor being tough on crime will reduce overall losses fromtheft.ers woufd be arrestēd."Frankly, the focal políce are gettíng pretty tíred of havíngto come to our stores every tíme a teenager stícks a CD in hisjacket pocket," Chrís poínted out. "And besides, we just can't af-ford the costs assocíatēd with prosecuting everyone." Every tímehe pressed charges agaínst a shoplifter whod made off with a$10 item, Westwind lost money. The company had to engage alawyer and pay employees overtime for their court appearances.In addition, Chris was looking at hiring more security guardsto keep up with the workload. Westwind was already in a battleit was losing at the moment with the mass retailers who werecompeting all too successfully on price, so passing on the costsof its zero-tolerance policy to customers wasn't really an option."Let's concentrate on catching dishonest employees and those2. Adopt Chris Dykstra's proposed changes and show moreleniency to first-time offenders. It is a more cost-effectiveapproach to the problem than the current policy, plus itstays close to your father's original intent.3. Adopt Chris Dykstra's proposed changes with an evenhigher limit of $50 or $100, which is still less than thecost of prosecution. In addition, make sure the policy isn'tpublicized. That way you'll reduce costs even more and stillbenefit from your reputation for prosecuting all shoplifters.

CD has gone through the trouble of proposing a change in the present policy of W@ towards…

Answered: Continue Westwind's zero-tolerance…

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...