Concept explainers
Summary:
The company is the manufacturer of athletic shoes and is widely regarded as a socially accountable company. But, by being socially responsible they need to handle the increasing costs of their operations.
In order to make reasonable profits, the company has been pushed to compromise the socially responsible practices to ensure that the company is reaping sufficient gains. The Chinese government is repressive and barely a democracy.
To determine: The decision made by the manufacturer.
Answer to Problem 1ED
The manufacturer will retain the current practice as it is more important to be ethical rather than having more gains despite carrying out unethical operations.
Explanation of Solution
Decision made by the manufacturer:
The manufacturer has the chance to move its operations to County CN. But, it would mean the manufacturer has to compromise the ethical principles and practices that has been followed for so long.
As a manufacturer I will stick with the existing practice despite incurring more cost it will only affect the company. I would like to uphold the ethical image projected my company and moreover there is no enough input on the working conditions.
The basis of the choice would be to uphold ethical image to the customers. Even though the manufacturer is taking loses, I would take pride in not operating in under such horrific working conditions.
Want to see more full solutions like this?
Chapter 2 Solutions
Principles Of Operations Management
- Sustainability is a poor long-term risk strategy, but businesses ought to try to be sustainable anyway. Indicate whether it is true or falsearrow_forwardThe Services industry is one of the most affected by the COVID-19 outbreak, and to be able to hype up the industry, think of new or innovative ways on how to help boost it. With given travel agency in Philippines called: Creative Travel Agency Discuss the proposed pricing strategies of your chosen company and compare them with their direct and indirect competitors. Choose 1 direct and 1 indirect competitor. Do not forget to cite your references/websites.arrow_forwardWhat type of anti competitive behavior is this? Please Explain your answer. Requiring a mobile phone buyer to buy a service contract from a single, approved provider or run the risk of having their phone become inoperable or otherwise paying a fee for early contract termination.arrow_forward
- What is supply chain management. Why is so important for CSR? Can you give three examples of Unsustainable supply chain management examples and describe them well.arrow_forwardWhile Microsoft has stopped providing security updates for Windows Server 2003, it is still being used by an unknown number of computers. When a supplier ceases providing updates for a particular piece of software or hardware, what dangers does it pose to a business?arrow_forwardGive typing answer with explanation and conclusionarrow_forward
- Calculate the cost advantage index if the percentage cost of goods sold by the business is 40% and the average percentage cost of goods sold by its top three competitors are 50%, 60%, and 70%, respectively.arrow_forwardWhat are the risks you think will challenge a hand-painted tote bag business in Philippines?arrow_forwardCompare and contrast the three options from the perspective of cost. which one do you believe will provide the most economical solution for PAC? Whyarrow_forward
- Ex: I'm starting a company that gathers and repair pre-owned books and redistribute them into the market at a lower price to have a sustainable economy. It will give damaged books some worth by recycling the paper into plantable sheets. what is the customer willing to pay for your solution? Why?arrow_forwardRisk management is inevitable if a company is to achieve its objectives. Companies with active risk management process gain competitive advantage. Choose a company (Financial, Educational, Retailing, etc.) based in Lesotho, identify and discuss the possible risks the company is likely to face and the risk management process the company will conduct Develop a risk register for the companyarrow_forwardGood morning please help me with this question When you read the above , it becomes clear a well-defined procurement strategy and good inventory management can deliver supply chain success and could ultimately lead to profitability and growth. In a report, you are required to critique the strategic importance of procurement and the roles of inventory in the supply chain (balancing supply and demand and Buffering against uncertainties) in relation to Apple. please add reference if you can thank youarrow_forward