The timeline goes on to show Ford Motor Company’s incorporation in 1903 and shares Mr.. Henry Ford’s vision for creating a company with virtue and morals. In 1 914, Ford instituted a policy to pay factory workers $5 per day (which was double the existing pay rate for workers of this kind) (Ford Motor Company, n. D. ). The history of F-rod details the romantic perspective of the company’s leadership from the start. Ford’s vision of Quality, Safety, Environment (CEO- Friendly) and Innovation was initially inspired by its founder in 1903, and these values are still evident today in the present leadership.
From an external control perspective, Ford details their organizational hierarchy, leadership style, focus on quality, responsibility to the environment, customers and shareholders. Ford also invests in new technologies to bring the best products to market (Ford Motor Company, n. D. ). 2. Select a company that competes in an industry in which you are interested. What are some of the recent demands that stakeholders have placed on this company? Can you find examples of how the company is trying to develop “symbiosis” (interdependence and mutual benefit) among its stakeholders? Use the Internet and library resources. Answer: Although Apple Computers products are designed in California, ASSAI, they are manufactured and assembled overseas. The Apple phone is built by a company called Foxing in Chinese factories and has been in the media lately because of working conditions and exploitation. According to Apple’s CEO (Tim Cook) this is something that Apple takes very seriously (USA Today, 2012). Apple wants to build an ethical phone that not only improves the lives of its user, but also the lives of the people building the product.
Stakeholders and shareholders alike are watching closely how Apple handles the Foxing situation. One measure taken by Apple was to hire the Fair Labor Association to monitor conditions at Foxing facilities and report findings to Apple (USA Today, 2012). The proof is in the results: Apple not only encourages Foxing to comply, but also helps financially to improve conditions for Foxing workers. 3. Provide examples of companies that are actively trying to increase the amount of empowerment in the strategic management process throughout the organization.
Do these companies seem to be having positive outcomes? Why? Why not? Answer: Many companies today realize that customer service is the key to success. One way to keep a customer coming back is to quickly resolve any concerns or complains a customer may have. To do this, employee empowerment (giving employees the power to rectify a situation and turn a negative into a positive) (Deeds, Limpkin, Eisner, & Manager, 2014, up. 360-361). This type of empowerment has been demonstrated to me first hand by a handful of firms that I have done business with and in most cases have positively impacted my experience.
This type of empowerment must be evident throughout the organization, and this “culture” has been demonstrated to me by the following: Capos – Online Shoe store Marriott – Hotels Delta Airlines – Air travel. On the other hand, one company I have worked with that does not reflect this type of employee empowerment is AT. I have been kept on hold, hung up on, transferred to non-working extensions and been all-around annoyed having to attempt to obtain customer service from AT.
Unfortunately, because of their force in the market, it would be foolish for me to look elsewhere for their products and services, but if a competitor enters the market and is able to offer a similar product and service I will be one of the first to leave AT because of their lack of regard for taking care of their customers. 4. Look up the vision statements and/or mission statements for a few companies. Do you feel that they are constructive and useful as a means of motivating employees and providing a strong strategic direction? Why? Why not? (Note: Annual reports, along with the Internet, may be good sources of information. Answer: work for Honeywell International, and our mission Statement is as follows: Honeywell invents and manufactures technologies to address some of the world’s toughest challenges initiated by revolutionary micrometers in science, technology and society. A Fortune 1 00 company, we create solutions to improve the quality of life of people around the globe: generating clean, healthy energy – and using it more efficiently. Increasing our safety and security. Enabling people around the world to connect, communicate, and collaborate. And equipping our customers to be even more productive.
With more than 1 27,000 employees worldwide, including more than 22,000 engineers and scientists, we have an unrelenting commitment to quality and delivering results in everything we make and do (Honeywell International, I can attest to the fact that this mission/violins statement is a strong titivation to me (as an employee) and is an accurate description of what the company aims to accomplish. It is a good feeling to work for a leader in the industry and a company that cares about improving the world we live in as well as the lives of all whom it touches.
The evidence of Honeywell success can be found in their stock performance, the vision of the CEO Dave Cote (CEO of the year in 2013) and in all levels of management. Chapter 1 Ethics Questions: 1 . A company focuses solely on short-term profits to provide the greatest return to the owners Of the business (i. E. The shareholders in a publicly held firm). What ethical issues could this raise? Answer: A short-term mentality could be risky for a business and lead to catastrophic failure. This raises an ethical issue because it is not a responsible practice for shareholders and goes against common corporate governance.
A short-term focus may lead to loss or possibly bankruptcy with only insiders benefiting from this practice. A good example can be found in many mortgage lenders who falsely inflated home values in order to write mortgages. This led to a huge problem and contributed to the housing crash of 2007. Foreclosure rates climbed and left homeowners’ with debts greater than their property value (Suffix & Main, 2014). 2. A firm has spent some time-?with input from managers at all levels-?in developing a vision statement and a mission statement. Over time, however, the behavior of some executives is contrary to these statements.
Could this raise some ethical issues? Answer: This type of inconsistency in a firm can cause numerous problems. If the entire organization is not working toward the same mission, the lower level employees may begin to feel that executives are above the law and become angry or disgruntled. Employees will question the real goals and morals Of the company and likely develop bad attitudes, loss of pride in their organization and loss of efficiency in their work (Crosscuts, 2014). Over time, quality employees may leave the company because of this situation. Chapter 2 Application Questions Exercises: 1.
Imagine yourself as the CEO of a large firm in an industry in which you are interested. Please (1) identify major trends in the general environment, (2) analyze their impact on the firm, and (3) identify major sources of information to monitor these trends. (Use Internet and library resources. ) Answer: I chose to be the CEO of Amazon-com. In today’s world, consumers want a number of things: instantaneous gratification, competitive pricing, convenience, and a multitude of choices (Solomon, 2014). Realizing this, Amazon must compete with “brick and mortar” retail establishments.
Technological advancements have allowed Amazon to quickly process orders. Amazon Prime delivers these items in 2 days or less (for free). The convenience of online shopping and Amazon’s shopping experience beats the competition in convenience. Amazon’s vast buying power allows them to offer a great variety of products at competitive prices. Amazon leverages innovative marketing techniques as well as an algorithm-based proprietary system that forecasts demand before products are even ordered (Amazon Knows What You Want Before You Buy It, n. D. ).
These techniques allow Amazon to stay one step ahead of their competition and exceed customer expectations. Currently, Amazon is working on ways to further meet the instant gratification trend by finding ways optimize fulfillment strategies. These techniques may use automated delivery systems and drone robots to deliver products directly to customers the same day they are ordered (Amazon Knows What You Want Before You Buy It, n. D. ). 2. Analyze movements across the strategic groups in the U. S. Retail industry. How do these movements within this industry change the nature of competition?
Answer: Electronics retailer Best Buy needed to react to the threat of online retailers. With higher amounts of overhead, Best Buy was losing customers quickly because they were not price competitive. Historically, Best Buy has been a “brick and mortar retail establishment. They offered only as much variety as they could fit in their store and had to charge a premium to cover the cost of doing business. In order to compete, Best Buy launched a campaign to price match major online retailers. They also entered the e-commerce space with busty. Mom (more closely competing with online sellers). This allowed Best Buy to move more product, thus giving them more buying power. They also encroached on online retailers’ space by directly competing with them and by offering customers something different: in-store pickup (Oozes, 2014). In this scenario, Best Buy reduced the distance of their business with competing online firms (causing them a threat) and increased distance by offering in- store pickup (something online only stores could not offer). 3. What are the major trends in the general environment that have impacted he U.
S. Pharmaceutical industry? Answer: With the changing general environment, the U. S. Pharmaceutical industry has been forced to make many changes. According to price Waterholes, these seven trends in the general environment are reshaping the market: Instances of chronic disease are increasing, placing even greater pressure on already stretched healthcare budgets Healthcare policy-makers and payers are increasingly mandating what doctors can prescribe A growing number of healthcare payers are measuring the pharmacopoeia performance of different medicines.
A widespread use of electronic medical records will give hem the data they need to insist on outcomes-based pricing Boundaries between different forms of healthcare are blurring, as clinical advances render previously fatal diseases chronic and the self-medication sector expands Demand for medicines is growing more rapidly in the emerging economies than the industrialized economies Governments are beginning to focus on prevention rather than treatment, although they have not yet invested very much in pre-emotive measures; and Regulators are becoming more cautious about approving truly innovative medicines (Price Waterholes, 2015). . Go to the Internet and look up www. Roger. Com. What are some of the five forces driving industry competition that are affecting the profitability of this firm? Answer: According to the Kroger 2013 fact book for investors, the grocery giant notes that this industry is in a consolidation phase, New companies find it difficult to enter this market because of large cash requirements and existing buying power of established firms. Buying power (economies of scale) is also a factor limiting start-ups in the grocery business (Kroger Co. , 2013).
This business is also highly regional, making one or two players dominant in a market. The only exception is big box stores such as Wall-Mart and Target who leverage existing buying power and present existence to add grocery products to their offerings (Hoovers, n. D. ). Chapter 2 Ethic Questions: 1. What are some of the legal and ethical issues involved in collecting competitor intelligence in the following situations? A. Hotel A sends an employee posing as a potential client to Hotel B to find out who Hotel Bi’s major corporate Customers are.
Answer: Hotel Bi’s corporate customers may be considered a trade secret. If Hotel A used this information to their advantage and damaged Hotel Bi’s business here may be legal grounds for a lawsuit. If the media were to find out about this practice, Hotel Ass business could suffer severely due to its fraudulent acts. B. A firm hires an MBA student to collect information directly from a competitor while claiming the information is for a course project. Answer: This act could be considered misrepresentation and spying could be considered fraudulent activity. In addition, this is highly unethical.