Another example of the benefits of keeping current customers satisfied are the surveys produced by TARP and PriceWaterhouseCooper. This TARP survey showed that 68% of customer defection takes place because the customer feels that they have been poorly treated and that it can cost up to five times more to buy new customers than to retain existing ones. Customer satisfaction not only benefits sales of goods and services but can also lead to bills being paid earlier by the customer. PriceWaterhouseCooper and the university of Bradfordsurveyed 3000 businessmen and the results show that if there was high customer satisfaction then bills were paid up to 14 days earlier than where there was poor customer satisfaction. All of this evidence shows that customer service is an integral part of a successful company.
Every day of our lives we have ethical dilemmas, its part of our free will if we decide whether we act ethically or unethically. When getting hired at an organization we bring many job skills with us and ethics is one of them. Ethics is the behavior we use based on the ideas of what we believe to be good or bad (Collins). Our ethical decisions can affect us or others in a positive and negative reaction without us even knowing it. Even though we have managers and people in positions that know better doesn’t mean that they are not exempted from performing unethical acts.
In my current position in my work, not just we are required by the law to be honest and having and integrity helps a great deal to do my job a great many easier. I work on one on one setting and my clients or customers, having integrity doing the right thing is always the priority event know one’s looking. My customers always expect me to tell them the truth and give them educated advice. Of course, doing the right thing in my business sometimes can cause me to lose a customer. However, in my options I rather loss a customer than compromise my integrity.
As well as carving a solid reputation and position in the marketplace, companies are saving money. Sustainable operations, therefore, should treat the planet well but also treat people well, recognizing the basic human dignity in everyone regardless of race, class or gender.
The Company’s organization structures have been major boosts for the tremendous success. The core strategies that have fostered consistent growth of the company have been the Everyday Low Prices (EDLP) and Fresh Food People strategies. Over a 10 year period since 2003, the company has registered cumulative cost savings of close to $10 billion. Consequently, this has led to a remarkable reduction in Cost of doing business to sales ratio to around 25%. These figures could be far much better if the company further rationalizes the switch to national and regional distribution locations and also to the nonfood sector.
You're less tempting to rob if you're not holding any cash. (Gates) In conclusion, creative capitalism is already afoot and doing its best but there is so much more that can be done. Many companies forget that the poorest two-thirds of the world's population have some $5 trillion in purchasing power between them. Governments can also help by investing in creating more creative incentives. They can also make sure corporations get the publicity for doing good work so to shine a good light on those that help others.
(Ortega) However, Wal-Mart made decisions that were of a disadvantage to aspects of the economy, including the depletion on a small scale of Small Town USA. Wal-Mart has been of a great advantage to the US economy, being the world’s largest private employer thus providing more jobs. Wal-Mart is currently employing 1.5 million which equals to the population of 12 states. In addition, Wal-Mart has caused the lowering of prices of competitors known as the ‘Wal-Mart effect’, this saved Americans approximately $100 billion in 2002. (Hansen) On a smaller degree, this caused an individual American to save 15 to 20 percent of their income on necessities, allowing the surplus to be utilized in a fashion that allows an expenditure which fulfills a specific luxury to the individual, for example a car etc.. From my point of view, this allows the less advantaged to be able to purchase beyond necessities, and causing more money to spread through the market rather than the recycl... ... middle of paper ... ...al-Mart’s methods to keeping these prices down have been immoral.
As per the text, it also seems evident that Jack took out the ailing TV and toaster units but later it could be seen that the market of TV and Toaster has not died. An intuitive, proactive and learning leader as Jack Welch could have picked up the nuggets from the contemporary market leaders to revive the business. Jack’s main focus was to get business done by people and not business with people. The fact translates to generating profits, as a result he “rationalized the work force” by 25%. In the face of inflation, it was a heavy brunt on the poor Americans who lost the job.
However, GM did return to better performance in 1999 and 2000. GM overall was able to attain a fixed dividend of $2.00 per share and increase the shareholders value over the past five years. The first observation from the financial data in appendix one is that General Motors has a low profit margin and is generally less than the industry average each year. The firm is able to keep a low profit margin because they have such high sales volumes throughout the world. This strategy can be both an asset and liability in business planning.
Their motto of “Always low prices, always” have created soaring profits at the expense of their employees. Most Americans loves the convenience and low prices offered by Wal-Mart. Do Americans know what it actually costs for Wal-Mart to keep prices so low? With thousands of lawsuits filed each year it is a wonder why Wal-Mart refuses to change its practices. It is fairly safe to say that Sam Walton would not approve of how his company has been completely changed from its original intent by such a large margin.