Strategic decision Making discussion6

Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability

Learning Objectives:

1. Explain why good ethics is good business in strategic management.

2. Explain why whistle-blowing, bribery, and workplace romance are strategic issues.

3. Discuss why social responsibility and policy are key issues in strategic planning.

4. Discuss the nature of environmental sustainability and why it is a key issue in strategic planning.

5. Explain why animal welfare is a strategic issue for firms

Chapter 11: Global and International Issues

Learning Objectives:

1. Discuss the nature of doing business globally, including language and labor union issues.

2. Explain the advantages and disadvantages of doing business globally.

3. Discuss the global challenge facing firms and why this is a strategic issue.

4. Discuss tax rates and tax inversions as strategic issues.

5. Compare and contrast American business culture versus foreign business cultures; explain why this is a strategic issue.

6. Discuss the business culture found in Mexico, Japan, China, and India; explain why this is a strategic issue.

7. Discuss the business climate in Africa, China, Indonesia, India, Japan, Mexico, and Vietnam; explain why this is a strategic issue.

Initial Postings:  Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Also, provide a graduate-level response to each of the following questions:

i. Chick-fil-A is closed on Sundays. Is that wise management or irresponsible activism? Discuss.

ii. Do some research on New Zealand to determine whether you agree that the country merits its #1 ranking globally in attractiveness for doing business. Website  http://www.doingbusiness.org/data/exploreeconomies/new-zealand

[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words - do not provide quotes!]

 [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]

Overall submission requirements –

1. discussion needs two chapters overview or any topic discussion in your own words

2. Add your answers to the questions highlighted in yellow to the discussion post

3. Total 500 words, apa format, no plagiarism and verbatim

4. Two peer reviews with 200 words each

Student 1

   This week’s chapter readings outlined business ethics, social responsibility, and environmental sustainability within a firm and the importance each plays in building its brand, balancing its resources and increasing productivity to build a sustainable firm.  Business ethics are specific guidelines that are established by a firm or organization that leads to good decision-making.  Social responsibility is that each employee works to better the environment and society as a whole.  Environmental sustainability is the firm or organizations commitment to conserve resources and protect the environment.  Firms and organizations must develop a framework that incorporates these strategic issues as they are all interrelated and can have a major impact on the success of a company.

                                    A firm or organization’s ability to globalize their business will allow the company to provide the highest value of products or services to customers at the lowest cost possible.  According to David et al. (2020), the underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and customers worldwide.  Firms must concentrate on the key factors expressed by David et al. (2020), and formulate a global strategy which encompasses designing, producing, and marketing products with global needs in mind.  Multinational firms experience many threats and challenges as the number of products and geographical areas increase.  There are advantages to doing business globally such as gaining a new customer base for the products sold, reduced tariffs, lower taxes, and favorable political treatment, and economies of scale can be achieved from operation in global rather than just domestic markets (David et al. 2020).  Some disadvantages to doing business globally are language, culture, and value systems differ across countries which could create communication and management barriers, dealing with two or more monetary systems can complicate international business operations, and weaknesses in foreign countries are underestimated with respect to the number of competitors and the products they are offering (David et al. 2020). 

                                    Tax rates were also discussed and how this plays an important role in strategic decisions that are made regarding where to build facilities.  High taxes can deter a firm or organization from entering the market because the cost would outweigh the benefit of building manufacturing plants or acquire other firms in such areas.  Firms should conduct a thorough analysis before deciding to globalize and venture into these markets.

Has Chick-fil-A made a wise management decision being closed on Sundays?

                                    Chick-fil-A has made both a personal and religious decision to be closed on Sunday which in my opinion has worked well for this firm.  Chick-fil-A is open six out of seven days and upper-management believes it is more about the use of time.  They use a simple strategy that is to compete and win by focusing on top talent, system dependent, operational excellence, and community impact (Chick-fil-A 2021).  Chick-fil-A lives out their core values which are purpose driven, to have each other’s back, go home or go hard, good stewards, and to pursue excellence (Chick-fil-A 2021).  According to David et al. (2020), Chick-fil-A surpassed Kentucky Fried Chicken (KFC) as the largest chicken quick service restaurant in the United States.  Chick-fil-A currently has around 2,000 stores compared to 4,500 KFC stores. This indicates that Chick-fil-A has made a wise business move and therefore, the need to be open on Sunday is not necessary.  Chick-fil-A is privately held company with three shares of stock among the owner, Samuel Truett Cathy.  If Chick-fil-A decided to go public and sold shares this could cause decisions to be made, such as opening on Sundays, against the current owners beliefs.  Chick-fil-A has implemented strategic planning which leads to better overall strategic decision making.

Does New Zealand merit its # 1 ranking globally in attractiveness for doing business?

                                    New Zealand has made its mark as being rated #1 for doing business on a global scale mainly because of its economic stability, potential for growth, and the ease of doing business with regulators.  New Zealand has developed excellent relationships with the Asia Pacific region which has ended in a successful market and the attractiveness for businesses to invest and build in this area.  New Zealand’s economy allows for the support of entrepreneurship.  Regulations depend on the business structure whether it is a company, sole trader, or partnership.  According to the New Zealand Companies Office (2021), the Companies Act of 1993 forms the core of the corporate regulatory system and provides many functions to assist businesses.  There are other countries that rank close to New Zealand, including Switzerland due to their economic and political stability and Canada because of its location and trade freedom, but New Zealand outlines for consumers specific steps that need to be taken to conduct business in this country.  After reviewing over the economy profile report 2020, New Zealand appears to be very transparent in their requirements which allows investors to feel more assured when making strategic business decisions.  New Zealand must continue to think in new and innovative ways to advance their economic potential and keep their competitive advantage in the coming years.

References

Chick-fil-A (2021). Retrieved from https://www.chanhassencfa.com/sundays

Chick-fil-A (2021).  Retrieved from https://www.cfahollywood.com/who-we-are

David, Fred R., David, Forest R. and David, Meredith E. (2020).  Strategic management: A Competitive Advantage Approach, Concepts and Cases (17th Edition).   Pearson.

New Zealand GDP – Gross National Product (2021).  Retrieved from https://countryeconomy.com/gdp/new-zealand

New Zealand Companies Office (2021). Corporate regulation in New Zealand. https://www.companiesoffice.govt.nz/about-us/corporate-regulation-in-new-zealand/

Moore, Barry D. (2021).  5 Ways to profit from Chick-fil-A Stock.  Retrieved from  https://www.liberatedstocktrader.com/chick-fil-a-stock/

Student 2

Ethical Progress

When a company chooses to launch itself into a given target market, they must make a decision regarding moral foundations. Many companies choose to support whatever the majority of the given market favors; however, this is not always the best decision. The world has become more inherently corrupt over the course of time, and agreeing with the majority over the minority may result in unethical behavior. Before deciding to take a stance upon popular topics, a company needs to evaluate its moral standpoints in terms of being honest. Honesty causes success to thrive. A company may be successful for a short period of time by bending rules in order to gain leverage over competitors, yet immoral business conduct will be brought into view in its due time. A new company should adhere to proper moral conduct in order to achieve profit.

Chick-fil-A is widely known as a prime example in the realm of company standpoint influencing sales. The company is a Christian-based fast food chain that emphasizes quality service  to every customer. During the previous pride movement, this brand encountered much negativity provided by media; however, the company stood firm on its Christian morals. The company experienced more success that year than in any other year because of its loyal customer base. In this case, Chick-fil-A maintained its profitability by staying true to its values. Another controversy that occurred was the brand’s decision to remain closed on Sundays. The Christian faith has a large emphasis upon exercising a sabbath on a weekly basis. The company closes in order to provide employees with the opportunity to attend church and rest. This is considered wise management in contrast to irresponsible activism because the decision correlates directly with the company’s Christian foundation. The company is also much more successful than many other fast food chains that are open everyday of the week. If the company were to open on Sunday’s, Chick-fil-A would risk losing its loyal Christian consumers that respect the company for allowing employees to attend church on Sundays.

Strategies for Success

Economy is also a major factor when determining how successful a business can be over a period of time. International trade cannot thrive without a healthy economy. Many countries gain success from their ability to trade with their international counterparts. New Zealand is one example of how international trade can cause a great amount of success. The reason why New Zealand is ranked as a highly attractive business location is due to their successful economy and reliable outputs. A company with low rapport will be viewed as less attractive in terms of trade. Rapport is built upon honesty and loyalty. A company that does not honor their agreements risks losing trust among other countries. An example concerning potential unethical behavior includes a breach that may result in loss of businesses. A breach encompasses bribery or an action similar to this type of persuasion. If a company is aware that a country uses dishonesty is order to achieve profit, the company will be less likely to choose that country as a trade partner (David, 2020, pp. 304-305). New Zealand’s international trade is doing so well because of the country’s good rapport with other nations. Because of this connection with other nations, New Zealand’s economy has also expanded which has caused the country to flourish in many categories. A country that displays honesty and loyalty has a better chance of sustaining international relations.

References

David, Fred (2020). Strategic Management. Boston, MA: Pearson Inc.