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Integration of Faith and Learning
Valorie Patrick
BUSI 690-Liberty University
Policy Perspective
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A company beginning a new business growth in market share with a new product
of laundry detergent, Procter and Gamble decreased the cost of their Tide laundry powder
from almost $20 to less than half price of a 4.4-liter container in venues product for
purchase. The objective of this leader loss price decrease is the promote Method to exit
the detergent trade. The strategy is illegal and unethical in some locales. The loss leader
strategy can be successful and even practical in marketing strategy. The objective is to
sell a cost of an item less than its competitor to bring in new clients in the store. In
shopping, the economies of scale, some clients are more likely to purchase different
products and the loss leader merchandise when they are on the premises. By knowing the
cost of other product to make up for failure of sales of the loss leader merchandise,
decreased pricing can increase in store customers and lead to net cumulative profits from
the sales of other merchandise to these one-stop clients (Matsumura & Matsushima,
2015). The issue here is when utilized as defensive strategy to deter competition. An
offensive strategy this is.
Although plaintiffs have not always been victorious, lawsuits alleging that some
loss leader pricing strategies amount to illegal corporate practices have came up. This
strategy is predatory which is argued by opponents of such pricing practices is designed
to force competitors out of the business. Financial well-being and in-store traffic
increases are the defenders of the practice contend that loss leader pricing is simply one
of many factors that retail establishments. Legitimate marketplace competition inevitably
concludes in economic losers and winners noted by United States trade and antitrust
regulation statues which are designed to protect competition. There still exist some gray
areas when it comes to the legality of the pricing of loss leader. The Federal Trade
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Commission understands that a company’s independent decision to reduce prices to a
level below its own costs does not necessarily wound competition and may reflect
vigorous competition.
Biblical Perspective
According to Proverbs 20:3 states, “It is honorable for a man to refrain from a dispute,
but every fool will become embroiled in it,” when it comes to competition in business it
would be advantageous for persons to remain upright because it will please the creator
and lead to a positive reputation for your business (WTBS, 2019). Another verse that
aides in just business practices is Philippians 4:8 states, “Finally, brothers, whatever
things are true, whatever things are of serious concern, whatever things are chaste,
whatever things are well-spoken of, whatever things are virtuous, and whatever things are
praiseworthy, continue considering these things (WTBS, 2019). Since, out thoughts form
the basis for our behavior, a godly thought life is essential in business. Positive thinking
has proven to promote healing and customer loyalty. Christian companies or successful
salesmen have utilized a form of sales motivational teaching called positive mental
attitude. You are never supposed to entertain negative thoughts. You are supposed to use
positive self-talk, have faith in yourself, and visualize yourself as successful and wealthy
so that it will become reality.
Business personal would benefit from Psalm 51:6 where it states, “Look! You
find pleasure in truth in the inner person; Teach my innermost self true wisdom,” it
speaks of training one interpersonal self with true wisdom (WTBS, 2019). We know that
true wisdom comes from Jehovah God. If true wisdom is practiced in business then
honor, humility, and loyalty with be extended to all persons.
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Biblical Importance Analyzed
The dilemma occurs when Procter and Gamble instituted the loss leader strategy
toward Method which unethical. They were blocking their change of being competitive
or even to gain a profit. There are not laws on the book for this behavior, but it is largely
unethical. The biblical verses chosen were the epitome of the counsel Apostle Paul was
speaking of being, honorable, loving, just, and pure. The objective of a business should
not be profit driven only. Competition is not wrong in itself, for it can be healthy and can
provide customers with better products and services. Even with healthy competition
there are rules of engagement to follow so that all is fair.
Simply decreasing cost of products is not necessarily unethical; however, if
Method sells superior detergent consumers will remain loyal to their brand. This
competition has the notion to drive better product creation and prices for the consumers.
To balance business ethics and a Christian worldview is a difficult endeavor. The
responsibility of every Christian is to uphold and operate within the boundaries of values
outlined in the Bible. Our competitive spirit should be examined so as to see if we travel
outside of the boundaries Paul discussed, those praiseworthy things, things that bring
honor and praise to Jehovah God.
References
Matsumura, T., & Matsushima, N. (2015). Should firms employ personalized pricing?
Journal of Economics & Management Strategy, 24(4).
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https:doi.org/10.1111/jems.12109.
Watchtower Bible Tract Society, Inc. (2019). New world translation of the holy
scriptures. Walkill, NY.
