Company Q Case Study

Company Q

The Achilles heel of most business is profit, the ability to keep up those margins and cut losses. Company Q's bottom line was too shallow resulting in the closing of two stores. Both locations were in heavy metropolitan areas with high crime rates and poor neighborhoods. Such actions can have a ripple effect on the community, causing current issues to intensify while adding to unemployment. Poverty that already existed within the community will be more prevalent now. The increase in poverty will hurt the other stores still open, as they will now be targeted for theft. Company Q 's decision to throw away day old items is not socially responsible. They are being socially irresponsible by putting needs of the company first and disregarding the needs of the community. Furthermore, Company Q is being wasteful by throwing food away that could be used by the less fortunate. Company Q is also labeling good employees as untrustworthy employees. This can create tension between owners and staff. The actions of company Q are going to hurt their business in the long run, because community and staff will notice the lack of social responsibility. People want to shop at and work for a place they are proud of and feel loyal to.
Company Q shutting down two of its stores will add to crime and poverty in the area.
The former employees may have lost what they needed to stay out of trouble and not contribute to the negative. The neighborhoods that shop at these locations were also displaced and had to find a new grocery store. In this case, former workers and communities were negatively effected by Company Q closing two stores. Company Q should reconsider their decision to not donate day old food to local shelters in hopes too gain community trust back. Donating to the food banks in the neighborhoods where the old stores were shut down would help a great
deal.
Based on customer demand, Company Q has decided to sell organic products in its stores. By showing they are listening to their needs they hope to regain customers. The margin for loss on these products are very high, they are expensive and do not have a very long shelf life. This could be a helpful move for the company to lure in new customers. New customers interested in the high priced organic products in the store would offset the cost of salvage they incur. On the other hand, the risk of these high price items and their short shelf life may out weigh the benefits. I believe Company Q can be significantly more socially responsible. They should donate all salvage, including organic products to local food banks. These donations will be especially well received in areas where they have closed stores and restricted access to grocery goods. Company Q does not promote donating for fear of employee theft. If an employee damages or donates items to a local food bank they can buy those items for much cheaper and cheat the system. This potential for employee theft exists, but it can be combated with checks and balances. A possible solution is to delegate a single person to scan, log, and inspect items for donation. This person would watch for suspicious trends to minimize company loss. In further efforts, the items being donated must be delivered my a manger or picked up directly from the food bank. This would help avoid an employee keeping the donations. Another great option to help build trust and promote social responsibility would be for Company Q to host a local food drive. They could set up collection locations to be involved hands on with the community and build a relationship. Company Q has encountered hard times financially and has put itself first despite social responsibility. Local companies need to build a relationship with the community and maintain good standings. Reputations can take years to build and just minutes to ruin. Taking on new high cost items while shutting down two stores elsewhere shows that Company Q does not have the community in mind. Becoming more socially responsible will build a better brand. This will increase sales, while growing a customer base built on trust and social responsibility.