Business Strategies and Management at Green Move - Case Study Example

Business analysis: Green Move number and section: Questions A A In the given situation, the first issue required to be considered is the expected outcome, if I approach to the management for explaining the problem and claiming a change. The relevant pressure includes the possible reaction from the management can be similar to that inflicted upon the previous employee. In this regard, I should be worried about the possibility of my employment being terminated. However, the unethical practice should not be tolerated as well. I would adopt Total Quality Management problem solving approach in this regard. Figure 1 (Source: Ho 583-593) For solving the problem, I will incorporate all the eight steps in my analysis. I will verify about existence of the problem myself. In the next step, I will try to gather relevant information so as to support the claim that the bike will accelerate dangerously when operated for long hours in hot climate. I will analyze the problem as well as confirm the same with production department that root cause of the problem is overheating of the solar panel. I would further discuss with the production and maintenance departments about possible solutions and select the appropriate one. Following this, an outline of the cost that the company will incur for each alternative solution will be prepared. The next step is to approach the management along with other employees from production and maintenance department with a report that explains the problem, associated cost of alternatives and future cost of company in case the problem is overlooked (Ho 583-593). A.2 It is important to note that payment of $5000 to buyers for placing the product on his selves is firstly a wrong approach as this will open an avenue for the buyer to repeat such claims in future. Secondly, the practice of bribing for business expansion purpose in the United States is illegal under the anti-bribery provisions of the Foreign Corrupt Practices Act, 1977. The company, being a reputed one operating in production of sustainable products, must consider sustainability and transparency in the transactions made as well. Paying the buyer will result in breach of the FCP act as well as code of corporate governance of the company. In addition, it will also imply that the company is not sufficiently confident about its products and prefers buying shelf area from retailer. After considering all these factors, as a responsible employee of Green Move, I would not recommend payment of the special fee to particular buyer as the move is unethical and illegal (“Foreign Corrupt Practices Act of 1977”). A.3 For any product, it is important to undertake cost-benefit analysis at every stage of its development. In Green Move, the problem is related to product safety and it is the company’s responsibility to ensure product credibility. Hence, the company should undertake cost-benefit analysis of the product related to the problem. The major risks associated with the problems are cost disadvantage and restriction from the government. It is possible that changes may result in increased production cost and if the government intervenes, then they may restrict product sale until the problem is solved. Nonetheless, according to the strict liability convention of consumer protection act, if a manufacturer is producing products with circumstantial defects or problems, he must incorporate future external cost in the current internal cost (Keating 1285-1291). Questions B B.1 In a business, it is important to maintain sustainability of all kinds of resources, including human resources. It is highly unethical for Green Move to continue business with an organization, which does not comply with requirements of the contract. Since Solar Group is an important supplier for the company, termination of contract is not the best solution. The company director can discuss this matter with the owner(s) of Solar Group as the latter will have to pay heavy penalty in the event of contract termination due to non-compliance of requirements. As interest of both the companies is at stake, Robert and other board members must convince Solar Group to improve their work condition as well as to remove all child labors that are employed. As a part of corporate social responsibility, Robert can take measures for development of the child labors employed by Solar Group by contributing towards their education. In addition, he can personally visit the facilities of Solar Group in order to study the work environment and take remedial measures (King 481-485). B.2 Green Move needs to openly discuss with Solar Group regarding industrial malpractices of the company, which can result in damage to brand value and reputation of Green Move. Then again, the company cannot afford such a risk. Solar Group should be made aware of the laws of the United States related to wage and working condition as well as of the fact that Solar Group’s activities will affect Green Move as the former is making solar panel for the latter. As per the law, for any mishap, Green Move will be held accountable (Keating 1285-1291). Thus, Green Move must reframe the contract so that provisions related to international labor protection law and human rights act are incorporated. Green Move can propose to invest so as to improve the work condition and wage problems in Solar Group. In addition, the company can take strict action under the UN global compact and extractive industry transparency initiatives, which ensure that private businesses align their operations and activities with the universally accepted principles related to labor, human rights, anti-corruption and environment (King 481-485). B.3 Forms of social media, such as, blogs and social networking sites, are more powerful than they are considered. One of the important aspects of social media is that it unfolds very quickly and when a consumer posts any negative aspect of a product or a company, it can result in permanent damage to company’s brand value and reputation. Green Move is an important company as it operates in the eco-friendly product manufacturing industry; however, if consumers and the government discover through the blog about the unethical practices of its primary supplier, then the worst scenario will be shutdown of the business due to negligence towards strict liability (Qualman 55-62). C.1 Keeping in view Viktor’s motive to help underemployed and unemployed Russian individuals, he can be suggested to opt for the competitive bidding. Even so, the business is a partnership, which is why decisions cannot be solely taken by one member. Victor should consult with the other board members and also disclose to them the property manager’s unethical intentions. Victor should go ahead with the bidding, but he must not include both the envelopes. By bribing the manager, Victor will be violating the code of corporate governance as well as legal implications of the FCP Act (Kolk 1-15). C.2 According to Viktor, underemployment and unemployment is affecting the living standard in Russia. The OECD data indicates that Russian individuals work harder, yet have lower disposable income with respect to the average of OECD countries, despite good education and working abilities (“Release of the OECD Economic Survey and the Labor Market and Social policy Review of the Russian Federation”). Viktor’s analysis suggest that the location is appropriate for outsourcing technological activities of the company, which is a good cause and it complies with the UN global compact (King 481-485). Nonetheless, to monitor business operations from the US, the company will have to incur considerable amount of expenses. In addition, it is a long-term strategic decision. Consequently, the company needs to analyze all kinds of cost in this venture. D.1 One of the most successful ventures of the company is the Zero Pedal project. The product is environmentally sustainable and has earned sufficient appreciation from government as well as environmentalists. The company being involved in green technology was able to access a lump-sum loan at zero interest rate from the government. Moreover, success of this project will increase its brand value and help in raising fund through public listing. It is a great opportunity that no entrepreneur would like to give up at the cost of certain irrelevant production defect. The company has become myopic about their product; as a result, they are prepared to breach all legal and ethical conducts (Kolk 1-15). D.2 As Green Move proceeds with the decision of bribing shelf-holders (retailers) and the property manager, the company will be violating a number of regulations such as, the FCP Act. Alongside that, their contract with Solar group, which employs child labors and has unsustainable work environment, violates product liability under consumer protection act. The company will be liable for penalization under civil as well as criminal liability and violation of transparency and the UN Global compact. So, the risk or threat is that the company may face shutdown and payment of heavy compensation charges along with the loan (King 481-485; Kolk 1-15). D.3 There are certain issues that cannot be overturned such as, payment of special fees to retailer and the property manager. However, Green Move can take measures to maintain transparency and accountability in its activities. The company should take measures to improve working condition in the facilities of Solar Group and make provision for education and better living for child labors in Bangladesh. Furthermore, Green Move must overcome the product defect in Zero Pedal before launching it in the market (Kolk 1-15). D.4 The foremost responsibility of the national and state government is to address the child labor problem and its root causes therein. The second responsibility of the government and its departments is to maintain transparency in their own activities and reduce corruption. Thirdly, the government should frequently regulate laws related to societal sustainability as well as ensure that public and private businesses are complying with appropriate rules and regulations. Lastly, the government should incorporate a mechanism or committee in order to ensure that product standards comply with the benchmark set before being sold. Conclusion Conflicts arise when two or more parties disagree on their view points. In Green Move, conflicting interests can be recognized as it is pursuing activities that are by nature against the organizational goals and objectives. According to the FCP act, no business should undertake bribing activities for expansion of business in the United States. In addition, if the manufacturer sells products despite being aware of its defect, then he will be accountable for negligence of strict liability. Conflict may arise at this point between the board members and individual co-owners for pursuing illegitimate activities. Even so, if the company as a whole has decided to continue their operation in unethical manner, then there will a disagreement between the company and national and international governing agencies. Another internal conflict recognized is that the company is producing sustainable products under unsustainable conditions. It is possible that employees of the organization may protest against these practices. Moreover, at Solar Group, if employees oppose the situation and stop working, then it will in turn harm the interests of Green Move (Rahim 206-235). Works Cited “Foreign Corrupt Practices Act of 1977.” US Department of Justice. US Department of Justice, 2014. Web. 25 June 2014. Ho, Samuel KM. "Integrated lean TQM model for sustainable development." The TQM Journal 22.6 (2010): 583-593. Print. Keating, Gregory C. "Theory of Enterprise Liability and Common Law Strict Liability." The Vanderbilt law review 54 (2001): 1285-1291. Print. King, Betty. "UN Global Compact: Responsibility for Human Rights, Labor Relations, and the Environment in Developing Nations.” The Cornell International Labor Journal 34 (2001): 481-485. Print. Kolk, Ans. "Sustainability, accountability and corporate governance: exploring multinationals reporting practices." Business Strategy and the Environment 17.1 (2008): 1-15. Print. Qualman, Erik. Socialnomics: How social media transforms the way we live and do business. New Jersey: John Wiley & Sons, 2012. Print. Rahim, M. Afzalur. "Toward a theory of managing organizational conflict." International journal of conflict management 13.3 (2002): 206-235. Print. “Release of the OECD Economic Survey and the Labor Market and Social policy Review of the Russian Federation.” OECD. OECD, 2011. Web. 26 June 2014. Read More