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Chapter 5 - Assignment Example

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If the Alta Gracia brand continues to grow, then costs could be reduced over the long term. If profits are high enough, the Alta Gracia may be able to produce more, which will lead to a lower cost per item.
2. No, Joseph Bozich would not have been able to pursue to Alta…
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Knights Apparel Case Study If the Alta Gracia brand continues to grow, then costs could be reduced over the long term. If profits are high enough,the Alta Gracia may be able to produce more, which will lead to a lower cost per item.
2. No, Joseph Bozich would not have been able to pursue to Alta Gracia experiment if the company was a publicly traded enterprise because profit would have been the focus. Because his company was self-founded, he can decide to set it up the way he wants.
3. Because Alta Gracia cannot compete on cost due to its higher wages, other low cost brands may become more successful in the short term. Alta Gracia can only try to promote itself as a company that is ethical and pays all its workers a decent living wage.
4. No, because the average consumer is just looking for a cheap product and is maybe not aware of all the legal issues involved. Because of that, Alta Gracia is going after the right target market, one that identifies with the values of the company.
5. No, it is not ethical because it is taking advantage of economies that are less developed by offering work that is worth far more in the United States. If an emphasis was placed on American-made products, then more companies would choose not to outsource overseas.
6. While Alta Gracia may not make much profit over the short term, it is developed a reputation for being a highly ethically brand. In the long term, more people will appreciate this and the company will retain a loyal group of wholesalers, retailers, and customers. Read More
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