Concept explainers
Chris Dykstra, responsible for loss prevention at
Electronics took a deep breath before he launched into
making his case for the changes that he was proposing to
the company's shoplifting policy. He knew that convincing
Ross Chenoweth was going to be a hard sell. Ross, the
president and CEO was the son of the founder of the local,
still-family-owned consumer electronics chain based in
Phoenix, Arizona. He'd inherited not only the company,
but also, his father's strict moral code.
"I think it's time to follow the lead of other stores,"
Chris began. He pointed out that most Other retailers
didn't bother calling the police and pressing charges
unless the thief had shoplifted merchandise worth more
than $50 to $100. In contrast, Westwind currently had a
zero-tolerance policy toward theft that Ross's father had
put in place when he started the business. Chris wanted
to replace that policy with one that prosecuted only
individuals between IS and 65 who had stolen more than
$20 worth of goods, and who had a previous history of
theft at Westwind. In the case of first-time culprits under
IS or over 65, he argued for letting them Off With a strict
warning, regardless of the value of their ill-gotten goods.
Repeat offenders would be arrested.
"Frankly, the local police are getting pretty tired Of
having to come to Our stores every time a teenager sticks a
CD in his jacket pocket," Chris pointed out. "And besides,
we just afford the costs associated with prosecuting
everyone." Every time he pressed charges against a
shoplifter who'd made Off with a $10 item, Westwind
lost money. The company had to engage a lawyer and
pay employees Overtime for their court appearances. In
addition, Chris was looking at hiring more security guards
to keep up with the workload. Westwind was already in
a losing battle at the moment with mass retailers who
were competing all too successfully on price, so passing on
the costs of its zero-tolerance policy to Customers wasn't
really an option. " Let's concentrate on catching dishonest
employees and those organized-theft rings. They're the
ones who are really hurting us," Chris concluded.
There was a long pause after Chris finished his
carefully prepared speech. Ross thought about his recently
deceased father, both an astute businessman and a person
for whom honesty was a key guiding principle. If he
were sitting here today, he`d no doubt say that theft was
theft—that setting a minimum was tantamount to saying
that stealing was acceptable, just as long as you steal
too much. He looked at Chris. "You know, we've both got
teenagers. Is this really a message you want to send out,
especially to kids? You know as well as I do that there's
nothing they like better than testing limits. It's almost an
invitation to see if you can beat the system." But then Ross
faltered as he found himself glancing at the latest financial
figures on his desk—another in a string of quarterly losses.
If West-wind went under, a lot of employees would be
looking for another way to make a living. In his heart, he
believed in his father's high moral standards, but he had to
ask himself: Just how moral could Westwind afford to be?
Continue Westwind's zero-tolerance policy toward
shoplifting. It's the right thing to do—and it Will pay
Off in the end in higher profitability because the chain's
reputation for being tough on crime Will reduce overall
losses from theft.
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Chapter 19 Solutions
Management, Loose-Leaf Version
- Your Task. As an assistant to the vice president in charge of fraud detection at Visa, you have been asked to draft a letter that can be used to respond to Blair Rhines as well as to other unhappy customers whose cards were wrongly refused by your software. You know that the program has been an overwhelming success. It can, however, inconvenience people, especially when they are traveling. You have heard your boss tell travelers that it is a good idea to touch base with the bank before leaving and take along the card’s customer-service number (1-800-553-0321). Write a letter that explains what happened, retains the goodwill of the customer, and suggests reader benefits. Address your letter to Ms. Blair Rhines, 68 Riverside Drive, Apt. 35, New York, NY 10025.arrow_forwardYou are the Chief Privacy Officer of a midsized manufacturing company, with sales of more thanPhp250 million per year and almost Php50 million from online sales. You have been challenged bythe vice president of sales to change the company’s website data privacy policy from an opt-in policyto an opt-out policy and allow the sale of customer data to other companies. The vice president hasestimated that this change would bring in at least Php5 million per year in added revenue with littleadditional expense. How would you respond to this request? Do you think that people are more cautious with the use of information now that the Data PrivacyAct is in place in the Philippines? Explain your answerarrow_forwardHow to reply to this in 100 words? For this week's discussion, we have been asked to review and discuss the Myers-Briggs Type Indicator (MBTI). This is an extension of the Jungian personality theory, which identifies personality traits that help identify performance measures that make it easier to promote and use employees in a way that will ensure their success (McShane & Von Glinow, 2022). However, there are particular areas in business where this can be used, as it is not a bulletproof evaluation tool, and, per the text, it could be a better tool for performance evaluation and pre-employment. (Coe, 1992). So, how does this apply to the question of the week, and how can we use it in daily business to increase the success of the employee and the business overall? The MBTI tool could promote middle managers to the executive level. Executive-level managers are good leaders with strong communication skills and personality traits that set them apart from the pack (Men, 2015). We…arrow_forward
- Imagine you are the new Head of Learning and Development. Which department should be involved in this following case? The senior managers of a large financial institution recognize the importance of training and development for their staff. They have a clear policy that not only should staff be trained and developed to meet the licensing and legislative requirements that apply to their area of business, but that staff should also be encouraged and enabled to engage in other appropriate development activities. The middle managers, who largely look after staff performance and development, all welcome this policy. They have made it clear to all of their staff that development opportunities are available and can be applied for at any time. Many individual managers have therefore put together a list of courses that they think might be of interest to their staff, and make these available to staff so that individual members of staff can pick-and- mix the courses that they feel they would…arrow_forwardMr. Balag has been working as accounting staff at ABC Corporation for a year now. Recently the company hired another staff, Miss Lim, to work with Mr. Balag. Miss Lim discovered that Mr. Balag has been committing fraud in the financial reports that he is making. Mr. Balag warned Miss Lim that she should keep quiet and mind her own business. What is the flow of communication between Mr. Balag and Miss Lim? Do you think Miss Lim should report this to their superiors? If you were Miss Lim what will you do?arrow_forwardYou have a long-standing consulting relationship with a large consumer products company. This company represents 50% of your consulting revenues and is clearly your most important client. The CEO has called to ask you to commit a significant amount of time over the next couple of months to assist with a large merger project. The company is merging with a large conglomerate whose primary business is the sale and distribution of tobacco products. The CEO is relying on you to assist in facilitating a smooth integration of the two companies. You promised yourself that, since your father died of lung cancer, you would never work for a tobacco company. Is there a way that you can accept the consulting assignment and will still keep your promise to yourself? How will you handle this if you have decided not to work for the tobacco company?arrow_forward
- Chris Dykstra, responsible for loss prevention at Electronics took a deep breath before he launched into making his case for the changes that he was proposing to the company's shoplifting policy. He knew that convincing Ross Chenoweth was going to be a hard sell. Ross, the president and CEO was the son of the founder of the local, still-family-owned consumer electronics chain based in Phoenix, Arizona. He'd inherited not only the company, but also, his father's strict moral code. "I think it's time to follow the lead of other stores," Chris began. He pointed out that most Other retailers didn't bother calling the police and pressing charges unless the thief had shoplifted merchandise worth more than $50 to $100. In contrast, Westwind currently had a zero-tolerance policy toward theft that Ross's father had put in place when he started the business. Chris wanted to replace that policy with one that prosecuted only individuals between IS and 65 who had stolen more than $20 worth of goods, and who had a previous history of theft at Westwind. In the case of first-time culprits under IS or over 65, he argued for letting them Off With a strict warning, regardless of the value of their ill-gotten goods. Repeat offenders would be arrested. "Frankly, the local police are getting pretty tired Of having to come to Our stores every time a teenager sticks a CD in his jacket pocket," Chris pointed out. "And besides, we just afford the costs associated with prosecuting everyone." Every time he pressed charges against a shoplifter who'd made Off with a $10 item, Westwind lost money. The company had to engage a lawyer and pay employees Overtime for their court appearances. In addition, Chris was looking at hiring more security guards to keep up with the workload. Westwind was already in a losing battle at the moment with mass retailers who were competing all too successfully on price, so passing on the costs of its zero-tolerance policy to Customers wasn't really an option. " Let's concentrate on catching dishonest employees and those organized-theft rings. They're the ones who are really hurting us," Chris concluded. There was a long pause after Chris finished his carefully prepared speech. Ross thought about his recently deceased father, both an astute businessman and a person for whom honesty was a key guiding principle. If he were sitting here today, he`d no doubt say that theft was theft—that setting a minimum was tantamount to saying that stealing was acceptable, just as long as you steal too much. He looked at Chris. "You know, we've both got teenagers. Is this really a message you want to send out, especially to kids? You know as well as I do that there's nothing they like better than testing limits. It's almost an invitation to see if you can beat the system." But then Ross faltered as he found himself glancing at the latest financial figures on his desk—another in a string of quarterly losses. If West-wind went under, a lot of employees would be looking for another way to make a living. In his heart, he believed in his father's high moral standards, but he had to ask himself: Just how moral could Westwind afford to be? Adopt Chris Dykstra`s proposed changes, but with a higher limit than the proposed $20 amount (say, $50 or $100), but which is still less than the cost of prosecution. In addition, make sure that the policy isn't publicized. That way, you'll reduce costs even more and still benefit from your reputation for prosecuting all shoplifters.arrow_forwardChris Dykstra, responsible for loss prevention at Electronics took a deep breath before he launched into making his case for the changes that he was proposing to the company's shoplifting policy. He knew that convincing Ross Chenoweth was going to be a hard sell. Ross, the president and CEO was the son of the founder of the local, still-family-owned consumer electronics chain based in Phoenix, Arizona. He'd inherited not only the company, but also, his father's strict moral code. "I think it's time to follow the lead of other stores," Chris began. He pointed out that most Other retailers didn't bother calling the police and pressing charges unless the thief had shoplifted merchandise worth more than $50 to $100. In contrast, Westwind currently had a zero-tolerance policy toward theft that Ross's father had put in place when he started the business. Chris wanted to replace that policy with one that prosecuted only individuals between IS and 65 who had stolen more than $20 worth of goods, and who had a previous history of theft at Westwind. In the case of first-time culprits under IS or over 65, he argued for letting them Off With a strict warning, regardless of the value of their ill-gotten goods. Repeat offenders would be arrested. "Frankly, the local police are getting pretty tired Of having to come to Our stores every time a teenager sticks a CD in his jacket pocket," Chris pointed out. "And besides, we just afford the costs associated with prosecuting everyone." Every time he pressed charges against a shoplifter who'd made Off with a $10 item, Westwind lost money. The company had to engage a lawyer and pay employees Overtime for their court appearances. In addition, Chris was looking at hiring more security guards to keep up with the workload. Westwind was already in a losing battle at the moment with mass retailers who were competing all too successfully on price, so passing on the costs of its zero-tolerance policy to Customers wasn't really an option. "Let's concentrate on catching dishonest employees and those organized-theft rings. They're the ones who are really hurting us," Chris concluded. There was a long pause after Chris finished his carefully prepared speech. Ross thought about his recently deceased father, both an astute businessman and a person for whom honesty was a key guiding principle. If he were sitting here today, he`d no doubt say that theft was theft—that setting a minimum was tantamount to saying that stealing was acceptable, just as long as you steal too much. He looked at Chris. "You know, we've both got teenagers. Is this really a message you want to send out, especially to kids? You know as well as I do that there's nothing they like better than testing limits. It's almost an invitation to see if you can beat the system." But then Ross faltered as he found himself glancing at the latest financial figures on his desk—another in a string of quarterly losses. If West-wind went under, a lot of employees would be looking for another way to make a living. In his heart, he believed in his father's high moral standards, but he had to ask himself: Just how moral could Westwind afford to be? Adopt Chris Dykstra's proposed changes and show more leniency to first-time offenders. It is a more cost effective approach to the problem than the current policy, plus it stays close to your father's Original intent.arrow_forwardYou are a Benefits Manager at a privately held, retail organization. In January, you were notified that health insurance premiums have increased, and as a result, changes need to be made to the existing benefit package for the next year. The owners of the company want to keep the employee contribution to health insurance the same and therefore cuts will need to come from other voluntary benefits offerings. Current voluntary benefits include Paid Time Off, Holiday Pay, Life Insurance, Long Term Disability, Dental Insurance, Tuition Reimbursement, and an Employee Assistance Program. what information and data would be good togather make an informed decision regarding the benefits that should be eliminated or reduced for the next benefit year? , assume both the Employee Assistance Program and Tuition Reimbursement benefits were eliminated. What qualitative and quantitative metrics would you recommend tracking to evaluate these actionsarrow_forward
- Read the above information and answer the above questions Egil “Bud” Krogh was a young lawyer who worked for the Nixon administration in the late 1960s and early 1970s as deputy assistant to the president. Military analyst Daniel Ellsberg leaked the “Pentagon Papers,” which contained sensitive information regarding the United States’ progress in the Vietnam War. President Nixon himself tasked Krogh with stopping leaks of top-secret information. And Nixon’s Assistant for Domestic Affairs, John Ehrlichman, instructed Krogh to investigate and discredit Ellsberg, telling Krogh that the leak was damaging to national security. Krogh and another staffer assembled a covert team that became known as the “plumbers” (to stop leaks), which was broadly supervised by Ehrlichman. In September 1971, the plumbers’ first break-in was at the office of Ellsberg’s psychiatrist; they were looking for documents that would discredit Ellsberg based on mental health. Reflecting on the meeting in which the…arrow_forwardOutline a background of the case below. (Please note that this is not an essay question.) In June 2011, Steve Katsaros, founder and CEO of Nokero, was contemplating how to build on his company's accomplishments during the last 12 months. Nokero, a marketer of solar bulbs, has emerged as a successful born-global social enterprise. Opportunities in the Social Enterprise Sector As previously mentioned, Nokero, has been engaged in partnership programs with various social enterprises, such as Project CURE and American Green. Social enterprises have actively sought out Nokero for possible partnerships.arrow_forwardPlease read the case and answer the questions at the end. Please respond to two of your peers. Do you agree or disagree? Reliable Underwriters is a risk management firm that provides insurance services to large organizations. Part of its operation is a claims-processing center that employs 156 clerical workers. These workers interact with clients to answer questions and provide information about the status of claims. Reliable has a corporate objective of obtaining the highest possible customer satisfaction ratings. However, recent customer satisfaction surveys suggest that some of the clerical workers are not adequately meeting clients' needs. As part of an initiative to increase customer satisfaction, the management team of the claims processing center has decided to change the performance appraisal process. In the past, ratings have been made on a 5-point scale. A score of 5 represented outstanding performance, a score of 1 represented unacceptable performance, and a score of 3…arrow_forward
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub