Essay about Business Analysis Alta Gracia - 636 Words



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Business Analysis: Alta Gracia

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1. The philosophy with regard to pay and working conditions at Alta Gracia might lower costs in the run. As stated in the case, Bozich realizes he has a strong marketing message built around fair labor. As the business grows and becomes more established with building relationships with more colleges, Alta Gracia will gain more profit and this can help lower prices. Bozich already has a foundation build with student groups as well as 350 college campus stores. This has potential to grow with advertisement and word of mouth with his strategy story. This will help the business gain more revenue and eventually help produce lower prices. Alta Gracia should also be able to save some money on their operating costs by avoiding employee turnover and saving on training costs. The case states the pay is competitive, the pay supports families, employees have good and safe working conditions and there is a union. This will keep employees satisfied and help cut costs.

2. If Knights Apparel was a publicly traded enterprise I don't think Bozich would have been able to try the Alta Gracia experiment. If the company was a public enterprise in the Dominican Republic and controlled through public authority they would follow the societal culture and continue to work in an unethical manner. There would be stockholders and other people would have to agree and support the experiment. As stated in the case, the minimum wage in the area is $147 a month, a figure so low that it is insufficient to live on. Most likely if operated as a publicly traded enterprise, he business would demonstrate cultural relativism because clearly it is unethical to pay workers such low wages for their hard labor and performance and they can't even live off the salary being paid.

3. The competition could possibly stand in the way of Alta Gracia becoming successful. The two competitors listed are Nike and Reebok who are two major successful companies well established in the international market.... Show More

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