Marketing Video Script

Introduction #2

Business ethics are the values and principles which operate in the world of business. They form the moral framework of the organisation. For Companies such as ShafferFashion, operating in a safe, healthy, and at competitive pay for all of its workers are important in ensuring ethics ae maintained.

Overseas Factories Use #3

Demands from interest groups have forced companies with overseas factories and operations to rethink how they interact with workers especially in the developing world. Tragically, nonetheless, well-documented issues relating to unhealthy and unsafe worker environment still exist in large scale, even for large companies such as Nike. ShafferFashion has the chance to use specially tailored approaches that will address the employee needs, ensure costs remain relatively low, and become a leader in business ethics.

Collaboration with competitors to create better work conditions in overseas companies is suggested as a viable option. While individual firm supply chain management is a form of competitive advantage, issues on labor conditions should not be an area of competition. Therefore, ShafferFashion must build on local capacity, come up with performance measuring initiatives, and explore ways to audit the suppliers.

Introducing Lean Manufacturing #4

ShafferFashion can bridge the gap between organizational and shareholder aims versus the issues in overseas factories relating to workers. Lean manufacturing is able to attain these goals with effectiveness and responsiveness.

The process is simple and sustainable for the company as it involves a focus on eliminating wastes, emphasizes flexibility, and enables skilled workers.

The lean manufacturing process allows workers to perform a variety of roles and tasks and are actively involved in process improvements.

The end goal is to enable employees to be more productive, ensure compliance of companies to labor provisions, and have a positive effect on the safety, health, and environmental compliance.

Collaborating with other entities #5

Collaborating with other entities is an effective option to ensure that ShafferFashion attains the continued use of overseas factories, but under improved working conditions. Partnering with the media to ensure that all efforts are shared with the public, collaborating with law enforcement agencies to ensure compliance, partnering with worker rights groups to fit strategy to overall employee benefits, and ensuring that suppliers remain ethical is a sure way to have effectiveness in implementing the suggested lean manufacturing and other strategies that will provide the company with a good public standing. These measures will also enable ShafferFashion to gain competitive advantage by enabling its workforce to be more competitive and productive compared to the competition.

Changing Business Strategy to Remain Cost Competitive #6

Companies often find it difficult to please all of its stakeholders, as they have different interests. Ultimately companies aim to make a profit and sometimes this can conflict with acting in a responsible way. Larger, global companies can often find it difficult to regulate their activities in other countries. ShafferFashion can leverage its position by changing and expanding its strategy to accommodate the increases in cost due to better working conditions. Creating an organizational culture that attracts only the best, maintaining sustainable business processes, establishing a unique value proposition based on sustainability, and identifying shifts in key components of cost are al expected to push ShafferFashion further ahead and make up for the costs incurred during the improvement process.

Changing Business Strategy to Remain Cost Competitive #7

As the global landscape continues to bring several waves of change, businesses are increasingly moving to take advantage in several fronts. For example, the demand for a more sustainable business processes brought about a wave of green and sustainable business that introduced new business models, companies and operations into the global market (Pandey, 2014). In line with new global demands, organizations are restructuring to operate better, in line with the current market dynamics and competition. As part of the solution for ShafferFashion, it is suggested that new changes be internally conceived to correct the demands of the external environment, including a change of corporate culture and a new focus on meeting the demands of the global market.

Changes Required to Serve Low-Income Communities #8

To become a cost leader, ShafferFashion will have to significantly increase its production scale by increasing the volume of materials so as to further reduce costs. Additionally, Business Roundtable (2020) advocates for investing and creating innovative technology to help firms become cost leaders. Technology may reduce costs through enabling more manufacturing of products per a given period, limiting the number of workers required for tasks, and other benefits to increase efficiency. Also, companies such as Nike have shown that sourcing raw materials and minimizing the dependence third-party products will lower costs (Anzia, 2021). Combined, these processes would help ShafferFashion to improve efficiency and limit its products and services to what is required.

Win-Win Scenario for all Stakeholders #9

A win-win situation would satisfy shareholder goals of profit maximization. Without satisfying the shareholders, the business would not exist. The first goal is to meet the bottom-line that includes cost reduction and profit maximization. Then, the new changes expect workers to have more pay, safer, and healthier work conditions. This goal can be attained, but may affect the cost competitiveness desire from the shareholders. A trade-off emerges where the shareholder needs to be satisfied, yet the workforce must remain satisfied in order to increase productivity and effectiveness of policies. The managers want reduced pressure to produce results despite the current environment. For worker rights groups, a win would entail labour laws compliance and better work conditions for the employees in said overseas companies.

Prioritizing Stakeholders #10

What is a win-win solution? It is a solution that caters for the needs of every stakeholder. Attaining a win-win solution for all stakeholders is fairly difficult since there are a lot of trade-offs that exist between solutions that satisfy different requirements. Without a doubt, ShafferFashion may be unable to meet the demands of every stakeholder group. In case a win-win solution is unattainable, the shareholder deserves priority. Other stakeholders’ goals would not be met fully, but through a partial implementation that caters for the most demanding needs.

Prioritizing Stakeholders: Power Influence Matrix #11

The ratings for interest and power place the shareholders, board of directors, and executives as the most important group. Nike showed the importance of ensuring shareholder prioritization and the support needed to ensure progress (Xu & Leibold, 2020). Therefore, this group must be prioritized over any other group. The stakeholder with the highest index is accorded the first priority. The interests of these groups include profit maximization and continue cost effectiveness. The Eyal Press (2020) best highlights how stakeholder wars have the power to destroy a business as shown by the involvement of the labor secretary in the regulation capacity against employees and the OSHA. Overall, it is important to ensure that the most important groups are prioritized.

Conclusion #12

Business ethics may present a dilemma for an organization. As the global landscape continues to bring several waves of change, businesses are increasingly moving to take advantage in several fronts. All factors considered, it is important to consider which stakeholder to prioritize. In the case of ShafferFashion, the needs of the Board of Directors, the executives, and the shareholders must be met first. They have high power and high interest.

References

Anzia N. (Jan. 26, 2021). Now is the perfect time to rethink your wardrobe, with an eye toward sustainability. The Washington Post.

Eyal Press. (October 10, 2020). Trump’s Labor Secretary is a Wrecking Ball Aimed at Workers. The New Yorker.

Business Roundtable. (September 2020). Addressing Climate Change: Principles and Policies

Xu. V. X. & Leibold, J. (March 17, 2020). Your favorite Nikes might be made from forced labor. Here’s why. The Washington Post.

McFall-Johnsen, M. (October 17, 2019). The fashion industry emits more carbon than international flights and maritime shipping combined. Here are the biggest ways it impacts the planet. Business Insider US.

Pandey, A. H&M Tests Renting Clothes to Boost Environmental Credentials. EcoWatch.