Sometimes, making hasty, unethical decisions seem good for the short term solutions; however, when carefully thought out, it is always best to make the right session, one that is morally correct, rather than fiscally sax. . Y. In the case of whether a manager should make a decision about what route to choose to increase company profitability, I do not believe either of the choices presented would make a good plan. I will explore each option and give an alternative to each. Option 1 says that the manager should consider lowering the cost of ingredients which would lower the cost of the production therefore, increasing the profits. This is a quick fix. Yes, this would temporarily increase profits. But, how long would it be made.
Customers are loyal to brands and products for a reason and that reason is usually because they have fallen in love with the way a product tastes or the satisfaction they receive when they buy they buy the item. If this decision was made, it would most definitely diminish the brand. Any smart manager would definitely agree that this is not only unethical but not good for business. Poor quality leads to less customers which leads to less profits. An alternative to this would be to make ere that no ingredients are being misused or wasted.
It may be more profitable to design a production method in which every ingredient is being used and no products are being wasted. Option 2 suggests to reduce the contents of the package while keeping the size of the packaging the same. Once again, this is very unethical and very risky. Consumers are not stupid individuals. It won’t take long at all to notice that they are not getting the same amount of product for the same price. Also, false advertising would play a ajar factor into this and it would not take long for the word to circulate.
Another huge risk involved would be that the company’s competitors would find out and take advantage of it, possibly even pointing out that you are not getting your moneys worth when you buy products from your company. A solution to this would be honesty. Make a smaller portion size of the original product and market it as a more portion-controlled, healthier version of the original product. This way consumers would not feel ripped off and you would be adding differentiation to your line of reduces.
The 3rd option was to make small changes to the product but offer it as a new premium brand. Once again, this is lying to customer which is highly unethical and has a big chance of backfiring on the company and causing a PR huge blunder for the company. Rather going into damage control and spending more money trying to regain customers who left because they figured out the lie, it would make more sense to come up with a more sensible decision that works for the business as well as the consumer.
An alternative to this would be to actually come up with a premium brand where the products were actually worth the consumer paying more money for it. This would be another way to differentiate and if done properly, would cause more business and a bigger market share to generate. Morals and values still play a big part in our society and the way that we think. It may not always be at the forefront of every business but it is definitely something to consider when making decisions. As the saying goes, “Treat others how you want to be treated. ”