Management Essay Example | Topics and Well Written Essays - 500 words - 34

Management - Essay ExampleThe availability of Nike to other marketers would mean that customers can rightful(prenominal) buy them there. This presents a major problem as a myriad of literature indicate that sports shoe customer preferences is highly skewed towards those products which are visually appealing and having performance-enhancing features (Locke 2003, 52). That is to say, customers are not likely to choose an alternative over Nike just because of supplier issues but would instead seek out the product in other stores especially when the features of the shoes are very appealing (Lim and Philips 2007, 146). This would result to shifting customer loyalty resulting to losses in sales consequently harming channel operations and employee compensation (Jordaan 2011, 622 Tengblad and Ohlsson 2007, 657).On the other hand, several high-profile companies such as Starbucks and Apple have also found to their dismay and cost that reputations can be profoundly affected by the environmen tal and social impacts of their supply networks (Gereffi et al 2005, 101). The negative effect becomes more profound considering the power of social networking to influence customer perception (Carroll and Shabana 2010, 88). Hence, discontinuing sale of Nike products would prevent any negative PR and the accompanying losses especially considering that the company has just adopted the Fair Trade principle. This elect path can also benefit society in general as it promotes a culture of responsible business practices thru caring for how products are macrocosm sourced (Schwartz et al 2007, 506 Wells 2009, 570). However, given the possibility of customers to just seek Nike products on other stores and the strength of the brand, it would be prudent to not totally abandon the brand. unite business with ethical practices requires a reconciliation between profitability and ethical principles the company