AC203 Governance & Ethics | My Assignment Tutor

1AC203 Governance & EthicsASSIGNMENT 3, Final Assignment (individual) – BusinessReportDUE: Friday 11th June at 5.00 PMSubmit your assignment withCover sheet with name and the student numberAssignment rubric sheetSubmit via Moodle drop boxLate penalties will apply for late submissionsASSESSMENT VALUE 40%DetailsWritten AssessmentTwo cases are provided. You are required to answer the question of each case in the form of abusiness report, with a maximum of each should be 2,000 words. (You are required to prepare andsubmit 2 business reports, maximum of each report should be 2,000 words.)This assessment is an individual assignment and you are required to answer questions given in bothcases in order to pass the course.Each case will be worth 20%. Each will require a report not exceeding 2,000 words (in the report body).Eachcasewillrequireahighlevel of critical analysis and good writing skills. This will involve searching yourcourse material, textbook, and online research databases for suitable, relevant material, which mustbe properly cited and referenced using the APA referencing method.The answers to the given questions are to be presented in a simplified report format consisting of,Executive summeryContent pageIntroduction,The report body ,ConclusionsA reference list.2The report must be fully referenced using the APA referencing method. A link to the appropriateguide to the APA referencing method is provided elsewhere in this course profile.Word limitThe report is not to exceed 2,000 words.When preparing your each report you should refer to:academic journals (minimum of 3)textbooks (minimum of 2)You are not expected to systematically reference the journal/text book that you areanalysing. However, when referring to specific information inside your report, youshould include a page and section reference to indicate the source of your information.Any source such as journals and textbooks, should be referenced both in-text and at theend of text.Assignment question: Case No. 1Best Buy Advances the Interests of Stakeholders*Best Buy ranks number 72 on the Fortune 500; it is the largest consumer electronicsretailer in the world. Best Buy is known for its discounted high-quality products, customercentered approach, sustainable outreach, and extensive recycling program. Best Buy is listedas a “socially responsible” company. It was founded by Richard Schulze in 1966. Since then,the company has undergone many changes.College students, who wanted higher end electronics, were the first customers ittargeted. In 2000, when sales growth slowed, Best Buy acquired Geek Squad, a repairservice. This acquisition led to its Concept 5 stores, where products are sold and customersare taught how to use them. This improved service turnaround time and increased customersatisfaction. By 2009, the company became the primary online and brick-and-mortarprovider of consumer electronics.3Best Buy views itself as a customer-centered organization. The company to learn more about its customer needs and preferences. Customers canuse that website to rate every product purchased. In 2007, the company published its firstCorporate Social Responsibility (SR) Report as result of the customers’ concern forsustainability. Electronic waste was filling landfills, and Best Buy’s customers wanted to seethis problem addressed. In response to their concerns, Best Buy implemented a wide-scaleelectronics recycling program. In 2009, Best Buy set a goal to reduce carbon emissions by 45percent; by the end of 2016, it had reached nearly 47 percent.Today, Best Buy employs a Chief Ethics Office and maintains a blog for companyemployees; it covers ethical lapses and related issues. Employees can visit the website andread about the company policy regarding ethically questionable behaviors and learn tips onhow to best defend themselves from crossing ethical boundaries. Hubert Joly was appointedCEO in 2012 after a scandal forced out CEO, Brian Dunn and Chairman, Richard Schulz.Under Joly, Best Buy, once again, became a growth company. He implemented its“Renew Blue” strategy, adding new product lines and services and emphasizing both instore and online customer opportunities. Its Geek Squad division began an in-store, online,and home advisory program. He expanded into both Canadian and Mexican markets.Operations in China and Europe were closed to reduce costs, and he closed some domesticstores, under his lean management mandate.To improve customer service, the “Geek Squad hours were expanded to provide 24-hour service on site, at home, or through the Internet. The tech experts make about 4million home calls a year. Walmart and Amazon—Best Buy’s biggest competitors—do not4offer comparable at-home services. In March 2017, “Renew Blue” was officially closed byJoly and pronounced a success.In 2017, Joly announced the company will implement “Best Buy 2020—Building theNew Blue.” Best Buy began a try-before-you-buy program that allows the customer to rentgadgets such as audio equipment, fitness trackers, smartwatches, and cameras. If thecustomer decides to keep the product, 20 percent of the rental fee is deducted and appliedto the final cost of the product.Best Buy will continue demonstrating new technology solutions, contracts andservices, and sustainability. The company plans to enhance its smart home areas in allstores, roll out its Best Buy Smart Home Powered by Vivint home automation and securityoffering to 450 stores, which will add 1,500 dedicated smart home employees. The “GeekSquad” expanded services will include “Smart Home” Total Tech Services, which will serviceevery electronic product in your home no matter where the product was purchased andcreate a totally integrated technology system for your home.Another service Best Buy will provide is the Smart Home Senior Care Services,” whichis considered an “untapped white space opportunity.” The electronic “Assured Living”system will allow millennials /caregivers to look in on their aging parents while permittingthe seniors to live independently. Mr. Joly envisions rolling out a broader business of sensorbased senior services, sold through health-and-wellness departments in Best Buy’s morethan 1,000 stores. With an aging population in the United States, there will be 70 millionpeople who will be seniors by 2027. Best Buy sees this growth opportunity and will use theSmart Home Business and its ability to get into people’s home as a trusted adviser.5Question:How does Best Buy deal with ethically questionable behaviours?In answering the question, you need to discuss about all of the following points: Best Buy’s website for company policy Best Buy publishes a Corporate Social Responsibly Report Best Buy has a blog for employees to address ethical issues Best Buy has proactive information and tips on crossing ethical boundaries Best Buy’s sustainability programsAssignment question: Case No. 2Sseko Designs Engages in Social EntrepreneurshipLiz Forkin Bohannon, the founder and CEO of Sseko Designs—a socially minded fashion anddesign company from Portland, Oregon—uses the company as a platform to empower women inUganda and East Africa. In 2008, after traveling to Kampala, the capital city of Uganda, she wasappalled to see the extreme poverty of the people, especially that of its women. She discovered thatthe top 2 percent of high school girls who were eligible to go to a university were required to returnto their villages and work for nine months while saving their money for tuition. Most of these girlsdid not continue their education because the families needed the money for their subsistence. Shealso learned these women preferred to work rather than receive a handout.Her first attempt at a socially conscious for profit business was a short-lived chicken farm. Itwas then that she recalled an incident from her college days when she made a sandal that usedribbons to avoid he noise made by flip-flops, so she redesigned them by purchasing rubber flip-flopbottoms tied with ribbon. Liz believed she could improve upon her original design using materialsobtained locally. For two weeks, she traveled through Kampala looking for suppliers while gainingskills in sandal making through tutorial videos on YouTube. She developed a business idea for awork-study model for Ugandan women who showed college potential. Liz would offer womenemployment during the nine-month period they had to earn enough revenues for college. Thewomen would make sandals and other products that could be sold to consumers in the United6States. In the process, the Ugandan women would not only learn skills but also have the chance toearn their wages to go to college.Of course, making the sandals was only half the battle. The Bohannons also had to findbuyers. Together, the couple traveled the nation for six months in their Honda Odyssey minivan—often sleeping in the van and showering at truck stops to save money—3 to try and convince storesto purchase sandals from Sseko Designs. In 2009, this became the first product offered by SsekoDesigns. The sandals became an immediate success when Martha Stewart recommended them inher gift ideas and their inventory was soon depleted.To continue the company’s growth, Liz and her husband, Rob, sought funding via thepopular ABC reality show Shark Tank, on February 13, 2015. Entrepreneurs Mark Cuban, BarbaraCorcoran, Kevin O’Leary, Lori Grainer, and Robert Herjavec were offered 10 percent stake in Ssekofor a $300,000 investment. At that price, the company would be presumed to be worth $3 million.On the other hand, Sseko had suffered a $90,000 loss in 2014 and anticipated it would lose money in2015 as well. The Bohannons explained that the reason for the loss is that they are putting moremoney into development and are hiring more salespeople. They expressed their belief that as moreAmericans learn about Sseko, its unique products, and its social mission, sales would increase, andthe firm would recoup its profits. It is not unusual for an organization to incur debt or suffer losses asit expands. Debt, managed correctly, could actually help a firm because it allows it to take onopportunities it would not normally have with limited funds. However, a negative cash flow oftenturns off investors, and the sharks were no exception. Of greatest concern to the sharks was thebelief that the Bohannons overvalued their business. However, the Bohannons explained that theycould not lower their valuation due to the deals they had already struck with the four privateinvestors.Mark Cuban made an offer for 50 percent ownership which they declined. The sharksmaintained that was too high a value, especially for a company that, in their judgment, was too7focused on its social mission and philanthropy and not enough on profitability. The Bohannonscountered that many of today’s retailers and their customers value companies with a social mission.This, they maintain, is especially the case with the millennial generation, their target customers.They noted that younger consumers are less concerned about brand names and more interested inthe story behind the brand. They believe that many customers prefer buying from firms that sharetheir values. They maintain that if a company supports a cause the consumer cares about, then thecompany’s brand will be viewed more favorably. They told the sharks that this will be the key toincreasing Sseko’s sales and profits.While the Sharks declined the opportunity to invest in Sseko, their exposure on the showresulted in a 500-fold increase in traffic on their website and a 1000 percent increase in sales for themonth of February. In addition, other investors came forward. They received the entire investmentthat they initially wanted from the sharks without having to decrease their estimation of the value oftheir company. Sseko Designs has already had a major impact on Uganda. Not only is it the largestfootwear manufacturer—resulting in more jobs for Uganda as well as for the Ethiopian and Kenyanartisans who create crafted products for Sseko to sell—it also serves to empower women. Currently,Sseko employs 65 women in Uganda and is the country’s largest footwear manufacturer. Theirproduct offerings have expanded to include apparel, footwear, jewelry, accessories, and leatherbags.Today, the company supports the education of women by providing scholarships for theiremployees. Each employee is encouraged to save 50 percent of their salary that goes into theirpersonal Sseko savings accounts for 9 months, after which the account receives a 200 percent matchfrom the company. Additional funding for these scholarships comes from the Sseko Fellowsprogram. This program began two years ago and has 300 Fellows. Sseko Fellows are US socialentrepreneurs who sell the company’s products direct. Every Sseko Fellow is matched with a SoleSister in Uganda; every dollar of Sseko product sold in the United States by one of these Fellows8provides income for the Fellow and generates funding that helps contribute to sending a Sole Sisterto the university.To date, 87 female employees have been able to get a university education, thanks to SsekoDesigns.Question:Discuss Sseko’s social entrepreneurship model and how it differs from traditional charitableinitiatives that other companies might take.In answering the question, you need to discuss about all of the following points: Sseko is a for profit organization Liz and Rob going on Shark Tank to get publicity and find an investor. There’s no conflict between making a profit and carrying out a social mission Sseko has an excellent product that consumers desire


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