CASE 35 MIGHTY-MART\'s CONTRACT MANUFACTURING ISSUES Mighty-Mart is a large reta
ID: 365715 • Letter: C
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CASE 35 MIGHTY-MART's CONTRACT MANUFACTURING ISSUES Mighty-Mart is a large retail chain that operates over 1,000 stores in the United States and Canada. The company has experienced phenomenal success over the years in terms of growth and return on shareholders' equity. The firm has gained market share over its competitors through a strategy of low-cost leadership and dedication to customer service. Mighty-Mart prides itself on its ability to reduce costs and to pass those savings on to customers. The company has been a model of efficiency among mass merchandisers, and its abili rol costs has given it a strong competitive advantage. lighty-Mart was founded in 1968 in a small town in eastern Kentucky by Jimmy John Whitlow. This now-deceased, decorated, left a legacy ofuncompromising business principles, which ed complete customer satisfaction, low-cost business operations, and a strong commitment to buy from American suppliers eMarie Bradford is a well-known television personality who has developed a loyal following through her unwavering commitment totraditional American values. Most TV viewers see her as a kind- bearted and wholesome individual. Anne-Marie's early morning TV ám promotes health, fitness, and family values. She also has newspaper column, which provides advice on marriage, family, nd wardrobe decisions. So it seemed logical for Mighty-Mart and eiford to team up to market a line of women's apparel under the Marie name. Although Mighty-Mart did prefer to source its cts domestically, increasingly it has begun to rely on foreign a contract manufacturing arrangement wt on Bnterprises, Mighty-Mart and Anne-Marie developed the celine, which would be sold exclusively in Mighty-Mart stores.Explanation / Answer
In order to rectify and deal with the situation, there are a number of options available to the CEO of Mighty-Mart. Having an intensive customer relationship campaign can be one of the way outs through which the firm can try to pursuit the customers that the firm was not one of the participants of the scheme. This campaign may not use it to deny the existence of the current issue but the focus should be on how to deal with the problem and what measures can be taken to rectify it. This is also very clear that the other company Yellow Dragon is still ready and willing to work with Mighty-Mart. The fact that the problem was concealed very effectively indicates that the firm still wants to go ahead with the business deal. Thus it is very important for the CEO of Mighty-Mart to establish some guidelines which have to be followed by the suppliers. In fact, he can think of changing the auditing company as the existing firm is not able to discover the problem and report the same. Apart from this, there can be regular inspection and visits to the different factories to have an open dialogue with the employees so that they can express their views about the prevailing working conditions. In order to ensure that the firm is devoted towards facilitating better working conditions, the firm can use social media quite effectively by expressing the steps taken and the improved working conditions in the factories.
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