Busymart is a well-known discount department store chain operating international
ID: 398980 • Letter: B
Question
Busymart is a well-known discount department store chain operating internationally George Hall held a position as a District Manager responsible for overseeing the operations of 30 high volume stores in Western New York State. George started as a stock clerk at the Busymart Store in Erie, PA, 20 years ago. He worked his way up to store manager and was transferred several times to larger and larger stores until he landed his present position. Over the years, George became known as the "go to guy" for failing stores He demonstrated great effectiveness in restoring success to struggling stores Recently, George was offered an incredible incentive to move to China to reorganize a Busymart Super Store in that country. In doing so, he would gain valuable international business experience. More importantly, upon his return to the states, George would receive from the senior executive team serious consideration for a junior executive position. Of course, he accepted George has adapted quickly to his role at the very profitable store in China. The employees like him and he has fit in well. However, he has come to realize that the store is selling sub-standard baby urniture. Sadly, inferior products are common in China and almost expected. He soon learns that his District Manager offers bribes (another common practice in China) to the Chinese government officials to sweep under the rug any incidents caused by consumer use of this inferior baby furniture This is very disturbing to George Hall who is a father of four children himself. Given the above scenario, answer in 3-5 well-developed sentences the following questions 1. Should George bring this discovery to the attention of his corporate office, which is located in North Dakota? Why or why not? [Write your response here.. ] 2 If George does raise this issue, how might his District Manager in China react? Explain. [Write your response here...] Stores? Explain. If yes, how would he accomplish this? [Write your response here..) How might his whistleblowing affect the highly profitable China stores? Write your response here.. .] 4. 5. Could he expect backlash from the corporate office? If so, what are his options for defending himself? [Write your response here. 6. How will the Busymart shareholders react? [Wnite your response here..]Explanation / Answer
1) George should definitely bring this to the attention of the corporate head office. This is because such a malpractice should be stopped and also these actions may result in significant liability for Busymart and senior executives should know in order to take appropriate actions.
2) The district manager may deny any such wrong doing. He might also turn vindictive against George and try to harm him professionally or in another manner. He might also start a smear campaign against the company and the employee which might affect the reputation of the company.
3) George should not try any heroics and should involve the corporate team at head quarters to address the issue of poor quality. This is because any issue of poor quality can only be addressed through an institutional change and not through personal efforts alone. So any individual efforts should be directed to bring about this change rather trying out a single handed change in the quality of products in China.
4) The whistle blowing will adversely affect profitable stores in China in the short run. But with adequate communication and rectification of malpractices, the reputation and profitability can be restored in the long run which would be more sustainable.
5) George might get a backlash from corporate office if the corporate office also promotes unethical practices. However if such a thing happens, he should quit the organization and find employment elsewhere.
6) Initial reaction of shareholders would be of panic thus driving down the stock price. However through adequate communication and rectification of malpractices, shareholder’s confidence can be regained and price of stock can go up again.
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