BA 342 Final Exam Study Guide Abercrombie and Fitch Case Pg 665 Candidly we go after the cool kids Attractive All American kid A lot of people don t belong in our clothes and they can t belong Are we exclusionary Absolutely CEO Michael Jefferies o A F culprit of looksism Appearance based discrimination Decade ago coalition of four organizations filed an employment discrimination lawsuit against A F Claimed that A F discriminated against people of color including Latinos Asian Americans and African Americans Settled for 50 Million 2009 Girl sued A F for not hiring her because her headscarf she wore An Older Corporate Jet Pilot claimed they fired him because of age discrimination and hired a younger pilot Smeal Professor Dan Guide A Environmental Impact of Industry planet printers network equipment 1 Climate Change whether you agree or not our industrial activities are changing our 2 Exponential amounts of e waste smart phones telecom equipment computers 3 Increased number of products with short lifecycles smart phones tablets PCs etc 4 Increased awareness of the impact of industrial activities outsourcing to China HP vs Dell computer recycling B Sustainability Problem C Sustainability 1 Designing industrial systems that are economically and environmentally sustainable i Companies need to find ways for these activities to create value profit ii If we business don t take action its very likely we will be forced to take action 2 People Planet Profits 1 Sounds simple but the devil is in the details 2 Which is better i Paper or plastic Neither based on volume ii Hybrid car or diesel Or electric i How many wind turbine and solar panel manufacturers have end of life plants 3 Alternative energy sources are always preferable D Sustainability cont 1 Reduce process design i Pollution prevention ii Materials iii Lean production 1 2 Reuse process design iv Energy v Carbon footprint i Service ii Repair iii Remanufacture iv Materials choice 3 Recycle process design i Design for environment ii Materials choice iii Cost benefits iv Spare part recovery E Business View of Sustainability 1 Fundamentals 2 Eco Efficiency i Environmental impact ii Role of companies iii Tragedy of the commons iv Role of legislation i Pollution prevention ii Waste reduction iii ISO 14 000 iv Life cycle risk v Assessment 3 Product Stewardship i Design for recovery ii Selling services iii Extended product responsibility iv Closed loop SC i Alliances 4 Sustainability Strategy F Materials Reprocessing recycling issues G Environmental Legislation 1 Limited access to used products 2 Limited technical feasibility at reprocessing 3 Limited market demand for the reprocessed secondary resources 1 In EU 2 These directives were driven by legislation 3 Expensive 4 More pending globally i Japan ROHS WEEE EVL Waste Tire Directive Green Dot packaging directive 2 ii China iii Australia Chapter 11 Government Stakeholder o Business and Stakeholders Know all Five Diagram in Book o History of Government and Business Interstate Commerce Act of 1887 Intended to prevent discrimination and abuses by the railroads Beginning of extensive federal government regulation of interstate commerce Created Interstate Commerce Commission First federal regulatory agency Trust an organization that brought all or most competitors under a common control that then permitted them to eliminate most of the remaining competitors by price cutting an act that forced the remaining competitors out of business Sherman Anti Trust Act first in a series of actions to control monopolies Clayton Anti Trust Act augmented the Sherman Act Outlawed price discrimination and anticompetitive contracts o Business Government Public Interaction Business and Government Businesses lobby for Gov t Gov t puts regulations and other forms of persuasion on businesses Government uses political influence on Public Public uses the political voting process and interest group contribution on Government and Public government Public and Business Business advertises and uses public relations on public Public using interests groups not buying products and protests on businesses o Opinion on Government versa About 50 of population would like to see more government control and vice 41 believe regulators and policy makers do not understand the economics of their industry 44 believe government blames business for society s problems 44 believe that it is difficult to determine the best way to work productively with government o Non Regulatory Vs Regulation o Non Regulatory Ways it impacts us Industrial Policy 3 Every form of state intervention that affects industry as a distinct part of the economy Geothermal SKS marketing bets Refers to the process of changing a public organization to private control Privatization or ownership USPS Other non regulatory Government is Major self employer One of the largest purchasers of goods and services produced by the private sector Influence business behavior through subsidies is a variety of ways A major business competitor Loans and loan guarantees Taxation o Regulatory Refers to the act of governing directing according to rule or bringing under the control of law or constituted authority Reasons for Regulation Market Failure Controlling natural monopolies Controlling negative externalities Achieving Social Goals Excess profits and excessive competition Types of regulation Economic Regulation Cost of Regulation Department of Commerce Federal Communications Commission Social Furtherance of societal objectives rather than on markets and economics Equal Employment Opportunity Commission Environmental Protection Agency Direct Costs growth patterns of the budgets of federal agencies responsible for regulation Indirect Costs forms reports and questionnaires that business mus complete to satisfy the requirements of the regulatory agencies Passed onto the consumer in form of higher prices Induced Costs innovation new investments in plant and equipment and small businesses may be affected The process of influencing public officials to promote or secure the passage or Chapter12 Business Influence on Government o Lobbying Spending defeat of legislation o Types of Lobbying 4 Umbrella Trade Associations Represent the collective business or subsets interests of the United States Chamber of Commerce National Association of Manufactures Sectoral Trade Associations Composed of firms in a given industry or line of business i e National Automobile Dealers Association Company Lobbying