VCE Stuff > VCE Business Management
Business Manangement Examples
costargh:
Rio Tinto is bloody rolling in the mullah!
Odette:
--- Quote from: "costargh" ---Rio Tinto is bloody rolling in the mullah!
--- End quote ---
Lol ... thanks for the contribution =]
Yes people should use Rio Tinto as an example :P
LOL They now own 100% of Alcan like omg lol...
jsimmo:
I thought it would be good to get this thread up and active for 2008 business students. It would be good if people could contribute specific examples.
Here is an example of ALDI acting socially responsible:
--- Quote ---Aldi prices uniform
A LOAF of bread will cost the same in Carrum and Coolangatta when Aldi today becomes the first Australian supermarket chain to introduce "national pricing".
The announcement that the discount retailer will charge the same prices in all of its shops comes after an ACCC inquiry heard grocery prices were cheapest in areas where there were several competing supermarkets.
"National pricing is another, new customer-friendly initiative aimed at providing greater trust and price transparency for consumers," Aldi group managing director Michael Kloeters said.
"All consumers should be able to buy brand quality products at the same everyday low prices regardless of where they live," Mr Kloeters said.
--- End quote ---
costargh:
I'd disagree. I think it would be more socially responsible if ALDI supermarkets in low socio-economic areas were charged at a slightly discounted price. Wouldn't that show their social concern more than putting a "one size fits all" approach around their business?
Collin Li:
Yeah. That sort of policy encourages ALDI to sell their bread at the equally high price rather than the low price. It's a bit like the minimum wage. If you enforce a price floor, they will just sell less (just like employers hire less). Those who are poor and cannot afford the high price will not experience a competitive price, because ALDI will have to bundle the decision of lowering the price locally with lowering the price nationally - which will cause more costs than benefits for them.
Basically speaking, it doesn't produce efficiency because instead of being able to freely change the local prices to match local demand and supply, they have to make a trade-off between meeting demand and supply in location A and location B. The social responsibility sounds all nice and fairy-tale like, but the truth is that you will see ALDI being less competitive than they previously were in the competitive areas (with lots of supermarkets). Simply put, they will conclude that the costs of being competitive in one location far outweigh the loss in revenue all across the board.
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