NBA 5150 Case Study #1 - Koonal Bharadwaj 3/31/11 NBA 515...

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Koonal Bharadwaj 3/31/11 NBA 515 Case Study #1: 1) There are a myriad of reasons the CEO is concerned with his rug suppliers. From a company image perspective, he would like to show a moral and just company. In doing so this feeds into consumer loyalty and satisfaction. If a consumer believes that the company is advocating safe rug manufacturing practices, this is can increase sales and financial returns (consumer is willing to pay a little more per rug). From a legal perspective, this will reduce lawsuits and investigative hearings into labor practices from manufactures, the company associates themselves with. So time, energy and money can be conserved in order to focus on their core business, providing high quality rugs to the consumer. The leadership issues involved in changing the way the company does business and with whom first revolve around the duality of the new change. The CEO’s concerns around moral and economic factors are opposite to some degree; as being moral usually does not net positive economic factors for the company, but he is still pursuing his goal of cutting child labor out of the manufacturers he deals with. In addition he wants to make a good company great. His leadership style maybe closely resembled to the article in Level 5 Leadership , this duality or paradoxical nature helps to create great companies. Furthermore, by setting this goal of dealing with child labor-less manufactures he is
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NBA 5150 Case Study #1 - Koonal Bharadwaj 3/31/11 NBA 515...

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