BUSINESS DILEMMA THE COMPANY: YOUR'E THE MANAGER.... WHAT WOULD YOU DO?

Supreme Deluxe YOUR POSITION: Chief Marketing Officer THE PLACE: Los Angeles, California Supreme Deluxe began manufacturing cosmetics in Los Angeles in 2012. Constance, the CEO, previ-ously worked at a small mineral makeup company and learned the ins and outs of the industry. Constance felt the makeup industry was going the way of fast fashion, with brands introducing new, trendy products at an ex-tremely rapid rate. Not to mention, she felt that most makeup products were made with cheap pigments and fillers and came in excessively large sizes, resulting in poor-quality products and excessive waste. She saw an opportunity to make a premium line of miniature makeup made exclusively in the United States. When the company launched, the consumer re-sponse was overwhelming. People loved the small product sizes and raved about the product quality. Pub-licity for the company came quickly and easily as peo-ple were delighted with and supportive of the American cosmetics company across social media. Prominent social media influencers on TikTok and YouTube shared thousands of positive reviews. In its first year, Supreme Deluxe brought in more than $600 million in annual rev-enue, beating out major players in the industry. The success of the miniature makeup line brought on serious competition. Mass cosmetics brands mim-icked the company's miniature lip glosses and lipsticks within six months, although they certainly did not de-liver on quality. Eventually, Constance hired a chief mar-keting officer, Henry, to oversee the company's product portfolio and marketing activities to help the company grow and fend off the copycats. Henry's background in product development and brand management made him a good fit, Constance thought. After several months of becoming acquainted with the Supreme Deluxe products and the company's goals, Henry presented Constance with a few ideas to improve profitability. He identified several ingredients that could be replaced or eliminated from the compa-ny's formulas, which would significantly reduce raw material costs. Not to mention, all of the replacement Supreme Deluxe faces ethical issues related to product quality. ingredients were made by American manufacturers, decreasing Supreme Deluxe's reliance on international suppliers and increasing its "made in America" prom-ise. Constance worried the cheaper ingredients would result in product-quality issues, but Henry assured her that customers would not be able to detect the lower product quality. Constance did not want to compromise on qual-ity, but Henry's proposal was tempting. After testing reformulated versions of her products, she agreed that the changes made were undetectable in the finished goods. If they moved forward, the company would save a significant amount of money, allowing it to in-vest more in environmentally friendly packaging and its consumer recycling program. Henry said the best way to move forward was to make the changes without an accompanying official announcement. He believed an-nouncing the change would be sure to invite criticism, and he doubted anyone would notice the ingredient changes otherwise. QUESTIONS 1. Critique Henry's proposal. 2. What are the potential ethical issues associated with this plan? 3. How would you proceed?

Management: Principles and Applications Leonard Bierman; O.C. Ferrell; Linda Ferrell

Read and then and critically review the 'Business Dilemma: You are the Manager, What would you do?' on page 98 of the course textbook, Bierman, et al (2024).

Help me with the three questions listed. Please support your answers with references and in-text citations using the style apa.