Your discussion group is the leadership team of a company called Aussie Furniture Imports, which imports lounge
Question:
Your discussion group is the leadership team of a company called Aussie Furniture Imports, which imports lounge and dining suites from China and Vietnam and sells them to Australian retailers. Your biggest customer has recently sent you a letter of demand requiring that you provide them with documentary evidence that all the furniture you sell them comes from factories that apply high standards of ethics, workplace health and safety, and environmental performance. This is a noble ideal, but it costs extra to do these things, and those foreign suppliers would not bear those costs. So you are stuck in the middle: a customer who is holding to high ideals and suppliers who will not comply. Switching suppliers will lead to higher costs and cut your profitability to the bone. What policy will you adopt? Generate some alternative responses to your customer’s demand and evaluate these, before making a decision. (This exercise is based closely on a real situation, one that is becoming increasingly common in Australian businesses.)
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