Reference no: EM132924658
In the clothing industry, keeping input and distribution costs under control are an important driver for financial returns. In the last few years, these costs have been rising. Profitability in the sector is under pressure. To address profitability concerns, the board of directors of Patagonia (Patagonia.com) are considering two proposals
Proposal 1: reduce product quality by reducing the quality of inputs
Proposal 2 - maintain product quality but reduce the range of CSR initiatives it supports
The board of directors are sure, however, there may be other options.
In the clothing industry, keeping input and distribution costs under control are an important driver for financial returns. In the last few years, these costs have been rising. Profitability in the sector is under pressure. To address profitability concerns, the board of directors of Patagonia (Patagonia.com) are considering two proposals
Proposal 1: reduce product quality by reducing the quality of inputs
Proposal 2 - maintain product quality but reduce the range of CSR initiatives it supports
The board of directors are sure, however, there may be other optionsIn the clothing industry, keeping input and distribution costs under control are an important driver for financial returns. In the last few years, these costs have been rising. Profitability in the sector is under pressure. To address profitability concerns, the board of directors of Patagonia (Patagonia.com) are considering two proposals
Proposal 1: reduce product quality by reducing the quality of inputs
Proposal 2 - maintain product quality but reduce the range of CSR initiatives it supports
The board of directors are sure, however, there may be other options
Are there any other proposals than the above? What should be the theory from which to start?
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Are there any other proposals than the above
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