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Background Information
BizOps Enterprises started as a small company and has grown into a national retail business specializing in a range of exclusive products. BizOps has more than 150 retail, online and phone order outlets across Australia. Business has been good but management is always wary of risks on the horizon, especially given the situation during the past three months. Over this period, there have been significant international, national and organizational incidents that have affected the business. On the international front, 5 key suppliers of our top-selling range of products have received global condemnation about using toxic or banned chemicals in their products and polluting the environment through their unsustainable production methods. Floods have affected some Asian suppliers so that the manufacture and transport of numerous top-selling lines has been interrupted for the past 3 months. This is affecting online sales. On the national front, Australian consumers are spending less due to the uncertain global financial situation and rumors' of government tax increases that are likely to decrease household disposable incomes. Furthermore, there has been recent political uncertainty with leadership challenges and allegations of corruption. These issues and the impending federal election are leading customers, businesses and investors to take a wait and watch approach. Federal consumer legislation was introduced in 2011 so there is a need for all states to be brought up to date, especially with increased consumer knowledge of rights such as the product safety law. Uniform WHS laws have also been introduced by most of the states. There are some issues arising within the organization. There has been an increase in complaints from customers about online purchasing system problems/disconnections, goods not being delivered on time and allegations that confidential customer information is being passed on to other companies. Customers have complained that the company website and online purchasing links are "glitchy". There is also rising social media pressure about claims that BizOps's major suppliers use sweatshops, child labour and manufacturing processes that cause environment destruction. Information systems and warehousing/logistics systems are more than 10 years old. Management is contemplating downsizing and adopting rigorous budgetary cuts across all sections of the organization. Staff morale has dropped, with many conflicts between staff and complaints about hours worked and lack of training.
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