Oliver Cabells Company Analysis - Paper Example

Is Oliver Cabells commitment to transparency motivated by profit or morality? Explain.

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Oliver Cabells is committed to morality rather than profit. After Oliver had learned about the collapse of Bangladesh Factory where so many people lost their lives, it did not make sense to him and ignited a passion for ethical fashion in business that led to starting his own business that deals with bags and accessories. Oliver learned that Bangladesh factory used to make a lot of profit and he did not understand how the collapse happened since the profit the company was making was enough to build a good production plant and healthy working environment for workers.

The core values of Olivers business were transparency, quality, and reasonable prices. While he was looking for a company to partner with, Oliver did not focus on the profitability of the company but rather a factory that met their standards. After one year of searching, olive and his team settled on a factory that emphasized more on quality, ethics, and digital sales. He was pleased with the standard of materials at the production plant, the condition of labor and the general commitment to quality

There seems to be good profit and bad profit in business. Discuss.

Most companies do exist, and their main agenda is to make the profit so that they can be able to fiance their operation efficiently. However, not all benefits are good; some tend to be bad. From ethical perspectives, when the company is making the profit, it means that everyone within the company especially employees are contributing to this profit. The profit should reflect all aspect of the company especially the employees. The company should invest more in improving the working conditions of its employees and raising their wages. For instance, in 2014 when Gabrielson visited on of the factory in Asia, he realized that the working condition of its employees was poor yet the company was making a lot of profit. You can imagine how the employees were paid if the cost of production of bags was $100 yet the bags were retailing for 1200 in the United States. This means that the company has focused on paying employees little to make more profit. This is an example of a bad profit.

When setting the profit margin, the company always considers the cost of production to find out the figure it can add for profitability. Furthermore, the profit should also reflect on the quality of the product the company is offering and should be reasonable. It will be a bad profit if the exaggerates its profit margin figure yet the large profit margin does not reflect the quality of the product being offered. Take the case of the company that Gabrielson visited, the cost of production of bags was $100, labor and material cost inclusive yet the bag was being sold at $1200. Already the cost of production shows that these bags are of low quality, but look at the profit, it was abnormal.

Evaluate the morality of the large profit margins commanded by the high-end brands from the following perspectives:

Utilitarian ethic

Utilitarian ethic analyses an action by its consequences. This approach aims at striving to accomplish the greatest set goals of the business while preventing any harm. As such, it moral for the company to place large profit margin since it commands high-ends brands. The company has invested a lot of cash in the production process, and the product is of high quality hence consumers will enjoy the value for their money. It this case, the company prices its product knowing that the benefits the product will offer are high.

Kantian ethics

In Kantian ethics, the rightness or wrongness of an action does not depend on their consequences but on whether they achieve what they were intended to. This approach is not ethical at all. As such, the business places higher profit margin to end product and does not consider the consequences the product will have but rather on whether the product will meet the customers needs. The product may end up addressing the needs of the client and yet the consequences to the company may be enormous. Is, therefore, essential for the business to look on both sides; the effects and on the companies and the product influence to the final consumer.

Virtue ethics

This is one of the main approaches in normative ethics and emphasizes on the virtues or moral action. From the definition, the morality of this approach to a great profit margin which is commanded by high-end brands. Virtue ethics can provide a basis for the balanced approach to understanding the customers and the profit margin. Unlike other approaches, virtue ethics does not focus on the consequences of the decision. However, the approach attracts a lot of procedures for finding out what the right action should be undertaken.

Evaluate Oliver Cabells relationship with its customers and suppliers from a stakeholder perspective.

Olive Cabells customer relationship is one of the best since it offers high-quality products lower prices. Customers are mainly driven by quality and prices, and if you happen to meet the two, the customer will like your products.

Gabrielson knew that the company was new hence consumers will not depend on its reputation. To make customers move more carefully, Olive Cabells relied on its transparency so as to prove itself. The company opened the door for both production and price standpoint to prove to its customers that the products being offered are of high quality. Consumers do want value for their money and since the company is open to everyone regarding all aspects of its activities ranging from the production process, pricing and the factory working condition. The commitment of the brand to transparency clearly stipulates its design aesthetic. Olive Cabells roll out the new product every month, as such, the company is working closely with its suppliers by providing them with enough information on what is expected to the market for them to make the necessary adjustment.

Evaluate Oliver Cabells pricing using the social contract theory.

This is the old philosophy which views that the moral obligations of an individual relay upon an agreement to form a society we live. Gabrielson has focused on morality as the key driver of profit by providing high-quality products at affordable price. However, his pricing has mostly been influenced by the cost of raw material labor costs. Gabrielson made sure that the production cost is minimized so as to avoid charging customers higher prices. For the brand to remain price competitive, Gabrielson went into a contract with European factory to process the already purchased material.