Mega Foods Case Study
Cherice McCray
Troy University- Dothan Campus
As the regional director for Mega Foods Inc., I foresee several ethical issues stemming from closing plant operations in Orchard, Georgia and moving operations to the country of Frostburg. The utilitarianism approach as mentioned in Northouse (2013) is behaving in a way as to create the greatest the good for the greatest number. Keeping operations in Orchard, Georgia may not be the most profitable option; however it allows the local economy to thrive by keeping operations local. Farmers are able to sustain as well as the local economy due to consumers having disposable income. From an economic standpoint consumers are able to afford normal goods.
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Tom’s shoes, Ben and Jerry’s and most recently Starbucks are class act examples of properly utilizing corporate responsibility. After completing my analysis, there are several corporate social responsibility issues that may arise.
Orchard, Georgia is a small rural community with a population of 5000 people. Mega Foods, not only employs 125 people of that community, but also purchases raw products from local farmers within the community. Moving plant operations from Orchard, GA to Frostburg poses severe corporate social responsibility issues. The use of raw products from local farmers reduces the need for foreign imports, minimizes transportation costs, and reduces carbon emissions from transport vehicles. Reducing carbon emissions helps to preserve the environment. Also using raw products from local farmers shows our support for small businesses. We are boosting the economy in Orchard, GA by supporting many families that survive off of modest farming income. Using local products also ensures fresher ingredients and provides the company the ability to readily inspect products for maximum quality. I fear that moving plant operations will hurt the company’s “buy local” reputation and product quality. Mega Foods will be viewed negatively as a company with no compassion for local business and is driven by greed. Several studies prove
Mackey believes “making high profits is the means to the end of fulfilling Whole Foods’ core business mission” (Rae & Wong, 2012, p. 152). Mackey says Whole Foods wants to better the world through quality products, but understands this is only possible if Whole Foods is a highly profitable corporation. This is such a reputable view of corporate responsibility and only heightens my respect for the Whole Foods corporation as well as John Mackey. The world needs more corporations such as Whole Foods in rode to be a better-rounded, sustainable world.
Barker, R. A. (1997). How can we train leaders if we do not know what leadership is? Human Relations, 50(4), 343-362. Retrieved from http://search.proquest.com/docview/231429531?accountid=458
Many people don’t realize that only five corporations control early 42 percent of combined USA grocery sales. These corporations stomp over the little man and out thousands of people out of jobs every year- around 20,000. By purchasing your produce from companies such as Walmart you are taking away the jobs of local farmers in your community. Unemployment has become a sad fate for most farmers since major corporations have gained control. The economy suffers when jobs are lost. By supporting locally grown products, you are also supporting the jobs and families of those farmers who produce your products. Also, you are supporting a better economy as more jobs are being made which leads to more money being recycled back into the system. I have now come to realize how important it is to purchase from local companies and farmer’s markets and believe that I will make my purchases there as much as I possibly can.
In the article “Can Whole Foods Serve Chicago Southside Soul?” Natalie Y. Moore reveals the plan on an opening of a nationwide organic grocery chain, Whole Foods, in Englewood, on Chicago’s South Side. Moore pulls out several negative tweets of individuals concerning the chance of success of Whole Foods. In a place where “it is easier to buy guns and drugs than food” (1), it is understandable that people are concerned about the success of a new store. However, according to Mari Gallagher, a well-known food deserts expert, the new Whole Foods in Englewood has the “potential to attract other quality retailers to Englewood, and at the same time support local grassroots efforts, such as urban agriculture
A new trend in the food world has stepped into the limelight, with strong opinions supporting each side. Locavorism involves consuming mostly locally grown and produced products, fresh, fragrant products packed with healthy nutrients. These American locavores have emerged within the past ten years, and the fad shows no sign of slowing down. Two of the main goals include an attempt to improve nutrition and to encourage sustainable food production. However, this movement has revealed some key issues and negative implications on communities, actually causing unfortunate effects on the modernized food industry. In this day and age, the United States’ industrialized agricultural world is unequipped to deal with the sudden shift in consumption towards
Decisions made by management to close two stores in high crime areas due to consistently losing money may seem beneficial to the company but that decision limits the community access to healthy food choices. Implementing limited amounts of health conscious and organic food after several years of customers request is unacceptable. Limiting the amounts of healthy and organic foods, Company Q is contributing to the community’s poor nutrition that increases the risk of obesity, diabetes, high blood pressure and high cholesterol. The local food banks request to receive day old products from Company Q was denied because management thinks it can become fraud by employees misusing products for personal usage. Company Q's current attitude towards social responsibility needs improvement. Company Q can make better decisions to become socially
The role that our U.S government plays in the food industry is an extremely impactful and important one. However, our government’s hand in the food industry may not be benefiting us in the way that we believe. The origin of our food products, the overall well-being of our food products, the financial status of our food products, and the regulations of our food products are all operated by our government, and as consumers of we are encouraged to place our trust in the system that is responsible for providing us with honest products, and in doing so we are often unknowingly let down.
For my individual assignment, I chose the company Whole Foods Market (WFM) which deals in selling products that are organic and fresh to its customers. WFM was founded by John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery in Austin, Texas where the original store opened in 1980 and consisted of a staff of only 19 people. WFM was founded because those four local businesspeople decided the natural foods industry was ready for a supermarket format and at that time there were less than half a dozen natural food supermarkets in the United States (http://www.wholefoodsmarket.com/company-info/whole-foods-market-history). For the rest of this paper, I will be going more in depth about the company’s history and background, why I chose this company, the organization’s environment, mission, culture, and if the company will change or needs to change.
Three-hundred and eighteen million people spread all across the nation, it’s nearly impossible to have locally grown food near all these people. Not everyone has the advantage of being close to a locally grown farmers market, so what do those people do? Drive hundreds of miles to the farmers market when there’s Wal-mart only ten miles away? Of course not, because although it may be fresher, “That doesn’t mean it’s necessary”(source B) People can get their food much cheaper nearby and not spend nearly as much gas.
Carroll’s global corporate social responsibility pyramid is a model that summarizes the responsibility of multinational corporations to ensure they are pursuing certain responsibilities correlating to philanthropic, ethical, legal, and economic aspects (Kreitner & Kinicki, 2013). On Carroll’s global corporate social responsibility pyramid, Whole Foods would be located on the Level 4. Level 4 focuses on economic responsibility, and Whole Food is infamous for their policies relating to economic responsibility. Whole Foods consistently works to provide their customers with organic food that is produced from humane and environmentally conscious vendors (Cheretis & Mujtaba, 2014). Whole Foods also works with their vendors to ensure they have a relationship
This case involves convergent technologies, a blending of traditional and cutting-edge business models and an alliance between an established pharmaceutical provider and a fledgling, Information Technology based, Drug marketing firm. Together, these two companies endeavored to create a patient education and prescription drug compliance program by deploying the deep well of customer data acquired by Giant Foods and the proprietary software of Elensys Care services, Inc. Elensys uses information from Giants pharmacy to send personalized letters, written on pharmacy letterhead but often paid for by pharmaceutical companies, that remind customers to refill prescriptions and pitch new products to
WFM is trying to develop a strategic plan to grow their business in an extremely competitive market. They are searching for ways to sustain their strong financial and cultural capabilities without losing revenue. Societal trends are shifting towards a healthier and environmental lifestyle, which is substantially affecting the food retail industry. To keep up with these societal trends, grocery stores are incorporating organic and healthier food products into the stores. This poses as a threat towards WFM, as their value proposition is substantially losing its worth. WFM must assess the company from an internal and external perspective in order to determine if expanding their locations into Canada will be worthwhile. There is a variety of risks that the company must assess prior to implementation. If WFM decides to expand through a slow process, there is a possibility of their competition dominating the industry. In addition, WFM must understand that this expansion will require extensive capital and a new logistic/distribution strategy. The plan that WFM decides to instill must keep their current organizational culture consistent.
In June of 2016 General Mills announced that they were going to approximately cut around 1,400 jobs worldwide because few products were in low demand with customers. Customers are demanding for more “real food”. They don’t want processed food instead they want more natural ingredients included in the products. General mills will close its facility in New Jersey which produces progress soup costing 370 jobs. Another General Mills facility in Ohio which produces dry mixes will lose another 180 workers. General Mills will also close facilities in overseas markets. In Brazil, they will shut down a facility which produces meals and snakes costing 420 jobs. Also in China, they will shut down a facility which is involved in producing of
It provides a strength in the area of the quality of products they are providing to their customers. On the other hand, this could prevent the company from quickly expanding their operations. Whole Foods Market also faces the threat of the rise of genetically modified organisms (GMO) products in the market. This threat could reduce the ability of Whole Foods Market to satisfy their own quality standards in providing organic products that have minimal or no GMO ingredients. Another issue that the Company has to deal with is the presence of global warming. Climate change has the potential to considerably alter or reduce the production of food and this threat is difficult to address or overcome. The core value of safe farming will need to expand internationally to establish the idea of safe eco-friendly hydroponic farms. With land resources limited, gaining complete support for hydroponic farms that may be smaller and able to grow a larger assortment of organic products would help the situation. Getting government support for low pollution farming and being able to show economic growth and employment opportunities for local
Introduction: By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. Whole Food’s stated mission statement was to “promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available.” Situational Analysis