EST1 – Subdomain 310.2
Task 310.2.1-05
This paper will address the areas of improvement that Company Q can implement to
improve their attitude toward social responsibility. Company Q is described as a small local
grocery store chain with several locations in metropolitan areas. Recently, Company Q
closed a couple of it's stores that were located in higher-crime-rate neighborhoods citing a
consistent loss of revenue. Additionally, Company Q does not participate in donating day-old
products to local community food banks. Management explains that day-old products are
instead thrown away. The explanation provided for this is that management fears that
donating food may heighten their risk of losing revenue to fraud and employee theft. Lastly,
it is explained that Company Q – after years of customer requests – has started to offer it's
customers a very limited selection of high margin, health conscious and organic products.
Scores of small and large businesses operate in metropolitan areas. Chain businesses
that operate in multiple areas should target each particular customer base individually – what
sells very well in one area may not sell at all in another. Because economic, cultural, and
lifestyle differences exist from one neighborhood to the next, a business that focuses on it's
local customer's needs will be more successful. I feel that Company Q should reconsider the
closing of their stores in higher-crime-rate neighborhoods. A grocery store is a for profit
business, however it also provides a service to the community. Everyone has to buy
groceries. By finding out what items customers in these areas want and need, Company Q
can stock items that will consistently sell. By operating these neighborhood stores, stocked
with what the customers will predictably buy, Company