Trait Theories - Blake and Mouton

Managerial Grid Model

It is a model that shows a range of five different leadership and management styles.

Concerns for people – y-axis
Concern for completing the job – x-axis

The axes range from 1-9, 1 being low and 9 being the highest in the degree of concern held by the manager.



CLICK HERE to see the grid in full scale.


Improvised Management Style (1,1)

Managers adopt a laissez-faire (managers who prefers to have minimal direct input into the work of the employees) approach and have little concern for either people or the task. Managers may use this style to avoid being held responsible for any mistakes.

Country Club Management Style (1,9)

Leaders adopting this style focus on people’s concerns and feelings whilst there is a low concern for completing the task. This creates a friendly-working environment.

Authority Obedience Management (9,1)

This is opposite of the ‘country club’ style in that there is utmost concern for production and low concern for the people. This is an autocratic style used by the managers whose priority is the completion of the task.

Team Management Style (9,9)

There is a high concern for both people and for the completion of the task. The managers adopting this style will involve employees in the decision-making, encourage teamwork and make employees feel valuable.

Middle-of-the-road Management Style (5,5)

Managers that adopt this style aim to balance the goals of a business and the needs of its workers. Managers are likely to make comprises in order to achieve acceptable performance. However, underperformance may occur due to an ineffective management style.

Conclusion:
The least effective management style is the ‘middle of the road’. Where, ‘team management’ is the ideal management style. Many leaders tend to switch between styles depending on the different situation.

Business Appraisal

Joanna Seraspi
Business Appraisal

Create an appraisal for an employee working as a teller in a bank.
You will need to include:

1.) Brief description of job.

Bank Tellers are usually workers in banks that are responsible in receiving and processing money when customers make a deposit towards their account. They also cash payroll checks, exchange foreign currency, receive loan payments and others. They are also responsible for the money distributed and the recording of the money coming out of the bank in lieu with the customer's account. He or she is also responsible for the validation of the deposits slips within the bank's system of database. Furthermore they are also responsible for the identification of the customer withdrawing money from the bank.

Bank Tellers are expected to be able to do at least the following:
- Transfer money between banks and to other accounts
- Deposit cheques and payout cash
- Resolving customer issues
- Business referrals (trust, insurance, lending, etc.)
- Communicate – customer facing
- Currency exchange and paying bills
- Problem solving and balancing their tills


2.) Goals and objectives for the employee set 6 months before, including appropriate rewards for achieving them.

Here are some of the goals and objectives the employee should achieve during the first few months of his/her work time in the bank:

• Exceed clients’ expectations when conducting a variety of transactions such as accepting deposits and payments, cashing checks, withdrawing cash, etc.
• Flexibility towards the job of being a clerk and other work areas in relation to being a teller.
• Reach the average 35-40 hours a week full-time work hours of a teller.
• Provides his or her time for an overtime per week or every two weeks during busy days especially during the mid-month and the end of the month when people are about to receive their salary from work.
• Ability to handle repetitive work load.
• Shows signs of courtesy towards customers and colleagues.
• Provide referrals to clients and other colleagues that’ll provide them in maximizing their benefits from the bank.
• Complete and be knowledgeable on operational activities (i.e. ATM balancing, vault security, night deposits, etc.) assigned by head teller.
• The teller processes between 20-25 customer transactions each hour with small mistakes through patience, alertness, motivation, and the ability to follow procedures.
• Sell other financial products and services that the bank offers.
• Efficiency in maintaining and balancing a cash drawer.
• Abide by the regulatory standards when securing all of the client information.

Here are possible rewards the employee might receive once these goals and objectives are met:

• Ability to become a head teller, who supervises the work of the tellers.
• Direct trainings for new tellers
• $20 per hour given to overtimes
• Ability to become an assistant manager in the bank.
• Ability to take college courses in banking offered by the banking industry.
• A raise in his/her salary.
• Full-time tellers generally receive a full range of benefits, from life and health insurance to pension benefits.
• Relocation to another country having the same bank branch with the same job expectations.

3.) An assessment of whether the employee achieved the targets; training needs for the future.

Employee Number: 768798

Employee 768798 in her 3 months of work with us has shown day to day continuous improvement in her work ethics towards her colleagues and tasks assigned to her. Positive comments from our clients’ survey response and remarks made by her department's head teller, shows her efficiency in handling their transactions. When asked to position for an immediate clerk position for a couple of hours in replacement for a sick employee during the end-of-the-month rush salary transactions, she has shown interest and motivation in undertaking the position for a couple of hours. Being a bank teller consists of time-consuming bank tasks that requires a few overtime from our employees. Employee 768798 reached the average 35-40 hours a week full-time work hours of a teller and undertook a few overtimes which helped in minimizing the workload of the bank. She has also reached one of the goals which require her to processes between 20-25 customer transactions each hour with small mistakes through patience, alertness, motivation, and the ability to follow procedures. She has followed the regulatory standards with our clients’ information and clearly earned their trust with personal information in lieu with their bank accounts.

Even though she has shown flexibility of being able to work under different situations, she has made a number of mistakes in documents provided to our clients when it comes to referrals towards what steps and type of account would help the client in maximizing the benefits the client might get from the bank. Bank tellers are expected to be knowledgeable beyond completing transactions, like dispersing financial information or even selling other financial products and services that the bank offers. Employee 768798 has not been able to reach this goal and was not able to sell or advertise things that the services the bank can provide our clients. She has also made a few errors in efficiency when maintaining and balancing a cash drawer at the end of the day.

Trainings may be needed for Employee 768798 regarding the strategies to undertake when talking with our clients. Though she may provide our clients with accurate calculations of their bank accounts and other transactions requiring documented files, she has a tendency to avoid conversation with our clients when asked questions, this is noticed by her head teller and maybe due to lack of people skills. Therefore trainings on improving informative conversations with our clients are needed. Other trainings may include a demonstration of operational activities such as vault security and night deposits. Technological updates are done on the bank security therefore Employee 768798 will be part of the compulsory training based on the technological updates done on our bank.


4.) Setting goals and objectives for the next 6 months.

Here are some of the goals and objectives the employee should achieve and aspire for during the next 6 months of his work time in the bank:

• Adhere to corporate merchandising standards and maintain a client-friendly and consistently appealing banking center.
• Specialization of more complex transactions such as real estate loan payments.
• Work area must promote the bank’s brand and minimize distractions and clutter.
• Implement policies, procedures, and programs designed to meet regulatory and corporate objectives.
• Address concerns of clients through active problem-solving and effective communication in internal and external situations.
• Protect the facility and clients information against criminal and fraudulent operations and unnecessary risk or exposure.
• Further exceed the client expectations in every bank interaction.
• Contributes information during meetings or exceeding the service goals of the bank.
• Further show flexibility in other work areas of the bank.
• Achieve positive responses from clients stating excellent verbal interactions from the employee.
• Uncover client needs and connect clients to bank products or other banking associates who can meet their needs.
• Maintain an in-depth understanding of security controls and responsibilities in the event of a robbery or other criminal activity.

Market Analysis - Boots

BOOTS

•Give a clear definition of the marketing function - what does it aim to do?
-Marketing is a management process so it requires people to take responsibility for decision-making. It involves identifying the needs and wants of customers. It involved anticipating or predicting what customers might want in the future. It seeks to satisfy the consumer and for the business, marketing is all about making a profit.
-The seven functions of marketing are: Distribution, Financing, Marketing Information Management, Pricing, Product/Service Management, Promotion and Selling.
-Its main aim is to satisfy their customer’s needs and wants while generating a profit for the firm.


•In the light of the definition above, how does market analysis help to meet the aims of the marketing function?
-A Market analysis is an investigation of a Market that is used to inform a firm's planning activities around the decision of: inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company.
-The following are the dimensions of a market analysis:
* Market size (current and future)
* Market growth rate
* Market profitability
* Industry cost structure
* Distribution channels
* Market trends
* Key success factors
-Market Analysis helps in deciding how to get their target market, achieve and gain a place in the market.


•What would you classify the company's market position to be? Justify your answer.
-Market Challenger. In the market for prescription medicines, Boots’s main competition comes from UniChem (who own Moss Pharmacies) and SuperDrug, which are pharmacies around the UK. A market challenger is a firm that seeks to adopt strategies to challenge market leader’s position.


•What are the key marketing objectives of the company?
-Boots' stated goal is to modernise, become more efficient and be more customer focused. They say that in the past, the business has been a steady performer, but has not 'punched its weight' given the strength of its brand.
-Boots's customer loyalty card, named 'Advantage', is strongly associated with their marketing campaigns. The Advantage card is held by nearly 15 million consumers. It is linked with half of all sales in Boots the Chemists.
-Therefore, the company used the marketing mix technique, where marketing mix is the balance of marketing techniques required for selling the product.
-Furthermore, their other objectives are revenue maximisation, consumer and product focus and to overcome competitors.


•In your view, does the marketing strategy adopted by the company appear to help them to meet these objectives?
-In response to the tougher trading conditions, Boots embarked on a programme of price discounting in the third and fourth quarters of 2003-04. A large 'three-for-two' gift promotion over Christmas 2003, helped to boost like-for-like sales by just over 4% during this period.
-In 2004, the company intends to continue its price discounting. The company aims to continue to invest in this area, planning to spend £5 million on price cuts in the fourth quarter of 2003-04.
-Few issues have risen over the company and the community of loyal customers for Boots are growing every year. Yes, as of now, Boots has 17% of the market share in Britain, behind UniChem with a 40% market share.


•What are the main market segments the company appears to be aiming at?
-Boots is a diversified company, which aims to sell their services and good among a wide range of consumers and customers, despite the age, religion, social class, ethnic grouping and lifestyle of the society. Boots is also a single segment – often selling a specialised product, exclusive goods, medicines, home care products and other necessities.


•What type of market structure does the company operate within - how do you think that might affect their marketing strategies?
-Boots operate in Britain within an oligopoly group. As of now, Boots’s main competition comes from UniChem (who own Moss Pharmacies) and SuperDrug, which are pharmacies around the UK. Boots did price skimming with their products as one of their marketing strategies to gain more customers. They also did market penetration where Booths choose to focus on selling existing products in existing markets, where an example is an introduction of the loyalty card Boots has implemented in their company.


•Try to find out what market share the company has in its market. What are the marketing implications of this information for the company?
-As of now, in Britain, Boots has 17% of the market share, behind UniChem with a 40% market share and SuperDrug. Which shows that Boots are behind the leading top firms, Boots is also the largest pharmaceutical wholesaler in the UK. This information will help Boots try to strive harder to be 2nd or along-side UniChem with their marketing strategies.

Is Wal-Mart Good for America?

Is Wal-Mart good for America?


Advantages
-Wal-Mart offers a wide range of consumer goods for the people of America.
-It offers these wide ranges of good with low prices.
-Wal-Mart is a huge retailer market where almost all of the basic needs of a person can be bought easily.
-Wal-Mart created thousands of new jobs and allowed millions of Americans to save money with the low-priced goods.
-It lowered export prices between the countries of US and China.
-Wal-Mart's single-minded focus on low costs with helping contain U.S. inflation.
-Wal-Mart's sales is at around $300 billion a year, are equal to 2.5% of U.S. gross domestic product.
-It creates competition in the US, if there’s no competition, there’s no business.
-Wal-Mart provides lower cost of goods therefore lowering the cost of living for millions of lower income Americans.
-Wal-Mart has improved American productivity both of its own, suppliers and competitors and those things help the American economy.
-It has brought significant retail outlets to many rural and small town regions of America, therefore creating development to that region.
-Wal-Mart has been a leader of the use of information technology and it has refined consumer oriented marketing and production through its extensive data on and knowledge of consumer behaviour.


Disadvantages
-Destroys small businesses in local areas.
-Unemployment rate in the US is increasing; therefore people won’t have jobs and won’t earn enough money to buy their necessities.
-Cutting costs, results in putting out businesses because of not agreeing to an increase in sale price, used in the raw materials needed in making the product. (ex: Rubbermaid)
-Low standard of living for employees in China.
-Poor treatment of employees.
-Wal-Mart has an opening price point strategy where low cost items are advertised.
-Chinese manufacturers are said to be dumping, where the Chinese are producing exports and selling them in the U.S. below the price in China, or below what it costs to manufacture and ship abroad.
-The United States is exporting raw materials to Third World countries and importing their manufactured products, which is a reversal of former economic relations.
-Wal-Mart paid its hourly associates an average of $9.64 per hour -- almost $10 less than the average hourly wage the California supermarket workers were receiving.
-Wal-Mart's detractors point to a trail of litigation over pinch-penny issues like unpaid overtime, and to a federal investigation into its use of poorly paid illegal immigrants as janitors
-A basic flaw in the United States-China trade relationship is that we can afford to buy Chinese products, but they cannot afford to buy ours.



Evaluation

-"Consumers get huge benefits from Wal-Mart as long as it has real competition," Mr. Reich said. "The worry is that it becomes so powerful that it can unfairly stifle competition." Despite the fact that consumers from America are able to get things they want for such a cheap price, the consequences are unimaginable for people struggling to make a living. Wal-Mart outsources jobs to poor countries where labour is cheap and supplies products below the margin price of some of the suppliers. Therefore forcing the companies to agree with a low cost sale price. Then Wal-Mart has an opening price point strategy where low cost items are advertised, where it all has got to do with the customer’s perception of the prices. People are losing their business to countries that produce mass production of products that some are just being dumped into the country. It all depends on the person’s knowledge about Wal-Mart. As for me, the right to run a business and the right and privilege to gain as much as for the sake of you business’s survival is vital in every situation, but the cost to do these kinds of acts, not only cause controversial issues for you business but you take people out of their businesses and you leave them unemployed and took their lifetime job away from them.

Source: http://www.pbs.org/wgbh/pages/frontline/shows/walmart/

Fuller and Gales Case Study

Fuller and Gales Case Study

1.Try to identify which of the reasons given above is relevant to the case that you are looking at. What evidence is there to support your choice?

Some reasons which are relevant to the Fuller and Gales Case are the following:

• Plugging a gap in the market – where the business may feel that its product portfolio is not sufficient to cater for different customer needs. Relevancy to the Fuller and Gale’s case is that the Fuller business wanted to acquire a business where Fuller’s and another company can complement Fuller’s product portfolio and in that, Gale’s is one choice that Fuller’s thought can help acquire consumers to their business. The Fuller firm’s range of beer seemed to be focused on winter sales whereas the Gale’s range of beer is given out during summer.

Fuller’s acquisition of Gales has been able to combine two or more products in the beer market. The beer market was made up of hundreds of small independent brewers each producing a distinct range of beer. The Fuller and Gales firm then gives them their advantage of getting more revenue from their sales, with the Fuller firm of range of beers given out during winter and the Gale’s range of beer given out during summer.

• Economies of scale – are the advantages of large scale production that result in lower cost per unit produced. A firm acquiring another increases its scale of operations; it has more labour and others. With the acquisition of Gales, Fuller then hopes that it will be able to use the benefits it gains from lower unit of costs to either boost up its profit margin to enable it to be able to compete with its rivals more effectively.

With the addition of 111 extra pubs to Fuller's existing 251 and helped profit at Fuller's Inns jumping to 65%. Gales has been able to boost up the firm’s profit margin and helped in the expansion of the business.

• Capacity – is the amount of output that a firm is capable of producing given its assets. Since the Gale firm is a local family brewery in Hampshire, UK. Small breweries are finding it increasingly difficult to survive. The benefit of Fuller’s acquisition of Gales is the fact that the name of the firm of Gale’s is still intact within the products of the Fuller firm.
Though the consequence of this is the conflict of some of the groups in the stakeholder groups, where an example is the Gales brewery which closed down in Hampshire and the production was transferred to the Fuller’s brewery and 21 people lost their jobs and 150 years of brewing tradition in the town of Hampshire disappeared.



2.Of the reasons that you have identified, which do you think is the most significant reason for the acquisition and why?

The most significant reason for the acquisition of Fuller of the Gale’s firm is that it is trying to pull a gap in the market. The range of beers that the Fuller Brewery has isn’t sufficient enough to sustain all of their customer’s needs. The Fuller Brewery then wants to acquire another business where it may be able to raise their profit margin and to be able to sustain almost every need of their customers. With the acquisition of the Gales firm, the usage of the Fuller firm’s range of beers which are given out during winter and the Gale’s range of beer given out during summer has benefited them well and almost gained all of the profits from two of the long and important seasons of the year. Besides the fact that the Fuller firm wanted to pull a gap in the market but they also want to gain a high spot in the market.

3.Discuss the extent of the impact on the different stakeholders of the business that you have selected.

• Employees – when the Gales brewery in Horndean, Hampshire, was closed down in March 2006 and production transferred to Fuller's brewery in Chiswick in West London. 21 people lost their jobs and 150 years of brewing tradition in the town disappeared. The employees from the Gales brewery became affected by the acquisition of Fuller of Gales. The 21 people who lost their job are locals working for the business, and the people who took away their job are people who own big businesses.

• Customers – the customers will have doubts about the closure of the brewery and the move to Chiswick on whether it will affect the taste of beer, whether the price of the beer will raise or fall, and whether it means that Gale’s beers are easier to access or become less widespread.

• The local community - Pressure groups like the Campaign for Real Ale (CAMRA) were not convinced. Other cases where breweries had been acquired by larger brewers had not only seen the traditional breweries closed down but also the beers they produced discontinued. About 5,000 people had signed a petition calling for the 158-year-old brewery to be kept open.

• Shareholders – the shareholders of the Fuller’s firm would be happy with the excellent raise of profit they are getting with the acquisition of Gales. Fuller reported that like for like sales for the estate, including Gale's pubs, grew 4.3 percent for the six-month period. Fuller saw a profit increase of 65 percent to 13.8 million pounds for its 362 pubs and hotels as it invested 6.6 million pounds in its estate during the first half. But probably not so much with Gale’s, since Gale’s is a local family-run brewer, where I doubt that there are even shareholders.

Jessops Case Study

Task 1:

Build up a picture of the business and to understand where it has come from.

Jessops is the largest photographic retailer in the UK. It was founded in 1935, so a lot has changed since then, but one thing has remained constant: the exceptionally high standard of customer service. In fact, recent research found that 94% of customers rated the service they received as excellent (67%) or good (27%).

That's been the cornerstone of the Company's success, and its phenomenal growth proves that the approach is working. The store portfolio now includes over 230 stores nationwide and the whole group turned over £350 million in the year to 30 September 2006.

The emphasis in store has always been on the customer, now more so than ever. As the popularity of digital imaging continues to grow, the Company's Spacemix system lays out stores with four distinct areas to more accurately reflect customer demand:

* Camera hardware, which includes cameras, camcorders and camera phones
* Accessories, where customers can find many of the extras they might need for their equipment
* Digital Photo centre, which gives every customer a comprehensive range of digital photo printing options, plus enough kiosks to virtually eliminate waiting. It also includes printers and scanners
* Customer Service, an area where the customer can get any help they might need. Of course, help is on hand throughout the store but this area is dedicated solely to service.

Whatever they're looking for, customers have a huge range of cameras, camcorders, camera phones and accessories to choose from. And if they can't find what they need in store, they can have it ordered.


Task 2 (A):

What does it mean for a company to 'float' on the Stock Exchange?

Flotation refers to the act of a previously private company to be publicly traded by issuing shares and soliciting the public to purchase them (in business terms, also called as “going public”). By this process, the company engages in an IPO or Initial Public Offering, which consists of its preliminary issuance of stocks and bonds available to the investing public with the aim of intensifying their resource funding.


How does this help a firm achieve growth?

Being listed in the Stock Exchange gives the company/firm several benefits such as:
- Tax Benefit
If your company is listed it pays less tax.
- Outreach to investors for future finance need
By doing an IPO (Initial Pubic Offering), the company may obtain sufficient funds to finance their projects for the future. This is because it is now publicly traded which means that the company’s ownership or interest is now made available to investors in the form of stocks and bonds. Raising funds and acquisition of additional assets will now prove to be an easier task for the company since its stakeholders now consist of investors who definitely have a share of the company’s interest.
- Increased visibility
Since the company is now publicly traded, it is most likely and reasonable to say that it will be regularly advertised in the most common means of communication. This is for the reason that strengthening the visibility of the company will enable it to attract potential investors who may provide additional resources for the firm.
- Liquidity
Listing on the Exchange generally increases the liquidity of the listed securities. Entrepreneurs may love to develop one project successfully, run it in a transparent way and then change it into cash when needed for the sake of developing another one.
- Attract Foreign Investment
Being a listed company can help attract foreign investment in the firm, opening up opportunities for business expansion and modernization.
- Prestige
Being listed in the stock exchange raises the prestige of a company immeasurably. A listed company presents a positive public image. This image plays an important role in boosting the company’s credibility.

Task 2 (B):

What process would Jessops have had to follow in preparing for its flotation on the stock market?
During flotation, the following steps are advised to be followed for more efficiency and effectiveness:
1. Choose the right advisers to guide you through the process. Advisers give you a glimpse of future scenarios which may include possible setbacks and advantages. Choosing the right advisers proves itself to be a critical part of the decision to do public since failure to recognize threats and inability to adapt to such will only bring business failure.
2. Make sure your accounts and legal structure comply with the rules and regulations of the market you're joining.
3. Nominate someone in the company - typically the finance director - to take responsibility for the process. The finance director is probably the most competent person in the company to take charge of the flotation process since he is highly knowledgeable of the financial status of the company as well as the sources of its fund, outstanding debts, solvency, liquidity and profitability figures. Having him take responsibility will enable the company to move in the most objective manner.
4. Decide what type of flotation you want:
An introduction is the easiest and cheapest option, and is used if enough of a company is already in public hands - perhaps for a move from Alternative Investment Market to the Main Market, for example.
In a private placement your shares are offered to selected institutional investors. This allows you to raise capital with lower costs - but the reduced shareholder base could mean a reduced market in your shares further down the line.
In an initial public offer (IPO) shares are offered to the public and investing institutions. This can help you raise more capital but is the most expensive route to market.
5. Prepare a prospectus which will contain the key information about the company and the share offering. Remember that you're legally responsible for the accuracy of any information within this document. This will prove the credibility of the company to its target investors and so it follows that information must be true and reliable.


Task 3:

What has happened to Jessops share price since flotation?

Jessop’s share prices experienced a boost in sales after its flotation probably because of the increasing demand for digital cameras. However, after some time, the company experienced a decline in performance as evidenced by their issuance of profits warning. This can be attributed to following problems they may have encountered due to their decision to float in the market (listed in Task 4).

Task 4:

What problems are likely to have faced Jessops in taking this step in its growth?

Assess the measures which the company could have taken to avoid these problems.
1. The most apparent reason is that when a company decides to float in the market, it will probably become vulnerable to market fluctuations beyond the company’s control. Unlike a private company, publicly traded corporations’ worth is dictated by current market trends. If, for example, the demand for digital cameras decreases, then the company’s worth also decreases relative to that demand, therefore this particular decrease in their worth (or the perceived value of the company) shall make their company less attractive to investors since the pubic may not see their operations profitable given the scenario.
2. Another problem that could have faced Jessops is the “internal control” of management. When a company decides to issue stocks or bonds for ownership in the interest of the company, stockholders are likely to interfere in the company operations to protect the investment they have allocated in the firm. This interference may have caused conflict on which decision to follow since each stockholder has their own personal interest. Management control is the primary issue when a company goes into flotation since the previously private company may give up some management control to the point that it might risk being taken over. This change in control adversely affects the company since the goals and objectives will be re-aligned.
3. The cost of flotation could have been substantial to the company that it’s enough to affect their operations. Their expenses regarding the flotation process could have re-aligned their financial structure in a manner they have not predicted before the flotation considering that the expenses a firm encounters during flotation doesn’t end with the public offering since it also entails added professional costs to hire competent financial advisers and top management executives to oversee their company’s financial status.
4. Public companies will have to comply with additional requirements which may have been a burden for Jessops. This would include a minimum financial requirement, legal requirements and other documentations which can be a big challenge for a company that is still in thed beginning phases of being a publicly traded firm. Failure to comply with regulatory requirements may even cause a company to file for bankruptcy.
5. Employee Relations can also be an issue. Since flotation involves a change in management style, employees may be demotivated with the people who are currently running their operations.
6. Business Managers may have been distracted with the flotation process that they find it hard to deal with investors afterwards. The flotation process may have taken a lot of their focus that they failed to bring in additional resources to the company by attracting investors who can finance their projects. This lack of focus will certainly have its repercussions in the overall standing of the company since a publicly traded company heavily relies on their investors to gain sufficient funding resources.

Business Ethics and Social Responsibility

Business Ethics and Social Responsibility
Oct. 15, 2008

Question:
Suppose you've just received $100 for your birthday. You go to small, local convenience store to buy a soda. You pay for it with a $20 bill. The customer in line behind you is harassing the clerk as she rings up your purchase and gives you your change. You're out the door by the time you realize that, while distracted by the other customer, the clerk mistakenly gave you your $20 back-as well as the proper change for your purchase.

What would happen if you walked away with the money? You're just outside the store, after all. You could just as easily walk back inside as you could continue on your way. Also, you can still have $100 in your pocket. Whether or not you return the money, you're not hurting for cash. What might happen to the clerk when her manager discovers the $20 missing from her cash drawer? Couldn't she lose her job or even be accused of theft? What would happen to this business-or any business- if everyone took advantage of situations like this? What would you do? Explain.

Source: The McGraw-Hill Companies, Inc; Introduction to Business; Chapter 4; p. 27



Answer:
If I walked away with the money, there's a possibility that the clerk might get accused of theft or be given a warning by her manager. The manager may then have trust issues with the clerk. If situations like this arises most of the time, and it's customers are taking advantage of it, the business can lose alot of money without even noticing it until it's too late to gain it back.

What would I do in this kind of situation?

I would lok at the problem..which is the clerk has given me too much change..
I would discover alternative actions..
Decide who might be affected..obviously the relationship of the clerk and her manager..and the clerk herself.
List the probable effects of the alternatives...
Then select the best alternative...

So...

I would go back into the shop and return the money back and tell her that she's given me far too much change for the soda I purchased. If I kept the money, it would be like stealing something from someone, and guilt isn't one of the things I would want to be bothered about. Hopefully, when I come back in the store and return the money, the clerk might of course try to be careful next time in returning the change of their customers to avoid loss in their business and to avoid tainting the relationship and trust between the manager and the employee. Not everyone can be honest, and specially if we're talking about money, there's only a few people who are kind enough to return this kinds of things. So I hope the clerk will be careful next time when it comes to dealing with money...