IM No.

INTL 1-1STSEM-2020-2021
Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE

Name: CABADING, DEXTER O. Score:____________

Section: BSBA-FM 2A Date: FEB. 11, 202

VI. LEARNING ACTIVITIES

MODULE 4

Case Study: Knights Apparel

Case Discussion Questions

1. The case states that higher wage rates at the Alta Gracia factory have raised the cost per item by
20 percent. Can you see any way in which the philosophy with regard to pay and working conditions
at Alta Gracia might lower costs in the long run?
• To be one of the greatest distributors and maintain a flawless competition, Knights Apparel must
continue to provide the best, fastest, and cheapest service possible. It's not easy to keep costs and
quality in check. It's feasible, but it's not always possible to get the best price and profit. If the
company maintains its high standards, performance waste will be decreased, and earnings will be
increased in the long run. Operating officiencies may be used to recuperate some of the greater
costs of Alta Gracia's employment arrangement. Employees are held accountable for their work
quality and productivity, removing at least one layer of supervision and lowering waste and product
defects expenses. Turnover has been exceptionally low, and as has absenteeism, thereby reducing
costs of training and backup labor

2. Do you think Joseph Bozich would have been able to try the Alta Gracia experiment if Knights
Apparel was a publicly traded enterprise?
• The CEO's dream could be realized if Knights Apparel became a publicly traded company coming
to pass. Most people believe that because it is a public corporation, the majority of stakeholders are
only shareholders. This is not the case, since they were focused on making the most money
possible. They are concerned about their profits, but The majority of them, especially in today's
world, are concerned with a better community's return. A higher quality of life and less troubles in
the long run Aside from worrying about obtaining market share, which seemed pointless after what
I'd been through, I wanted to use my business to make a difference in the lives of the people I
worked with on a daily basis. I saw the people who make our products and where they live in third-
world nations, and it made me think about what it would be like to suffer through a tragedy without
hope. How can you use your business to make a life-changing difference in the lives of the people
you work with? I thought to myself. Creating hope for a brighter future is what Alta Gracia is all
about, and that’s exactly what it's all about. As previously noted, Bozich indicated at the Penn State
Forum that he wanted to do something more than just sell clothes, something that might make a
positive difference in people’s lives, and I’m sure a lot of CEOs and stockholders agree.

3. What do you think might stand in the way of Alta Gracia becoming successful? What strategies
might Bozich adopt to minimize the risk of failure while still adhering to his high ethical standards?
• "Knights Apparel's Mission is to strive every day to be the preferred supplier of licensed sports
apparel to our retail customers and licensors by providing the industry's best value, innovative
product, and service." (Knights Apparel's website) It's hard to fail with a mission like that, but it's not
always easy to succeed. It's critical to deal with ethics, and you'll want to make sure your
competitors do as well. Bozich a solid method to keep up with the ethical standards while also
improving the sales of a firm. It's critical to stay focused and understand how to function in both
internal and external situations. It's critical to communicate the company's mission, vision, and
goals, as well as what they're doing to improve the lives of workers while also improving product
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purposes only and not for commercial distribution.”

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 IM No. INTL 1-1STSEM-2020-2021
Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE

quality. It's also critical to communicate to the market how different they are from other apparel
companies that continue to work in sweatshops, focusing on the ethical world. Every day, more and
more people are recognizing the value of being ethical in their work and personal life.

4. Alta Gracia serves a niche market, colleges, where there is higher awareness of ethical issues in
apparel production. Do you think the strategy would work if the company tried to sell to the mass
market through retailers such as Walmart?
• I do feel that the method would be effective in today's world. A mass market's customers are:
Every day, we are becoming more aware of ethical issues and attempting to develop healthier
practices. as well as making purchases, all in the name of preserving the environment as well as
human rights. In general, sales tend to be higher in the United States. Once the price of the product
does not effect the consumer's budget, it will rise. And I believe, It's vital to put a sign on the goods
letting people know that it's made in that area. Protecting the workers and everything else in a safe
atmosphere. According to Wikipedia, “niche marketing” is a type of marketing in which the target
market is “When a company focuses on a subset of a wider market,
Clients have specific needs and preferences in a market “, As a matter of fact, the target market for
Knights Apparel is Students they are their target audience, followed by sports fans in general. When
a product is targeted at a certain market sector, the company benefits from less competition and a
clear focus; it is also easier to develop expert skills and knowledge; and, most importantly,
customers are more loyal.

5. Is it ethical for apparel companies to move production around the world in pursuit of the lowest
possible labor costs, even if that means paying wage rates that are below a living wage? What if the
alternative is not to produce at all?
• Finding a nation where the corporation can produce for less money is ethical and completely valid,
in my opinion. At the same time, I believe it is unethical and unjust to pay a wage that is less than
the minimum wage. In order to lower its costs by finding a country with low taxes and labor costs, a
company should at the very least try to work with the population, community, and workers to ensure
that they have a decent life and a decent wage, while also providing them with a safe place to work,
legal rights, and human rights. According to the website of Alta Garcia. A WRC tag is attached to
every Alta Gracia product, verifying that it meets the requirements of the World Rugby
Championships. According to the website of Alta Garcia. “The WRC tag on every Alta Gracia
product confirms that it was made by workers who are paid a living wage, have a union to represent
them, and are treated fairly when they arrive to work.” This is extremely important to consumers
nowadays. With the Alta Garcia, Knights Apparel was a pioneer in paying a decent wage and
demonstrating full regard for workers’ rights, and once a firm adopts the same approach, it is more
likely to relocate to other locations in search of the lowest labor costs.

6. To what extent does the Alta Gracia experiment suggest that good ethics are also good business
practice?
• Knights' CEO, Joseph Bozich, has always been bullish about establishing a business that is both
ethical and profitable. "We're attempting to illustrate that doing good and doing business are not
mutually exclusive," he remarked in a New York Times article. The portion below, taken from the
company's website, shows that the company's strategy is clearly effective, and for a variety of
reasons. However, the fundamental reason for the company's success, in my opinion, is that it
pursues excellent ethics regardless of market or price.

VIII. ASSIGNMENT
MODULE 4

1. What is the implication of ethics in international businesses?

• In international business, the purpose of ethics is to build a reputation for a company's ethical and
responsible business operations in both its own country and abroad. As a result, a more fair and

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purposes only and not for commercial distribution.”

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 IM No. INTL 1-1STSEM-2020-2021
Republic of the Philippines
NUEVA VIZCAYA STATE UNIVERSITY
Bayombong, Nueva Vizcaya
INSTRUCTIONAL MODULE

principled marketplace emerges, bolstered by alliances between companies with strong ethical
standards.

2. Why do employees in international businesses experienced ethical dilemmas?

3. Discuss briefly the determinants of ethical behavior.

• There are four types of Determinants of Ethical Behavior first is Personal Ethics these are the things
that are typically taught to us. For example it is wrong to cheat in a class and lie about something. And
that it is right to behave with integrity and honor and that we should stand up for what we believed to be
right and true. Second, Decision-Making Processes, it is the unethical behavior of businesspeople who
simply fail to ask “Is this decision or action ethical?” they are being straightforward about what the
perceived to be a business decision, forgetting that it also comes with an important ethical dimension.
Third, Organization Culture, it refers to the values and norms that are shared among employees of a
specific organization. Fourth, Unrealistic Performance Expectations, it is viewed as a way to hit
challenging performance goals. Fifth, Leadership, it helps establish the culture of an organization they
are the one who set examples that the others will follow and last and foremost, Societal Culture, have
an impact on the prosperity of people and organizations, to be have in an unethical manner.

4. Discuss Strawmen
• Straw men approaches to business ethics are raised by business ethics scholars primarily to
demonstrate that they offer inappropriate guidelines for ethical decision making in a multinational
enterprise. Four such approaches to business ethics are commonly discussed in the literature. These
approaches can be characterized as the Friedman doctrine, cultural relativism, the righteous moralist,
and the naïve immoralist.

5. Discuss Utilitarian and Kantian Ethics.

• According to utilitarian ethics, the moral value of actions or The results of behaviors are what
determines them. The goal of utilitarianism is to maximize the good while minimizing the bad. "An oil
company considering drilling in an Alaskan wildlife preserve must weigh the economic benefits of
increased oil production and job creation against the costs of environmental degradation in a fragile
ecosystem." "Assume the government decides to screen people for HIV virus and deny insurance
coverage to those who are HIV positive in order to keep health insurance costs down." This move may
assist a large number of individuals by lowering health-care costs, but it is unjust since it unfairly
discriminates against a small number of people (HIV Positive)

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purposes only and not for commercial distribution.”

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