Migros Company Visit Introduction Number Research Proposal

Length: 4 pages Sources: 2 Subject: Business Type: Research Proposal Paper: #32313504 Related Topics: Supermarket, Modest Proposal, Philippines, A Modest Proposal
Excerpt from Research Proposal :

37). Indeed, the company's emphasis on so-called "social clauses" (discussed further below) has been at the forefront of its corporate philosophy: "Socially, ecologically, and ethically produced products were key aspects of Migros' product offering. Riedener knows that Migros benefited from a unique position -- and he wants to make sure that Migros defends it from both new and old competitors" (Reinhardt et al., p. 37).

Current and past issues.

The company faces some profound challenges in its efforts to grow its business in the future but has continued its corporate philosophy of socially responsible corporate citizenship (Reinhardt, Dessain, & Sjoman, 2005). The company's management has been examining ways to assist emerging economies in the countries where it competes or intends to expand to facilitate it future growth while helping improve the quality of life for the residents in these regions. In this regard, Sternquist and Kacker note that, "Many Eastern European countries today are in dire need of basic down-to-earth retailing know-how, not necessarily the sophistication offered by world class chains of specialty stores like IKEA and Benetton. Migros, for example, was involved in 1990 in a project that sought to improve the potato storage capabilities in Sosnogorsk in Russia. With simple measures and little investment, the coop played a significant role in this part of the world. It helped reduce the storage losses to the extent of 30%, something that benefited people immediately and directly" (p. 187). It is reasonable to suggest that these types of corporate initiatives will go a long way in establishing good will among current and potential future customers.

Not all of the company's social improvement initiatives have experienced this level of success, though. As Brysk (2002) points out, "A prime example of a relatively successful 'social clause' experiment,...

...

108). The clause in question stipulated that, "The [Filipino] supplier hereby guarantees Migros that the production methods for the workers, in terms of social as well as economic conditions, are above average" (quoted in Brysk at p. 108). In support of this initiative, Migros maintained that "prices have to tell the truth and reflect the ecological and social costs incurred in production, otherwise someone else has to pay later, usually the innocent public through the insurance system, the public welfare system, and the international community" (quoted in Brysk at p. 108). As a direct consequence of this social clause initiative, though, the price of pineapples grown in the Philippines increased 15-20% beyond those being grown in Thailand, Malaysia, or South African and Thailand's exports of pineapples increased 250% as a result (Brysk). This author adds that, "More significantly, Migros itself had to offer a second, discounted line of pineapples without the favorable 'social label' to cater to buyers who did not really care. Happily, Migros reported, shoppers continued to purchase the more expensive 'labeled' goods" (Brysk, p. 108).

Conclusion and Lessons Learned

The research showed that in its 85-year history, Migros has been transformed from its modest beginnings selling basic food and non-food products from the back of Model T. trucks to become the largest employer in Switzerland and one of the largest companies in the world. Retail managers of all types could learn much from this company and its focus on shortening the supply chain as much as possible to bring the products it offers to its customers as quickly and efficiently as possible. Likewise, other retailers could probably stand a healthy dose of the type of corporate citizenship that has fueled Migros' growth over the years as well. It is unclear, though, whether such a socially responsible approach to doing business is viable in an increasingly competitive globalized marketplace for retailers competing in other countries, but it is clear that Migros has made it work to its advantage and it is reasonable to conclude that this company will maintain this course in the future.

References

About Migros. (2009). Migros. [Online]. Available: http://www.migros.ch/DE/.

Brysk, a. (2002). Globalization and human rights. Berkeley, CA: University of California Press.

Reinhardt, F.L., Dessain, V. & Sjoman, a. (2005, December 14). Migros case study. Harvard Business Publishing.

Sternquist, B. & Kacker,…

Sources Used in Documents:

References

About Migros. (2009). Migros. [Online]. Available: http://www.migros.ch/DE/.

Brysk, a. (2002). Globalization and human rights. Berkeley, CA: University of California Press.

Reinhardt, F.L., Dessain, V. & Sjoman, a. (2005, December 14). Migros case study. Harvard Business Publishing.

Sternquist, B. & Kacker, M. (1999). European retailing's vanishing borders. Westport, CT: Quorum Books.


Cite this Document:

"Migros Company Visit Introduction Number" (2009, March 17) Retrieved September 19, 2021, from
https://www.paperdue.com/essay/migros-company-visit-introduction-number-23870

"Migros Company Visit Introduction Number" 17 March 2009. Web.19 September. 2021. <
https://www.paperdue.com/essay/migros-company-visit-introduction-number-23870>

"Migros Company Visit Introduction Number", 17 March 2009, Accessed.19 September. 2021,
https://www.paperdue.com/essay/migros-company-visit-introduction-number-23870

Purpose of Paperdue.com

The documents we provide are to be used as a sample, template, outline, guideline in helping you write your own paper, not to be used for academic credit. All users must abide by our "Student Honor Code" or you will be restricted access to our website.

Related Documents
IKEA Company Has a Global Supply Chain
Words: 968 Length: 3 Pages Topic: Business Paper #: 48336124

IKEA Company has a global supply chain with sales in over 250 own stores in around 24 countries across the globe and 32 outside franchises in 16 countries. The company's stores are supplied directly from the 1350 suppliers or through 31 distribution centers in over 50 countries. As a result, the firm's supply chain has an international spread comprising of sales and purchases across major regions in the world. Since

IKEA the SWOT Analysis Framework
Words: 1281 Length: 4 Pages Topic: Business Paper #: 60444243

The company sees tremendous potential in a number of global markets and intends to pursue geographic diversification as the primary means of growth. It is aided by globalization, which has allowed it to also diversify its supply chain. The ability of IKEA to enter and exit markets around the world, both as retailer and purchaser, has been facilitated by globalization. The eradication of trade barriers in particular has allowed

IKEA's Mission Is to Provide
Words: 887 Length: 3 Pages Topic: Business Paper #: 75151220

The stylishly designed, low cost furniture is appreciated by many customers. Even in the recession, IKEA was still able to maintain sales growth. IKEA has used word-of-mouth as their marketing strategy, and customer loyalty is the major component of IKEA's success. Not every furniture company has the ability or money to develop smartphone apps. However, IKEA is able to increase its sales through e-commerce, which also increases company's accessibility and brand

IKEA in the U.S.A. How 'Culture' in
Words: 898 Length: 2 Pages Topic: Business Paper #: 18982520

IKEA in the U.S.A. How 'culture' in the U.S. may impact upon IKEA company and brand People at IKEA are well-known for living on a slender means, working hard, and being innovative to maximize the use of limited resources. At IKEA, wasting resources is a grave sin. This has become a characteristic of the entire company. This culture of doing things is at the core of the company's approach of keeping low

IKEA Was Founded in the 1940s As
Words: 951 Length: 3 Pages Topic: Business Paper #: 60744906

IKEA was founded in the 1940s as a home furnishings company and quickly expanded into its current form. The companies mission is to "offer home furnishing products of good function and design at prices much lower than competitors by using simple cost-cutting solutions that do not affect the quality of the products" (Ikea.com, 2011). The company operates on a franchise model. There are IKEA stores in 41 countries around the

IKEA Invading America
Words: 894 Length: 3 Pages Topic: Business Paper #: 97764177

IKEA, one of the largest furniture retailers worldwide. This text provides a synopsis of the article and commentary on the company's product strategy and product range. IKEA was established in 1943 in Sweden by Ingvar Kamprad, originally as a mail order business. Five years after inception, Kamprad ventured into the home furnishing business, subsequently opening the first furniture showroom in 1949. At the time, the showroom earned recognition as the