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Levi Strauss: Economic Efficiency and Organizational Culture

Essay Instructions:

Using 2 scholarly sources analyze and respond to these 4 questions.
1. Knowing that its managers are willing to trade off some economic efficiency to operate according to their collective view of what is “ethical,” would you buy shares of stock in this company? Why, or why not?
2. Managers at Levi Strauss believe that they run an ethical company, but some critics view their liberal employment and benefits policies as immoral. These critics object to the policies because they’re inconsistent with the critics’ religious views. Analyze the pros and cons of an organizational culture that includes socially liberal employment policies that are viewed by some members of society (including potential employees and potential customers) as immoral.
3. Suppose you are looking for a new job. You have two offers for similar positions: one at Nike and one at Levi Strauss. Both organizations have indicated that they would like you to work for a year in one of their offshore production plants somewhere in Southeast Asia. The two salary offers are very similar, and in both companies, you would be eligible for an annual bonus. The bonus would be based largely on the productivity of the production plant where you will be located. Which offer would you accept? Explain why.
4. In the mid-1990s, sales began declining and the company had to move many operations abroad, dramatically reducing its U.S. workforce. Levis Strauss is now a global company with three major divisions around the world (visit levistrauss.com). Do you think what has happened at Levis Strauss is likely to happen with more U.S. companies? What are the implications of this for you?

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Levi Strauss Case Study
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Levi Strauss Case Study
1 There is a paradox in this situation. The company trades off its economic efficiency to operate ethically, and economic efficiency is one of the significant factors affecting stock prices. On the other hand, the company could decide to take a different direction in its operations. The economic efficiency aspect may not be a priority in its activities. Eventually, the organization may choose to shut some of its operations, and this idea iterates to laying off some of its employees. This paradox makes it hard for anyone to judge the situation. However, I would still buy shares from the organization because essential factors like image, reputation, and responsibility must be considered before making significant decisions. I believe that the ethical view adopted is vital and will help the company realize long-term benefits. While the company may make some immediate losses, the moral view will positively impact essential aspects, including the stock price, brand, and profitability, resulting in massive prolonged benefits.
2 Having an organizational culture that includes liberal employment policies has multiple advantages and disadvantages. To begin with, liberal employment policies make the hiring process of employees less risky and costly for the organization (Murphy & Turner, 2017). Next, the idea enhances flexibility in the reassigning of job tasks in the working environment. However, liberal employment policies result in various disadvantages. It leads to high levels of unemployment and poverty (Murphy & Turner, 2017). Therefore, while having a culture with liberal employment policies enhances an attractive environment for work, it harms some populations by leaving them jobless and stuck in poverty. The critics of organizations working with these policies may hesitate to apply in such settings and prefer working with other organizations with d...
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