MGT 402 Discussion Board

MGT 402 WK 1 Discussion Board
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Merchandise return is common in most organizations. This is the process of a customer taking merchandise that was previously purchased back to the retailer in order to receive a refund, exchange for another item or repair based on whether the product has a warranty or not. Organizations that deal with electric and electronic products experience the most cases of merchandise returns. These organizations have a wider market share due to their ability to guarantee uninterrupted usage of a product for a certain period of time (Hess & Mayhew, 1997). However, excessive merchandise returns can pose a threat to the operations of an organization. If an organization has a reputation of frequent merchandise returns, consumers might shy away from buying their products under the assumption that they are defective.
In order to maintain control of returned merchandise, such organizations should have units that check the integrity of items of sale before they leave the organization. In order to effectively carry out merchandise return incidents, units in an organization have to work together (Campion, Papper & Medseker, 1996). For instance, in an electronics shop, there is a unit that is responsible for checking whether items for sale are faulty. If this unit works effectively, and the unit in charge of packaging and transport often damages the goods when transporting them to the customers, it would be hard to defend either one of them upon return of these items.
Where there are interdependencies within units of an organization, inferior work of one unit can negatively affect the image of the company as a whole. Merchandise returns if not well monitored, may lead to huge losses in an organization (Yuan & Cheung, 1998). Work units in an organization have to work together especially where the interdependence between these units is critical. Competitive advantage can only be achieved by efficiency between units of an organization (Victor & Blackburn, 1987). The way an organization manages merchandise returns depends on the effectiveness of its units.
References:
Yuan, X. M., & Cheung, K. L. (1998). Modeling returns of...