Business Finance – Management

Learning Activity #1

What is a Leader and the Leadership Role

This week we will be examining the interaction between the employee and the leadership of the company. With this in mind, how would you define the term “leader” and what makes a good leader in your view? What do you believe is a leader’s role in shaping the ethical environment of a company and what are some ways in which this role may be carried out?

Learning Activity #2

Baby Needs a New Crib

An on-line retailer that sells home and children’s items, such as children’s furniture, clothing, and toys, was seeking a way to reach a new audience and stop the declining sales and revenue trends it was suffering. A market research firm hired by the retailer identified a new but potentially risky market: lower-income single parents. The new market seemed attractive because of the large number of single parents, but most of these households were severely constrained in terms of their monetary resources.

The research firm proposed that the retailer offer a generous credit policy that would allow consumers to purchase up to $500 worth of merchandise on credit without a credit check, provided they signed up for direct payment of their credit account from a checking account. Because these were high-risk consumers, the credit accounts would carry extremely high interest rates. The research firm believed that even with losses, enough accounts would be paid off to make the venture extremely profitable for the on-line retailer.

Should the retailer pursue this new marketing strategy? Why or why not?