In the clothing industry, keeping input and distribution costs under control are an important driver for financial returns. In the last few years, these costs have been rising. Profitability in the sector is under pressure. To address profitability concerns, the board of directors of Patagonia (Patagonia.com) are considering two proposals   

 

Proposal 1:  reduce product quality by reducing the quality of inputs  

Proposal 2 - maintain product quality but reduce the range of CSR initiatives it supports 

 

The board of directors are sure, however, there may be other options.

What theory should be taken into account when assessing the two proposals?

Answer rating: 100% (QA)

There are several theories that the board of directors can take into account when deciding between t... View the full answer