Abc Company Case Study

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Name: Vu Ho
ID: 8000220
WRITING ASSIGNMENT 2
FACTS
ABC company plans to build an adult entertainment retail store on their recently purchased land. According to ABC strategy, ABC will publicly announce this project in the next month which negatively affects the areas. Therefore, the property values around the site are forecasted to be dropped to new certain low values. To secure ABC profit, ABC prohibits all employees not leaking any information about this project until it has officially announced. As an employee of ABC, Luke, has been assigned to work on this project, whose brother Owen has lived as same place as the store is going to be located. Owen received an offer to sell his house at a good price compared to the current real estate …show more content…
Taking Luke’s case for example, Luke best decision is the option that maximize his firm benefits. Assuming Luke set his brotherhood is priority, Luke could have told Owen about Luke’s company plan which directly changed Owen’s decision. Hence, Luke might have helped Owen earning some benefits by immediately sell his current house and strengthen his brother relationship. However, Luke can cause some serious damage to his company as well as stakeholders. One of the issue of this actions is that the word of mouth effect, Luke does not have any rights to force Owen not to spread this information to other neighbors as Owen cannot keep this secret information. As the result, Luke’s company will have faced financial loss, as the citizens living in that area flee to sell their houses continuedly. Besides, when the other businesses around that areas know there will be opening a new adult store, they will have time to create strategy to achieve much more competitive advantage which can reduce the ABC’s market share and ABC’s sales in the future. Hence, it can cause several consequences to Luke’s company as it should spend more time on customer analysis and tactical plan to ensure the company is ready to compete to other stores in same area. In
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