16 Unit 1 What is Business?
(c) Data response question
LEVI STRAUSS & CO
Levi Strauss & Co has just been voted one of the
world’s most ethical businesses and operates with
many ethical objectives. It is known for selling high
quality clothing, but has not received much publicity
for its ethical objectives.
The business is developing a new product: a Dockers
line of clothes called Wellthread. The line brings
together the best practices in materials sourcing and
garment manufacturing, providing social benefits
and fair levels of pay to factory workers in Bangladesh
and delivering durable khakis, jackets and T-shirts to
consumers.
These clothes, of course, don’t come cheap. Trousers
cost $140, T-shirts $50 and jackets $250. Levi
Strauss faces a big challenge of finding ways to sell
Wellthread to mainstream consumers so that the
principles involved in its design can be deployed
throughout the business.
(d) Essays
1 Is maximising profit always the most important
objective for large well known businesses
whose activities are reported regularly in
the media? (25 marks)
Beyond that, the business must figure out how to
reconcile a commitment to long-lasting clothes with
a desire to grow revenue by selling more stuff. Levi
Strauss is a private business, albeit a big one, with
$4.6bn in revenues in 2012.
Source: Adapted from an article in The Guardian, 6th November 2013
http://www.theguardian.com/sustainable-business/live-strauss-antidote-fast-
fashion
1 Explain why Levi Strauss & Co might face a
big challenge in selling its Wellthread range to
mainstream consumers. (6 marks)
2 Analyse the reasons why Levi Strauss & Co sells its
products at high prices. (9 marks)
3 To what extent do the benefits of operating with
ethical objectives outweigh the drawbacks for Levi
Strauss & Co? (15 marks)
2 To what extent are mission statements only of
value to large businesses? (25 marks)
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