The job of running a company is in itself a challenging task. Therefore, one person should not be allowed to regulate all requests and be responsible for every development aspect. For that, there are specialists who rely on their experience and the application of specific strategies to run the business (“CEO Pay, Earnings Manipulation Linked,” n.d.). One of them is FIFO (First In, First Out). It is a reasonably practical measure for service delivery but less effective when it comes to organizing merchandise or reporting inventory.
The essence of the strategy is that it is similar to standing people in a queue. This means that the first person in the queue should be the first to receive the service provided. Looking at the specific example associated with Hohl’s and Macy’s, it is ineffective in counting the inventory’s value. The main stumbling block is that the system can easily be influenced at any level of interaction and can be manipulated to supply stock. This is done to increase the income of key government officials and their incentive to pressure other employees (“CEO Pay, Earnings Manipulation Linked,” n.d.). This strategy allows you to write off costs to your accounts, resulting in employees who receive a percentage of sales not earning enough money.
If one compares the graphs of Hohl’s and Macy’s, one can see that their profitability is stable and has not been influenced by external factors. The companies do not underestimate the amount of inventory or hide the presence or absence. This gives the incentive to trust these firms and be confident in their success. Therefore, Jeffrey’s decision to apply such a strategy to his company cannot be called ethical, although it is lucrative and allows for many financial rewards.