Question

"Welcome to Hudson Jewelers,” the Naples, Florida jewelry store attendant said with a smile. “I’m Bill;
let me know if I can answer any questions you may have.” “I’m browsing with my fiancé,” the customer
responded. “Oh! So, you two are getting married. Congratulations! What’s your name?” as Bill extends
his hand to shake hands. “My name is Lilly and this is my husband to-be, Lester. “Well, if you need my
help, please let me know,” Mr. Hudson said as he walked behind the counter at about 1:30 pm. “Would
you like a glass of wine while you browse?” Mr. Hudson asked. “No, thank you,” as Lester noticed for
the first time a small wine rack and comfortable leather chairs in the back corner of the store. Lilly and
Lester continued looking at engagement rings, as Bill gave them space.
After about ten minutes, Lester asked Mr. Hudson, “I noticed your big high-definition television with that
beautiful wedding ring rotating. What is this?” “It is a 3D software system that allows you to co-design
your own ring. You can pick out the diamond(s) and mount them on any ring you want. Once the entire
ring is finalized our manufacturer will produce it.”
“Can we sit down and see how it works?” Lilly asked Mr. Hudson. The three of them began to design a
prototype ring, with Mr. Hudson answering questions. Mr. Hudson and Lilly were beginning to establish
a friendly relationship based on trust. All of the ring designs could be stored on the computer for future
reference.
A diamond became a symbol of social status and wealth in India about 3,000 years ago. De Beers, a
diamond mining and production company, began to market diamonds in the 1900s with slogans like “A
diamond is a girl’s best friend,” and “A diamond is forever.” De Beers’s advertisements promoted the
idea that those who do not buy diamond jewelry must not love their partners as much as those who do.
One modern De Beers ad states, “She already knows you love her. Now everyone else will, too.” A
century of advertising and branding, and billons of dollars in industry advertisements, has made a
diamond a symbol of “eternal love.”
While Mr. Hudson and Lilly exchanged ideas about alternative ring designs, Lester asked Mr. Hudson’s
daughter, Jasime, what was the time. “It’s 3 pm,” Jasime replied. “Whew! I need a break,” Lester
responded as he stood up from his chair. Everyone laughed at Lester’s comment as the clock kept
ticking. “OK, I’ll hurry,” Lilly said as she glanced at Lester. Lester walked around the store for a few
minutes and then sat back down to reenter the “design your own ring” conversation.
By 4 pm everyone was exhausted after discussing an array of ring design questions, answers, and
‘what ifs’. However, Lester and Mr. Hudson now had a much better idea of what Lilly wanted in an
engagement ring. Jasime had been listening to the three-way discussion but decided not to join the
conversation at this time. Two ring designs were stored on the computer. “I’ll have my daughter Jasime
work on these designs,” Mr. Hudson said. “I am good with the software but my daughter is the CAD
expert. She will call our diamond and ring dealers and make sure what we have designed can be
manufactured at your target price,” Mr. Hudson continued.
“Mr. Hudson,” Lester asked as he was walking toward the door, “Is your inventory lower because of this
custom design capability?” Mr. Hudson replied with a positive nod, “Yes, definitely. It is a high-risk
business to stock lots of diamonds and jewelry at the store. With the 3D/CAD system, I think we do a
better job of matching our physical inventory to customer needs and trends. We have less security,
loan, and insurance risk using CAD. We also see new trends that our customers may want using CAD.
And the customers seem to enjoy designing their own unique jewelry.” Exhibit 1.1 provides example
customer comments during one month.

Answer 1

Answer :

In this case, the high performance value chain framework is considered for the diamond industry. In this framework, the main target is to build belief and trust. Every organization believes in long term business and relationship with suppliers and customers. The improving and renewing strategies helps to meet the objectives.

This is essential for the diamond industry facing downturn to face the competition on the factors such as price, quality, flexibility, delivery time, and after sales support or services.

1.Major diamond producers set their aims and activities incorporating the following values: such as Environmental values and protection, safety, zero harm and health and others.

These factors maximize the positive impact of their business while maintaining the respect for the natural and social environment.

It also reduces the adverse impacts of the outcomes of their work which are leading to economic benefits.

Major mining companies manage ISO 14001 STANDARDS of environmental management. They engage day to day with governmental and non -government organizations to assess the impact of the environment.

Example:

1. Social environment is focused on health, wellness, and education of the people with the quality. Quality must be one of the major priorities.

2. Economic environment has the most innovative potential to combine the sustainable practices, technology, and money-making tools.

3. Financial environment is the reason for sustainability. It continues to play a major role and has been further integrated into the corporate environment.

2. Blood diamonds mention the term where diamonds are produced violating human rights in and around mines.

Positive: There are many social and environmental impacts of blood diamonds. They have a strong cultural and social meaning. They are a sign of wealth and long lasting love.  

Negative: It gives a bad impact on social environment such as poor working conditions, child labour, and their environmental impacts.

Ethical diamonds are produced by keeping in mind that labor and environmental standards are comparatively expensive.

Positive: Diamonds comes with a guarantee that each one is minded with the stringent criteria on responsible sourcing. The role of diamond producers should be to encourage sharing and implementation of best practice among employees to improve overall standards in the diamond supply chain from mine to market.

Negative: Sometimes operations managers in the industry do not focus on employee health, safety, and working partnership with local communities, supply chain integrity, financial transparency, and environmental management.