...China's Tainted Baby Milk Powder Unit 1 - Assignment #1 China’s Tainted Baby Milk Powder: Rumored Control of Online News 1. Yes, there was damage to Baidu.com’s reputation. The rumors made the company’s information appear unreliable. By the rumor of the company being paid off for both not disclosing information and by ad placements, in the way that paid ads are listed pages before unpaid ads. The placement of ads also gives way that companies could pay for ad placement. 2. Future reputational damage could force the company into bankruptcy if the public’s trust is completely lost. How the company is view could be measured by how my hits the site would continue to get. If the public believes the information is unreliable, the hits to the sight would decrease. If a decrease happens, it is highly likely that the need for the company will not continue to exist. Because of the rumors of the omission of information and ad placement, the public could question the reliability of the information that is on their site. Once the public’s trust is completely lost, recovery is difficult. 3. Baidu.com will have to overcome the rumor of how they were said to have accepted payments for withholding a company’s information from on-line searches. They will have to disclose all of their financial records. This is done in an effort to make the company financial activities as transparent as possible and display that they are confederate in their financial activities...
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...China’s Tainted Baby Milk Powder: Rumored Control of Online News วันที่ 16 มีนาคม 2007 ทั่วโลกได้รับรู้ว่าสารเมลามีนมีผลเสียต่อไต เมื่อบริษัท Menu foods of Streetvilleในจังหวัด Ontario ประเทศแคนาดาแจ้งว่าอาหารสุนัขและแมวที่มีส่วนผสมที่ได้จากประเทศจีนนั้นมีสารเมลามีนเจือปน หลังจากนั้นไม่นาน เจ้าของสัตว์เลี้ยงได้ฟ้องร้องบริษัทโดยขู่ว่าจะทำให้บริษัทล้มละลาย จนกระทั่งตกลงกันได้ภายในเวลาต่อมา ซึ่งองค์กรอาหารและยาประเทศสหรัฐอเมริกา(U.S. Food and Drug administration: FDA)ได้ทำการตรวจสอบสินค้าและให้ผู้ผลิตอาหารสุนัขรายใหญ่ๆ เช่น Del Monte, Nestle Purina, Menu Foods เป็นต้น ต้องเรียกเก็บสินค้าคืนจากท้องตลาด เมื่อวันที่ 6 กุมภาพันธ์ 2008 FDA ได้ประกาศว่า บริษัทของจีนสองแห่ง และบริษัทของอเมริกาอีกหนึ่งแห่ง ตลอดจนประธานบริษัทและ CEO ได้ถูกฟ้องร้องเนื่องจากได้ทำผิดโดยส่งออกโปรตีนจากข้าวที่มีสารเมลามีนเจือปนอยู่ แม้ว่าเรื่องราวการปนเปื้อนของเมลามีนจะแพร่กระจายไปในช่วงกลางมีนาคม 2007 แต่ประเทศจีนกลับรับรู้เรื่องนี้ในอีก 16 เดือนให้หลัง เนื่องจากรัฐบาลไม่ได้รีบนำเสนอเรื่องราวเหล่านี้เท่าใดนัก วันที่ 16 กรกฎาคม 2008 มีประกาศออกมาว่า ผู้ผลิตนมผงสำหรับเด็กจากประเทศจีนได้ใส่สารเมลามีนซึ่งใช้สำหรับทำส่วนบนของเคาน์เตอร์ เพื่อเพิ่มปริมาณผงนมและจำนวนโปรตีน ซึ่งนมผงที่ปนเปื้อนสารเมลามีนนี้ เป็นสาเหตุการเสียชีวิตของทารก4 คนและทำให้ทารกอีกกว่า 6,200 คนล้มป่วยโดยผู้ผลิตนมผงได้ใช้สารเมลามีนซึ่งมีต้นทุนต่ำเพื่อเพิ่มรสชาติและโปรตีนให้กับนมผง เมื่อวันที่ 8 ตุลาคม 2008 รัฐบาลจีนได้หยุดให้ข่าวเกี่ยวกับผู้ที่ป่วยจากการบริโภคนมผงสำหรับทารก โดยให้เหตุผลว่าอาการป่วยนี้ไม่ใช่โรคติดต่อ จึงไม่มีความจำเป็นจะต้องประกาศให้สาธารณชนรับรู้...
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...H 9B12C047 FOOD FOR THOUGHT: THE 2008 CHINA MILK SCANDAL1 Vivien K.G. Lim, Rashimah Rajah and Smrithi Prasad wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, National University of Singapore and Richard Ivey School of Business Foundation Version: 2012-11-14 In 2007, Sanlu, a Chinese milk manufacturing company based in Shijiazhuang, was recognized as a formidable force by its competitors as it had topped the list of local dairy producers for more than a decade. It was also the second biggest dairy producer in the world. Sanlu was the number one bestselling milk brand in China, responsible for 18.3 per cent of total national dairy sales in 2007.2 A year later, however, a scandal unfolded that brought not only Sanlu...
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...Melamine milk powder Every year before I go back to China, many relatives and friends ask me to bring some milk powders and infant foods. Why? Because people in China think the food safety is untrustworthy, a big amount of people were sickened and killed by food. Unlike the food safety issue in U.S, which is caused by biological reasons mostly, most of incidents of safety in China are man-made. The Food Safety Law has been enacted for two years, but the food safety issues emerge endlessly. It often said that food is the first necessity of the people; food is the most basic condition for survival. If the food is not safe then the life does not have safeguard. A major food safety incident in China was made public in September 2008. Kidney and urinary tract effects, including kidney stones, affected about 300,000 Chinese infants and young children, with six reported deaths. Melamine had been deliberately added at milk-collecting stations to diluted raw milk ostensibly to boost its protein content (Tritscher 1). Milk powder produced by Sanlu Group was found to contain 2563 mg of melamine per kg, while the allowable amount should be 15 mg(Yuan 22). It is not the first time that the scandal of milk powder came out. In April, 2004, more than 200 infants in Anhui Province were diagnosed to have a disease, which caused the infants' heads to grow much bigger than normal ones. It was found that the substandard milk powder produced by a factory in Fuyang City, east China's Anhui Province...
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...China’s Tainted Baby Milk Powder: Rumored Control of Online News On July 16, 2008, it was announced that several Chinese producers of baby milk powder had been adding melamine, a chemical usually used in countertops, to increase the “richness” of their milk powder and to increase the protein count. Shockingly, the melamine-tainted milk powder was responsible for the deaths of four infants and the sickening of more than 6,200 more.1 Milk manufacturers had been using melamine as a low-cost way of “enriching” their product in both taste and protein count. Melamine, a toxic chemical that makes countertops very durable, damages kidneys. 2 This fact came to world attention on March 16, 2007, when Menu Foods of Streetsville, Ontario, Canada, recalled dog and cat foods that it had mixed in Canadafrom Chinese ingredients that were found to include melamine.3 Very quickly thereafter,pet owners claims and class action lawsuits threatened to put the company into bankruptcy until settlements were worked out.4 A subsequent investigation by the U.S. Food and Drug Administration (FDA) led to the recall of pet food by major manufacturers, including Del Monte, Nestle Purina, Menu Foods, and many others.5 On February 6,2008, “the FDA announced that that two Chinese nationals and the businesses they operate, along with a U.S. company and its president and chief executive offi cer, were indicted by a federal grand jury for their roles in a scheme to import products purported to be...
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...China's Tainted Baby Milk Powder Unit 1 - Assignment #1 China’s Tainted Baby Milk Powder: Rumored Control of Online News 1. Yes, there was damage to Baidu.com’s reputation. The rumors made the company’s information appear unreliable. By the rumor of the company being paid off for both not disclosing information and by ad placements, in the way that paid ads are listed pages before unpaid ads. The placement of ads also gives way that companies could pay for ad placement. 2. Future reputational damage could force the company into bankruptcy if the public’s trust is completely lost. How the company is view could be measured by how my hits the site would continue to get. If the public believes the information is unreliable, the hits to the sight would decrease. If a decrease happens, it is highly likely that the need for the company will not continue to exist. Because of the rumors of the omission of information and ad placement, the public could question the reliability of the information that is on their site. Once the public’s trust is completely lost, recovery is difficult. 3. Baidu.com will have to overcome the rumor of how they were said to have accepted payments for withholding a company’s information from on-line searches. They will have to disclose all of their financial records. This is done in an effort to make the company financial activities as transparent as possible and display that they are confederate in their financial activities...
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...anonymous former sales manager of Dumex was cited by CCTV, saying the company is paying medical staff at local hospitals in China, to promote its milk powder products (Jourdan & Laurent, 2013). Danone’s reaction in a statement, issued last week, was that it is “shocked” and that an internal investigation will follow (Jourdan & Laurent #2, 2013). Foreign brands hold high market shares in this industry, because Chinese parents often do not trust local brands due to a scandal in 2008, when tainted local brand milk powder products killed numerous children and babies (Harrison, 2013). In the past few weeks the Chinese government has charged numerous probes against corruption, among them various drug companies have been investigated. The healthcare industry seems to be sensitive for corruption, fueled by low wages for doctors and other hospital staff (Jack, 2013). Dumex, and various of its competitors have recently been accused of price fixing, which is in violation with the Chinese anti-monopoly laws, these accusations eventually lead to price reductions of Dumex’ infant formula products (Astley, 2013). In the latest allegations, Dumex is accused of paying so called “sponsorship fees” to various ranks of hospital staff. According to the CCTV report hospital staff was demanded to advise Dumex milk powder to new born babies, which would lead them to develop a taste for the product and hence enlarge the market share of Dumex in China (Jourdan & Laurent, 2013). Besides...
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...China’s tainted baby milk powder 1. Yes I believe that there was some damage to Baidu.com reputation. According to the article there were rumors that Baidu.com was accepting payments to keep information from surfacing regarding the tainted milk during a search, which goes against the integrity of the company. Also Baidu.com was under attack for not separating paid advertisements from non-paid search results. 2. Because of the rumors, it could cause the stakeholders to lose confidence in Baidu.com. If the public believes that Baidu.com is guilty of producing some unreliable search results, it could cause numerous problems for Baidu.com. Also the paid advertisers could take their business elsewhere. 3. If Baidu.com could reassure their stakeholders that their information is reliable. And the companies that pay for advertising will receive the services expected. If they are unable to restore their creditability they could possibly go out of business as indicated by the drop in their stock. ‘5. By developing a culture of openness and by diminishing that culture of secrecy. And the government putting laws in place to determine the behavior of the country. WorldCom: The Final Catalyst 1. WorldCom created excess reserves or provisions for future expenses, which they later released or reduced, thereby adding to profits. The manipulation of profit through reserves or provisions is known as “cookie jar” accounting. According to the SEC first, WorldCom improperly...
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...Current situation 2 Current Situation: 2 1. Company purpose 2 2. Industry Sector 2 3. Size and Location 2 4. Location 2 5. Number of employees 2 6. Current exporting activities 3 7. Other relevant information 3 8. Company product / services / markets 3 9. Initial description of chosen product/service for export and country 6 Planning export offering 7 1. Customer Profile and Needs 7 3. Potential size of this Market 11 4. Partners / associates that you will need 11 Initial Country Analysis 14 1. Country risk rating 14 2. Issues/ Product modifications required for market 15 Environmental Analysis of Market 16 Macro Analysis 16 Micro Environment 17 Entry Strategy, Implementation & Operational Changes 19 Entry Strategy 19 Implementation 19 Operational Changes 20 Conclusions and Recommendations 20 Bibliography 20 Appendices 20 Current situation 1. Company purpose The way I explain the purpose is as company named “ECO STORE”. The meaning by ECO is GREEN, the reason I use the word GREEN because when people see green things which the first idea comes in mind is nature and free from contamination and nothing chemical and 100% sure harmless for human body. And the meaning by STORE is “putting every ECOed things together”. So the purpose of the company is making human’s life healthier and not let any chemical thing to harm us. 2. Industry Sector As a company who has been focusing on the career in “Green (As...
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...3. Analysis of China’s case 3.1 3.2 3.3 3.4 Conflict: Business vs. Business Conflict: Business vs. Government Conflict: Society vs. Government Implementations and Critique 4. Taiwan Food Scandal 5. Analysis of Taiwan’s case 5.1 5.2 5.3 5.4 Business Government Consumers Implementations and Critique 6. Alternative Solutions 6.1 6.2 6.3 6.4 Changing the business culture by incentivizing ethical practices 2-Prong approach Improve information symmetry Develop a systematic approach for food scandals 7. Conclusion 8. Appendix 9. References 1. Introduction In recent years, the world has seen many cases of food safety issues, especially in Asia and the effects are global. Our group has chosen China and Taiwan as our two main countries for analysis: China is one of the world’s largest exporters of food products and food safety issue is pertinent; Taiwan’s food products are exported to 15 major countries such as U.S., China, Germany, Hong Kong, and Malaysia (Wang, 2011), thus food safety issue is serious as well. If these hazardous products were circulated to different countries, the consequences would be widespread. This report provides the background information, analysis of the problem and solutions in the respective countries. In addition, our group will identify the root cause of the problem, generate alternative solutions and decide the best-fit solution. 2. China Food Scandal The China melamine milk scandal was uncovered in 2008, when 14 babies reportedly fell...
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...Assignment I: Tainted Baby Powder Milk 1. Yes, I believe there has been some damage to Baidu.com’s reputation because there was a significant stock price drop from $308 to $110. Stock price drops usually are the result of a lack of confidence by the stakeholders in the future performance of the company. Lack of confidence can often be attributed to actions by a company that are revealed to the stakeholders. 2. Future reputational damage could be reflected by a lack of confidence of the stakeholders. This lack of confidence could be measured in consumer behavior. Consumers could choose to buy goods elsewhere, so as not to risk their family’s health by potential tainting of products. This change in consumer behavior has been demonstrated many times when the media reports a fast food restaurant serving tainted beef, or even the drastic reduction in air travel immediately after the attack on the World Trade Center on Sept. 11, 2001. Even though, 9/11 was not the direct fault of an airline, consumers feared more attacks and therefore would not travel. This greatly affected profits and stock prices of the airline industry. 3. Baidu must prove to the stakeholders that it is reporting the issue fully and honestly. It is tempting for companies to withhold damaging information, but eventually it will come out and the deception is more damaging to the company many times than the truth ever would have been. The more transparent the company is in communicating the issues, the easier...
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...have been in at the end of 2002 based on your estimates? 7. Martha’s overall net worth was huge relative to her investment in ImClone. Assuming she did not have inside information, was there any way she could have avoided the appearance of having it? 8. How could Martha have handled this crisis better? 9. Why is insider trading considered harmful? Should insider trading be banned if it assists in moving a stock price to a new equilibrium quickly, so that non-insiders are trading at appropriate prices sooner? 10. If you wished to sell an investment in a company where one of your friends is an insider, or even a significant employee, should you call your friend to advise him you are about to sell? Why, or why not? 5. China’s Tainted Baby Milk Powder: Rumored Control of Online News Discussion of Ethical Issues 1. Given strong profit growth, has there been any damage to Baidu.com’s reputation? 2. What would future reputational damage affect, and how could it be measured? 3. What steps could Baidu.com take to restore its reputation, and what challenges will it have to overcome? 4. Governments throughout the world have been slow to react publicly to serious problems such as SARS, mad cow disease, and now...
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...CHAPTER 1 ETHIC EXPECTATIONS Learning Objectives 2 Understand the basic concepts in ethics, business ethics, governance Understand the relationship between ethics and reputation What constitutes good ethics and good governance? Why are good ethics and good governance important? 3 Changes of ethics trends have brought to the expectation framework Public Expectation （公众的期望） 4 There has been an increasing expectations that business exists to serve the needs of both shareholders and society. Stakeholders’ support are ultimate to the success of businesses or professions to achieve their long-run strategic objectives. A Stakeholder（利益相关者） is: 5 a person, group, organization, member or system who affects or can be affected by an organization's actions. (http://en.wikipedia.org/wiki/Stakeholder) MAP OF CORPORATE STAKEHOLDER ACCOUNTABILITY Shareholders Activists Employees Governments Corporation Customers Creditors Lenders Suppliers Others, including the media, who can be affected by or who can affect the achievement of the corporation’s objectives 6 Figure 1.1 Support of Stakeholders 7 Stakeholders’ support depends on the credibility(可靠 性， 可信性） that stakeholders place in corporate commitments, the corporate’s reputations and the strength of its competitive advantages. How do you get the support from stakeholders? Support of Stakeholders 8 A company’s activities should respect...
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...2009 REPORT TO CONGRESS of the U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION NOVEMBER 2009 Printed for the use of the U.S.-China Economic and Security Review Commission Available via the World Wide Web: http://www.uscc.gov dkrause on GSDDPC29 with K1 VerDate Nov 24 2008 08:23 Nov 10, 2009 Jkt 052771 PO 00000 Frm 00003 Fmt 6012 Sfmt 6602 M:\USCC\2009\52771.XXX APPS06 PsN: 52771 M:\USCC\USChina.eps Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 3. DATES COVERED 2. REPORT TYPE 01 NOV 2009 4. TITLE AND SUBTITLE 00-00-2009 to 00-00-2009 ...
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...1 of 83 file:///D:/000004/Buy__ology.html 08/08/2009 10:45 2 of 83 file:///D:/000004/Buy__ology.html CONTENTS TITLE PAGE FOREWORD BY PACO UNDERHILL INTRODUCTION 1: A RUSH OF BLOOD TO THE HEAD The Largest Neuromarketing Study Ever Conducted 2: THIS MUST BE THE PLACE Product Placement, American Idol , and Ford’s Multimillion-Dollar Mistake 3: I’LL HAVE WHAT SHE’S HAVING Mirror Neurons at Work 4: I CAN’T SEE CLEARLY NOW Subliminal Messaging, Alive and Well 5: DO YOU BELIEVE IN MAGIC? Ritual, Superstition, and Why We Buy 6: I SAY A LITTLE PRAYER Faith, Religion, and Brands 7: WHY DID I CHOOSE YOU? The Power of Somatic Markers 8: A SENSE OF WONDER Selling to Our Senses 9: AND THE ANSWER IS… Neuromarketing and Predicting the Future 10: LET’S SPEND THE NIGHT TOGETHER Sex in Advertising 11: CONCLUSION Brand New Day APPENDIX ACKNOWLEDGMENTS NOTES BIBLIOGRAPHY ABOUT THE AUTHOR COPYRIGHT FOREWORD PACO UNDERHILL It was a brisk September night. I was unprepared for the weather that day, wearing only a tan cashmere sweater underneath my sports jacket. I was still cold from the walk from my hotel to the pier as I boarded the crowded cruise ship on which I was going to meet Martin Lindstrom for the first time. He had spoken that day at a food service conference held by the Gottlieb Duttweiler Institute, the venerable Swiss think tank, and David Bosshart, the conference organizer, was eager for us to meet. I had never heard of Martin ...
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