...for Professor Jorge Zavala-Vinces 1. If you had been an executive with Nestlé, would you have changed your marketing approach after the boycotts began? Nestlé’s marketing tactics in promoting the use of infant formula in Third World countries wasn’t moral. Nestlé was not acting within the boundaries of moral standards. Every corporation must understand and realize the corporate ethics and responsibilities they should have. The problem was that Nestlé used unqualified sales girls, the distribution of free samples, marketed to people who were incapable to fulfil the minimum requirements for giving formula safely to the baby, and the association of bottle-feeding with healthy babies to promote the use of infant formula to mothers who would have been better off breast-feeding their babies. The first Nestlé boycott in 1977 led by Infant Formula Action Coalition (INFACT) had a large impact on Nestlé’s revenues. Their products were boycotted in the U.S. to end the promotion of infant formula. This was a small part of the major problem which is to improve total infant nutrition throughout the Third World that must be resolved on a global basis if the health of babies in the developing nations is to be improved. If I had been an executive with Nestlé, I would have changed the marketing approach after the boycotts began. A possible solution to Nestlé’s unethical use of marketing is write the proper way to use their formula safely in that country’s native...
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...Global Business Ethics-Nike’s Sweatshops Ann T. Dale MGT/216 Global Business Ethics-Nike’s Sweatshops Nike is a worldwide sports name in wear and equipment. So, why is Nike’s ethics in question? Has greed and publicity become their motto at any costs? Nike spends multimillion dollars a year hiring well-known athletes to advertise their products yet cannot seem to stay out of the media’s eye of their contracting or subcontracting techniques of their products to be built in third world countries. In 1996, Nike has been charged by critics with engaging in a variety of unethical employment practices in countries that exercise little or no control over the conditions of labor or whose governments are corrupt and can be bought off (De George, 2006, chap. 20). In dealing with business issues, a company needs to be aware (what are the issues), articulate (justify and express decisions), and application (reach a decision, train and explain ethics to employees). Ethical behavior has to start at the top of a company and work its way down. Here we will compare ethical perceptions across cultures about the ethical situation, discuss the ethical issues that became evident due to globalization, and discuss the risks and consequences associated with the Nike ethical dilemma. Compare Ethical Perceptions Across Cultures About the Ethical Situation Trevino and Nelson (2007) defines business best stating the “definition of ethics—the principles, norms, and standards of conduct governing...
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...The shareholder approach is morally permissible because the owners of a company should be the only priority when making business decisions. For sake of simplicity, assume the shareholders’ sole concern is profit maximization. The company, as an entity was formed with the goal to maximize profits, and the CEO was appointed because the shareholders believe he is the best choice in helping attain that goal. The CEO therefore should not allow his or her own self interests or subjective notions of “good” to make decisions with the company’s...
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...According to Pickton and Broderick (2005), they opined that advertising is a form of communication used to influence individuals to purchase products or services, support ideas and pass relevant information or caution across to the targeted audience. In delivering those messages highlighted above, ad agency adopts different appeals that can help them reach large number of the targeted audience without encountering high cost. Such appeals adopted are rational appeals, emotional appeals, sex appeal, fear or anger appeal etc. However, for the course of this research, emphasis will be laid on shock appeals . 1.1 RESEARCH OBJECTIVE To identify shock commercials strategies and the extent organization use them. To define shock advertising and why organization use them. To identify the relationship between consumer perception of shock commercial. Using gender and age of target audience. To comprehend how ethical perceptions begins and also, to identify what sets of values or core beliefs might the consumer draw upon when contemplating the ethics of controversial practices in advertising today due to provocative appeal. 1.2 RESEARCH QUESTION The research question will try to explore if shock appeal aids recall and recognition of advert To identify consumer...
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...| Introduction | 3 | 1-History of the company | 5 | 2- SWOT analysis | 7 | 2-1-Strengths | 8 | 2-2 Weaknesses | 9 | 2-3Opportunities | 10 | 2-4Threats | 10 | 3-Corporate Social Responsibility | 11 | 4- PESTEL Analysis | 14 | 4-1 Political analysis | 14 | 4-1-1 Coca Cola Company is an American symbol of imperialism | 15 | 4-1-2 Coca Cola in MENA Region | 15 | 4-2Economic analysis | 16 | 4-3 Social analysis | 19 | 4-4 Environmental analysis | 19 | 4-5 Legal analysis | 19 | 5- marketing mix | 19 | 5-1 product line and range | 19 | 5-2 pricing | 19 | 5-3 promotion | 19 | 5-4 place | 21 | 6 – the bottling company | 21 | 7 - conclusion | 22 | Executive Summary Coca cola company market audit should be wider than the range of this report. With a pioneer company holding the biggest market share in its industry, there are lots of parameters to analyze and study to find out the secrets and factors of this huge success. A SWOT analysis was done, explaining strengths, weaknesses, opportunities and threats facing the company. And that is followed by a SELPET Analysis explaining Social, Economical, Legal, Political, Environmental and Technological factors. In the sustainability report, the current CEO Muhtar Kent announced a company expansion target of the double by 2020, and the ways to reach their. He explained the main areas which the company has to focus on in order to achieve this great goal. The market mix of the company was explained...
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...Celebrity Endorsements According to David Lamoureux, the average consumer sees 3000 to 20000 forms of advertisement a day (2004). One of the most frequent and successful forms of advertisement in this day and age is the use of celebrity endorsement (Gnanapragash, et al, 2004). Celebrity endorsement is the use of famous individuals who demand a high level of respect, trust, recognition and awareness globally or nationally. Such people lend their name and image to promote a product or service (Elberse, Anita, and Jeroen Verleun, 2012). Although the literature covers many theories as to why we use celebrity endorsements, this review will focus on three main themes which are constantly mentioned in the literature. These themes are: Determinants of Celebrity endorsement, reasons for increased usage of celebrity endorsements, advantages and disadvantages of this approach as a brand building strategy. The paper will primarily focus on endorsements as a brand building strategy even though the literature presents these themes in a variety of context. 2. Determinants of Celebrity Endorsement A celebrity endorser is “an individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” (McCracken, 1989, page 310). Friedman and Friedman state that “a celebrity endorser is an individual who is known to the public for his or her achievement in areas others than of the product class endorsed” (Friedman...
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...TABLE OF CONTENT 1. Case Abstract 2 2. Statement of Vision and Mission (Actual) 3. External Audit: 6 i. The Five-Forces Model of Competition 7 ii. Competitive Profile Matrix (CPM) 10 iii. External Factor Evaluation Matrix (EFE) 11 iv. BCG Matrix 12 4. Internal Audit: 15 a) Financial Ratio Analysis 15 b) Internal Factor Evaluation Matrix (IFE) 18 5. SWOT Analysis 19 6. SPACE Matrix 21 7. Grand Strategy Matrix 23 8. Internal-External Matrix (IE) 24 9. Quantitative Strategic Planning Matrix (QSPM) 25 10. Recommendations and Justifications 27 11. References 28 | 1.0 Case Abstract This report is a comprehensive strategic management case which overview of improving a Muslim restaurant with Islamic compliances like what been done by Radix Fried Chicken (RFC) under HPA Industries Sdn. Bhd. As we all know, RFC is a product of the Muslims. Moreover, RFC is not so very famous and known very familiar to Malaysian citizen. So, this case study hope can open the eyes of all Muslims to support the Muslim products and boycotting Israel products. This report may not be entirely credible and may not be very detailed. This is due to the fact that we have difficulty obtaining information and details on Radix Fried Chicken as the information we gather online is limited...
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...area, would you be in favor of Wal-Mart opening one? Explain why or why not? There is a Wal-Mart in my community, it is roughly 5 miles from my house and I don’t think it has had the effects that are prevalent in the article. Wal-Mart in my area is a little bit farther out of the way than the local grocery store or other stores such as Target; therefore I think the location of the store may have caused it not to be as successful. I can’t speak for the average consumer because when I do go to Wal-Mart it is usually because I have the need to purchase a lot of items and I know my cost will be cheaper at Wal-Mart which does take away business from other retailers but I don’t think it’s a large enough number that would make other stores go out of business, or at least not yet. 4. Can a retailer ever become too large and too powerful? Absolutely, if a retailer such as Wal-Mart continues to grow, it doesn’t just hurt competitors who provide similar products, it also hurts the producers. With Wal-Mart, they wish to provide as many products as they can at as low of a price as possible, which is great for the consumer. A consumer wants local retailers fighting for their attention and driving business into their building but too much of that can be a bad thing. A growing business like Wal-Mart could have a ripple effect, putting other businesses out of business because they are unable to compete with their prices, with that, people will lose their jobs which would cause less money to...
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...improve performance. Through high performance and innovation, Nike has been branded as arrogant as the company has a high regard for the spirit of competition and portraying a rebellious spirit. b) Source of Brand Equity Description Logo Nike’s logo is a check mark. It is commonly referred to as the “swoosh.” As of 2000, 97 percent of American citizens recognize the brand logo. Nike has been seen as aggressive in the overabundance use of the “swoosh” with the symbol being placed on shoes, jerseys, hats, billboards and soccer balls across the globe. This ubiquity has been criticized as diluted the “swoosh”. Advertising Advertising has allowed Nike to portray its rebellious spirit and “nasty boy” image. However, this approach in advertisement has caused negative perceptions in countries such as Europe where it has come across as too irreverent. Sponsorships Nike has sponsored athletes such as Tiger Woods, Michael Jordan and John McEnroe. Americans idolize sport heroes allowing “winning” performance by sponsored athletes to correlate with “winning” Nike products. Through sponsorships Nike was able to create the credibility needed for...
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...CHOCOLATE CONSUMERS FEELING GUILTY FOR THE WRONG REASONS Steven J. Greenland and Christopher Galloway Swinburne University of Technology, Melbourne, Australia. INTRODUCTION New Zealanders are no strangers to taking on multinational companies when they view their actions as unethical. It was two New Zealand school girls who unearthed the GlaxoSmithKline (GSK) Ribena vitamin C (or lack of it) fiasco that resulted in fines and GSK having to pull misleading advertisements, not to mention a global wave of criticism washing over the pharmaceutical giant (e.g., New Zealand Herald 27th March 2007, Vasagar 2007). In 2009 the New Zealand public learned that Cadbury was substituting palm oil for cocoa butter in its chocolate (e.g., New Zealand Herald 4th May 2009). At the time many multinationals used palm oil in their products and while its use received considerable attention from conservationists, Cadbury was using only certified sustainable palm oil; a move that was part of a cost cutting exercise to help maintain pricing levels for its consumers. However, there was considerable public outcry, as well as protest by international environmental groups such as World Wildlife Fund (WWF) and local organisations such as the Auckland Zoo (over the potential loss of Orang-utan forest habitat to palm oil plantations). The negative publicity from the palm oil debate created damaging ‘noise’ for Cadbury’s ongoing worldwide ethical brand building efforts and its high profile announcements that...
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...CRITICALLY ASSESS THE VIEW THAT BUSINESSES HAVE A MORAL DUTY TO PUT THEIR CONSUMERS FIRST 1.0 Introduction Nowadays, Malaysia has become one of the develop countries in the world. Many new things have been developed and improved in terms of business administration, economy, facility, technology, culture, education system, and so on. All of these things have a significant relationship with the law. People or organization has the right to be protected and the law have been created to make people’s lives more comfortable and peacefully. Laws have been used to protect consumers for centuries. These laws have been designed in a variety of legal forms, including criminal law, tort, contract, intellectual property, etc. In addition to those laws that specify consumer protection and product liability as their primary concern, numerous other provisions have the effect of protecting the consumer, for example by streamlining the prosecution of fraud, protecting property or facilitating litigation. This study will examine the critically assess the view that businesses have a moral duty to put their consumers first. Legislation of consumer protection in Malaysia now is entering to the new era with the recent introduction of the Consumer Protection Act 1999. 2.0 Business moral duty and consumer protection 2.1 Business moral duty A duty is an obligation to act in a certain way. When the obligation is based on moral and ethical consideration, it is a business moral duty. Often...
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...reasonable belief, your main task in refining an issue is to evaluate your argument to be sure that it is free of error. Two broad kinds of error must be considered. The first affects the truth of the argument’s premises or assertions. The second affects the argument’s validity— that is, the legitimacy of the reasoning by which the conclusion was reached. A sound argument is both true and valid. B ■ ERRORS AFFECTING TRUTH Errors affecting truth are found by testing the accuracy of the premises and the conclusion as individual statements. The first and most common error in this category is simple factual inaccuracy. If we have investigated the issue properly and have taken care to verify our evidence whenever possible, such errors should not be present. We will therefore limit our consideration to the more subtle and common errors: ISBN 1-256-46689-1 • • • • Either/or thinking Avoiding the issue Overgeneralizing Oversimplifying 209 The Art of Thinking: A Guide to Critical and Creative Thought, Tenth Edition, by Vincent Ryan Ruggiero. Published by Pearson. Copyright © 2012 by Pearson Education, Inc. 210 Chapter 12 Evaluate Your Argument on the Issue • Double standard • Shifting the burden of proof • Irrational appeal Either/Or Thinking This error consists of believing...
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...Learning Objectives | | | After reading this chapter, you should be able to: * Define entrepreneurship and small business. * Investigate the importance of small business in the U.S. economy and why certain fields attract small business. * Specify the advantages of small-business ownership. * Summarize the disadvantages of small-business ownership and analyze why many small businesses fail. * Describe how you go about starting a small business and what resources are needed. * Evaluate the demographic, technological, and economic trends that are impacting the future of small business. * Explain why many large businesses are trying to "think small." * Assess two entrepreneurs' plans for starting a small business. | INTRODUCTION There are more than 17 million small businesses operating in the United States today, each representing the vision of their entrepreneurial owners to succeed by providing new or better products. THE NATURE OF ENTREPRENEURSHIP AND SMALL BUSINESS An entrepreneur is a person who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something. Entrepreneurship is the process of creating and managing a business to achieve desired objectives. Pushed by technological advances and alliances with other businesses, the entrepreneurship movement is accelerating with many new, smaller businesses emerging. Defining a small business is difficult because smallness is relative. Your...
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...ad ‘Advertising can be defined as any paid form of non personal presentation and promotion of ideas, goods or services through mass media such as newspapers, magazines, television or radio by an identified sponsor’. (Philip Kotler, et al., Principles of Marketing, 2002). So basically advertising is a mass communications device through which companies promote or market their product to the consumer, and this enables them to make informed consumption decisions. Advertising plays an important part in our everyday lives as it enables us to choose between different ranges of products. These products are promoted through different types of advertisements and cater to all types of markets. Dedicated advertising companies exist with enormous budgets running into millions of pounds which make advertisements for their clients. Advertising also plays an important role for the capitalist economies. ‘Advertising enables producers to expand their markets and therefore take advantage of economies of scale to reduce unit production costs’. (Chris Hackley, 2005, Advertising and Promotion). Through the use of advertising producers are able to sell large stocks of goods that they produce and create demand for new products and offers. Advertising benefits consumers since they enjoy lower prices and a better product quality, since the competition that advertising creates acts in the interests of the consumers. • Advertising has played a major role in consumer marketing, and has enabled companies...
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...Chapter 1 The Scope and Challenge of International Marketing * International Marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. * Differences of Intl Marketing from National marketing: the difficulties created by different environments and the need to coordinate international expansions across cultures to achieve efficiency and effectiveness to achieve firms’ goals. * Globalization: the increased mobility of goods, services, labor, technology, capital throughout the world. * HOW does globalization affect Canadian marketers? Positive impacts * marketers how now much more access to more information about their markets and consumers (domestically and internationally) * much easier communication with suppliers and consumers today * because of free trade agreements, easier to penetrate/venture into other foreign markets * opportunities to lowering production and marketing costs due to the ability to standardize products and processes * and ultimately benefit from having to deal with fewer national currencies (e.g transactions could be in US Dollar, or Euros because EU nations use that), which reduces risks and costs. Negative impacts * small Canadian companies and marketers find it difficult to compete on an even playing field with larger transnational companies. * Globalization is forcing...
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