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Global Foods, Inc.

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Submitted By purpleang
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The CEO of Global Foods, Inc. asked his board of directors to make a hasty decision to join the soft-drink industry, a major decision that would have long-term impact on the direction of the company (Keat & Young, 2013). A key factor necessary to success in any business when making major decisions is that the decision must be very carefully considered and tested, rather than just jumping into it without considering all of the risks versus rewards of that decision.
There are many factors to consider before getting into the soft drink market besides obvious financial issues. Some of the variables influencing entry into this highly competitive market, among other factors, are rising food prices, increasing transportation costs due to raises in oil prices, and an overall decline in consumer spending (IMAP Consumer Staples Report, 2013). Also, I disagree that the American’s “health kick” is just a passing fad as indicated in the textbook. There are more and more reports pointing out the health risks and harmful effects of drinking soda, even diet soda. There are ongoing movements in the nation’s school systems to remove soft drinks from public schools in an attempt to fight the obesity problem in America, and to change the culture of making decisions to consume more healthy choices which will have a lasting impact on the future of the soft drink industry over time. Drinking soft drinks leads to not only obesity, but also diabetes and other health issues, not to mention the adverse effects on dental health. If I were on the board of directors in that meeting on the day the CEO wanted a decision that day, I would have voted no because I would insist on more time to do more studies and financial tests and considerations.

References

IMAP Consumer Staples Report. (2013). Economic slowdown nivvled at food & beverage sector. Retrieved from

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