...becoming increasingly concerned with the ingredients in energy drinks. In order to make an informed decision concerning the possible entrance into the French energy drink market Zip-6 needs to know what kind of competition currently exists, what the trade limitations might pose a problem, and what entry strategy would be best suited for the situation. One of the biggest influences for the company to enter into a country would be the competition currently on the market in the host country. “The degree of rivalry in the French market is affected by the continuing concentration of market share by two or three players, market rivalry is therefore currently classified as moderate.” [ (MarketlLine Industry Profile Carbonated Soft Drinks in France, 2012) ] The two or three aforementioned companies that have a hold in the French market would be Coca-Cola, Nestle SA, PepsiCo, Inc., and Suntory Group. Coca-Cola is the only one that has a corner in the energy drink market with several already in production, while the others do not distribute an energy drink to speak of in France. France’s beverage market can be “difficult for a new entrant to compete with the brand strength and reach of existing players.” [ (MarketlLine Industry Profile Carbonated Soft Drinks in France, 2012) ] Keeping that in mind, most of the energy drink products that Coca-Cola produces contain the questionable substances, taurine and glucuronolactone, that Zip-6 does not. This could provide Zip-6 with a significant...
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...of poor decision making, how to resist making unethical decision and leading the way ethically are great tools we can use to achieve ethical decision in all aspects of our lives. Common Characteristics of Poor Decision Making “Man’s most enduring stupidity is forgetting what he is trying to do” (Mallor, Barnes, Bowers, & Langvardt, 2010 p. 115). Failing to remember goals is the first characteristic that needs to be addressed when discussing poor decision making. In many scenarios the end goal is the driving force to making good decisions. The problem is in most cases the end goal is lost in the journey to the destination. The company I work for recently decided to bring SAP ERP software onboard to all our sectors. The goal was to become more competitive in the aerospace industry and to harmonize the sites to common practices. The problem we encountered was each site was very different with business practices and by trying to harmonize all the business sectors to do the same procedures we wound up spending more money and creating inefficiencies across the sites. Instead of making us more competitive it cost us more to do the same jobs. We lost sight of the end goal of becoming more competitive and focused more on harmonization that cost us more in the long run. Overconfidence is the second pitfall in making poor decisions. In an article written by R. Nauert he states that “power can fuel overconfidence, which negatively impacts decision-making”...
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...I believe that the future nuclear power plant in the East Pennsboro Township, should not be built. The current effects of both the Chernobyl and Fukushima nuclear power plants are something to consider before the construction of this power plant. While TMI was safely decommissioned, we learned during TMI’s years of service that accidents can happen and the disadvantages still outweigh the advantages of nuclear energy. As you know the chain reaction caused a meltdown and radiation leak throughout the plant. Also, many wrong decisions during the management of the Chernobyl nuclear plant caused a big nuclear explosion, just like in Fukushima where the operations done by the staff were highly questionable. Even with the advanced technology we...
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...will ensure our company performs at the highest ethical decision making at all times. The first strategy we should implement is to have quarterly ethics training. These sessions will be done quarterly so all staff will see and hear our ethics training. According to a National Business Ethics Survey, the level of ethical misconduct remains high, with nearly half (49%) of respondents observing misconduct at work in the twelve months prior to the survey (Plinio, Young, & Lavery, 2010, p. 173). This will show that our company is taking a stance on ethics and we are relying on our employees to keep our ethics. If our company is relaying the same message to each staff member, our ethics should be paramount in our company. By training our staff on ethics we can strive for an environment that fosters our same ethical values. By training our staff on the ethics we believe are important, when an employee is faced with an ethical dilemma, they will know what we, as a company would do. This will help our employees recognize what a poor decision would “look” like. Another strategy we should implement is for upper management. I feel we should offer some counseling to our management team. The reason for this is so they can have a coping mechanism to rid themselves of stress. Each management member will be required to meet a minimum of bi-weekly with a counselor. By being able to rid themselves of stress it should allow for better decision making at the office. The more stressed a person is, the...
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...international logistical support services for the Army, known as LOGCAP, the Logistics Civil Augmentation Program (CorpWatch, 2010). While KBR held the contract, the company’s employees in Kuwait handed off the actual work to subcontractors that were hounding the KBR offices looking to get a lucrative piece of the action during wartime business. Work amounting in billions of dollars that was subcontracted led to major controversial headlines worldwide, as these questionable agreements that included $186 million in bloated overcharges that was discovered by Pentagon auditors, of the $186 million, $108 million was excessive costs. Many of the questionable contracts were carelessly written and very little or no effort was made to seek competitive offers. It seems that often times politics is separated from the ethical practices other organizations are subject to upholding as everyday principles and values. When an organization is able to profit in such an obvious way and has lead to many deaths the ethical and social responsibility can no longer be ignored, and this company should suffer serious consequences for their actions. Due to the mismanagement, poor planning and oversight of work in Iraq Halliburton since separating itself from Kellogg, Brown, and Root (KBR) is no longer giving armed forces logistics support. Factors that influence Halliburton’s planning framework are the competition,...
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...writers find that questionable behavior and unethical decisions in the workplace are common occurrences for working Americans. The article continues to explain that the research they found showed that people “often start their misconduct with small transgressions and then slide down a slippery slope.” Getting away with those smaller transgressions encouraged them to commit bigger and bigger offenses as time went by. (Gino) I think this can apply to both the workplace as well as academia. In reference to the University of Central Florida Cheating Scandal, I would have to agree with the statement that cheating has become so widespread that many students have shifted their view of it all together. I feel like this has a lot to do with the generation of millennial students that are currently attending college and how they view higher education. The millennials are a challenging generation that see higher education as an expensive necessity to succeed and do not value the hard work it takes to get there. Cost of higher education keeps going up, and the more money they spend to receive their education, the more they view college as a purchase rather than a privilege. They believe they are making this investment as a way to open the doors to high paying careers and they feel entitled to their degree since they are paying for their classes. This results in these students wanting to receive their degree while putting in the least amount of effort to do it so they can move on to the...
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...of a conscience. In today’s society there are two ways to advance a career. It can be done the ethical way through hard work, following the rules and doing the job correctly. An in-depth look into how these two values can be an asset to a professional career is the subject of this paper. Professional Values & Ethics In a world of propaganda, it is a rarity to find a professional, let alone a business that has much of a conscience. There is a constant feel of pressure to outdo the competitors and what they have to offer. There are two characteristics that could be very pertinent, yet neglected in today’s modern business; values and ethics. Values pertain to ideals or customs held in high regard by a certain individual or group. Ethics are the principles that have been instilled within a person that, in a way dictate the decisions made by that individual. Integrity is one important source of professional values and ethics because it builds a network of trust. A majority of Americans most successful business have been built on integrity. To possess integrity as an individual offers a platform for progression in any given line of work. Consumers expect a service to be executed as promised. With that integrity comes peace of mind; Quality will always be preferred over quantity. Therefore, consumers may be willing to pay more for that peace of mind. Oftentimes, I have chosen a more costly product or service because of my certainty in a particular brand or representative...
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...BIOPURE INDUSTRIES A Marketing Analysis Based on the data from the case study by Jonn Gourville, Biopure Corporation, HBS, 1998 April 20, 2005 By Veronica I. II. Stepanova Executive Summary……………………………………………………………………………… 2 Situation Analysis Human Market………………………………………………………………………..3 Animal Market………………………………………………………………………..5 Marketing Plan for Oxyglobin…………………………………………………………………….6 Final decision……………………………………………………………………………………...7 Appendix 1 A (Excel documents, separate attachment) Appendix 1 B Executive Summary • • • • Many opportunities are available in the human blood market due to several disadvantages of the currently available alternatives. Even more opportunities exist in the animal blood market. Oxyglobin should be positioned as a high-quality product designed for middle- to upper-class budgets. The price for Oxyglobin should be about $200 for the consumer and around $100 for the supplier (animal hospital) to account for distribution markups and other carrying costs. Distribution should be oriented in the regional vicinity of the operation and implement larger clinics. In addition, only emergency clinics are to be targeted. Current opportunities are favorable for Oxyglobin’s launch. 2 Situation Analysis I. Human blood market. • Patients with acute blood loss from trauma and surgery – 40% individuals aged 65+. • Chronic anemia patients (any age) – 1.5 million for the year 1995. • Blood loss, resulting from trauma (e...
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...The Challenge of Managers to Hire the Right People A manager has one of the most demanding roles in the business world. In today’s business environment, he or she is responsible for a wide variety of tasks while facing many challenges. One of these is hiring the right people for an organization. The hiring process is difficult because many people apply for jobs, but very few are actually a good fit for the company. In addition, the replacement of employees is costly. However, exceptional managers are able to create a fairly consistent selection process while applying theories of management in order to face the challenge of hiring the right person. Hiring the right people has become a major challenge for most managers in today’s business world. Eric P. Bloom states, “Everyone employed by the company…is an expense to the company.” (2) Therefore, part of that expense is the cost it takes to replace a new employee through the hiring process, otherwise known as employee turnover. There are countless sources that show varying statistics on exactly how much this costs, mostly depending on the role and salary of an employee. For example, a Center for American Progress (CAP) study showed average replacement costs for a mid-range employee (annual earnings between thirty and fifty thousand dollars) was twenty percent of his or her salary. The study also suggested the cost to replace an executive, such as the CEO of a company, could be up to as much as two hundred and thirteen percent...
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...BIOPURE INDUSTRIES A Marketing Analysis By Veronica Stepanova Executive Summary • Many opportunities are available in the human blood market due to several disadvantages of the currently available alternatives. Even more opportunities exist in the animal blood market. • Oxyglobin should be positioned as a high-quality product designed for middle- to upper-class budgets. • The price for Oxyglobin should be about $200 for the consumer and around $100 for the supplier (animal hospital) to account for distribution markups and other carrying costs. • Distribution should be oriented in the regional vicinity of the operation and implement larger clinics. In addition, only emergency clinics are to be targeted. Current opportunities are favorable for Oxyglobin’s launch Situation Analysis I. Human blood market. • Patients with acute blood loss from trauma and surgery – 40% individuals aged 65+. • Chronic anemia patients (any age) – 1.5 million for the year 1995. • Blood loss, resulting from trauma (e.g. car accident) and exceeding 2-3 units (1 unit = 10% of total blood content of human body) needs immediate blood transfusion. • Price is largely cost-based (storage, implementation) – blood donation is free. Existing options. • Red blood cells and their components (hemoglobin, platelets, and plasma) are collected via donations, organized by blood collection centers and then transfused into patients. • Current options allow for storage for 6 weeks in refrigerated conditions...
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...Ethical Issues in Mergers and Acquisitions MERGERS AND ACQUISITIONS-AN OVERVIEW: The phrase mergers and acquisitions (M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company (in a given industry) grow rapidly without having to create another business entity. In legal terminology, mergers and acquisitions can be defined as follows: • Merger: A full joining together of two previously separate corporations. A true merger in the legal sense occurs when both businesses dissolve and fold their assets and liabilities into a newly created third entity. This entails the creation of a new corporation. • Acquisition: Taking possession of another business, also called a takeover or buyout. It may be share purchase (the buyer buys the shares of the target company from the shareholders of the target company. The buyer will take on the company with all its assets and liabilities. ) or asset purchase (buyer buys the assets of the target company from the target company). Although they are often uttered in the same breath and used as though they were synonymous, the terms merger and acquisition mean slightly different things. A purchase deal will also be called a merger when both CEOs agree that joining together is in the best interest of both of their companies. But when the deal is unfriendly - that is, when the target company does not want...
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...the most influential theories of the firm is important. Starting with Coase (1937), academic research in economics and management has nurtured a long tradition of trying to unveil the “essence of the firm.” Some scholars believe that discovering the true nature of the firm permits understanding real- world firms. Whether things or concepts have “essences” is questionable. From a practical standpoint, finding this essence is not essential, but having a practical definition of the firm may be needed. A good “theory of the firm” is one that helps managers identify and choose the best projects among all feasible ones. It must also provide a definition of “best.” A brief review of three theories of the firm follows. The first theory views the firm as a nexus of contracts. Most valuation and project selection frameworks implicitly assume this view. The second one views the firm as an efficient solution to the problem of economizing on transaction costs. Such a view is particularly useful for understanding acquisitions and divestitures, especially in those cases involving vertical integration or outsourcing decisions. The third theory views the firm as the locus of crucial resources. This view is particularly helpful for understanding corporate strategy and value creation. The Firm as a Nexus of Contracts Some argue that the firm is nothing more than a nexus of contracts. Under this view, most stakeholders such as employees, bondholders, and suppliers are thought to be protected...
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...White-collar crime covers a great deal of offenses that might seem very different; however, some of these traits have them united under the same umbrella. All white-collar crimes deal with some deceit, avoid the usage of violence and many times come about because the perpetrator was given the chance by advantage of his or her occupation. According to Edwin Sutherland, white-collar crime is “crime committed by a person of respectability and high social status in the course of his occupation” (1949, p.9). In addition, many of the features of the committed crime happen during the course of work while being as part of the employment duties of the criminal. One great example of white-collar crime is embezzlement in which is defined by The Federal Bureau of Investigation (FBI) as the “misappropriation or misapplication of money or property entrusted to one’s care, custody, or control” (FBI, 2001). In other words, embezzlement is type of fraud where a person illegally takes money from an account he or she has given legal access to ranging from high-end bank employees to a cashier or waiter who pockets the money given from a customer to pay a check. This paper will discuss how embezzlement happens, some of the costs and statistics related to embezzlement in the United States, and, lastly, some of the current efforts companies and federal agencies are doing in order to stop or prevent embezzlement. Embezzlement is a non-violent crime; however, it is a serious crime that has much impact...
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...Chapter 5 Social responsibility and Managerial Ethics WHAT IS SOCIAL RESPONISBILITY? Two views of social responsibility The classical View * The classical View says that management’s only social responsibility is to maximize profits. * Management’s only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of the corporation). * Expanding the firm’s resources on doing “social good” unjustifiably increases costs that lower profits to the owners and raises prices to consumers. The Socioeconomic View * The Socioeconomic View is the view that management’s only social responsibility goes beyond making profits to include protecting and improving society’s welfare. * Management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare * Corporations are not independent entities responsible only to stockholders. * Firms have a moral responsibility to larger society to become involved in social, legal, and political issues. * “To do the right thing” Comparing the Two Views * A stage 1 manager is following the classical view of social responsibility and obeys all laws and regulations while caring for stockholders’ interests. * At stage 2 managers expand their responsibility to another important stakeholder group – employees. Because they want to attract, keep, and motivate good employees, stage 2 managers...
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...the quality of information for decision makers related to their services. While CPA’s are valued for their independence, Consumers Union is valued for their reports due to their independence of the products tested. b. The concepts of information risk for the buyer of an automobile and for the user of financial statements is generally the same. Both parties are worried with unreliable information being provided. The buyer of an automobile would be concerned with misinformation or lack of information provided by the manufacturer or dealership. Where the user of a financial statement would be concerned with unreliable information that is provided in the financial statements. c. Remoteness of information: It can difficult for an automobile buyer to obtain necessary information about either an automobile without incurring considerable cost to them. The automobile buyer does have an advantage though of possibly knowing other users who are satisfied or dissatisfied with a similar automobile. Word of mouth. Biases and motives of provider: There is a conflict between the automobile buyer and the manufacturer. The buyer wants to buy a high quality product at minimum cost whereas the seller wants to maximize the selling price and quantity sold. Voluminous data: There is a large amount of available information about automobiles that users might like to have in order to evaluate an automobile. Either that information is not available or too costly to obtain. Complex exchange...
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