Coca-Cola is the world’s largest beverage company that operates the largest distribution system in the world. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five top-selling soft drinks to earn sales such as Coke, Diet Coke, Fanta, and Sprite. This process builds strong customer relationships, which gives the opportunity for these businesses to be identified and satisfied. With that being said, customers will be more willing to help Coca-Cola produce and grow. Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Even though Coca-Cola produces and sells big across the United States, in order for the company to expand and grow, it had to build its global soft drink market by selling to customers internationally. For example, both companies continued to target international markets focusing Continue reading
Business Ethics
Case Study: The Rise and Fall of Enron
Background on the History of Enron Enron was an American Gas Company that was originally called Natural Gas Company in the early 1930s. InterNorth was a holding company that was located in Nebraska and in 1979 purchased Natural Gas Company. In 1985, Enron was born following the merger of InterNorth and Houston Natural Gas. Following the merger, in 1987 Enron discovered that oil traders in New York have overextended the company’s account by $1 billion dollars, which they were able to work down to $142 million. This put Enron in massive debt. For the new company to survive, Enron needed new, innovative, and strategic business plans to generate profits and improve cash flows. In 1988 Enron opened its first overseas office in England. “Come to Jesus” was a gathering by the top heads at Enron to come up with a new strategy to get the company out of debt and Continue reading
Cause Related Marketing (CRM) – Meaning and Types
Corporate Social Responsibility (CSR) is a subject of much current interest within the managerial world. CSR has the attention of the business community, investors, customers, and the business media. CSR as both the philosophy and practice of for-profit organizations voluntarily acting to positively assist society in ways beyond that required to obtain profit objectives. The concept of CSR is becoming transformed such that it is no longer a radical concept concerning the responsibilities of corporations to society, but simply a tool of managing stakeholders and improving reputations. CSR is the idea that it reflects the social imperatives and the social consequences of business success. Corporate Social Responsibility is business decision making linked to ethical values, compliance with legal requirements and respect for people, communities and environment around the world. It could also be likened to open and transparent practices that are based on ethical values and respect for employees, communities and Continue reading
Case Study on Business Ethics: The AIG Scandal
American International Group, Inc is a company whose operation began back in 1919. It was established back then by Cornelius Vander Starr as an insurance agency in Shanghai, China. AIG left china in 1949 after Starr had established himself as the westerner the sell insurance to the Chinese people. AIG headquarters then shifted from china to New York City, which is still the headquarters up to date. It is from here that AIG began its expansion tapping into other markets such as the Latin America, Asia, Middle East and Europe through use of its subsidiaries. It was in 1962 when Starr transferred management of AIG United states holdings to Maurice R. Greenberg. Greenberg introduced policies that made the company shift from its original personal insurance background to anew high market corporate targeted cover. The new management under Greenberg went on to focus mainly on selling AIGs’ insurance packages through independent Continue reading
Enron Scandal – The Evolution of Business Ethics
Aristotle said, “The end and purpose of the polis is the good life”. Adam Smith categorized the good life in terms of material goods and intellectual and moral excellence’s of character. Smith in his The Wealth of Nations commented, “All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind.” Ethical misconduct has become a key concern in business today. Ethics is the main area of corporate governance, and management must take responsibility for their actions on global community scale. Ethics in business and shareholders desires for profitability are not always put on the same pedestal, and it is the responsibility of the executive management to ensure ethics surpass profitability. The 2008 financial crisis initiated critics to inquire about the ethics of the executives who were put in charge of large financial institutions around the Continue reading
Ethical Reasoning
Ethics is a term which refers to moral philosophy that focuses on the aspects of good life and the difference between better and worse. Ethics is concerned about the rules of human behavior and considers whether or not there is any objective right or wrong. Furthermore, ethics is concerned about the foundations of moral principles and how it evolved. Considering the definition of ethics, it can be deemed that its main objective is to guide the society on deciding what is good from bad and what is better from worse which is also referred to as normative ethics. This may be done in a general way or may address certain ethical issues only. Another form or ethics is termed as meta-ethics wherein the meaning of ethical language is analyzed to identify their true meaning. Simply speaking, the true meaning of referring to something as a moral act or a right Continue reading