Introduction
The purpose of this report is to discuss and analyze the UK business and economic market through 3 different newspaper articles. It further describes the effects on firms which have undergone a change, affected by an external factor and an ethical issue.
The first article describes the continuous increase in profitability of Ted Baker Company in the competitive market of retail clothing. The company succeeded through the development of product differentiation and adaptation to customers’ needs and demands.
The second article illustrates the impact of government intervention in the tobacco industry and the legal confrontation contemplated by the major tobacco companies.
The ethical factor affecting a firm, it is being discussed
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Similarly, a car buyer would also consider features in addition to its price such as style, performance, and comfort. Car manufacturers will thus design cars to make them as attractive as possible to consumers, relative to the cost of manufacture. The company’s chief executive and founder, Ray Kelvin, stated that “they never managed to have pre-Christmas promotions and people never wanted to buy marked down gifts from Ted Baker”. This clearly shows the intense behaviour and demand of loyal customers who choose this brand among all of its competitors. It can also count as a significant benefit to the business by offering free word-of-mouth advertising. Ted Baker’s brand differentiation and consumer loyalty can further be related to the characteristics theory, which was developed by Kelvin Lancaster in the mid-60’s and it is based on four key assumptions:
1. All products possess various characteristics.
2. Different brands possess them in different opportunities.
3. The characteristics are measurable and impartial.
4. The characteristics, along with price and consumers’ income, determine consumer
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I. The case: Companies can be affected by many aspects of government policy as they must comply with the law. Currently, the UK Government is considering passing legislation preventing tobacco companies from displaying their brand names and logos on their packs, in an effort to reduce both demand and consumption of tobacco. However, the tobacco companies of Imperial Tobacco, British American, Japan Tobacco and Philip Morris are prepared to take every action necessary to protect their rights in order to maintain their branding on cigarette packaging.
II. Discussion, analysis and evaluation of the case: In case this legalisation is approved, the UK government would introduce plain packaging with the aim to improve public health and curb the appeal of cigarettes to young people. This action could be viewed by some as with political interest and accuse the government of electioneering. The UK parliament is expected to vote on regulations to ban branding on cigarette packs before it is dissolved on March 30, 2015 in preparation for the general election on May 7,
With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? (40 marks)
Since the first major lawsuit settled against tobacco companies in 1998, there has been much controversy over whether or not these lawsuits are justified. On the pro side of the argument there is much evidence to support that the tobacco industries have long known about the dangers of cigarette smoking. Furthermore that this knowledge warrants the need for compensation. In addition the industry has concealed this knowledge from the public. On the con side of the argument evidence shows that these lawsuits have been based on false claims primarily in regard to health care costs for smokers. Furthermore, the regulations set by the settlement of the 1998 multistate lawsuit have established a legal president which allows individuals
Tobacco use and the effects of second hand smoke have been an ongoing issue for many years. Looking at the attitude of the 1950’s and 1960’s when smoking was thought of as cool, suave, mature, etc., there has been a major turnaround in the way society looks at the use of tobacco. Now the issue is not just smoking and the damage to health that it causes, but now there is the additional awareness of what second hand smoke can do to individuals.
However, in a consumer market everyone should be allowed to purchase whatever they desire so banning this particular product goes against human rights. This still does not mean that product and its marketing strategy is ethical. Tobacco companies, however, should educate the consumer more about the dangers of its product. This also falls under social responsibility as well. Many will argue that tobacco companies display the hazards of smoking on the box, however, the warning is small and placed in an area of the box where consumers probably cannot see it which is done on
The Tobacco Products Control Act of 1989 sought to impose restrictions on the promotion of tobacco products. These restrictions concerned limitations in three commercial categories: advertisement, promotion, and labelling. Under the Act, tobacco products cannot be advertised, and products must be labeled with viable health warnings and a list of toxins. The packaging must be minimal, as to not be ostentatious to persuade Canadians from buying. Furthermore, the Act would prohibit the distribution of free samples. Appellants RJR-Macdonald Inc. dissented, stating the Act was a direct infringement upon the Charter’s s.2 freedom of expression clause, and appellant Imperial Tobacco Ltd. further dissented.
Tobacco is one of the world's dangerous drug which is haunting human lives to death. Over a billion adults are addicted to this drug and wasting their money, time and health. Nowadays there has been an ongoing debate/discussion among many people about the role of government in restricting the usage of Tobacco and thereby safeguarding the health of the public. In my personal opinion, both government and the Individual together needs to work to overcome this problem.
In “A Silence that Kills” Lyndon Haviland expresses the idea that the public must confront the social inequities of tobacco use. Haviland believes the communities must communitcate a sence of urgency and engage all Americans in the battle against tobacco use. The author expresses her ideas thoroughly by concentrating on certain fact of tobacco use or second hand smoke affect, the epidemic in out current communities, the silence of the government, and the concern for public health. With the constant repetition of unity and a well-organized, concentrated article, the author easily captures the attention of the reader and the intended American audience. However, the author lacks information on
Health concerns are the primary issue for nearly all of the stakeholders. Employees care about their job security and integrity for their occupations. The government is responsible for ensuring the safety and overall welfare of its community. If tobacco is known as a health hazard to the citizens, then it is the responsibility of the government to act on it. The customers of the tobacco industry are another huge factor. Of course, they care about their health, the ingredients of the product, the quality, the cost, etc. Then there are the owners and shareholders who, while they may also care about the reputation of the business, they are mainly concerned with the continuation of the corporation and the profits from it.
The war on smoking has existed for decades. With the advent of more tenacious laws prohibiting smoking in public locations, and most recently Minnesota’s historic tobacco settlement, many actions against “Big Tobacco” have become more successful. Anti-smoking campaigns have become more confrontational, directly targeting tobacco companies in an effort to expose its manipulative and illegal marketing tactics. On the surface, last November's $206 billion settlement agreement between the tobacco companies and 46 states looks like a serious blow for Big Tobacco. In addition to the money, it contains some important concessions: a ban on outdoor advertising, limits on
Fortunately, the tobacco industry's behavior is likely to change due to the increasing legal and societal pressures. Much legislation has been imposed to tobacco firms based on codes of behavior, different government strategies and litigations, especially after 1980 where anti-smoking groups reactions, led to higher restrictions throughout
Government involvement is often a subject of controversy and raises questions on when it should and shouldn’t be involved. There can always be a case made either way based on personal viewpoint and what issue is being discussed; this is no different when looking at the Indian Government’s deliberation over tobacco marketing and the usage of tobacco impacting their economy and population. The Government of India proposed bans on tobacco advertising leading to arguments for and against, it is however important to analyze both sides those in favor an those against, and any conflicts of interest that may be involved.
The aim of this essay is to illustrate how the markets will react when the government step in. This essay shall focus on the tobacco market in the United Kingdom through an organisation known as Phillip Morris International Limited. The first section of this essay provides the background and characteristics of this organisation in the United Kingdom division. This is followed by the justification of the applicable market structure. This essay highlights some of the reasons for government intervention and provides a real-life example of such government intervention in the market. The impacts to the various parties are analysed accordingly.
There are several ethical philosophies in play here regarding the tobacco company and these ethical issues can be explored by analyzing the myriad of interplay of relationships
The concept of Brand loyalty is defined in terms of 6 necessary and sufficient conditions. These conditions are as follows: -
In 2004 the government of India banned tobacco companies from advertising their products and sponsoring sports and cultural events. The objective was to discourage adolescents from consuming tobacco products as well as empower the government with the power to launch an anti tobacco program. . This issue created a serious problem in that it was both ethical and commercial, the government on one hand, believe it was its responsibility to protect the welfare of its citizen, while the tobacco industry was a major contributor to the state funds.