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Ethical Issues Of Ted Baker

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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 …show more content…

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 …show more content…

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,

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