China Tainted Baby Powder Assignment

398 Words2 Pages
Assignment I: China’s Tainted Baby Milk Powder 1. It is obvious that Baidu.com has suffered damage to its reputation over this tainted milk powder scandal. Known as the Chinese Google and having a strong profit growth, this incident caused the company’s share prices to decrease greatly due to this surfacing of rumors. Company share prices were at $308 per share and now are at $110 per share is a sign that the company is losing the public’s trust. 2. Future reputational damage would affect areas such as the stock prices, which would cause the bottom line of the company’s profit and dividends. If the company continues, having a bad unethical reputation it could very well mean the company will be in bankruptcy. Companies can measure future damages by the total sales profits, stock prices, and ratings of the company and the users that use their search engine. 3. There are numerous steps that Baidu.com can follow to restore its reputation. As well as many challenges in which the company will have to overcome. First, the company should be cautious when it comes to doing business or making agreements with other companies in the same industry. It should focus on results and find the underlying cause of the problem to resolve this from excelling over time. Carefully make sure that they are not getting in over their heads and take smaller steps before jumping into to something that can ruin them. By the company, admitting nationally any fault of their own this will help to gain the public trust once again. By informing investors and consumers of this wrongdoing, this is the first step to fixing the problem at hand. Making sure that all involved in this wrongdoing are reprimanded for their actions and noting that to investors and the public. This will take some time and not happen overnight, but to make things right, to the public and investors is well worth a shot.

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