Current Ethical Issue in Business Learning Danielle Christine University of Phoenix Ethics in Management PHL 323 Laila Dabbagh Lambdin February 23, 2009 Current Ethical Issue in Business Learning Identify the ground rules manifested in the situation as well as which ethics theories apply. Circuit City is the nations 2nd largest retailer of consumer electronics, entertainment software and personal computers. On November 3, 2008, Circuit City announced that they would layoff and close 17% of it’s workforce by the end of the year. Due primarily to weakened economic environment and its potential impact on the timing of the overall sales of the companies inventory, cost and expenses. As a result of the companies deteriorating
Assumptions I need to be aware of to ensure they do not interfere with my critical analysis (include at least three examples for this section. A good place to start looking for ideas for this section are in Chapter 10 of The Art of Thinking: A guide to Critical and Creative Thought (Ruggiero, 2012).) A. Example of assumption 1. Explanation of how this assumption could interfere with critical analysis 2.
Business Ethics Homework 6 20 March 2013 GlaxoSmithKline Case 1. Since 2005, GSK was hit with several severe lawsuits regarding product liability. When Andrew Witty was assigned the chief executive role of the company, post-merger, the ice of shares declined 50 percent, which harmed the company’s earnings, sales and reputation. The first ethical lapse came about when GSK was criticized for selling drugs to the public without informing its buyers of the detrimental side effects. The detrimental product was Paxil, designed to relieve depression, generated disastrous side effects such as addictive behavior and birth defects.
A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,
The company needs to identify what is the contributing factor in loss sales and revenue. Internal and External surveys should be done to identify the contributing factor for loss sales and revenue and the key will be to pay attention to details to locate the trouble indicators. Once the company has identified their strength and weakness they will need to identify opportunity for sales and revenue increase for the future. Some of the key questions to identify areas of opportunity are; what are the trends patterns of the customer, what changes in technology will affect this market, what affect the economy
* Product lines that were not covering their avoidable costs could be dropped. * New product development is likely to receive more focus as the review program identifies areas of increasing demand. * Gourmet is likely to benefit from better monitoring of competitors’ product development, prices, and market share trends. F. This is an open-ended question; the specific steps are likely to vary based on the circumstances and the information found. Analysis for a given product might include the following general steps: * Identify the product to be analyzed by using a quantitative monitoring technique (e.g., size decline in contribution margin or sales) or some other method * Obtain and analyze detailed revenue and cost data prior periods; look for negative trends * Obtain and analyze the correlation of sales for this product with other products; look for potential relationships with other products that might influence a decision to drop the product * Obtain and analyze industry information about the product; look for information about trends in customer tastes, competition,
The collapse of the housing market and unemployment caused the most damage. Between 1991 to 1992 unemployment had gone back up to 2.6 million. Negative equity meant home owner were paying mortgages far higher than their homes were worth. Many people could simply not keep up with the increased prices and resulted in them losing their homes due to the bank repossessing them. The recession hit close to home for the Tories, effecting the middle class not just the working class of the industrial north.
Mortgage Foreclosure Crisis Michael Devitt Period 2. Final It’s a new year, the year of 2008. Some excited for all the things that are going to happen this year. Little did they know the economy will plummet, forcing massive numbers to foreclose, and many to be laid off. Few saw this devastation coming.
Unfortunately, it did. On October 29, 1929, the stock market crashed, and the United States once again found itself in economic turmoil. Prior to this, many people had begun purchasing stock on margin, or in other words, on credit. When the market crashed, the stock brokers called the loans they gave out back so that their companies may survive, except the loans couldn’t be paid back by the debtors. Many of the nation’s banks soon went under because they too had paid into the stock market and had lost much of their money.
In a lecture by Professor Newman, it was made known of the concept “selling short”, meaning, big businessmen would try to make more money on a market they knew was going down, and with that came a lot of common people losing money. When prices started to collapse over 40 billion dollars’ worth of stock value suddenly disappeared, and so did people’s money. With this caused the famous stock market crash in 1929. Almost immediately big businessmen started shutting down factories and firing employees and the demand for products went down, and with that, unemployment reached 15 million. In the lecture, Professor Newman uses the example of steel to show how much stocks declined.