Name: Dawson_K_ Case 1
Subject: IB 410
Colgate’s Distasteful Toothpaste:
The case that I am referring to deals with ethical issues associated with Colgate’s repugnant toothpaste brand named Darkie. In the first part of the paper I will the discuss what is ethics and how it relates to business. Then I will look at the ways in which Colgate handled the situation. Then I will be assessing the importance of brand loyalty and customer loyalty with respect to business practices. Following that I will be exploring the importance of managerial right and finally some recommendations.
The term ethics refers to accepted principles of right and wrong that govern the ...view middle of the document...
In the Asian community this was not a problem because there was not a large black population as compared to the US. In the US with the institution of slavery still fresh on the minds of the average American this ad did not sit well, so one can clearly see that in this case ethics had indeed been violated. Another case in point is that Colgate indicated that they had no plans of selling this product in the western world tells me that they were in this thing just for market share in the Asian market. And that they knew being a US company that it was expected of them not to be conducting that type business dealings with another country if the home country is not pleased with such an operation. Colgate did not care what the black or white Americans public thought or how they felt while promoting Darkie they had no problems, all they were looking at was the millions of dollars on the balance sheet. At the end of the day, there was no remorse or guilty feelings; it was just business as usual for them. This type of action reflects total unethical behavior on the part of Colgate.
In order for Colgate to enter the Asian market it had to first develop a plan of action or strategy. Strategic management is the process of determining the organization’s basic goals and objectives and setting out a plan of action to attain them. In this case Hawley and Hazel had dominated the Asian market for years with their Darkie product. The only chance Colgate saw of getting into this huge market without having to set up a production plant of its own was to go into a 50% partnership with Hawley and Hazel. The agreement of this deal was that Colgate was to have no managerial say in the decisions of the partnership. This was the strategy that Colgate took in order to gain access into the Asian market seeing that Darkie was so popular. All Colgate was focusing on was on market presence and money; it did not faze them that did not have a voice in the deal. That is why when thing took a nose dive they could not say a word and it took three years and tons of money to rectify the problems that they faced.
In order for Colgate to handle the circumstance that arose, managerial privileges were the key. For Colgate the Asian market was the only driving force. If they had only kept their eyes on the true prize which are good reputation and customer loyalty and...