Now a days Tobaco industy is one of the profitable area of business. Tobacco companies are well informed of the “killing effect” of their product. It is natural that to tobacco corporations production reduction, and also loss in the financial plan because of decrease in consumer activity is absolutely not profitable, thats why they have to orient on a new target- kids. Worldwide people die from the harm of smoking while tobacco product manufacturers continue to spend billions of dollars annually to maintain brand loyalty among current smokers, to influence young people to use tobacco, and to keep smokers addicted. The tobacco industry claims that it does not market to ...view middle of the document...
Rachinda states that his plan will approve GBT position in Malu’s market and share the “black-market” profit; also he mentioned that increasing in Singlaw distribution will not effect the price in Singlaw. Lastly he mentioned that his plan is compatible with the Malu’s government practice.
• The ethical Issues:
The main ethical issues, which appeared in the given case study is not just that, GBT is taking the cigarettes across border without paying taxes but also about using the sales of tobacco smuggling as its strategic planning. In other words Suppakorn Rachinda proposed Fiona two-step plan how to illegally push the “Gold” brand sails: The first step is to double the advertising budget in Malu, to make a brand more recognizable. The second step is to increase price to Singlaw distributors by 20%, to be reassured that the non-smuggling distributors will be unable to increase the price. (Fisher, C., 2009)
• The Alternatives:
According to the given case study the tree alternatives to Fiona are exist. The first alternative for her isn’t approving the Supacorn’s marketing plan for the “Gold” brand in Malu. Because it suggest a lot of unethical and not moral action related to the customers and country’s policy such as: smuggling, that can have a pernicious effect on an economic condition of the country, increase an advertising of harmless product which can engage more people of all ages smoke more or even begin to smoke, and as a whole GBT run up its business police against the Malu’s government police and the international trade policy (Moens, G., 2000). In that way she won't break any moral, ethical or leagal values and she can be identified as a real moral agent who can make moral judgments based on some commonly-held notion of right and wrong (Goldman, A.,1988).
The secont alternative to Fiona is to approve given plan. On the first sight it seemsed like unathical and not moral decision, but there are some facts which of course can not justify her decision but may somehow explain it. The main point is that Malu did not make any special effort to stop GBT from spending 8 million dollard for the advurtising. Also Malu didn't undertake any actions concerning underground trade reasoned it that high prices for unregulated sales of cigarettes are sufficient protection for the brands offered by their monopoly. Thus Fiona certainly will break some moral and physical values but at the same time she will she will know that eight million were spent for advertising not in vain and will give the chance to the GBT company to established in the new market and increase its income .( Provis, C.,2012)
The third alternative to Fiona is to wright her own marketing plan for the “Gold” brand involving into the Malu’s market where she will try to find a legal way to import the cigarettes. Ironically, the only legal way, which exists in the given situation, is to persuade the Malu’s government to take of the ban of the tobacco import and...