Wednesday, October 9, 2019
Entry into Foreign Market Essay Example | Topics and Well Written Essays - 1500 words - 2
Entry into Foreign Market - Essay Example Despite Cameron International Corporationââ¬â¢s involvement in other developed nations, the companyââ¬â¢s production and innovative approaches towards development of oil extraction equipment may hinder the desired success if it fails to establish the actual needs of the oil drilling industry in Myanmar. The risk involved in the companyââ¬â¢s strategic entry in foreign markets is the lack of research and development programs to establish the unseen barriers, and the dependence on its large capital base for diversification of investments (Griese, 2004). Certainly, the risks of production that prompted to the explosion of BP oil rig revealed technological failures thus; the companyââ¬â¢s profitability should not serve to guarantee success in Myanmar since technological breakdowns might lead to expulsion and exploitation from the mining industry (Crouch & Maclean, 2011). Arguably, the institutional risks present in the oil extraction corporation serve as deterrence to success in entering the Myanmar oil industry. The institutional risks born to the multinational corporation are; financial, human resources, and the corporate social responsibility practices (Meyer, 2010). However, the management is certain of prosperity in the market due to its capital amount set aside for the investment. VRIO analysis to determine the existence of support to entry VRIO analysis in Cameron Corporation establishes a strategic scheme towards the global market approach. Firms draw their market entry strategies to reflect their vision statements and determine the success of objectives upon any of the corporationââ¬â¢s segments. Ideally, VRIO abbreviations denote value, rarity, imitating or counterfeiting, and organizationââ¬â¢s competitiveness in guaranteeing profound market entry variables (Griese, 2004). As an organization, Cameron International boasts over its business success in the continued production of oil services and equipment. The sectoral approach in the ene rgy production industry enables the CAM Corporation of continued innovation of ideal equipment in correlation to the raising performance together that seeks to denote its essential need to deliver value to the mining companies in order to become the global market leader in supplying valves and fittings in subsea oil wells. Secondly, the company asserts that its segment strategy is to enable corporations and countries to meet their energy services needs (Duncan, 2009). CAM targets those companies that operate in petroleum and natural gas exploration and extraction. Due to the strategic involvement in the energy industry, the company is arguably a leader in the production and marketing of pressure control equipment critical for competent oil and natural gas extraction programs. The companyââ¬â¢s underlying strengths of rich history in production of valves used in exploration sites in over 300 countries acquaint vast opportunities towards success in its bid to enter the Myanmar oil industry. CAM competes with FMC Technologies and National-Oilwell Varco as the market challenger and market follower respectively (Lincoln, 2007). Therefore, the VRIO analysis declares proficient support in CAMââ¬â¢s entry in the Myanmar oil production industr
Tuesday, October 8, 2019
Marketing Essay Example | Topics and Well Written Essays - 1500 words - 1
Marketing - Essay Example Positioning strategies aims to ensure that an organizationââ¬â¢s names pops up in the minds of consumers whenever services in their field of expertise are required. Differentiation strategies ensure that the products and services offered to the market are unique compared to those offered by their competitors. This gives an organization the edge over their competitors when battling for consumers in that particular market (Guidry, 2011). These strategies are implemented in a number of businesses, including hospitals and other health care facilities.à An example that can is used to showcase their use is the comparison between Bon Secours St. Mary's Hospital and HCA Henrico Doctor's Hospital that are both located in Richmond VA. Both of these hospitals function independently but are part of larger organizations that have other hospitals in the Richmond area and throughout the United States.à Though these two organizations essentially offer similar services to their clientele pos itioning and differentiation strategies are used to ensure that they stand out from their competitors as they strive to develop a better grasp on the regionââ¬â¢s market. ... This hospital has created marketing strategies that have ensured its survival over the years most notably in this case positioning, and differentiation strategies. The differentiation strategies used by the hospital is seen in the types of services that it offers the clients who visit their premises. One service includes: Bon Secours for Women. This is an initiative launched by the hospital and aims to offer specialized healthcare services to the women who visit the hospital (Bon Secours Health System, Inc., 2012).à Bon Secours for Women deals with medical issues that solely affect women, such as giving birth and parenting issues that follow afterwards.à Classes and education is offered and presented to consumers onà breastfeeding, parentingà and management of any complication that may arise after the birthing process, such as the care of wounds for women who have had to undergo a Caesarian section. Though these services are offered by other hospitals as well, St. Mary's Ho spital has gone a step farther by setting it aside from the other medical services on offer, thus making the women who seek these services from their hospital believe that they are cared for and appreciated, unlike other healthcare facilities whereby these services are alligned with the rest of the medical care that they have to offer.à Bon Secours for Womenà concentrates on a particular niche in the market, which is women, and their needs.à They aim their marketing toward women customers who prefer specialized care when dealing with any medical issues. Home care services are another specialized area for Bon Secours.à This is also another clever way of differentiating the hospitalââ¬â¢s services from those offered by other
Monday, October 7, 2019
Questionnaire design exercise, Learning journal based on 4 lectures Essay
Questionnaire design exercise, Learning journal based on 4 lectures and a report on debate - Essay Example Disagree 3. Undecided 4. Agree 5. Strongly 4. Release of new Champion skins attracts me more to the game? 1. Strongly Disagree 2. Disagree 3. Undecided 4. Agree 5. Strongly 5. The option of buying Riot Points is great because I can play even without gaining enough Riot Points. 1. Strongly Disagree 2. Disagree 3. Undecided 4. Agree 5. Strongly Agree 6. I buy Riot Points more often than I play up the levels. 1. Yes 2. No 7. If you buy the points more often, explain why? 1. I do not like to play for long to get points. 2. I do not get the time to play very often. 3. I am a beginner, so I have bought the Riot Points for the first time. 8. I play only when Riot Points are distributed free. 1. Yes 2. No 9. Are you a fan of the Face book page of the League of Legends? 1. Yes 2. No 10. Have you watched the League of Legends 2012? 1. Yes 2. No 11. Have you watched the You tube videos of League of Legends 2012? 1. Yes 2. No 12. Do you have League of Legends costume? 1. Yes 2. No 13. If yes, ho w did you get it? 1. Bought it 2. Got as a gift 3. I do not have the costume 14. If you have the costume you like using it because 1. I like to flaunt it in front of my friends. 2. I look like an avid player of League of Legends. 3. I like the get up and appearance of the costume. 4. All of the above. 5. I have the costume but do not use it much. 6. I do not have the costume. 15. Which is the best champion you have played? â⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦.. 16. What feature of the champion do you like best? Please explain why. â⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦.. Power point Presentation summary PPT 1. Week 9 Critical thinking and deve loping scholarly argument The world is changing very fast. These changes hold profound implications on our lives, particularly on our thinking and learning (Paul, Paul & Elder, 2002, p.1). The meaning of the term ââ¬Ëcritical thinkingââ¬â¢ might be understood as ââ¬Ëdiscerning judgment based on standardsââ¬â¢. As Moon says it, ââ¬Å"Critical thinking is ââ¬Ëthoughtfulââ¬â¢ thinkingâ⬠(Moon, 2012, p. 20). It makes a person present a point of view as a structured argument from which a conclusion can be drawn. It is important to be able to make a critical thinking as it helps in reading the underlying logic in someoneââ¬â¢s point of view. It would be of immense help in the workplace. A clear conception eases out many complex situations which are caused on the ground of false premises. Critical thinking would lead to building alternative logical explanation for a cause thereby helping in validation or rejection of an argument on solid grounds. PPT 2. Week 10 T echniques for critical reading Critical reading of any article helps us ââ¬Å"assess the value of the work it reportsâ⬠(Wallace & Wray, 2011, p. 4). Although academic writing is generally much benign, readers should look out for hidden layers in an academic text. By making a critical reading of a text one should be able to understand what a text means and how a text works by analyzing the information, interpreting the knowledge received and evaluating the inference drawn. Before reading the article one has to follow two steps, survey and questions; firstly, to look over the whole article, check the major heading and sub-headings and read the introduction and summary closely. Secondly, one should note down the main points that
Saturday, October 5, 2019
More Opportunity Equals More Crime Essay Example | Topics and Well Written Essays - 500 words
More Opportunity Equals More Crime - Essay Example In 1953, 10.84 percent of women were arrested for a variety of crimes (Science News, 1975). By 1972, this number jumped to 15.27 percent (Science News, 1975). The numbers of monetary crimes perpetrated by women (embezzlement, counterfeiting, fraud, and forgery) also increased significantly during this same period (Science News, 1975; Sohoni, 1994). However, the rates of women participating in violent crimes stayed about the same (Science News, 1975; Sohoni, 1994). In the past twenty-five years, the rate of increase for female incarcerations has surpassed, and even doubled, the rate for male incarcerations (Sileo, 1993). Why is this sudden increase being seen Are more women suddenly turning to a life of crime Are women more evil than they were in years past The definitive answer to this question is "no." Women have always committed crimes. It just seems that now the criminal justice system is getting better at catching and convicting the women who do commit crimes (Sileo, 1993). Also, women have more opportunities to interact outside the home than they did 50 years ago (Sileo, 1993). Since women are out in the workforce more than they used to be, it makes sense that there would be more instances of business-related crimes perpetrated by women.
Friday, October 4, 2019
Creative writing proposal Essay Example | Topics and Well Written Essays - 500 words
Creative writing proposal - Essay Example Due to Sanchoââ¬â¢s desire to become wealthy, he has blatantly agreed to accompany me. So we ride the roads of Spain in search of glory and grand adventure and I have given up food, shelter, and comfort, to a peasant woman, Dulcinea del Toboso, whom I envision as a princess. My inner desire to become a hero drives me out of my way and that is why I have easily gives up all most of my wealth to the wicked in the society. He however seems not convinced at all that we were still headed in the same direction as we had set off our journey. I have given up on a number of my ideals though I am not ready to admit it. I have to leave a young boy with an evil farmer because he has sworn an oath with me that he will not harm the innocent boy. That sounds convincing enough as I do not want to harm any anyone. I have just witnessed the death of a student who has died due to his love for a disdainful lady that turned into a shepherdess. I have managed to rescue a slave known as Gines de Pasamonte as well as uniting two couples who had initially separated. Cardenio and Lucinda, and Ferdinand and Dorothea had no serious cause to separate and I find it easy to bring them back together due to my great convincing ability. I have thus achieved number of my inner desires though I still yearn for more. People have begun to perceive me as a savior of mankind and that brings a lot of joy to me. Sancho informs me that an evil enchanter has transformed Dulcinea into a peasant girl and I am deeply moved by the news. Undoing the enchantment becomes my next big goal that has to be achieved in the next few hours. However, I fail to achieve it as soon as I realize that it had been a lie. I meet the Duke and the Duchess who decided to play a trick on me and marks the end of my conquest as I come to the realization that it had all been a dream not a
Thursday, October 3, 2019
Kids Should Be Paid for Good Grades Essay Example for Free
Kids Should Be Paid for Good Grades Essay Money can be a motivation to encourage students to study hard. The students will feel that their effort is worthy when they are remunerated. Compensation for childrenââ¬â¢s good grades can also nurture childrenââ¬â¢s concept about money. And the last, parents can refuse their kidsââ¬â¢ unreasonable request of purchasing and let them earn it. In general, kids should get paid for good marks. First, if kids get paid for good grades, they will be motivated to get high marks. As they grow up, their demands on variety things will increase as well. However, their parents will not always satisfy their childrenââ¬â¢s needs with everything. At this point, some children might be disappointed because they cannot get what they want even though they attain good grades. For instance, if a child wants an iPhone and the parents refuse the request because it is too expensive, the child will concentrate on the iPhone rather than study hard. Instead of saying ââ¬Å"noâ⬠to the child, the parents can reward good grades so that the child will maintain good marks in order to buy the phone. Of course, when the child has enough savings due to good performance, the child will eventually received what he or she desired. Thus, money can be a great incentive for children to study hard. Second, children will form financial concepts about the real value of money. They hardly know the purpose of money except it could be used to exchange with the goods they want. They did not know the value, power or even the amount of money. The perception of kids about money would probably be ââ¬Å"money comes out from mommyââ¬â¢s or daddyââ¬â¢s pocket. Therefore, paying children based on their grades allows them to know the concept of ââ¬Å"all pays deserve gains. â⬠Kids will soon realize that money comes from their effort and is for good reasons. Third, due to the modern society that we live in, kids are attracted by lots of fancy and luxury products and they might have unreasonable demand. Parents can refuse the unpractical demands of their children. The children will not unde rstand their parents since they are immature. In order to establish a balance between ââ¬Å"buying what they wantâ⬠and ââ¬Å"they cannot have itâ⬠, paying for good grades is a better solution. If kids get paid, they will keep studying hard. Paying for good school work does not only benefit the children, but also the parents. Kids will be motivated by the appeal of money, while their knowledge of finance will be developed simultaneously. In addition, kids will understand that they harvest what they plant. Therefore, kids should get paid for their good marks.
Unethical And Immoral Behaviors In Chinas Modern Market Economy Business Essay
Unethical And Immoral Behaviors In Chinas Modern Market Economy Business Essay With China stepping in the transform from traditional planned economy to modern market economy, a lot of unethical and immoral behaviors exist in its economic area during the process of economic system conversion and social transformation. It may cause by immature education level and economics growth too quickly. Sanlu Milk Incident, which has attracted great attention from all Chinese people, especially that from the Party Central Committee, is attributed to many aspects. Although it may be a serious incident of Chinese enterprise toward global market, but it may wake up the attention of Chinese government and management toward ethical business on the responsibility on customer. description on the milk scandal The toxic milk scandal became public in August 2008 with the disclosure that the baby formula produced by Sanlu was contaminated with melamine, which caused kidney failure among the babies who consumed it. However, until the Chinese Health Ministry confirmed on Sep 12, 2008, that the milk powder produced by Sanlu was contaminated by melamine, neither the government nor the company took any actions to warn the public. Later, government inspections reported that the products of 21 other dairy firms were also contaminated with melamine. Even as the milk scandal unfolded, many countries like Hong Kong, Taiwan, Singapore, South Korea, Australia, and Indonesia rushed to ban Chinese dairy products. Foreign companies which sold China made products or products which used Chinese ingredients had to recall their products. overview of food industry business ethics Significance of business ethics Nowadays, the issue of business ethics comes to peoples mind more frequently especially in the food industry since food are the essential items for human and it will affect our health directly. In 2004, the use of hair in the production of soya sauce was exposed and made headlines in the press. Moreover, there is many more news about China how they use very cheap material like industrial acid and oil to mix into their food products in order to minimize the introduction costs. As a developing country, business in China is developing very rapidly. It is now playing a more decisive role in social life and almost all people would be involved in business activities. As a result, unethical business behavior would have negative influence towards society. Hence, society is now more concerned with the issue of business ethics. Since the Chinese foods are now exported all over the world, ethical practice of Chinese enterprise issues are the key factors to be success. General perception on business ethics in food industry There is much news recently that related to food safety in world wide. Therefore, consumers have three types of ethical concerns toward food industry. Methods of Production and Distribution The production of food raises a number of issues that need to be considered. The packaged food industry essentially consists of manufacturing using farm produce. Clearly hygiene, quality control, health and safety considerations are of great importance. The following are among the issues that should be considered as per my knowledge: 1. Animal welfare in the meat products industry. 2. Use of child or bonded labour, or employment of illegal immigrants. 3. The International Labor Organization (ILO) standards provide useful benchmarks in this area. 4. Improper use of the pesticides, antibiotics, and other chemicals. 5. Misuse of water resources and the consequent impact on local farmers 6. Good quality control of the food supply 7. Ensure the material supply and healthy to human 8. Use environmental friendly packaging as much as possible for the packaging 9. Inform the actual gradients of the food contented 10. Inform the public immediately once unhealthy food was produced and distribute to market According to our observation toward Chinese business, their objective of the business is only generating profits as much as possible. The ethical senses are not significance within the society. Reason behinds the widespread sufferings of the infants According to the case content, there is several factors lead to this hazard. On Sanlu In fact, Sanlu acknowledged the problem far beyond the serious ha affects hazard explored in 2008. From the case content, there were several customer complained the problem to Sanlu about the ill effect of taking the milk by infants. However, Sanlu chose not to launch this news to alarm general public due to they do not wanted to affect its sales and image. In addition, they were not willing to import the sophisticated milk test machine from overseas. On Government First, we believed that Chinese government has too much confidence on the self governance by the enterprise especially on Sanlu these big companies. One of the regulations implemented was the inspection-free policy. A company would not be required to undergo inspection for a period of 3 years if it can meet the following three requirements: à ¢Ã¢â ¬Ã ¢ Product with stable quality à ¢Ã¢â ¬Ã ¢ High market share à ¢Ã¢â ¬Ã ¢ passed the inspection for more than 3 consecutive times However, past performance did not reflect that there will be not problems in future. Since, the demand of Chinese milk increased significantly and the milk supply source has been polluted, the problem got serious in 2008. If Chinese government inspected the quality of Sanlu continuously, the situation will be under controlled. Moreover, the respond of the milk incident was too slow to control the situation. The Shijiazhang government and the Communist Party of China did not report about the said issue to the provincial and state level authorities till 9 Sep, 2008. At that time, about 53000 infants were already affected. On the steadily growth market and growth strategy of Sanlu Since there is high demand in milk industry and there is not strict control over the milk supply, more and more farmer and agent joined the supply market for making money. The situation got worse after the Mengniu and Yili enter into the Hebei market because the supply of milk was tight in this fast growth market. Since the milk demand from Sanlu and other company increased steadily, the market collection station cannot get enough milk for production. Since it is a profitable market to sell milk to these producers, many middlemen aroused and sell the milk to Sanlu directly. They were not ethical enough since they had diluted the milk to increase the supply volume for more profit and they added this melamine into the milk which was harmful to infants. Since not quality inspection from milk station, this toxic milk was finally gone into the market and lead to the milk scandal finally. Sanlu also needed to responsible on this issue since its growth strategy in market share made they ign ore the quality control by milk station and make this incident. Finally, the covered error of the milk scandal did not made the problem dismissed. Reversely, it generated a serious problem not only about the image destroyed of Sanlu its own but also the image of Chinese milk products, hundred thousand of farmer made not income and needed to kill all of their cows as well as thousands of infant were suffered from Kidney stone. If proper action has been done, the situation will be better. Sanlu and Government actions toward the milk scandal On September 17, 2008, the Chinese Health Minister, announced that melamine contaminated milk had led to more than 6,200 children falling ill in the country and over 150 children suffered acute kidney failure. Six days later it was announced that four children had died and the number of children falling ill had increased to 54,000. On Sanlus production and management actions On September 12, 2008, the Hebei provincial government ordered Sanlu to stop production after preliminary investigation confirmed that melamine contaminated baby formula was the reason for kidney stones among children. The company was also ordered to stop sales of all brands of its baby formula, recall its products, and destroy all the products that were unsold and recalled. Also Sanlu set up a fund of 800,000,000 yuan, which 700,000,000 yuan was estimated to be the compensation amount that the compensation amount that the company needed to pay to its customer such as refund, hospital expenses and compensation on sick or death of the infants. On September 15, 2008, Sanlu had issued a public apology of its role in the milk scandal. Zhang Zhenling (Zhenling), Vice President of Sanlu, read out a letter of apology at a news conference in Shijiazhuang, The serious safety accident of the Sanlu formula milk powder for infants has caused severe harm to many sickened babies and their families. We feel really sad about this. Sanlu Group expresses its most sincere apology to you. We solemnly declare we will recall all the infant milk powder produced prior to August 6. And for those produced after that date, we will also make a recall if consumers have doubts and worries.15 Later, Sanlu also sacked Wenhua. On Government actions The Health Ministry informed the World Health Organization, Hong Kong, and Macaus health departments, the New Zealand Embassy in China, and the press about the melamine contamination in baby formula. The Ministry also announced that a free medical checkup would be given to affected children. It sent medical specialists to hospitals across China to help treat the affected children. Started from September 2008, the Chinese government started a nationwide inspection of baby milk powder. It announced that liquid milk products including packaged milk and yoghurt would be checked for melamine contamination. On September 16, 2008, GAQSIQ announced an inspection of all Chinese baby milk powder makers and found traces of melamine in 69 batches of baby formula produced by 22 companies including brands like Mengniu,12 Yili,13 and Bright Dairy.14 After the inspection, these dairy firms were ordered to stop new production and sale of dairy products. As the milk scandal escalated, steps were also taken against some government officials. While some of them were sacked, some of them resigned owning moral responsibility. On September 17, 2008, Ji Chuntang, Vice-Secretary of the Shijiazhuang Municipal Committee of the Communist Party of China (CPC) and Mayor of Shijiazhuang, was removed from his job. Earlier, four officials including the Vice Mayor in charge of agricultural production, the Director of Shijiazhuang Municipal Animal Husbandry and Fishery Bureau, the Director of Shijiazhuang Municipal Food and Drug Administration, and the Director of Shijiazhuang Municipal Bureau of Quality and Technical Supervision were dismissed. On September 22, 2008, Li Changjiang, the Director of GAQSIQ, resigned. On September 26, 2008, four executives of Sanlu including Wenhua were arrested for producing and selling sub-standard products. Milk dealers and suppliers were also arrested for selling contaminated milk to dairy companies. Jiabao, the then Premier of the State Council of the Peoples Republic of China, said, The government will put more efforts into food security, taking the incident as a warning. What we are trying to do is to ensure no such event happens in future, by punishing those responsible leaders as well as enterprises. None of those companies lacking professional ethics or social morals will be let off.16 In an effort to restore confidence among domestic and international consumers, the Chinese government introduced a new set of quality control standards which included strict limits for melamine in dairy products. In the case of infant formula, the limit was set at one milligram of melamine per kilogram and the limit for liquid milk at 2.5 milligrams per kilogram. On October 09, 2008, in an effort to stimulate the dairy industry of China, the Chinese government announced an emergency rescue plan for the affected dairy farmers. The government planned to give 300 million Yuan in subsidy. In addition, the interest rate for loans granted to dairy producers to buy raw milk was also reduced by 3 percent for the period between October and December in 2008. Some local governments in China had also promised to give a subsidy to the dairy farmers. For example, the Hebei province had allocated 316 million Yuan (US$46.4 million) as subsidies to dairy farmers. The dairy companies in China had to recall several thousand tons of melamine contaminated milk products. Sanlu was ordered to recall its products immediately after the Hebei provincial government found melamine contamination in its baby formula. After GAQSIQ had found melamine contamination in the products of 22 Chinese dairy companies, they were also asked to recall their products. On October 15, 2008, GAQSIQ ordered recall of all dairy products made before September 14, 2008. According to a notice issued by the agency, All supermarkets, shops, and all city, town, and village-level vendors will urgently remove and seal up all milk powder and liquid milk made before September, pending further testing. On December 27, 2008, it was announced by the Chinas Dairy Industry Association that the affected children and their families would get compensation from the 22 companies found guilty of producing and selling contaminated milk powder. According to the statement issued by the Association, The enterprises offered to shoulder the compensation liability. By doing so, they hope to earn understanding and forgiveness of the families of the sickened children. The money for compensation is in place now and will soon be handed to the people who have custody of the sickened children through various channels. If the babies suffer from relative after-effects, all medical fees will be covered by the fund. In a letter sent to the victims and their families by these 22 companies, the compensation amount was specifically mentioned for sick children, for those who were suffering from kidney failure, and for families whose kids had died because of the tainted milk powder. It was also mentioned in the l etter that dairy producers would set up a fund to pay the medical costs of the children who were ill, until they reached the age of 18. On January 22, 2009, two people were sentenced to death for their involvement in the Chinese milk scandal. Wenhua was given a life imprisonment and three other executives were given imprisonment from five to fifteen years In my personal opinion, the government failed to supervise product quality responsible. The effectiveness of the regulatory environment in China is slow in disclosure the hazard as well as makes prompt action to stop it. According to some research in the internet, there were many government departments to monitor food safety in China. As there was no single agency to look after all product safety regulations and enforcement in the country and there was no clear hierarchy of agencies, the duties of different departments often overlapped. Recommendations to Sanlu to recover its goodwill as well as Chinese milk industry toward global Investors who had already invested in the Chinese dairy industry were worried about regaining consumers confidence. In this respect it means consumers are now thinking twice before purchasing such products, so the key challenge now is to regain the consumers trust. As you can recall the case from Hong Kong, Vitasoy milk and Lemon tea also suffer from big hazard of the pollution in production line and made the milk turns sour in around ten years old. We believed as a well known organization with market leadership role, they can recover their goodwill step by step like Vita Corporation in order to gain the customer confidence again as below. However, the situation in Hong Kong is much easier to turnover since the government and the legislation control is much strict and clear to follow. If Sanlu would like to gain back the image, both Sanlu and Government needed to do something to ensure the quality of their products is healthy and safe to customer usage. We believe that ethical business environment is the key issue to recover the confidence from general public on the Chinese milk production On Government Regulations To avoid similar incident happen again, implementing of new issues and regulations are necessary. For example, AQSIQ should have regular and sudden inspection on the quality of products. The food industry inspection should be in random and strictly follow the international standard norm. Laws and ethics Nonetheless, only depends on laws, it is not sufficient to ensure the problem would not exist in future. It is more difficult to depend on enterprise to follow the law in PRC such the corruption and education level is not high. There are many acts that are legal but unethical. And there are also many people use money to change illegal to legal by cover the problem or override the checking from government. As in the milk scandal, the use of small amount of melamine was legal because it is not harmful to adult; there was no regulation on it. It is clear that laws cannot fully control human behavior; as law is only norm to control people behave. However, for business ethics, the standard is much higher than that of laws. It is because as a highly ethical company, their goals are not only profit but also care of the public as well as their customer. Ethics is not concerned only with peoples behavior. It is a standard for our core values. As an individual or a company, in addition to bein g legal, being ethical is the key which shows that their values are of higher standard rather than meeting the minimum requirement only. As a ethical corporation, Sanlu should use the concept that customers babies are their babies, they will not give some harmful materials or potential harmful ingredient towards their own babies. They should care the health of all babies although add melamine and dilute milk can be acceptable to increase production. Education on general public Peoples behavior is actually influenced by norm, attitude and values from the society and most likely are from their own family. Changes in norm, attitude and values are very important for improving business ethics. We believed that it is the value of Chinese enterprise was too famous on profit and do not know clearly what ethical standard they needed. Hence, on top of implementation of measures and regulations, education on both top management and employees would be the most fundamental way to do so. For example, government can improve more foreign consultant and special to teach ethic and made speech in university to raise the concern of general public and know they can do it profitability like coca cola, nestle as well as PG etc. On Sanlu itself Ethic knowledge training Unethical issues cannot be done by only one level. If the ethical standards are enough in the company, they will carry out a mutual inspection on other actions toward ethic enterprise. For example, before employees go to their working positions, the company should provide ethics training, covering ethical issues and addressing the rules, compliance requirement and the corporate values to their employees. Let employees realize the importance of business ethics for the company as well as their own. During training, discussions on cases of ethical dilemma and analysis with employees are valuable in developing employees awareness of business ethics and ethical competency. Furthermore, the company should communicate information about the reporting mechanisms with all employees. When there is any unethical behavior, employees can report to the company immediately. This would be the most efficient way to discover any problems and take prompt actions to solve them. Quality control process and crisis management Since Sanlus image was totally damaged in this incident, we recommend that Sanlu can import the modern of art testing machine for strict quality control and the production chain should be more transparent toward general public. They can set up a additional inspection team which contains outsiders from other milk industrys expert and also foreign country representative to investigate the production channel, sourcing as well as the healthy and safety level on its our products. Therefore, the general public may slowly regain its confidence on Sanlus milk products. Also, the management team should have a knowledge sharing about the investors New Zealand industry on how they manufacture the milk and ensure the required process and ethical norm can be implemented in Sanlu to regain the image from global market. Once the incident happened again, Sanlu should know how to reduce the negative effect toward customer like stop production immediately, message general public timely and recall all affected products from retailer and dealers in order to show their sophisticated experience in crisis management. Like Vita group, we believe that the market will accept their products again. In conclusion, we believe that the critical factor on this incident and regain image of Sanlu in the case is all about ethics. We believed that the technology and expertise in China are enough to produce healthy and safety products. However, their action has been affected by the norm to earn as much money as possible in short period of time by legal but no ethical actions. In order to reduce the negative image toward Chinese product such as foods, drinks, electronic and toy. Chinese government should pay more effort on improve the ethical standard by education and control of the government officials. If they cannot to do so, the short-term goal of Chinese enterprise toward profits without concern on general public would affect the development of the economy of whole Chinese market.
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