Sports Management Skills

Sports Management Skills Imagine that you are the owner of a professional minor league football team in Cookeville, TN, called the, Cookeville Eagles. You are trying to build a better revenue venue to make your team fiscally stronger and to encourage and promote better attendance. As a result, you have decided to merge with the Tennessee Titans and play half of your game in Cookeville (using TTUs stadium) and the other half in Nashville, TN (using the Titians stadium). Keep in mind, that your team is stationed in Cookeville, TN. The Titans owner and a few members of their executive board graduated from Tech and they desire to give back as alumni. List the five top stakeholders that you would involve upon this new endeavor. Tennessee Titans athletic administration City of Nashville fans Tennessee Tech University athletic administration State of Tennessee government Putnam County residents Describe each stakeholders role, responsibility, and why they were selected to be involved in this process. First, the Tennessee Titans athletic administration would have to agree with the merger for the Cookeville Eagles to play at the stadium. Since a few members of the executive board are Tennessee Tech graduates, they are proud of the city of Cookeville and probably want to see the city improve. Merging stadium contracts has the potential of bringing in more fans for the Cookeville Eagles. It is the Titans athletic administrations responsibility to not only agree with the merging contract, but also provide some support for facility management, security, event staff, and sponsors for the Cookeville Eagles even though the Cookeville Eagles administration will have full responsibility of any executive decisions. The City of Nashville, particularly the fans, are also on this endeavor. The goal of the merger is to promote to the fans and increase the fan base. When playing at Nissan Stadium, Cookeville fans can travel to Nashville to watch the Cookeville Eagles. However, when playing in Nashville, the surrounding fan base can grow based on how the Eagles are promoted to the city of Nashville. The City of Nashville is also responsible for paying for the tax dollars whenever the stadium is being used. Therefore, the fans that live in Nashville are somewhat invested in the Cookeville Eagles. The fans located in Nashville have a significant role during this process. Tennessee Tech University athletic administration is considered one of the top stakeholders because of the facility management at TTUs stadium (Tucker Stadium). As the leaders of Tucker Stadium, the facility staff, event staff, and marketing staff are responsible for the safety, well-being, and promotional offers of the fan base. The athletic administration, which includes the president of TTU, has a role in merging contracts due to Tucker Stadium being controlled by the university. The State of Tennessee, specifically the government, is also an important stakeholder in this situation. The role of the Tennessee state government in this merger has everything to do with the taxes. Since Tucker Stadium is owned by Tennessee Tech and Tennessee Tech is publicly owned by the Tennessee government, the State of Tennessee has some fiscal responsibility to the Cookeville Eagles team since half of their home games are played in Tucker Stadium. The final stakeholder is the citizens of Putnam County. Similar to the city of Nashville fans, the citizens of Putnam County are affected every time a home game is played in Cookeville. Traffic during games could affect the citizens of Cookeville especially since the fan population could increase in size from the merger. Local businesses are affected by the merger since more fans may be attending games. On the opposition, since half the home games are not located in Cookeville, this could have a potential drawback to the local businesses because the fans only attend half of the home games throughout a season. The residents of Putnam County would also have to travel further to attend a home game in Nashville which could be a deciding factor of not attending a game for the fans in Putnam County. The responsibility of Putnam County residents would be to support the Cookeville Eagles which may be difficult when the Eagles play a home game in Nashville. Putnam County residents are the mos t important stakeholder involved in the merging of stadiums since they are the majority of the fan base. As the owner of the Cookeville Eagles you will need to identify what type of leadership style you will execute to begin this process. As a result, list the four types of common leadership styles that are used by sport practitioners in the field of sport management. As a beginning process, the type of leadership I would bring as the owner of the Cookeville Eagles is autocratic. The autocratic leader has the final say, instructs the employees of their duties, and keeps employees under close supervision (Lussier Kimball, 2014, p. 376). Another type of leadership is democratic which involves encouraging employees to make their own decisions, working together with employees, while not providing close supervision (Lussier Kimball, 2014, p. 376). Laissez-faire is a type of leadership that does not involve much input to employees while the employees make their own decisions without the leader following up (Lussier Kimball, 2014, p. 376). Participative style is the fourth common type of leadership. Under this leadership, there is less direction provided to employees because they are highly capable of completing tasks while given encouragement from the participative leader (Lussier Kimball, 2014, p. 389). Although decisions are often made between the leader and the employee, the participative leader rarely supervises (Lussier Kimball, 2014, p. 389). The beginning leadership style of owning the Cookeville Eagles for me is autocratic so I can visually see how tasks are performed to get an idea of work ethic of the administration. It would be difficult to start a leading role not using your own decisions. Therefore, I would trust my instincts and decision-making skills initially. Over time and after things settle down, I would change the leadership role to a participative style so the employees have a positive encouragement to complete tasks and make decisions on their own. As the owner, what type of leadership style would you demonstrate/incorporate, with the stakeholders, upon embarking this new endeavor? Discuss why you selected this type of leadership style. I believe the democratic leadership style is the most beneficial when collaborating with the stakeholders. Encouraging surrounding ideas about decisions allows diversity within the organization which allows the democratic leader to make decisions while having several options. Instead of telling employees what to do, as a democratic leader, I would work closely with the stakeholders and keep an open mind about opportunities. For example, if the Cookeville Eagles decided to merge with Nissan Stadium and host half of the home games at both Tucker Stadium and Nissan Stadium, the opinions of the stakeholders previously mentioned would be strongly considered before making final decisions. Explain in detail what the SWOT analysis is and how it will affect both the Tennessee Titians and the Cookeville Eagles. BE SPECIFIC and VERY DETAILED with the SWOT analysis for this question. (Do not skip the four steps involved in the SWOT) An important step in the decision-making of merging Tucker Stadium and Nissan Stadium is using the SWOT analysis. Strengths, weaknesses, opportunities, and threats are included in the analysis (Lussier Kimball, 2014, p. 97). Assessing these four characteristics of a strategy are significant for the Titans and the Eagles environment internally and externally (Lussier Kimball, 2014, p. 97). When analyzing the strengths of the Titans-Eagles merger, one of them is essentially doubling the size of the fan base by using two cities because of the promotional and marketing schemes of the Cookeville Eagles. Since Nashville is a large metropolitan area, the economy greatly benefits from professional sports. According to research studied by Robert Wassmer, a professor in the Graduate Program in Public Policy and Administration at California State University, Sacremento, professional sports venues in downtown metropolitan areas provide greater economic benefits to largely populated areas. I must conclude by commending Nelson on his recognition from urban theory and, from the empirical evidence offered by Baade, that the strong possibility exists that a professional sports venue located downtown offers greater economic benefits to a metropolitan area than does one located elsewhere (Wassmer, 2001, p. 270). Nashville and surrounding area would benefit economically from a minor-league football team due to having two professional teams playing in the same stadium. More fans attending the games mean an increase in success for local businesses. Wassmer agrees in the same article, Whether it is publicly or privately financed, a metropolitan area receives the same benefits from an arena or a stadium (Wassmer, 2001, p. 267). Opposing the strengths, weaknesses come with every strategy. One of the most influential weaknesses on merging two stadiums is the local tax dollars. Perhaps most important to the calculation of an appropriate multiplier is the nearly always ignored fact that local public dollars used to finance a stadium or arena require an increase in local taxes or a decrease in local expenditure (Wassmer, 2001, p. 267). Not only increasing local tax dollars, because Tucker Stadium is an entity of the state of Tennessee, but local Cookeville fans would have to travel to Nashville to watch a home game which may not interest the local fan much like increasing tax dollars. Whenever there is a home game in Cookeville, the local residents may also not like all the traffic that comes with an increased fan base, another drawback to increasing the fan base. Unfortunately, another weakness is that Cookeville is not considered a metropolitan area. Although Cookeville is expanding, the population size of the city is not comparable to that of Nashville. Therefore, Tucker Stadium may not draw as big of a crowd as it would a crowd in Nashville. Of course, there are several opportunities to merging the two stadiums. If the merger is successful, the Cookeville Eagles could create enough revenue to build a bigger stadium in the city. If a new stadium is built, employment opportunities increase in the stadium. Although small increases in employment rates arise from a new stadium, larger increases are seen in local businesses because of the sporting event attraction (Wassmer, 2001, p. 267). Regarding metropolitan-wide income increases that could occur from stadia, Mills, like most economists, stressed the importance of counting only spending that would not have occurred in the absence of the sports venue (Wassmer, 2001, p. 267). Residents within the Cookeville area would also spend money on the athletic event instead of an event held outside the area. All these opportunities would result from earning more money from an increased fan base being involved in two cities. Along with the potential opportunity of building a new stadium is the potential of becoming a National Football League team which would be extraordinary for Cookeville. An unfortunate side of merging two stadiums is the potential loss of fans from the city of Cookeville. Some local fans could view that the administration of the Cookeville Eagles may not see that Cookeville is a good enough city to host a minor-league football team. Fans could become discouraged the minor-league football team would even consider separating home games. Utilizing two cities as home field advantage could affect the community in a negative manner and discourage local and community involvement as was the opposite case for Manchester City in 2003 when they considered relocating the stadium because the ticket sales and fan attendance were declining (Edensor Millington, 2008, p. 174). The threat was so severe to Manchester Citys soccer organization, instead of relocating the stadium, the marketing and promotional teams appealed to the die-hard, local fans by promoting detailed t-shirts that united the community (Edensor Millington, 2008, p. 173). In the city of Cookeville, splitting half of the home games could be seen as a way for the Cookeville Eagles to leave Cookeville all together eventually. Another threat is that Nashville may not agree with the merger for the purposes of having Cookeville as a potential rival in the future. If the Cookeville Eagles succeed in rising to the NFL, the Tennessee Titans could lose fans to the rival, Cookeville Eagles since they are in the same state. Discuss and elaborate on why you are for or against the new minor league Cookeville Eagles team. Knowing the city of Cookeville relies on the surrounding athletic teams and is highly involved in the community, a minor-league team would not benefit the city of Cookeville. Continuing with the merger of the two stadiums, I do not agree with either. Since Cookeville revolves around the integrity of the community, the weaknesses and threats outweigh the strengths and opportunities of a minor-league team in the city. The best style of leadership beginning a team in Cookeville is autocratic even though eventually the leadership style would change to allow the employees to voice their opinions. Even though an autocratic leadership style would be the most beneficial for starting off a new professional team, I believe the people and surrounding community have the most important say in bringing a professional minor-league football team into Cookeville. Beginning a team is difficult especially in the city of Cookeville where community members show moderate support the university athletic teams. Because of the difficulty beginning a team and due to a lack of interest in the community football team for the university, it is not in the best interest for Cookeville to invest in a professional minor league football team. As with any new and old sport organization there are risked involved. As a result, you will need to define and explain what risk management entails(do not skip this part of the question). Locate a professional National Football League (NFL) court case associate with risk management. The court cases can focus on one of the following: crowd control safety as it relates to the law, Americans with Disabilities Act (ADA) as it relates to facility management, security issues at a professional event, or emergency medical preparedness. Reminder, the court case needs to be NFL related. The goal is to help you be proactive as the future owner of the Cookeville Eagles. Risk management utilizes several resources within an organization to assess, control, and maintain a condition, object, or situation that potentially harms people (Fuller Drawer, 2004, p. 349). The process of risk management requires prevention, communication, and a preparation by all parties involved including facility managers, medical staff, police, paramedics, athletes, event staff, players, managers, coaches, and even the fans. Managing potential risks in an athletic environment is an important detail for sports administrations to provide safety to stakeholders. Practicing emergency situations, correcting stadium ADA violations, and understanding crowd security or traffic control should be priorities for an athletic department every year. Follow the format listed below: Ritchie v. National Football League, State of Hawaii On September 18, 2013, Deb Ritchie (plaintiff) filed a claim in the First Circuit Court of the State of Hawaii against the National Football League (NFL) and the State of Hawaii (defendants). Ritchie claims the defendants violated the Americans with Disabilities Act (ADA), the rehabilitation Act, and state law claims based on Defendants denial for Ritchie to sit front-row during the 2013 Pro Bowl at Aloha Stadium. Share and explain the actual case Both parties have filed motions against each other. The NFL and the State argue that Ritchie has no grounds for disability discrimination claims and did not establish any facts to support claims against ADA violations in Aloha Stadium. While the State sought partial summary judgment on Ritchies Rehabilitation Act claim because Aloha Stadium had received no federal funds, Ritchie sought a summary judgement for the NFL was responsible for all operation decisions in Aloha Stadium at the 2013 Pro Bowl. The State owns and operates Aloha Stadium (page 3). During the 2013 Pro Bowl, the NFL and State denied Ritchie access to her ticket in a front row seat because she struggled with mobility and offered her to sit in the ADA accessible seats (page 3-4). Since the NFL was under license agreement with Stadium Authority, the NFL has the right to decide all operations of Aloha Stadium including security details, staffing decisions, (page 4-6). During the 2011 and 2012 Pro Bowls, Ritchie enjoyed attending the games with her family. She purchased ten tickets to the 2013 Pro Bowl with the intention of sitting in the front row. Before the 2013 Pro Bowl, Ritchie was in an accident that required her to be dependent on a wheelchair and crutches to move. She informed an NFL employee about her status and requested field access to get to her front seat since the wheelchair seating was way up in the endzones (page 8). The NFL responded by accommodating her with accessible seating in a different sectio n and denied Ritchie field access. After a series of emails between security personnel, the plaintiff, and the defendants, the NFL offered Ritchie the same priced seats in ADA accessible seating of the stadium (page 9). Ritchie met with the officials and informed them she would not give up her front row seat, would be able to access her seat with potential complications, and was still intending a field pass offer. The NFL was concerned that Ritchies presence in a non-ADA accessible area would be a risk for her and others around her. The defendants offered her a field passes during the practice day before the pro bowl if she complied with the stadium ADA regulations. Although the Stadium Authority encouraged Ritchie to use her accessible seats offered, they informed her they would not block her from going to her seat as long as she didnt utilize the staff the get there. On game day, Ritchies wheelchair fails which resulted in her asking for assistance to get to her seat. The staff member obliged and gave her a wheelcha ir while assisting her to the seat. However, when the staff member learned that Ritchie was in the front row, he spoke with his superiors about the situation. Ritchie was allowed to sit in the seats if she could get to the seat on her own safely. With bystanders and other stadium authority, Ritchie was not able to make it to her seat without others noticing her off balance and at a high risk of falling yet she blamed her poor coordination on the staff not allowing her to move because they were so close to her. After the attempt of making it to her seat herself and being stopped by the stadium assistant to sit in the ADA accessible seating, Ritchie refused to comply with the stadium rules. If she didnt comply, Ritchie was to be escorted out of the stadium. Ritchie complied and went to her accessible seat begrudgingly. In 2014, Ritchie purchased front row seats for the Pro Bowl again. She was able to make it to her seat with assistance from a person she brought with her which Ritchie claims would have happened in 2013 had staff members not been in her way. There is video evidence of Ritchie using an individuals assistance while going down the stairs in 2014. Ritchie also has plans of attending several Pro Bowls for medical and personal reasons. State the problem For Ritchie to have legitimate claims against the NFL, she had to prove that she suffered an injury, that the injury is related to the NFLs actions, and the injury can be redressed by a decision in her favor. The problem is that Ritchie cannot trace the injury back to the NFL since Stadium Authority had control over the seating decisions and not the NFL. However, according to the license agreement, the NFL had the right to make all decisions regarding Aloha Stadium operations (page 25). Therefore, the NFL was denied its motion that Ritchie lacks standing regarding her disability. Because Ritchie was not allowed to sit in her original seat and the NFL did have control of seating arrangements, the summary judgment Ritchie had against state law claims was denied. The NFL also wanted assertion that all arguments they raised were equally applied to the State of Hawaii. This was denied since most the arguments applied to the NFLs actions. Neither Ritchie or the NFL had appropriate claims a gainst each other. Ritchie refused to take the ADA assigned seating offered to her as a compliment of not being allowed to sit in her purchased front row seat. Meanwhile, the NFL had no support for their claim against Ritchie having no standing of her disability. Share the verdict or final ruling in the case The court denied all motions against both the plaintiff and defendant. However, both parties reached an agreement in that the NFL will not have authority over seating decisions at the 2016 Pro Bowl. Instead, Stadium Authority will have control over the seating decisions. With the motions being denied, Ritchie conceded her ADA claims against the NFL and the case was dismissed (page 19). State if you agree or disagree with the verdict, and why? I agree with the outcome of the case. The NFL offered ADA accessible seating, which Ritchie took stubbornly after a hassle with a staff member, to accommodate a person with a disability. Even though the court case took time to conclude, the correct decision was made after the motions were brought up in the circuit court and denied in the State court. ADA accommodations were offered and accepted eventually, and the act was not violated by the NFL or Stadium Authority. On the contrary, the NFL did not have evidence for their motion against Ritchie having a lack of standing against disability discrimination. Imagine that you are the sport practitioner, what could have been done to prevent this case from occurring? As a sports practitioner, this court case is a tough one to analyze because the NFL and the State of Hawaii did everything correct given the circumstances. Unfortunately for the defendants, Deb Ritchie was not compliant until during the Pro Bowl when she realized she was not able to get to her seat on her own. If a fan purchased front-row tickets in advance and suffered a disability unexpectedly, I would first offer ADA options to the best of my ability just how the NFL did in this scenario. For a while, the communication was back and forth between the two parties involved. The communication was detailed on both ends. The plaintiff was stubborn and did not want to give up her good view for ADA seating that may or may not have a better view. She was finding different ways for her to maintain her seating arrangement by trying to upgrade her accessibility to get to her seat even though that wasnt the appropriate ADA regulation for the stadium. The opposition was being stubborn and did n ot want to offer a field pass where space was already limited and was not ADA regulated either. Through the emails back and forth, the parties remained firm on their positions and Ritchie was to sit in her front-row seat without assistance from the event staff or she would sit in the ADA seats offered to her. Like the NFL in this case, I would have been concerned about how Ritchie was going to get to her seat as well. Not only did she have the potential to harm herself getting to her front-row seat, there was potential of putting others in danger as well. Even though I empathize with her disability, as a sports practitioner, I am thinking of the safety of those in the surrounding environment. I would have required her to take the ADA seating and not offer her to sit in her front-row seat. Instead, I would offer her the same seats for the following year as a compliment. The NFL worked very well with Ritchie. As a sports practitioner, I admire the communication and ability to assist Ritchie even though she did not cooperate entirely at the start. This court case was eye-opening for the future sports practitioner especially with the growing awareness for ADA guidelines in facilities. References Edensor, T., Millington, S. (2008). This is Our City: branding football and local embeddedness. Global Networks, 8(2), 172-193. Fuller, C., Drawer, S. (2004). The application of risk management in sport. Sports Medicine, 34(6), 349-356. Lussier, R. N., Kimball, D. C. (2014). Applied sports management skills. (2nd ed.). Champaign, IL: Human Kinetics. Ritchie v. National Football League, Civ. No. 13-00525 JMS-BMK (D. Haw. June 20, 2016). Wassmer, R. W. (2001). Metropolitan prosperity from major league sports in the CBD: Stadia locations or just strength of the central city? A reply to Arthur C. Nelson. Economic Development Quarterly, 15(3), 266-271.

Marketing Case Study

CASE 4? 6 Making Socially Responsible and Ethical Strategic decisions move a company toward its stated goals and perceived success. Strategic decisions also re? ect the ? rm’s social responsibility and the ethical values on which such decisions are made. They re? ect what is considered important and what a company wants to achieve. Mark Pastin, writing on the function of ethics in business decisions, observes: There are fundamental principles, or ground rules, by which organizations act. Like the ground rules of individuals, organizational ground rules determine which actions are possible for the organization and what the actions mean. Buried beneath the charts of organizational responsibility, the arcane strategies, the crunched numbers, and the political intrigue of every ? rm are sound rules by which the game unfolds. The following situations re? ect different decisions made by multinational ? rms and governments and also re? ect the social responsibility and ethical values underpinning the decisions. Study the following situations in the global cigarette marketplace carefully and assess the ground rules that guided the decisions of ? rms and governments. Marketing Decisions: Selling Tobacco to Third World Countries expanding market. As an example, Indonesia’s per capita cigarette consumption quadrupled in less than ten years. Increasingly, cigarette advertising on radio and television is being restricted in some countries, but other means of promotion, especially to young people, are not controlled. China, with more than 300 million smokers, produces and consumes about 1. 4 trillion cigarettes per year, more than any other country in the world. Estimates are that China has more smokers than the United States has people. Just 1 percent of that 1. 4 trillion cigarette market would increase a tobacco company’s overseas sales by 15 percent and would be worth as much as $300 million in added revenue. American cigarette companies have received a warm welcome in Russia, where at least 50 percent of the people smoke. Consumers are hungry for most things Western, and tobacco taxes are low. Unlike in the United States and other countries that limit or ban cigarette advertising, there are few effective controls on tobacco products in Russia. Russia, the world’s fourth largest cigarette market, has proved to be an extremely pro? table territory for British American Tobacco (BAT). BAT Russia, established in 1949, sold 65 billion cigarettes in Russia in 2005, giving it almost one? fth of market share. EXPORTING U. S. CIGARETTE CONSUMPTION In the United States, 600 billion cigarettes are sold annually, but sales are shrinking rapidly. Unit sales have been dropping about 1 to 2 percent a year, and sales have been down by almost 5 percent in the last six years. The U. S. Surgeon General’s campaign against smoking, higher cigarette taxes, non-smoking rules in public areas, and the concern Americans have about general health have led to the decline in tobacco consumption. Faced with various class-action lawsuits, the success of states in winning lawsuits, and pending federal legislation, tobacco companies have stepped up their international marketing activities to maintain pro? ts. Even though companies have agreed to sweeping restrictions in the United States on cigarette marketing and secondhand smoke and to bolder cancer-warning labels, they are ? hting as hard as ever in the Third World to convince the media, the public, and policymakers that similar changes are not needed. In seminars at luxury resorts worldwide, tobacco companies invite journalists, all expenses paid, to participate in programs that play down the health risks of smoking. It is hard to gauge the in? uence of such seminars, but in the Philippines, a government plan to reduce smoking by children was â€Å"neutralized† by a public relations campaign from cigarette companies to remove â€Å"cancer awareness and prevention† as a â€Å"key concern. A slant in favor of the tobacco industry’s point of view seemed to prevail. At a time when most industrialized countries are discouraging smoking, the tobacco industry is avidly courting consumers throughout the developing world using catchy slogans, obvious image campaigns, and single-cigarette sales that ? t a hard-pressed customer’s budget. The reason is clear: The Third World is an ADVERTISING AND PROMOTION In Gambia, smokers send in cigarette box tops to qualify for a chance to win a new car. In Argentina, smoking commercials ? ll 20 percent of television advertising time. And in crowded African cities, billboards that link smoking to the good life tower above the sweltering shantytowns. Such things as baby clothes with cigarette logos, health warnings printed in foreign languages, and tobaccosponsored contests for children are often featured in tobacco ads in Third World countries. Latin American tobacco consumption rose by more than 24 percent over a ten-year period. Critics claim that sophisticated promotions in unsophisticated societies entice people who cannot afford the necessities of life to spend money on a luxury—and a dangerous one at that. The sophistication theme runs throughout the smoking ads. In Kinshasa, Zaire, billboards depict a man in a business suit stepping out of a black Mercedes as a chauffeur holds the door. In Nigeria, promotions for Graduate brand cigarettes show a university student in his cap and gown. Those for Gold Leaf cigarettes have a barrister in a white wig and the slogan, â€Å"A very important cigarette for very important people. † In Kenya, a magazine ad for Embassy cigarettes shows an elegant executive of? cer with three young men and women equivalent to American yuppies. The most disturbing trend in developing countries is advertising that associates tobacco with American af? uence and culture. Some women in Africa, in their struggle for women’s rights, de? antly smoke cigarettes as a symbol of freedom. Billboards all over Russia feature pictures of skyscrapers and white sandy beaches and slogans like â€Å"Total Freedom† or â€Å"Rendezvous with America. † They aren’t advertising foreign travel but American cigarette brands. Cases 4 Developing Global Marketing Strategies Every cigarette manufacturer is in the image business, and tobacco companies say their promotional slant is both reasonable and common. They point out that in the Third World a lot of people cannot understand what is written in the ads anyway, so the ads zero in on the more understandable visual image. â€Å"In most of the world, the Marlboro Man isn’t just a symbol of the Wild West; he’s a symbol of the West. † â€Å"You can’t convince people that all Americans don’t smoke. † In Africa, some of the most effective advertising includes images of af? uent white Americans with recognizable landmarks, such as the New York City skyline, in the background. In much of Africa, children as young as ? e are used to sell single cigarettes, affordable to other children, to support their own nicotine habits. Worldwide nearly one-fourth of all teenage smokers smoked their ? rst cigarette before they were 10 years old. The scope of promotional activity is enormous. In Kenya, a major tobacco company is the fourth-largest advertiser. Tobaccosponsored lotteries bolster sales in some countries by offering as prizes expensive goods that are beyond most people’s budgets. Gambia has a population of just 640,000, but a tobacco company lottery attracted 1. million entries (each sent in on a cigarette box top) when it raf? ed off a Renault car. Evidence is strong that the strategy of tobacco companies is to target young people as a means of expanding market demand. Report after report reveals that adolescents receive cigarettes free as a means of promoting the product. For example, in Buenos Aires, a Jeep decorated with the yellow Camel logo pulls up in front of a high school. The driver, a blond woman wearing khaki safari gear, begins handing out free cigarettes to 15- and 16-year-olds on lunch recess. Teens visiting MTV’s Web sites in China, Germany, India, Poland, and Latin America were given the chance to click on a banner ad that led them to a questionnaire about their exposure to cigarette ads and other marketing tools in their countries. Some 10,000 teens responded to the banner ads. â€Å"In the past week, more than 62 percent of teenagers in these countries have been exposed to tobacco advertising in some form,† the 17-year-old SWAT (Students Working against Tobacco) chairman told Reuters. The tobacco companies learned that marketing to teens and kids worked in this country, but since they can’t do it here anymore, they’ve taken what they learned to other countries. † At a video arcade in Taipei, free American cigarettes are strewn atop each game. â€Å"As long as they’re here, I may as well try one,† says a high school girl. In Malaysia, Gila-Gila, a comic book popular with elementary school students, carries a Lucky Strike a d. Attractive women in cowboy out? ts regularly meet teenagers going to rock concerts or discos in Budapest and hand them Marlboros. Those who accept a light on the spot also receive Marlboro sunglasses. According to the American Lung Association Tobacco Policy Trend Alert, the tobacco industry is offering candy-? avored cigarettes in an attempt to continue to target teens. 1 Advertising and promotion of these products uses hip-hop imagery, attractive women, and other imagery to appeal to youth in similar ways that Joe Camel did a decade ago. Marketing efforts for candy-? avored cigarettes came after the Master Settlement Agreement prohibited tobacco companies from using cartoon characters to sell cigarettes. Researchers recently released the results of several surveys that showed that 20 percent of smokers ages 17 to 19 smoked ? avored cigarettes, while only 6 percent of smokers ages 17 to 20 did. In Russia, a U. S. cigarette company sponsors disco parties where thousands of young people dance to booming music. Admission is the purchase of one pack of cigarettes. At other cigarettesponsored parties, attractive women give cigarettes away free. In many countries, foreign cigarettes have a status image that also encourages smoking. A 26-year-old Chinese man says he switched from a domestic brand to Marlboro because â€Å"You feel a higher social position† when you smoke foreign cigarettes. â€Å"Smoking is a sign of luxury in the Czech Republica as well as in Russia and other Eastern countries,† says an executive of a Czech tobacco ? rm that has a joint venture with a U. S. company. â€Å"If I can smoke Marlboro, then I’m a well-to-do man. † The global tobacco companies insist that they are not attempting to recruit new smokers. They say they are only trying to encourage smokers to switch to foreign brands. The same number of cigarettes are consumed whether American cigarettes or not,† was the comment of one executive. Although cigarette companies deny they sell higher tar and nicotine cigarettes in the Third World, one British tobacco company does concede that some of its brands sold in developing countries contain more tar and nicotine than those sold in the United States and Europe. A recent study found three major U. S. brands with ? lters had 17 milligrams of tar in the United States, 22. 3 in Kenya, 29. 7 in Malaysia, and 31. 1 in South Africa. Another brand with ? ters had 19. 1 milligrams of tar in the United States, 28. 8 in South Africa, and 30. 9 in the Philippines. The ? rm says that Third World smokers are used to smoking their own locally made product, which might have several times more tar and nicotine. Thus, the ? rm leaves the tar- and nicotine-level decisions to its foreign subsidiaries, who tailor their products to local tastes. C. Everett Koop, the retired U. S. Surgeon General, was quoted in a recent news conference as saying, â€Å"Companies’ claims that science cannot say with certainty that tobacco causes cancer were ? t-footed lies† and that â€Å"sending cigarettes to the Third World was the export of death, disease, and disability. † An Oxford University epidemiologist has estimated that, because of increas ing tobacco consumption in Asia, the annual worldwide death toll from tobaccorelated illnesses will more than triple over the next two decades. Perhaps 100 million people died prematurely during the 20th century as a result of tobacco, making it the leading preventable cause of death and one of the top killers overall. According to the World Health Organization, ach year smoking causes 4 million deaths globally, and it expects the annual toll to rise to 10 million in 2030. GOVERNMENT INVOLVEMENT Third World governments often stand to pro? t from tobacco sales. Brazil collects 75 percent of the retail price of cigarettes in taxes, some $100 million a month. The Bulgarian state-owned tobacco company, Bulgartabac, contributes almost $30 million in taxes to the government annually. Bulgartabac is a major exporter of cigarettes to Russia, exporting 40,000 tons of cigarettes annually. Tobacco is Zimbabwe’s largest cash crop. One news report from a Zimbabwe newspaper reveals strong support for cigarette companies. â€Å"Western anti-tobacco lobbies demonstrate unbelievable hypocrisy,† notes one editorial. â€Å"It is relatively easy to sit in Washington or London and prattle on about the so-called evils of smoking, but they are far removed from the day-to-day grind of earning a living in the Third World. † It goes on to comment that it doesn’t dispute the fact that smoking is addictive or that it may cause diseases, but â€Å"smoking does not necessarily lead to certain 1 See â€Å"From Joe Camel to Kauai Kolada—The Marketing of Candy-Flavored Cigarettes,† http://lungusa. org. Part 6 Supplementary Material 350 million smokers, China has 50 million more cigarette buyers than the U. S. has people, according to Euromonitor. While smoking rates in developed countries have slowly declined, they have shot up dramatically in some developing counties where PMI is a major player. These include Pakistan (up 42 percent since 2001), Ukraine (up 36 percent), and Argentina (up 18 percent). death. Nor is it any more dangerous than other habits. Unfortunately, tobacco smoking has attracted the attention of a particularly â€Å"sanctimonious, meddling sector of society. They would do better to keep their opinions to themselves. † Generally, smoking is not a big concern of governments beset by debt, internal con? ict, drought, or famine. It is truly tragic, but the worse famine becomes, the more people smoke—just as with war, when people who are worried want to smoke. â€Å"In any case,† says one representative of an international tobacco company, â€Å"People in developing countries don’t have a long enough life expectancy to worry about smoking-related problems. You can’t turn to a guy who is going to die at age 40 and tell him that he might not live up to 2 years extra at age 70. † As for promoting cigarettes in the Third World, â€Å"If there is no ban on TV advertising, then you aren’t going to be an idiot and impose restrictions on yourself,† says the representative, â€Å"and likewise, if you get an order and you know that they’ve got money, no one is going to turn down the business. † Cigarette companies ? gure China’s self-interest will preserve its industry. Tobacco provides huge revenues for Beijing because all tobacco must be sold through the China National Tobacco Company monopoly. Duty on imported cigarettes is nearly 450 percent of their value. Consequently, tobacco is among the central government’s biggest source of funding, accounting for more than $30 billion in income in 2005. China is also a major exporter of tobacco. ANTISMOKING PROMOTIONS Since the early 1990s, multinational tobacco companies have promoted â€Å"youth smoking prevention† programs as part of their â€Å"Corporate Social Responsibility† campaigns. The companies have partnered with third-party allies in Latin America, most notably nonpro? t educational organizations and education and health ministries to promote youth smoking prevention. Even though there is no evidence that these programs reduce smoking among youths, they have met the industry’s goal of portraying the companies as concerned corporate citizens. In fact, a new study proves that youth smoking prevention ads created by the tobacco industry and aimed at parents actually increase the likelihood that teens will smoke. The study, â€Å"Impact of Televised Tobacco Industry Smoking Prevention Advertising on Youth Smoking-Related Beliefs, Intentions and Behavior,† published in the December 2006 issue of the American Journal of Public Health, sought to understand how the tobacco industry uses â€Å"youth smoking prevention† programs in Latin America. Tobacco industry documents, so-called social reports, media reports, and material provided by Latin American public health advocates were all analyzed. The study is the ? rst to examine the speci? c effect of tobacco company parent-focused advertising on youth. It found that ads that the industry claims are aimed at preventing youth from smoking actually provide no bene? t to youth. In fact, the ads that are created for parental audiences but also are seen by teens are associated with stronger intentions by teens to smoke in the future. Brazil has the world’s strictest governmental laws against smoking, consisting of highly visible antismoking campaigns, severe controls on advertising, and very high tax rates on smoking products. Despite these obstacles, the number of smokers in Brazil continues to grow. In 2006, there were approximately 44 million smokers in the country, up from 38 million in 1997. Factors driving this trend include the low price of cigarettes, which are among the lowest in the world; the easy access to tobacco products; and the actions taken by the powerful tobacco companies to slow down antismoking legislation in Brazil. FOCUS ON DEVELOPING MARKETS Lawsuits, stringent legislation against advertising, laws restricting where people can smoke, and other antismoking efforts on the part of governments have caused tobacco companies to intensify their efforts in those markets where restrictions are fewer and governments more friendly. As part of a strategy to increase its sales in the developing world, Philip Morris International (PMI) was spun off from Philip Morris USA in 2008 to escape the threat of litigation and government regulation in the United States. The move frees the tobacco giant’s international operations of the legal and public-relations headaches in the United States that have hindered its growth. Its practices are no longer constrained by American public opinion, paving the way for broad product experimentation. A new product, Marlboro Intense, is likely to be part of an aggressive blitz of new smoking products PMI will roll out around the globe. The Marlboro Intense cigarette has been shrunk down by about a half inch and offers smokers seven potent puffs apiece, versus the average of eight or so milder draws. The idea behind Intense is to appeal to customers who, due to indoor smoking bans, want to dash outside for a quick nicotine hit but don’t always ? nish a full-size cigarette. The CEO of PMI says there are â€Å"possibly 50 markets that are interested in deploying Marlboro Intense. † Other product innovations include sweet-smelling cigarettes that contain tobacco, cloves and ? voring—with twice the tar and nicotine levels of a conventional U. S. cigarette. Marlboro Mix 9, a high-nicotine, high-tar cigarette launched in Indonesia in 2007, and a clove-infused Mix 9 will be exported to other southeast Asian markets next. Another iteration of the Marlboro brand, the Marlboro Filter Plus, is being sold in South Korea, Russia, Kazakhstan, and Ukraine. It touts a special ? lter made of carbon, cellulose ac etate, and a tobacco plug that the company claims lowers the tar level while giving smokers a smoother taste. One of PMI’s immediate goals is to harness the huge potential of China’s smoking population, as well as some of that country’s own brands, which it has agreed to market worldwide. With some ASSESSING THE ETHICS OF STRATEGIC DECISIONS Ethical decision making is not a simplistic â€Å"right† or â€Å"wrong† determination. Ethical ground rules are complex, tough to sort out and to prioritize, tough to articulate, and tough to use. The complexity of ethical decisions is compounded in the international setting, which comprises different cultures, different perspectives of right and wrong, different legal requirements, and different goals. Clearly, when U. S. companies conduct business in an international setting, the ground rules become further complicated by the values, customs, traditions, ethics, and goals of the host countries, which each have developed their own ground rules for conducting business. Three prominent American ethicists have developed a framework to view the ethical implications of strategic decisions by American Cases 4 Developing Global Marketing Strategies ? rms. They identify three ethical principles that can guide American managers in assessing the ethical implications of their decisions and the degree to which these decisions re? ct these ethical principles or ground rules. They suggest asking, â€Å"Is the corporate strategy acceptable according to the following ethical ground rules? † These questions can help uncover the ethical ground rules embedded in the tobacco consumption situation described in this case. These questions lead to an ethical analysis of the degree to which this str ategy is bene? cial or harmful to the parties and, ultimately, whether it is a â€Å"right† or â€Å"wrong† strategy, or whether the consequences of this strategy are ethical or socially responsible for the parties involved. These ideas are incorporated in the decision tree in Exhibit 1. Principles Utilitarian ethics (Bentham, Smith) Question Does the corporate strategy optimize the â€Å"common good† or bene? ts of all constituencies? Does the corporate strategy respect the rights of the individuals involved? Does the corporate strategy respect the canons of justice or fairness to all parties? Rights of the parties (Kant, Locke) Justice or fairness (Aristotle, Rawls) Exhibit 1 A Decision Tree for Incorporating Ethical and Social Responsibility Issues into Multinational Business Decisions Does the decision efficiently optimize the common good or benefits of: THE BUSINESS FIRM? Stockholders Management Profits Growth Other SOCIETY? Culture Order Justice â€Å"The good life† Other THE ECONOMY? THE INDIVIDUAL? Economic growth Freedom Allocation of resources Health and welfare Production and distribution Self-realization of goods and services Human dignity Other Opportunity Other YES NO YES Are there critical factors that justify suboptimizing these goals and satisfactions? NO Does the decision respect the rights of individuals involved? YES NO Reject Decision YES Are there critical factors that justify the abrogation of a right? NO Does the corporate decision respect the canons of justice or fairness to all parties involved? YES YES NO Reject Decision Are there critical factors that justify the violation of a canon of justice? NO Accept Decision Reject Decision Part 6 Supplementary Material See www. who. int, the World Health Organization’s Web site, for more details regarding the current tobacco controversy. See also www. getswat. com for a worldwide student initiative against smoking. Laczniak and Naor discuss the complexity of international ethics or, more precisely, the ethical assumptions that underlie strategic decisions for multinationals. 2 They suggest that multinationals can develop consistency in their policies by using federal law as a baseline for appropriate behavior as well as respect for the host country’s general value structure. They conclude with four recommendations for multinationals: 1. Expand codes of ethics to be worldwide in scope. 2. Expressly consider ethical issues when developing worldwide corporate strategies. . If the ? rm encounters major ethical dilemmas, consider withdrawal from the problem market. 4. Develop periodic ethics-impact statements, including impacts on host parties. 2 QUESTIONS 1. Use the model in Exhibit 1 as a guide and assess the ethical and social responsibility implications of the situations described. 2. Can you recommend alternative strategies or solutions to the dilemmas confronting the tobacco companies? To governments? What is the price of ethical behavior? 3. Should the U. S. government support U. S. tobacco company interests abroad? . Should a company be forced to stop marketing a product that is not illegal, such as cigarettes? Gene R. Laczniak and Jacob Naor, â€Å"Global Ethics: Wrestling with the Corporate Conscience,† Business, July–September 1985. Sources: â€Å"Smoke Over the Horizon; U. S. Gains in Tobacco Control Are Being Offset Internationally,† The Washington Post, July 23, 2006; â€Å"Death and Taxes: England Has Become the Latest in a Series of Countries to Vote for Restrictions on Smoking in Public Places,† Financial Management (UK), April 1, 2006; â€Å"Trick or Treat? Tobacco Industry Prevention Ads Don’t Help Curb Youth Smoking,† PR Newswire, October 31, 2006; â€Å"China Exclusive: China, With One Third of World’s Smokers, Promises a ‘Non-Smoking’ Olympics,† Xinhua News Agency, May 29, 2006; â€Å"Tobacco Consumption and Motives for Use in Mexican University Students,† Adolescence, June 22, 2006; â€Å"A Change in the Air: Smoking Bans Gain Momentum Worldwide,† Environmental Health Perspectives, August 1, 2007; â€Å"Adams Won’t Kick the BAT Habit: The Head of British American Tobacco Is Stoical About the Looming Ban on Smoking in Public Spaces: BAT will Adapt,† The Sunday Telegraph London, June 10, 2007; â€Å"Heart Disease, Stroke Plague Third World,† Associated Press (Online), April 4, 2006; â€Å"Get a Detailed Picture of the Tobacco Industry in Brazil,† M2 Press Wire, December 20, 2007; Vanessa O’Connell, â€Å"Philip Morris Readies Global Tobacco Blit z; Division Spin-off Enables Aggressive Product Push; High-Tar Smokes in Asia,† The Wall Street Journal, January 29, 2008; â€Å"The Global Tobacco Threat,† The New York Times, February 19, 2008; â€Å"How to Save a Billion Lives; Smoking,† The Economist (London,) February 9, 2008; â€Å"Whether Here or There, Cigarettes Still Kill People,† The Wall Street Journal, February 4, 2008. Marketing Case Study 1. When 7-UP introduced itself into the soft drink industry, they were generally thought of by consumers as a company that produced a clear soft drink for mixing alcoholic beverages.   After conducting extensive research, 7-UP found that colas were the best-selling category in the soft drink industry.   7-UP then repositioned itself in the market by introducing the slogan, â€Å"7-UP, the uncola.†Ã‚   This repositioning allowed them to take third place in the market, after Coca Cola and Pepsi, and also allowed for growth and gains over competitors in the lemon-lime category of soft drinks.   In addition, 7-UP differentiates itself from other soft drink manufacturers in several ways.   Within the lemon-lime category, 7-UP has introduced a new tagline, â€Å"all things in green bottles are not the same.†Ã‚   This tagline is meant to differentiate 7-UP from Sprite and Sierra Mist.   Two other new taglines will include â€Å"for less sweet, syrupy taste, the only way to go is Up† and â€Å"When you add it all up, the only way to go is Up† (Wikipedia).2. 7-UP was able to change consumer behavior by using psychology and working with the concept that everyone wants to be an individual.   When introducing the â€Å"uncola† tagline, 7-UP based this introduction on consumer research.   Purchasing and consuming Coke and Pepsi were part of going along with the group since many people were purchasing those products at the time.   Introducing 7-UP as the â€Å"uncola† brought to mind a sense of individuality for consumers.   The 7-UP marketing executives put the idea in their heads that purchasing and consuming 7-UP products would make them stand out from the crowd.   7-UP has continued this tradition of changing consumer behavior since that time.The company hopes to change consumer behavior in the twenty-first century by introducing a product called 7-UP Plus.   This product will create a whole new category wit hin the soft drink industry, as it is going to be sold as a soft drink with added nutritional value.   Again, 7-UP is basing the introduction of this product on consumer trends and research.   Due to the obesity epidemic in America, combined with raised health awareness on the part of many men and women, 7-UP will be introducing this reduced sugar product with added vitamins and minerals.   Introducing this product shows that 7-UP is on top of trends in consumer spending and, by introducing this product, the executives may be able to change consumer behavior from purchasing sugar-laden soft drinks with empty calories to purchasing a less sweetened product with vitamins and minerals that are needed to fuel the human body (Dillon).3.   Like any company, 7-UP has had many successes and failures throughout its history.   In the initial stages of the company, there were 600 lemon-lime beverages competing for market share with 7-UP.   7-UP was able to survive and rise to the t op of the market by successfully becoming one of the first lemon-lime soft drinks to be nationally distributed. 7-UP also floundered in the soft drink market due to poor marketing.   Originally, the soft drink was a means of calming children with upset stomachs.   Later, it became a mixer for alcoholic beverages.   Because 7-UP was thought of as a bartending mixer and not an individual beverage, sales were mostly due to people intending to mix the 7-UP with a type of alcoholic beverage.7-UP conducted extensive research and found that cola drinks were the best-selling soft drink in the industry.   However, these cola drinks contained a considerable amount of caffeine.   After careful consideration, they introduced the slogan, â€Å"7-UP, the uncola.†Ã‚   This slogan appealed to consumers because it carried a sense of individualism and it also appealed to those who were health-conscious and knew the effects of too much caffeine.   This was one of 7-UPs great success es.   Another failure by 7-UP was the introduction of 7-UP Gold.   7-UP Gold was designed as a spiced version of 7-UP, similar in taste to the ginger ale soft drink.   Although it was widely marketed and advertised, the product was never a hit and was discontinued.Another successful marketing campaign capitalized on the principles of Zen.   A television commercial featured a Zen master asking disciples to correctly choose.   The 7-UP symbolized light and consciousness while the cola featured in the commercial symbolized darkness.   With that commercial, 7-UP made consumers think they were making a good life choice by purchasing and consuming 7-UP.   Another failure in 7-UPs history is its poor bottling and distribution structure.   When 7-UP was first introduced, it had little competition because Coca Cola and Pepsi did not manufacture lemon-lime soft drinks.   This changed when Coca Cola introduced Sprite and Pepsi introduced Sierra Mist.   Bottlers were then fo rced by these respective companies to discontinue bottling 7-UP and exclusively bottle their products.   Unfortunately, this had led to an inability for 7-UP to be widely distributed to smaller stores.   As a result, 7-UP can often only be found in large stores or chains (Wikipedia).4.   7-UP's marketing strategy has been successful in many ways.   With the introduction of new taglines and slogans, 7-UP has been successful at positioning themselves in consumers' minds and increasing market share in the soft drink industry.   7-UP's marketing strategy has also been successful because marketing executives have capitalized on consumer trends throughout the history of the company.In the 1970s, the company seized upon the fact that the popular cola drinks had high levels of caffeine and redesigned their advertising to reflect the healthier choice that 7-UP was.   In addition, they appealed to the consumer's sense of wanting to be an individual and introduced advertisements ge ared toward that concept.   With the invention of new technology, 7-UP has also gained a presence on the World Wide Web with a well-designed web site that gives important information about the company and its products (Wikipedia). Marketing Case Study CASE 4? 6 Making Socially Responsible and Ethical Strategic decisions move a company toward its stated goals and perceived success. Strategic decisions also re? ect the ? rm’s social responsibility and the ethical values on which such decisions are made. They re? ect what is considered important and what a company wants to achieve. Mark Pastin, writing on the function of ethics in business decisions, observes: There are fundamental principles, or ground rules, by which organizations act. Like the ground rules of individuals, organizational ground rules determine which actions are possible for the organization and what the actions mean. Buried beneath the charts of organizational responsibility, the arcane strategies, the crunched numbers, and the political intrigue of every ? rm are sound rules by which the game unfolds. The following situations re? ect different decisions made by multinational ? rms and governments and also re? ect the social responsibility and ethical values underpinning the decisions. Study the following situations in the global cigarette marketplace carefully and assess the ground rules that guided the decisions of ? rms and governments. Marketing Decisions: Selling Tobacco to Third World Countries expanding market. As an example, Indonesia’s per capita cigarette consumption quadrupled in less than ten years. Increasingly, cigarette advertising on radio and television is being restricted in some countries, but other means of promotion, especially to young people, are not controlled. China, with more than 300 million smokers, produces and consumes about 1. 4 trillion cigarettes per year, more than any other country in the world. Estimates are that China has more smokers than the United States has people. Just 1 percent of that 1. 4 trillion cigarette market would increase a tobacco company’s overseas sales by 15 percent and would be worth as much as $300 million in added revenue. American cigarette companies have received a warm welcome in Russia, where at least 50 percent of the people smoke. Consumers are hungry for most things Western, and tobacco taxes are low. Unlike in the United States and other countries that limit or ban cigarette advertising, there are few effective controls on tobacco products in Russia. Russia, the world’s fourth largest cigarette market, has proved to be an extremely pro? table territory for British American Tobacco (BAT). BAT Russia, established in 1949, sold 65 billion cigarettes in Russia in 2005, giving it almost one? fth of market share. EXPORTING U. S. CIGARETTE CONSUMPTION In the United States, 600 billion cigarettes are sold annually, but sales are shrinking rapidly. Unit sales have been dropping about 1 to 2 percent a year, and sales have been down by almost 5 percent in the last six years. The U. S. Surgeon General’s campaign against smoking, higher cigarette taxes, non-smoking rules in public areas, and the concern Americans have about general health have led to the decline in tobacco consumption. Faced with various class-action lawsuits, the success of states in winning lawsuits, and pending federal legislation, tobacco companies have stepped up their international marketing activities to maintain pro? ts. Even though companies have agreed to sweeping restrictions in the United States on cigarette marketing and secondhand smoke and to bolder cancer-warning labels, they are ? hting as hard as ever in the Third World to convince the media, the public, and policymakers that similar changes are not needed. In seminars at luxury resorts worldwide, tobacco companies invite journalists, all expenses paid, to participate in programs that play down the health risks of smoking. It is hard to gauge the in? uence of such seminars, but in the Philippines, a government plan to reduce smoking by children was â€Å"neutralized† by a public relations campaign from cigarette companies to remove â€Å"cancer awareness and prevention† as a â€Å"key concern. A slant in favor of the tobacco industry’s point of view seemed to prevail. At a time when most industrialized countries are discouraging smoking, the tobacco industry is avidly courting consumers throughout the developing world using catchy slogans, obvious image campaigns, and single-cigarette sales that ? t a hard-pressed customer’s budget. The reason is clear: The Third World is an ADVERTISING AND PROMOTION In Gambia, smokers send in cigarette box tops to qualify for a chance to win a new car. In Argentina, smoking commercials ? ll 20 percent of television advertising time. And in crowded African cities, billboards that link smoking to the good life tower above the sweltering shantytowns. Such things as baby clothes with cigarette logos, health warnings printed in foreign languages, and tobaccosponsored contests for children are often featured in tobacco ads in Third World countries. Latin American tobacco consumption rose by more than 24 percent over a ten-year period. Critics claim that sophisticated promotions in unsophisticated societies entice people who cannot afford the necessities of life to spend money on a luxury—and a dangerous one at that. The sophistication theme runs throughout the smoking ads. In Kinshasa, Zaire, billboards depict a man in a business suit stepping out of a black Mercedes as a chauffeur holds the door. In Nigeria, promotions for Graduate brand cigarettes show a university student in his cap and gown. Those for Gold Leaf cigarettes have a barrister in a white wig and the slogan, â€Å"A very important cigarette for very important people. † In Kenya, a magazine ad for Embassy cigarettes shows an elegant executive of? cer with three young men and women equivalent to American yuppies. The most disturbing trend in developing countries is advertising that associates tobacco with American af? uence and culture. Some women in Africa, in their struggle for women’s rights, de? antly smoke cigarettes as a symbol of freedom. Billboards all over Russia feature pictures of skyscrapers and white sandy beaches and slogans like â€Å"Total Freedom† or â€Å"Rendezvous with America. † They aren’t advertising foreign travel but American cigarette brands. Cases 4 Developing Global Marketing Strategies Every cigarette manufacturer is in the image business, and tobacco companies say their promotional slant is both reasonable and common. They point out that in the Third World a lot of people cannot understand what is written in the ads anyway, so the ads zero in on the more understandable visual image. â€Å"In most of the world, the Marlboro Man isn’t just a symbol of the Wild West; he’s a symbol of the West. † â€Å"You can’t convince people that all Americans don’t smoke. † In Africa, some of the most effective advertising includes images of af? uent white Americans with recognizable landmarks, such as the New York City skyline, in the background. In much of Africa, children as young as ? e are used to sell single cigarettes, affordable to other children, to support their own nicotine habits. Worldwide nearly one-fourth of all teenage smokers smoked their ? rst cigarette before they were 10 years old. The scope of promotional activity is enormous. In Kenya, a major tobacco company is the fourth-largest advertiser. Tobaccosponsored lotteries bolster sales in some countries by offering as prizes expensive goods that are beyond most people’s budgets. Gambia has a population of just 640,000, but a tobacco company lottery attracted 1. million entries (each sent in on a cigarette box top) when it raf? ed off a Renault car. Evidence is strong that the strategy of tobacco companies is to target young people as a means of expanding market demand. Report after report reveals that adolescents receive cigarettes free as a means of promoting the product. For example, in Buenos Aires, a Jeep decorated with the yellow Camel logo pulls up in front of a high school. The driver, a blond woman wearing khaki safari gear, begins handing out free cigarettes to 15- and 16-year-olds on lunch recess. Teens visiting MTV’s Web sites in China, Germany, India, Poland, and Latin America were given the chance to click on a banner ad that led them to a questionnaire about their exposure to cigarette ads and other marketing tools in their countries. Some 10,000 teens responded to the banner ads. â€Å"In the past week, more than 62 percent of teenagers in these countries have been exposed to tobacco advertising in some form,† the 17-year-old SWAT (Students Working against Tobacco) chairman told Reuters. The tobacco companies learned that marketing to teens and kids worked in this country, but since they can’t do it here anymore, they’ve taken what they learned to other countries. † At a video arcade in Taipei, free American cigarettes are strewn atop each game. â€Å"As long as they’re here, I may as well try one,† says a high school girl. In Malaysia, Gila-Gila, a comic book popular with elementary school students, carries a Lucky Strike a d. Attractive women in cowboy out? ts regularly meet teenagers going to rock concerts or discos in Budapest and hand them Marlboros. Those who accept a light on the spot also receive Marlboro sunglasses. According to the American Lung Association Tobacco Policy Trend Alert, the tobacco industry is offering candy-? avored cigarettes in an attempt to continue to target teens. 1 Advertising and promotion of these products uses hip-hop imagery, attractive women, and other imagery to appeal to youth in similar ways that Joe Camel did a decade ago. Marketing efforts for candy-? avored cigarettes came after the Master Settlement Agreement prohibited tobacco companies from using cartoon characters to sell cigarettes. Researchers recently released the results of several surveys that showed that 20 percent of smokers ages 17 to 19 smoked ? avored cigarettes, while only 6 percent of smokers ages 17 to 20 did. In Russia, a U. S. cigarette company sponsors disco parties where thousands of young people dance to booming music. Admission is the purchase of one pack of cigarettes. At other cigarettesponsored parties, attractive women give cigarettes away free. In many countries, foreign cigarettes have a status image that also encourages smoking. A 26-year-old Chinese man says he switched from a domestic brand to Marlboro because â€Å"You feel a higher social position† when you smoke foreign cigarettes. â€Å"Smoking is a sign of luxury in the Czech Republica as well as in Russia and other Eastern countries,† says an executive of a Czech tobacco ? rm that has a joint venture with a U. S. company. â€Å"If I can smoke Marlboro, then I’m a well-to-do man. † The global tobacco companies insist that they are not attempting to recruit new smokers. They say they are only trying to encourage smokers to switch to foreign brands. The same number of cigarettes are consumed whether American cigarettes or not,† was the comment of one executive. Although cigarette companies deny they sell higher tar and nicotine cigarettes in the Third World, one British tobacco company does concede that some of its brands sold in developing countries contain more tar and nicotine than those sold in the United States and Europe. A recent study found three major U. S. brands with ? lters had 17 milligrams of tar in the United States, 22. 3 in Kenya, 29. 7 in Malaysia, and 31. 1 in South Africa. Another brand with ? ters had 19. 1 milligrams of tar in the United States, 28. 8 in South Africa, and 30. 9 in the Philippines. The ? rm says that Third World smokers are used to smoking their own locally made product, which might have several times more tar and nicotine. Thus, the ? rm leaves the tar- and nicotine-level decisions to its foreign subsidiaries, who tailor their products to local tastes. C. Everett Koop, the retired U. S. Surgeon General, was quoted in a recent news conference as saying, â€Å"Companies’ claims that science cannot say with certainty that tobacco causes cancer were ? t-footed lies† and that â€Å"sending cigarettes to the Third World was the export of death, disease, and disability. † An Oxford University epidemiologist has estimated that, because of increas ing tobacco consumption in Asia, the annual worldwide death toll from tobaccorelated illnesses will more than triple over the next two decades. Perhaps 100 million people died prematurely during the 20th century as a result of tobacco, making it the leading preventable cause of death and one of the top killers overall. According to the World Health Organization, ach year smoking causes 4 million deaths globally, and it expects the annual toll to rise to 10 million in 2030. GOVERNMENT INVOLVEMENT Third World governments often stand to pro? t from tobacco sales. Brazil collects 75 percent of the retail price of cigarettes in taxes, some $100 million a month. The Bulgarian state-owned tobacco company, Bulgartabac, contributes almost $30 million in taxes to the government annually. Bulgartabac is a major exporter of cigarettes to Russia, exporting 40,000 tons of cigarettes annually. Tobacco is Zimbabwe’s largest cash crop. One news report from a Zimbabwe newspaper reveals strong support for cigarette companies. â€Å"Western anti-tobacco lobbies demonstrate unbelievable hypocrisy,† notes one editorial. â€Å"It is relatively easy to sit in Washington or London and prattle on about the so-called evils of smoking, but they are far removed from the day-to-day grind of earning a living in the Third World. † It goes on to comment that it doesn’t dispute the fact that smoking is addictive or that it may cause diseases, but â€Å"smoking does not necessarily lead to certain 1 See â€Å"From Joe Camel to Kauai Kolada—The Marketing of Candy-Flavored Cigarettes,† http://lungusa. org. Part 6 Supplementary Material 350 million smokers, China has 50 million more cigarette buyers than the U. S. has people, according to Euromonitor. While smoking rates in developed countries have slowly declined, they have shot up dramatically in some developing counties where PMI is a major player. These include Pakistan (up 42 percent since 2001), Ukraine (up 36 percent), and Argentina (up 18 percent). death. Nor is it any more dangerous than other habits. Unfortunately, tobacco smoking has attracted the attention of a particularly â€Å"sanctimonious, meddling sector of society. They would do better to keep their opinions to themselves. † Generally, smoking is not a big concern of governments beset by debt, internal con? ict, drought, or famine. It is truly tragic, but the worse famine becomes, the more people smoke—just as with war, when people who are worried want to smoke. â€Å"In any case,† says one representative of an international tobacco company, â€Å"People in developing countries don’t have a long enough life expectancy to worry about smoking-related problems. You can’t turn to a guy who is going to die at age 40 and tell him that he might not live up to 2 years extra at age 70. † As for promoting cigarettes in the Third World, â€Å"If there is no ban on TV advertising, then you aren’t going to be an idiot and impose restrictions on yourself,† says the representative, â€Å"and likewise, if you get an order and you know that they’ve got money, no one is going to turn down the business. † Cigarette companies ? gure China’s self-interest will preserve its industry. Tobacco provides huge revenues for Beijing because all tobacco must be sold through the China National Tobacco Company monopoly. Duty on imported cigarettes is nearly 450 percent of their value. Consequently, tobacco is among the central government’s biggest source of funding, accounting for more than $30 billion in income in 2005. China is also a major exporter of tobacco. ANTISMOKING PROMOTIONS Since the early 1990s, multinational tobacco companies have promoted â€Å"youth smoking prevention† programs as part of their â€Å"Corporate Social Responsibility† campaigns. The companies have partnered with third-party allies in Latin America, most notably nonpro? t educational organizations and education and health ministries to promote youth smoking prevention. Even though there is no evidence that these programs reduce smoking among youths, they have met the industry’s goal of portraying the companies as concerned corporate citizens. In fact, a new study proves that youth smoking prevention ads created by the tobacco industry and aimed at parents actually increase the likelihood that teens will smoke. The study, â€Å"Impact of Televised Tobacco Industry Smoking Prevention Advertising on Youth Smoking-Related Beliefs, Intentions and Behavior,† published in the December 2006 issue of the American Journal of Public Health, sought to understand how the tobacco industry uses â€Å"youth smoking prevention† programs in Latin America. Tobacco industry documents, so-called social reports, media reports, and material provided by Latin American public health advocates were all analyzed. The study is the ? rst to examine the speci? c effect of tobacco company parent-focused advertising on youth. It found that ads that the industry claims are aimed at preventing youth from smoking actually provide no bene? t to youth. In fact, the ads that are created for parental audiences but also are seen by teens are associated with stronger intentions by teens to smoke in the future. Brazil has the world’s strictest governmental laws against smoking, consisting of highly visible antismoking campaigns, severe controls on advertising, and very high tax rates on smoking products. Despite these obstacles, the number of smokers in Brazil continues to grow. In 2006, there were approximately 44 million smokers in the country, up from 38 million in 1997. Factors driving this trend include the low price of cigarettes, which are among the lowest in the world; the easy access to tobacco products; and the actions taken by the powerful tobacco companies to slow down antismoking legislation in Brazil. FOCUS ON DEVELOPING MARKETS Lawsuits, stringent legislation against advertising, laws restricting where people can smoke, and other antismoking efforts on the part of governments have caused tobacco companies to intensify their efforts in those markets where restrictions are fewer and governments more friendly. As part of a strategy to increase its sales in the developing world, Philip Morris International (PMI) was spun off from Philip Morris USA in 2008 to escape the threat of litigation and government regulation in the United States. The move frees the tobacco giant’s international operations of the legal and public-relations headaches in the United States that have hindered its growth. Its practices are no longer constrained by American public opinion, paving the way for broad product experimentation. A new product, Marlboro Intense, is likely to be part of an aggressive blitz of new smoking products PMI will roll out around the globe. The Marlboro Intense cigarette has been shrunk down by about a half inch and offers smokers seven potent puffs apiece, versus the average of eight or so milder draws. The idea behind Intense is to appeal to customers who, due to indoor smoking bans, want to dash outside for a quick nicotine hit but don’t always ? nish a full-size cigarette. The CEO of PMI says there are â€Å"possibly 50 markets that are interested in deploying Marlboro Intense. † Other product innovations include sweet-smelling cigarettes that contain tobacco, cloves and ? voring—with twice the tar and nicotine levels of a conventional U. S. cigarette. Marlboro Mix 9, a high-nicotine, high-tar cigarette launched in Indonesia in 2007, and a clove-infused Mix 9 will be exported to other southeast Asian markets next. Another iteration of the Marlboro brand, the Marlboro Filter Plus, is being sold in South Korea, Russia, Kazakhstan, and Ukraine. It touts a special ? lter made of carbon, cellulose ac etate, and a tobacco plug that the company claims lowers the tar level while giving smokers a smoother taste. One of PMI’s immediate goals is to harness the huge potential of China’s smoking population, as well as some of that country’s own brands, which it has agreed to market worldwide. With some ASSESSING THE ETHICS OF STRATEGIC DECISIONS Ethical decision making is not a simplistic â€Å"right† or â€Å"wrong† determination. Ethical ground rules are complex, tough to sort out and to prioritize, tough to articulate, and tough to use. The complexity of ethical decisions is compounded in the international setting, which comprises different cultures, different perspectives of right and wrong, different legal requirements, and different goals. Clearly, when U. S. companies conduct business in an international setting, the ground rules become further complicated by the values, customs, traditions, ethics, and goals of the host countries, which each have developed their own ground rules for conducting business. Three prominent American ethicists have developed a framework to view the ethical implications of strategic decisions by American Cases 4 Developing Global Marketing Strategies ? rms. They identify three ethical principles that can guide American managers in assessing the ethical implications of their decisions and the degree to which these decisions re? ct these ethical principles or ground rules. They suggest asking, â€Å"Is the corporate strategy acceptable according to the following ethical ground rules? † These questions can help uncover the ethical ground rules embedded in the tobacco consumption situation described in this case. These questions lead to an ethical analysis of the degree to which this str ategy is bene? cial or harmful to the parties and, ultimately, whether it is a â€Å"right† or â€Å"wrong† strategy, or whether the consequences of this strategy are ethical or socially responsible for the parties involved. These ideas are incorporated in the decision tree in Exhibit 1. Principles Utilitarian ethics (Bentham, Smith) Question Does the corporate strategy optimize the â€Å"common good† or bene? ts of all constituencies? Does the corporate strategy respect the rights of the individuals involved? Does the corporate strategy respect the canons of justice or fairness to all parties? Rights of the parties (Kant, Locke) Justice or fairness (Aristotle, Rawls) Exhibit 1 A Decision Tree for Incorporating Ethical and Social Responsibility Issues into Multinational Business Decisions Does the decision efficiently optimize the common good or benefits of: THE BUSINESS FIRM? Stockholders Management Profits Growth Other SOCIETY? Culture Order Justice â€Å"The good life† Other THE ECONOMY? THE INDIVIDUAL? Economic growth Freedom Allocation of resources Health and welfare Production and distribution Self-realization of goods and services Human dignity Other Opportunity Other YES NO YES Are there critical factors that justify suboptimizing these goals and satisfactions? NO Does the decision respect the rights of individuals involved? YES NO Reject Decision YES Are there critical factors that justify the abrogation of a right? NO Does the corporate decision respect the canons of justice or fairness to all parties involved? YES YES NO Reject Decision Are there critical factors that justify the violation of a canon of justice? NO Accept Decision Reject Decision Part 6 Supplementary Material See www. who. int, the World Health Organization’s Web site, for more details regarding the current tobacco controversy. See also www. getswat. com for a worldwide student initiative against smoking. Laczniak and Naor discuss the complexity of international ethics or, more precisely, the ethical assumptions that underlie strategic decisions for multinationals. 2 They suggest that multinationals can develop consistency in their policies by using federal law as a baseline for appropriate behavior as well as respect for the host country’s general value structure. They conclude with four recommendations for multinationals: 1. Expand codes of ethics to be worldwide in scope. 2. Expressly consider ethical issues when developing worldwide corporate strategies. . If the ? rm encounters major ethical dilemmas, consider withdrawal from the problem market. 4. Develop periodic ethics-impact statements, including impacts on host parties. 2 QUESTIONS 1. Use the model in Exhibit 1 as a guide and assess the ethical and social responsibility implications of the situations described. 2. Can you recommend alternative strategies or solutions to the dilemmas confronting the tobacco companies? To governments? What is the price of ethical behavior? 3. Should the U. S. government support U. S. tobacco company interests abroad? . Should a company be forced to stop marketing a product that is not illegal, such as cigarettes? Gene R. Laczniak and Jacob Naor, â€Å"Global Ethics: Wrestling with the Corporate Conscience,† Business, July–September 1985. Sources: â€Å"Smoke Over the Horizon; U. S. Gains in Tobacco Control Are Being Offset Internationally,† The Washington Post, July 23, 2006; â€Å"Death and Taxes: England Has Become the Latest in a Series of Countries to Vote for Restrictions on Smoking in Public Places,† Financial Management (UK), April 1, 2006; â€Å"Trick or Treat? Tobacco Industry Prevention Ads Don’t Help Curb Youth Smoking,† PR Newswire, October 31, 2006; â€Å"China Exclusive: China, With One Third of World’s Smokers, Promises a ‘Non-Smoking’ Olympics,† Xinhua News Agency, May 29, 2006; â€Å"Tobacco Consumption and Motives for Use in Mexican University Students,† Adolescence, June 22, 2006; â€Å"A Change in the Air: Smoking Bans Gain Momentum Worldwide,† Environmental Health Perspectives, August 1, 2007; â€Å"Adams Won’t Kick the BAT Habit: The Head of British American Tobacco Is Stoical About the Looming Ban on Smoking in Public Spaces: BAT will Adapt,† The Sunday Telegraph London, June 10, 2007; â€Å"Heart Disease, Stroke Plague Third World,† Associated Press (Online), April 4, 2006; â€Å"Get a Detailed Picture of the Tobacco Industry in Brazil,† M2 Press Wire, December 20, 2007; Vanessa O’Connell, â€Å"Philip Morris Readies Global Tobacco Blit z; Division Spin-off Enables Aggressive Product Push; High-Tar Smokes in Asia,† The Wall Street Journal, January 29, 2008; â€Å"The Global Tobacco Threat,† The New York Times, February 19, 2008; â€Å"How to Save a Billion Lives; Smoking,† The Economist (London,) February 9, 2008; â€Å"Whether Here or There, Cigarettes Still Kill People,† The Wall Street Journal, February 4, 2008.

How to Work Your Gps

London Colorado Technical university Online HOW To work your GASP unit Before we place your unit on you, we will go over how to charge it and listen to messages. Your unit does have to be charged at least two hours a day. You can charge it an hour in the morning an hour at night. You can break It up into 30 minute intervals, as long as you charge It a minimum of two hours a day. You can never overcharge Just don't undercharge It.First, you are going to plug In the power supply into a wall outlet. Pull down the dust cover from the charging port. Next, you are ongoing to connect the power cord to the charging port. The blinking light will go solid and the unit will make a happy sound when there is a good connection. The unit itself will start beeping when the battery is fully charged. Once you hear this, disconnect the power cord, the unit will make the sad sound. Replace the dust cover and you are done charging.Now your officer can communicate with you thru this unit. They can send me ssages that say â€Å"Call your officer now, remember your appointment, pay your fees immediately, report to the office immediately and low battery, recharge unit. In order to hear whatever message your officer sends to you, you will need to acknowledge the message. When your officer sends a message to your unit, you will hear a continuous beeping sound. Between beeps, gently place your finger on the indentation about the charging port.You are going to lightly flick It, like you are flicking water. The unit will then play the message. Walt until you hear the full message, and then flick the indentation once again to acknowledge you heard the message. If you don't, the message will continue to play until you do. Depending on what the message is, your officer will know you received the message and will expect for you to do that action. If it says â€Å"call your officer now' or â€Å"low battery, recharge unit† you have 15-20 minutes to call them or charge unit.If It says rep ort to the office Immediately, you have 45 minutes to an hour to report. If It says this I would call your officer to let them know you are on your way. K, this little tower Is your beacon box. It has its own internal batteries, so you do not need to charge it. It has a blinking green light on it. If this light goes out, you need new batteries. This helps your unit recharge faster and helps to triangulate your signal within your souse. First, you need to find a central location in your home.You are going to place your beacon at least three feet off the ground on a solid surface. Do not place on floor. Place the beacon with the green battery light facing the room so the light can be easily seen. Do not place the light facing a wall. You need to keep the beacon away from direct sunlight, mirror, metal, and appliances. Do not cover the beacon with anything. Any questions? Alright, you are ready to go. Stay out of trouble and have a great day! Charging port and dust cover Indents Zion t o acknowledge message. Beacon Box

Synthesis Of P Hydroxy Acetanilide - 1067 Words

Synthesis of P-Hydroxy Acetanilide (Paracetamol) Kirstie Leckie B00266969 Abstract In this experiment the aim was to obtain a pure sample of paracetamol by reduction of p-aminophenol with acetic anhydride. The process carried out to obtain the paracetamol included mixing p-aminophenol, the starting product, with acetic anhydride suspended in distilled water until a precipitate formed (the product). The product was filtered, dried and recrystallized to purify. Infra red spectra for the starting product and the recrystallized and dried product were obtained and compared, and a TLC was run comparing the starting and finishing material. The melting point range of the final product was measured and compared to the literature melting point. Introduction P-Hydroxy acetanilide (paracetamol), molecular formula C8H9NO2, is a painkilling drug (analgesic). It works as a painkiller by inhibiting pain pathways in the central nervous system and in turn dampens the body’s natural pain response. Paracetamol is also fever reducing (antipyretic) and has a relatively low risk of side-effects when taken in recommended doses - it is however potentially toxic in large doses and can lead to acute liver failure (. For it’s antipyretic and analgesic properties, paracetamol is a widely used over the counter medicine for treatment of minor aches and pains, as well as to reduce fevers (Prescott, 2001). Paracetamol was first synthesised in 1873 by Harmon Northrop Morse by reducing p-aminophenolShow MoreRelatedElectrophilic Aromatic Substitution2520 Words   |  11 Pageshalogens are ortho- and para- directing deactivators. The activation or deactivation of the benzene ring toward electrophilic attack, and electron withdrawing substituents deactivate the ring. Using the reagents benzene, chlorobenzene, aspirin, acetanilide, p-nitrophenol, anisole and phenol in ethyl acetate, we will observe the bromination rate and will classify as either activator or deactivator. In performing the experiment, 0.20 ml of bromine solution will be added in each solution. In general