Bpl Essay

In: Business and Management

Submitted By hyunwookim123
Words 1234
Pages 5
Exam 1
1. The US beer industry was transformed significantly since 1980s. identify two important variables in this environment. Discuss the different strategy used by Anheuser-Busch’s and Samuel Adams?
Change in environment:
- Demand in US: 1980: 34.0 gallon/person, 2003: 29.1/person, 2010: 1.5% drop from 2009.
- Technology allows production in very high quantity
Anheuser-Busch: SAB-Miller and Molson Coors
- High volume and standard quality
- Economy of scale (production, marketing)
- Commands about 80% of sales, sometimes result from M&A
Micorbrewers: Samuel Adams, Corona and Heineken
- Low volume, crafy, higher quality
- The only segment that experienced growth

2. One of the “excuse” for business executives act unethically is moral relativism. What is it? Describe an example.
Moral relativism is relative to some personal, social, or cultural standard and there is no one method for deciding whether one decision is better than another.
Dennis Kozlowiski, who is the CEO of Tyco in 1990-2002. Tyco financed the acquisitions by taking on significant debt commitments, which by 2002 exceeded $23 billion. As Tyco expanded, some questioned the company’s ability to service its debt commitments. Other claimed that management was engaging in accounting tricks to pad its books and make the company appear significantly audited every year, and the outside accountants had detected no problems. These criticisms, which were ignored for some time, were finally shown to have some validity in 2002 when Kozlowski was forced out by the board and subsequently charged with tax evasion by federal authorities. In addition, Kozlowski used corporate asset as personal treasury, such as pay for an expensive birthday party for his wife, and to purchase an expensive Manhattan apartment and world-class art collection.

3. Between 2002 to 2005, Southwest Airlines was the only…...

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