Article http://www.chinauncensored.com/index.php?option=com_content&view=article&id=202:womans-lower-body-pierced-by-exploding-computer-chair&catid=39:tainted-products&Itemid=82

source: http://i2.asntown.net/4/69212__468x_exploding-chair-maims-girl-1.jpg

source: https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcT57PKyTXl2fRKmFd-CZO7938hYOuDZtwQQUjUEatzVH5sC8JHSGA

Everything seems possible in China- explosions from cell phones to watermelons. But this time, it was a chair that exploded.

source: http://www.wired.com/images_blogs/photos/uncategorized/2009/02/03/cellphone.jpg

Poor young girl got seriously injured while she was drying her hair when the chair exploded. The explosion was caused by high-pressured air in the chair, which this type of air should not be used. It boils down to quality control in China. Business units only focus on profit maximising, cutting costs by all means, this could be prevented by executing strict supervision on quality control and safety standards.

WATCH watch?v=Gp8FDSIO6_8 (Only chinese version available)

source: https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcRZmRf4Vdd4JZGtafoabwWOL_jqxfuLKfBBOuMtHOKfnaz0MyOdDQ

One of the main reasons causing quality variance is Chinese suppliers are exceptionally intelligent in dealing with huge quantity productions where margins of small amount of price difference makes a big variation in profits. They have no choice but to be flexible and responsive to cost change. Thus, when suppliers compete for business in producing such kind of products (ie. Chairs), they eliminate costs in minor areas, for this case they replace gas-pressured air with high-pressured air. Which the cheaper production at last induced the accident.

source: http://yourbestposts.files.wordpress.com/2013/02/hhhhh.jpg

To deal with the situation, government and companies can work in parallel. Companies can develop branches in the production areas to have a closer supervision (ie. China). Furthermore, the government can send officials to patrol for check ups more frequently, and implement a heavier penalty on products not up to quality standards. Carrying out strict rules is the only way to promote ethical business production, hopefully preventing accidents to happen again.

Article http://www.cnbc.com/id/101040155

source: http://www.dailybri.com/wp-content/uploads/snygo_files004b-eat24-porn-food-advertising.jpg

Yes, yes and yes. It was a burger that popped out from the screen. Food delivery company Eat24 produced various forms of advertisements on a pornography site. For me, Eat24 inspired me in 2 ways.

Innovative is one of the most important traits to excel in business. A normal mindset would make all the advertisements on social platforms such as Facebook or Twitter, and what Eat24 showed us by putting them on porn sites, was creativity. Thinking what others cannot predict is a good way to attract customers, random people surfing such websites would be amused and laugh when they see a burger pop out between video clips, they might feel annoyed for a moment but I’m sure it will leave them at least some impression. The company was short of funds and obviously the idea saved money, while having a great advertising effect. People noticed and start talking about this, which proved they succeed in creating a gimmick.

WATCH advertising-on-porn-sites-works-just-ask-eat24

In addition, a service does not necessary have to merge with related products. Cooperating with different industries can capture more market sectors. In this case, Eat24 made use of the high volume usage of adult sites, attracting more male customers to be their potential buyers. Undoubtedly it’s a great idea to grasp potential customers, and may create a trend for other industries as well.

Article http://www.bloomberg.com/news/2012-10-23/switzerland-the-other-currency-manipulator.html

source: http://images.china.cn/attachement/jpg/site1007/20101013/001372acd0b50e1fb8b102.jpg

Currency intervention was always the solution for authorities to stabilise the changing level of exchange rate. But why is a stabilised exchange rate more preferable? One of the main reasons is fluctuation of exchange rates depreciates the market confidence and affects the financial market. Moreover, exchange rate uncertainty generates extra costs and reduces profits for firms.

In recent years, the intervention extended its function to generating profit for banks by different forms of sterilisations. I personally agree that this might be a feasible stream of revenue for the banking sector, but we should also consider the drawbacks of currency manipulation to prevent harming the economy as a whole. It is indeed the responsibility of corporations to defend the goodwill of a country.

When exchanged rates are adjusted artificially, it is likely that the intervention will induce an unbalanced trade in global, this can be illustrated by the case where China manipulate Yuan and affect US. In addition, the creation of difference in labor costs will create an illusion of a comparative advantage for a given country. These false market signals will result inaccurate forecast and decision made by governments, therefore stakeholders should take serious considerations before executing any forms of manipulations.

Article http://www.theguardian.com/business/2012/oct/02/cadbury-purple-legal-victory-trademark

All marketing strategy boils down to a common goal- to make people remember their brand.

source: http://www.bitterwallet.com/wp-content/uploads/2010/04/cadbury.jpg

WATCH: watch?v=TVblWq3tDwY (Eyebrows commercial)

Cadbury was successful in differentiating themselves among competitors by customising their  purple brand colour. The impression and perception of the general public is extremely important, as it directly affects the positioning of the brand. Citing the example of 7 Eleven, people get to recognise the convenient store at first glance once they see the iconic ‘7’ in a green and orange square. Similarly, when children see a chocolate package coloured in royal purple, I bet they immediately link to Cadbury.

What’s more is the purple colour packaging of this British candy brought another common problem in marketing industry- the exclusive right of using specific colours, is it too vague for a company to own the trademark? Is it fair to new developed companies where they have more restrictions or choices?

source: http://1.bp.blogspot.com/-P7wuBHc7bAw/TesKsgEK0nI/AAAAAAAAARU/dA48_YbVle8/s1600/Cadbury-Nestle.png

Addressing the first issue, Cadbury’s rival Nestle had challenged the trademark was just too vague. I partly agree with the standpoint of Nestle due to broad elaboration of a trademark, perhaps the level of clarity, precision is not sufficient for any registration of exclusive ownership. Therefore if it happens that companies would like to fight for any exclusive rights on vague trademark elements, a quantified standard should be initiated to maximise the right and fairness among companies.

Article http://money.cnn.com/2013/10/01/news/economy/debt-ceiling-lew/index.html?iid=SF_BN_Lead

WATCH watch?v=-LxTcI2CWc0 (US Government shut down explained in Rap)

WATCH watch?v=SQ7-j-h08zc (When Hitler knows US Government had shut down)

Thanks to the Republican and Democratic parties failing to compromise on the spending bills, the US government is now experiencing a historical partial shutdown.

source: http://04varvara.files.wordpress.com/2013/10/00-us-government-shutdown-political-cartoon-1-17-10-13.jpg

The Republicans made use of the federal funds opportunity to make the last attempt to block Obamacare. Perhaps it may be a wise act politically, but ethically, it was clearly a bad move.  Social issues should be handled separately, it is selfish to make use of such an occasion to fight for own interests. Although it relates to fund allocation, it is more appropriate to raise the issue as an adjustment after passing the spending laws.

source: http://www.funcage.com/blog/wp-content/uploads/2013/10/0014-550×411.jpg

Subsequently, using the dominant power to over rule the control decisions would have a negative spill over effect, setting a bad example- will dominant groups hijack  conferences again if decisions are against their will?

As a result, the US economy suffered a great hit -many tourists spots were closed, affecting income generated from tourism; the halt of public services and resources reduced daily revenues; without significant production, the stock market will fall. These should have reflected the unbearable consequences as a whole in business communities. Hopefully similar cases could be avoided in the future.

source: http://www.marketoracle.co.uk/images/us-government-shutdown.jpg

Article http://www.theguardian.com/environment/2011/oct/11/virgin-atlantic-green-fuel

A strong rebuttal to Sir karl kraus’ statement- ‘You want to study business ethics? Then study either one or the other!’ The innovative plan of Virgin Atlantic had proven that fulfilling social responsibility does not contradict profit maximisation, both latter and former can be executed in parallel.

http://i.bnet.com/blogs/screen-shot-2011-11-07-at-115551-pm.png

Fuel costs had always been a main concern for most airlines, they put extra effort on marketing strategies to boost sales in order to cover up the large expenditures on fuels. I think it is therefore impressive for Virgin Atlantic in taking the initiative to show business ethic in their new plans of fuel investment. Not only will the new type of fuel benefit the environment, but also it enhances the efficiency, making the fuel more economical. Improving the aviation air quality from the dirty to one of the cleanest, and subsequently contributing to the sustainability of chemical industries, Virgin Atlantic had undoubtedly fully illustrated what kind of business ethics should a successful corporate have.

In respond to another classmate’s blog finger-lickin-good; Yanessa questioned whether KFC is being ethical to enhance productivity while harming our own health, and the answer to that is an obvious no- while here (Virgin Atlantic) is a counter example of what an ethical business should do, investing in technology not only for profit maximising, but the sake of sustainable development.

Fulfilling social responsibility does not simply imply cost upsurge, it may benefit the company by establishing a promising image, generating long term profits in an intangible way.

WATCH watch?v=JL3FVsxWhtI (Short news report)