Anyone Wants Some Chocolate?

The consumption of chocolate has increase tremendously in the world, and the demand of chocolate has entirely driven by Asian’s chocolate desire. The excessive demand has increased the price abundantly, and it has given coco industry in West Africa and Indonesia a guidance to gate of wealth. The increase of “21 percent of coco production in Standard & Poor’s GSCI Spot Index” has enlightened a new profitable path in food industry. One of the reason of this tremendous fluctuation is the concern of the health problem. Chocolate renders the blood pressure in human, and improve skin quality. The concern of obesity in US has driven the competition of chocolate out of the zone.  The demand of chocolate in Asia has improved the supplier surplus since the marginal utility of chocolate will not be extinguished. The preference of consumer will remain consistent in the future, and it will be difficult for small chocolate company to enter in this industry. Indonesia, “the third largest grower, will become the net buyer”, and its supplier power allows them to determine the price and maximize the profit.

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Will Young Generation Affect The Sales of Toyota Cars?

Toyota’s target population is towards the car lovers, and the younger generation do not seem to have slight interest in car. Akio Toyoda, the president of Toyota, is confused that value of the car in teenager’s eyes has worth less than the past. The incentive of purchasing a car has driven by their financial situation, which is the largest barrier in their age. The competitors of Toyota is not other car industry, but cell phone company. Even though the price of car worth more than phones, in teenagers’ perspective, the value of phone is greater than car because phone is considered relatively practical while car is not a necessity. Another problems is the design. The plain and moderate design has no longer intrigue the expectation from the teenagers. In this circumstance, buyer’s power has enforced Toyota to change its design in order to satisfy young generation’s self-esteem.  The introduction of FRS, the new sport car for Toyota, is not enough to reach most of young generation’s standard since there are no more varieties for them to choose. The experience of driving car has devalued; will Toyota able to resurrect its sale in the market?

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Will GlaxoSmithKline Withdrawl its Business from China?

Will GSK withdrawl its business from China?

Recently, Malcolm Moore has reported a great business ethic controversy in Beijing, China through The Telegraph. It is apparent that China has become a quintessential financial developing country. Along with the population, many business from several countries have initiated their expansion to China. However, the problem has occurred in a pharmaceutical company,GlaxoSmithKilin. GSK in china “is facing a potential £2 billion fine” as the embezzlement from the executives are not reported. During the investigation, the head of GSK has proposed to withdraw all of its business from China. However, due to the large amount of investment, the withdrawal will cause more than 8000 civilian to lose their jobs, and cease the operation from multiple hospital facilities. The amount of investment has exceeded “£320m in Shanghai research and development base and six manufacturing facilities.” However, majority of the investment have not spent in the facilities, but kept in Chinese executives’ pocket. The corruption does not only influence the company itself but the health of chinese civilians.
According to an executive from GSK: since the investment do not entirely funded to the research, the company will begin to :test on human subjects based on data that was false, and got rid of everyone connected to what happened.” GSK in China has become a slaughter house. In order to maintain their reputation and the continual embezzlement, they will eliminate the threat to its company. Business ethic within GSK in China has completely extinguished. The humanity has conceal from the desire of money. The incentive between GSK in English and GSK in China is not on the same line; If GSK continue to feed the greed from executive, the research will become normative rather than positive.
Click here to discover the unethical business in China. (The Telegraph)

 

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