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Businesses and Organizations

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Businesses and Organizations move their momentums merely to increase the shareholder’s equity. The main theme of every business lies on the net income. There are number of ways and provisions used by the organizations to increase the surplus. Business and Ethics are the two sides of a same picture as without any one second one is incomplete.

There are number of literatures are there which institutionalized the importance of ethics in business. Business Ethics is extremely important in the marketing function of an organization because it is the only department that remains in one on one contact with the customers and consumers of the organizations. The main perspective of this study is related to business ethics and marketing. There are different questions relate to Caltex case of South Africa. Let’s now move towards the first question of the report.

Ans-1) Principles of Both Sides

Before answering this question, this is desirable to include something about the intention of a company to expand its business in a new country or in a new place. Business is the name of expansion and certainly it will not yield the desired result until and unless it expands perfectly. Likewise it, Caltex which is a multinational oil company showed its intentions to launch its subsidiary in South Africa.

According to the case study, it was April 1977 when Caltex submit its petition in the court of Security and Exchange Commission (SEC) of South Africa to allow the company to operate in the country. South African government gave them the mandate to operate in their country but the company has to give 100$ million to the government along with lots of domestic job offers. The principle presented by the South African government was absolutely right because every government want to see its country healthy and wealthy. On the other Hand Caltex has the principle to give them free hand only for the operation. The deal was final and now Caltex is one of the leading companies operating herein South Africa.

Ans-2) Marketing Strategies

It is a true fact that, although the mantra of every organization is same but the way to do that always varies from organization to organization or industry to industry. The marketing strategies presented in the case are wonderful which include advertisement and banners. SMS and Email marketing was not very familiar at that time that is why Caltex used these two methods to intimate the people.

Inevitably, marketing strategies of a drug company always is different than that of a food company. There is always change in the advertisement and slogan. Food marketing can be done with the help of banners and panaflex but unfortunately it can not be applied on drug marketing.

Infant Formula companies first used pana flex strategies to market their products which hasn’t bought positive economic result for them, that is why this particular strategy came under critics and severe pressure of the authors and then formula companies have to change their strategies. From that time till today advertisement is the only strategy used by formula companies.

Ans-3) Price Fixing Schemes

There are number of ways of marketing and fixing the price of a service is one of them. Usually telecommunication companies use this particular strategy to attract their customers. There are number of social and economical impact of this act. Obviously the buying and affording power of every individual is not same, so fixing the price of a product or service may harm low income group and give additional benefit for the high income group. Companies may also hurt economically with this act because the sales level will decrease with every price fixing strategies. People want bargaining, so the idea of fixing not works.

Ans-4) Clarke Burkey Act

Clarke Burky act was absolutely right because they also proposed the same provisions discussed above regarding the marketing strategies.

Ans-5) Pollution Control

Unlimited Good and Carrying Capacity is the best strategy to control the population of a country. Likewise, in manufacturing Just in Time (JIT) process worked wonderfully well to control the un-used inventories so carrying capacity restrict a user to bought a specific amount of goods and this particular action can control the population of a country.

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