Question

In: Operations Management

You are thinking about starting a new business that makes and sells a product similar to...

You are thinking about starting a new business that makes and sells a product similar to Red Bull. Why is this magical drink that “gives you wings” under government scrutiny in several countries? What are the ethical issues surrounding making and selling products that may or may not be harmful to a person's health?

Solutions

Expert Solution

The researchers claim that the Red Bull drink has some negative effect on the human body and can cause Seizure. Further the energy drinks like Red Bull may cause Migraine. Some researcher has also claimed Sleep disorder by the consume of energy drink. Excess sugar may cause Diabetes s well. That is why much government has problem with this company.

The ethical issues are-

  • The products may affect negatively on the human body but yet the company ahs to hide the negativity of the product and promote only positiveness.
  • There are some ingredients like heavy caffeine, touring, carnitine which are bad for the human health but yet the company has to hide it and mention it under name of secret ingredients.
  • The human body is meant to be inhale oxygen and leave carbonate but because of this drinks the body consume carbonated water and leave carbon di oxide. So it is also an ethical dilemma for the company.
  • The energy drink contains alcohol which creates the situation of ‘wide-awake drunkenness but yet the companies has to hide this and promote as a healthy drink.

Related Solutions

Your sister is thinking about starting a new business. The company would require $300,000 of assets,...
Your sister is thinking about starting a new business. The company would require $300,000 of assets, and it would be financed entirely with common stock. She will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%. How much net income must be expected to warrant starting the business? a. $33,210 b. $40,500 c. $41,310 d. $44,145
Assume you are starting a new business involving the manufacture and sale of a new product....
Assume you are starting a new business involving the manufacture and sale of a new product. Raw materials costs are $45 per product. Direct labor costs are expected to be $26 per product, Manufacturing Overhead is expected to cost $16 per product. You expect to sell each product for $176. You plan to produce 110 products next month and expect to sell 85 products. During the second month, you plan to produce 130 products but expect sales in the month...
Assume you are starting a new business involving the manufacture and sale of a new product....
Assume you are starting a new business involving the manufacture and sale of a new product. Raw materials costs are $45 per product. Direct labor costs are expected to be $25 per product, Manufacturing Overhead is expected to cost $18 per product. You expect to sell each product for $172. You plan to produce 120 products next month and expect to sell 85 products. During the second month, you plan to produce 120 products but expect sales in the month...
3. You are thinking about starting a bee keeping business to produce honey. You also plan...
3. You are thinking about starting a bee keeping business to produce honey. You also plan to sell pollination services to almond growers in California. Below is the cost function you have estimated for producing honey and pollination services with 450 hives: C(QH, QP) = 5,000 + 12QH + 100QP + 0.002 QH QP where QH is the number of pounds of honey produced and QP is the number of acres of almond trees pollinated. (5) a. You have contracted...
Step 1 Read the scenario. Assume you are thinking about starting a business and would like...
Step 1 Read the scenario. Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30,000 per month for the first 12 months and your purchases to support sales will be approximately 60% of sales. You anticipate about 20% of your sales will be cash and 80% collected the following month. Your supplier has agreed to extend credit for 70 days at no...
Mark and Betty are thinking about starting a family. In preparation for this new phase of...
Mark and Betty are thinking about starting a family. In preparation for this new phase of their life, they visited a local hospital to learn about the costs of delivery and care. They learned that the average cost for a normal birth is $7,500. This took Mark’s breath away, until he remembered his employer-provided insurance coverage, under which he and Betty are covered. The plan features are as follows. ● $500 per person deductible. ● 20% coinsurance. ● $3,000 out-of-pocket...
If you were an entrepreneur starting a new business, first, say what type of business, product,...
If you were an entrepreneur starting a new business, first, say what type of business, product, and customers you will have, and then, identify the type of distribution you would employ to reach your target consumers.
1. Suppose that you are thinking about whether to invest in a new business venture. You...
1. Suppose that you are thinking about whether to invest in a new business venture. You believe that there are three possible outcomes if you decide to invest: • Make a profit of $100,000 • Make a profit of $20,000 • Lose $50,000 Suppose that you consider the probability of making a profit of $100,000 to be .15, and you consider it three times more likely that you make a profit of $20,000. a) Determine the expected value of your...
You are thinking of starting a business. You would finance it with 60% equity and 40%...
You are thinking of starting a business. You would finance it with 60% equity and 40% debt. Relevant rates are as follows: Small business tax rate 18.62% Risk free rate 4% Your pre-tax borrowing rate 9.216% Expected return on stock market 12% You estimate that your firm’s β (beta) will be 0.75. The business you are thinking of starting is a house painting business. You hired a FINA2710 graduate to develop cash flow estimates for you and you have paid...
A particular book publisher is thinking about starting up a new national magazine in a small...
A particular book publisher is thinking about starting up a new national magazine in a small town. It's thought that this publisher would have to get over 12% of the book market to be financially secure. While planning to launch this magazine, a survey was taken of a sample of 400 readers. After providing an inside look into this magazine, one question asked the participants if they would subscribe to this magazine if the cost didn't exceed $20 per month....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT