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The differential analysis i

The differential analysis is the study/analysis of differential revenues and costs. What are differential revenues and costs, though? Differential revenues and costs are the revenues and costs that will differ (the ones that will change) when making the comparison between two or more things (products, customers, etc.). That being said, all the revenues and costs that can be associated to one specific product, customer or service, if they change between from one alternative to the other, then they are considered to be differential and they will be taken into account during the differential analysis. In order to decide whether a customer, a product line, or a service, will be kept or dropped, or if a product will be manufactured, or its production outsourced, a differential analysis must be made. The differential analysis will segregate the revenues and costs, and then calculate the difference between them. It is important to note that the costs must be classified as fixed costs (or a

If you found a one-of-a-kind prototype of a revolutionary new mobile phone lying on a public bench, what would you do with it? What would be the consequences of your chosen action?

A number of issues arise when we consider this question. First is the issue of our moral responsibility to others and society. Second is on intellectual property and the third, the ethical implications of our actions. I will address these three issues separately. - On moral responsibility: If a one-of-a-kind prototype lays unattended to on a park/public bench, several possible scenarios come to mind. It could be that the inventor misplaced it or forgot it on the bench while having a morning or late evening stroll. Whatever line of action is taken would clearly fall into one ethical perspective or another. Virtue ethics, which places value on the moral character of the actor and the virtuousness of the act, will dictate that any corresponding action that results in me taking the phone is wrong and immoral in itself (Hursthouse, R. & Pettigrove, 2016). A deontological ethics or a duty-based ethics, on the other hand, will require in some form that individuals desist from ac

If you were assigned to sell a product called “Sweet Treats” with the slogan, “so sweet, it will make you tweet,” but you thought the product tasted sour, and not at all sweet, what would you do?

Often, celebrities contract to endorse a product, but should they use the product regularly, or even like the product before they are allowed to claim that they “endorse” the product? If celebrity is lying, that is endorsing a product he/she does not use/consume then the ad should be pulled. The Federal Trade Commission requirement that ads or sponsored social media posts indicate so - is not enough to inform consumers. (Robert, 2017) So, yes, a celebrity who endorses a product should at least appear in public using the product. Examples go in the opposite direction, instead of claiming to use a product but not doing so, which would be lying, the Kardashians post product endorsements across several social media platforms either without disclosing it is an ad or waiting until hours or days after the initial post to do so. According to the the organization Truth in Advertising (TINA.org) The delay allows avid followers to see the initial post as a testimonial instead of as an ad. (Kilke

Often, celebrities contract to endorse a product, but should they use the product regularly, or even like the product before they are allowed to claim that they “endorse” the product?

Marketing mix involves four P’s variables: product, place, price and promotion that should be used in marketing strategy to ensure value is delivered (Winer & Dhar, 2011). When celebrities are endorsing any product, it’s part of promotion. Based on law, promotion should not lie about price, quality and purpose (Jacoby & Meyers, n. d.). It is better to endorse product that they use but legally if they are not misleading consumers with false information, it is not illegal. Having celebrities in promotion may encourage consumers to buy the product but they must be targeted appropriately (Olenski, 2016). Can you imagine famous athlete endorsing house hold product like laundry detergent? The impact of endorsement depends on number of factors such as celebrity and product match, celebrity and target audience match besides their regular popularity values (Jain, 2011). For example: Gordon Ramsay’s funny commercial about Chef. The commercial is funny. He has not provided any false inf

the ethical and social responsibilities of the advertisers

Advertising is about enticing consumers which come in many forms, the most important once are informational and branding advertising. The informational advertising employs facts to persuade consumers while the branding advertising attempts to attach a personality and reputation to a product (Business Ethics, 2012). The advertiser presents a product favorably to persuade consumers to make a purchase, and it is unethical to go so far as to manipulate consumers into buying by depriving them of information they need to make a good decision. The ethical and social responsibilities of the advertiser are to present the companies in a favorable way while following the tenet rule “treating others as you would like to be treated”. The advertiser should not present misleading statistics or false information to deceive consumers (Mach, 2018). 1. Often, celebrities contract to endorse a product, but should they use the product regularly, or even like the product before they are allowed to claim tha

Reputation of a business

A business’s reputation affects all elements of its operation. A good reputation allows an organization to attract better employees. Customers perceive them as providing a higher value, allowing them to charge a premium for their products. Customer also demonstrate more loyalty by purchasing more and a broader array of products. They also have a lower cost of capital since the market believes they will be able to continue delivering sustained earnings (Eccles, 2007). Conversely, a negative reputation will make it more difficult for a firm to hire talented people, decrease the company’s pricing power, make it harder to attract and retain customers, and increase financing costs. Given the breadth and depth of its effect, the reputation of a business is a key element in its ongoing prosperity and sustainability. CEO’s reputation As Alva Group (2017) pointed out, the importance of a CEO’s reputation to the reputation of the business itself depends, to a certain degree, on whether the

Corporations’ Reputation

Corporate reputation is the observed collective judgment of a corporation based on the assessments of financial, social and environmental impacts attributed to the corporation over time (Lexicon, 2018). In addition, the corporate reputation is what consumers think about the corporation products, the consumer experience with the corporation, the level of their information and the facts they heard about the products. In order to build a good reputation, the corporations should develop four key attributes including; credibility, trustworthiness, reliability, and responsibility, and also the staff of the corporation character, communication and trust have positive effects on the businesses’ reputation. How important is the reputation of a business? The reputation of a business is essential to its survival as it enables a corporation to differential its product high quality in the market from the competitors. The reputation very critical aspect of the corporation’s brand, it is the way the