BADM 633 – Wk 13 International Business Culture. Hershey Plots Cadbury Bid Chocolate Maker Could Link With Italy's Ferrero to Counter Kraft's $16 Billion Offer. WSJ – 17 Nov 2009
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International Business Culture
WSJ – 17 Nov 2009
Chocolate giant Hershey Co. is in talks with banks to line up billions of dollars to launch a rival bid to Kraft Foods Inc.'s $16 billion offer for British candy maker Cadbury PLC, said people familiar with the matter.
Hershey, emboldened by improving financial markets, looks much more willing than it did just weeks ago to make a run at Cadbury, these people said. The Pennsylvania maker of Hershey bars and Reese's Peanut Butter Cups is considering a bid of its own or with a partner such as Ferrero SpA, the Italian maker of Tic-Tacs, Nutella hazelnut spread and Ferrero Rocher chocolates.
Hershey Chief Executive David West in the last two weeks has spoken with Ferrero bankers at least twice about teaming up to buy Cadbury, one person familiar with the matter said. Those discussions are in preliminary stages and financial specifics haven't been discussed
WSJ – 24 Nov 2009
Mexicans eat more ketchup by sales value than consumers in all but eight other countries. Many of them slather the thick red sauce on chicken, pasta and eggs—even pizza. At the start of 2007, U.S. ketchup giant H.J. Heinz Co. held less than 1% of the Mexican ketchup market. In fact, Mexico was such a low priority that Heinz had fewer than 10 salespeople in the country, which is nearly three times as large as Texas.
Tuesday, when Heinz releases quarterly earnings, its executives plan to boast that Heinz now accounts for 12% of the ketchup poured in Mexico, where a spokesman says the company now has 150 ketchup sales and marketing employees.
The shift illustrates Heinz is positioning itself for growth in emerging markets.
Heinz's management, which CEO Wm. Johnson said overlooked Mexico while chasing sales in China, Russia, Indonesia and other emerging markets, didn't begin focusing on the country until the mid-2000s. Few restaurants in Mexico carried Heinz ketchup and, at retail, it was mostly sold in the imported-goods sections of grocery stores. Even so, Mexico's overall retail sales of ketchup had climbed more than 70% since 2000.
WSJ – 24 Nov 2009
Ethics attempts to discover what IS right
and wrong, regardless of accepted practice.
For example, during WWII, courageous
men and women in Europe who hid Jews
from the Nazis had to lie to the Gestapo.
duty. If you fail to act charitably toward the
driver who chops you off, you are not acting
unethically (although you may be expressing
the deepest aspects of your humanity).
might be saying is that “being famous will
make me happy.”
Foreign Corrupt Practices Act (FCPA)
Ethics – is it good business?
Increasing $tockholder Equity
John D.'s Heirs Seek Change -- and Respect
WSJ - May 24, 2008; Page A1
Two decades ago, Neva Goodwin Rockefeller grew so tired of all the baggage that came with her fabled family name that she changed it and became plain Neva Goodwin. But now, Ms. Goodwin, 63 years old, is embracing the powerful Rockefeller name as she publicly challenges the management of Exxon Mobil Corp., successor to the oil company founded by her great-grandfather, John D. Rockefeller. As Neva Rockefeller Goodwin, she has marshaled four generations of Rockefellers to join her in a campaign to force major changes at one of the most profitable companies in the world. The battle will come to a head at Exxon's annual meeting Wednesday in Dallas. (Scheduled for 28 May.)
Some members of the family joined the fight out of a passionate belief in the threat of global warming; others were concerned that Exxon is overlooking business opportunities or risks. Many seem offended that the company appears impervious to the wishes of its shareholders, including those named Rockefeller.
Chairman, CEO Jobs To Remain Joined; Environment Still Issue
WSJ - May 29, 2008; Page B3
DALLAS -- Exxon Mobil Corp. shareholders rejected a proposal to create an independent chairman in a heated proxy fight over the future of the giant oil company . . . The proposal to create an independent chairman, which would have stripped Chairman and Chief Executive Rex Tillerson of one of his titles, drew 39.5% of the votes cast at Wednesday's annual shareholder meeting. Support for the measure edged down from last year, when it received 40% of the votes cast.
The shareholder unrest also reflected some concerns that Exxon isn't doing enough to prepare for climate change or develop a more robust renewable-fuels strategy. (The chairman) acknowledged activists' environmental concerns without offering any concrete promises. He said Exxon must continue to generate needed energy while taking steps to "lower our environmental footprint." But he also said he didn't think non-fossil fuels would make a significant dent in global energy demand until 2050 or so.
Ethics – is it good business?
Companies spend billions of dollars doing good works -- such as developing eco-friendly technology -- and then trumpeting them to the public. But does it pay off?
Ethics – is it good business?
In a series of experiments, consumers were shown the same products -- coffee and T-shirts -- but one group was told the items had been made using high ethical standards and another group that low standards had been used.
REWARD AND PUNISHMENT
What consumers were willing to pay for a pound of coffee based on what they were told about the company's production standards:
Source: Remi Trudel and June Cotte
A MATTER OF DEGREE
How much consumers were willing to pay for all-cotton T-shirts based on what they were told about the proportion of ethical production:
*Production harms environment
Consumers with high ethical expectations of companies doled out bigger rewards and punishments than consumers with low expectations. What each group was willing to pay for a pound of coffee based on production standards:
Consumers are willing to pay a small premium for ethically produced goods. But they'll punish an unethically made product even more harshly, by buying it only at a steep discount.
Six Products, Six Carbon Footprints
Everybody's talking about it. But what exactly is a carbon footprint? And how is it calculated?
By JEFFREY BALLWSJ – 06 Oct 2008
A new concept is entering the consumer lexicon: the carbon footprint.
First came organic. Then came fair trade. Now makers of everything from milk to jackets to cars are starting to tally up the carbon footprints of their products. That's the amount of carbon dioxide and other greenhouse gases that get coughed into the air when the goods are made, shipped and stored, and then used by consumers.
So far, these efforts raise as many questions as they answer. Different companies are counting their products' carbon footprints differently, making it all but impossible for shoppers to compare goods. And even if consumers come to understand the numbers, they might not like what they find out.
For instance, many products' global-warming impact depends less on how they're made than on how they're used. That means the easiest way to cut carbon emissions may be to buy less of a product or use it in a way that's less convenient.
MILK or BEER ???
WHO’S TO BLAME?