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Ethics and Goverance - Coursework Example

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Word Count : 1668 Order # 539543 Dated 27th May 2011 Ethics and Governance a) Examine the potential advantages and disadvantages for Innocent Ltd in selling such a stake to Coca-Cola? Innocent Ltd. has both advantages and disadvantages in selling its 20 % stake to Coco-Cola which are discussed as follows: Advantages: 1…
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Ethics and Goverance
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Download file to see previous pages For gaining global competitive advantage, its expansion to different areas of the world is essential and hence the selling of its stake to Coco-Cola is highly justified. 2. Innocent Ltd. will have advantage of getting some critical inputs form the giant company like Coco-Cola in the crisis time. For example, it may get some benefit in the form of management techniques in dealing human resources and also in the form of strategic management. In addition, the products of Innocent Ltd. can be sold even in remote pockets where ever Coco-Cola has establishments. 3. It may have a collaboration with the Coco-Cola for opening new branches in areas where Coco-Cola has already established its branches and can very much maintain that its quality policy would be maintained as good as that of earlier period. The founders of the company would still lead from the front and hence, the quality of the products would be well maintained in terms of environmental and health safety and customer satisfaction. 4. The people’s awareness about Coco-Cola products is far higher than that of Innocent Ltd. and hence the higher number of customers would be in a position to taste Innocent products after the collaboration. 5. As Coco-Cola has already established branches in several areas, with out spending any additional expenditure, the Innocent can sell its products through these branches which certainly results in cost minimization and profit maximization. Disadvantages 1. The credibility of Innocent Ltd. among its customers has been its main strength till now which has driven the business. The company is well known for its commitment and dedication for manufacturing or producing healthy fruit juice products which contain socially and environmentally aware ingredients that are free from environmental pollution and health hazards and for better packaging techniques (Sweney, 2009). The customers prefer the products from this company for this quality consciousness and ethical standards. But, due to selling of its stake to Coco-Cola company which is known for producing non healthy ...Download file to see next pages Read More
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