Max Profit/ Ethical Behavior

1 A. Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that is obtained in this way?

Guided Response: Think about an example that pertains to you. If there is expected goodwill would you be prepared to bid lower to get a contract? Explain your reasons. In (300 words) or more, please, provide your response to the above discussion question.

1 B. Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu.

The company has recently introduced a new and improved Alka-Seltzer Plus, as described in this TV ad (Links to an external site.)Links to an external site..

The ad shows that Alka-Seltzer Plus can fight congestion, unlike NyQuil.

Explain how Alka-Seltzer Plus has been quality and price-positioned in an existing market. In your opinion, has Bayer positioned their product appropriately in the market for cold and flu symptoms relief products? Would you advise Bayer to use a skimming or a penetration pricing strategy? Explain your reasoning.

How do you think Proctor and Gamble, the company who produces Vicks NyQuil, would respond to the ad?

Guided Response: In (300 words) or more, please, provide your response to the above discussion question. If Bayer is currently making normal profits on most of the products in its product line, but is making pure profits on its new Alka-Seltzer Plus with decongestant, what should Bayer do to increase its profits?

2 A. Ethical behavior is a corporate issue that affects the company’s bottom line. How do ethical issues impact organizations and operations? Include an example seen in the workplace, in the news, etc. that relates to real-life situations. Your initial post should be at least (250 words)

2 B.Why are the following business processes important? Which process do you feel is most important? Explain your reasoning.

  • Strategy development
  • Product development
  • Systems to produce goods and services
  • Order fulfillment

Your initial post should include real life situations and be at least (250 words)

Guided Response: Respond to at least two of your peers’ posts. Provide additional reasons for agreement or disagreements. Include real-life applications for clarity.

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