STAKEHOLDER VALUE AND ETHICS TERM XXXXXXXXXXASSESSMENT ONE DETAILS Individual Assignment (10%) Woolworths and Coles dominate the food grocery market in Australia. Both these organisations have come in...

1 answer below »
STAKEHOLDER VALUE AND ETHICS TERM 2 2013 -ASSESSMENT ONE DETAILS Individual Assignment (10%) Woolworths and Coles dominate the food grocery market in Australia. Both these organisations have come in for what might be described as their share of criticism. A number of practices have been described as predatory in the past by the ACCC, however the previous chairman defended both these organisations from the onslaught of negative publicity from commentators and consumer groups alike. http://www.freshplaza.com/news_detail.


Document Preview:

STAKEHOLDER VALUE AND ETHICS TERM 2 2013 - ASSESSMENT ONE DETAILS Individual Assignment (10%) Woolworths and Coles dominate the food grocery market in Australia. Both these organisations have come in for what might be described as their share of criticism. A number of practices have been described as predatory in the past by the ACCC, however the previous chairman defended both these organisations from the onslaught of negative publicity from commentators and consumer groups alike. http://www.freshplaza.com/news_detail.asp?id=48731 Required:- Choose one of the organisations and examine their commercial practices in light of ethical behavioural theory you have learnt in this session so far. Write a paper of no more than three typed pages* addressing the following task:- 1. Examine the role of the ACCC is this issue and whether is appropriate for them to adopt the role they have in this debate. Justify your position. 2. Make recommendations for the organisation in terms of an ethics policy based on your findings. You will need to investigate subsequent practices to adequately address this question. 3. In your answer, you need to show evidence of appropriate research into the organisation’s practices and wider reading of corporate ethical behaviour. Your focus will be on the first 3 weeks of this course, though higher level responses will demonstrate critical evaluation incorporating broader concepts 4. Harvard Referencing must be used. Due: Week 4 (August 5) Post your response on Moodle at the indicated link * 2.5cm margins, left, right, top and bottom 12pt Arial or Times Roman Font 1.5 line spacingSOME KEY CONCEPTS TO EXPLORE The following concepts are provided to assist you in developing your response to this task. The list is not intended to be extensive but to rather get you started. ? Price Gouging ? Predatory Pricing ? Geographic Price Discrimination ? Undue Influence on...



Answered Same DayDec 23, 2021

Answer To: STAKEHOLDER VALUE AND ETHICS TERM XXXXXXXXXXASSESSMENT ONE DETAILS Individual Assignment (10%)...

David answered on Dec 23 2021
131 Votes
Unethical advertising by Coles
Unethical pricing practice
This article reviews the predatory pricing technique employed by Coles, a leading grocery store

in Australia. The company lowered the price of its home-branded milk to $1/liter followed by
the close competitor, Woolworths which led to massive price war between the two players.
Although the price war initially entailed more sales initially owing to the drastic price drop by
almost all the stores. The whole strategy is good for sudden impetus for sales but in long run, it
was an unethical move for entire market as seen by the drop in market value over the previous
period. The company followed the market research principles which suggest that, customers
might get attracted to lower price. However, in order to succeed in long term, it is imperative to
analyze the competitor price response in order to achieve long term goal of being cost leadership.
Coles totally ignored that fact and went ahead with sudden rock bottom price although it was
followed by competitor in a very short time. (news.com.au, 2011)
Role of ACCC
The ACCC conducted industry wide investigations with the market participants to assess if Coles
had breached of the dual Predatory Pricing guidelines of the CCA. Section 46(1) forbids
companies that have considerable market control from obtaining benefit of that control for the
determination of (a) eradicating or considerably harming a opponent, (b) averting the admission
of a individual into a marketplace and/or (c) discouraging or...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here