Impact of Unethical Branding

Topics: Brand, Marketing, Stock market Pages: 2 (382 words) Published: March 6, 2012
2.2.1 Impact on Stakeholders

This kind of unethical way of branding to rip off the best sellers, employees will be directly affected in terms of creativity and the job performance. It is because Tesco branding could lead to all the employees to be less creativity towards their products and eventually lowered down the job performance badly (Gong, Huang & Farh, 2009). All the products they produced is almost similar to those bestselling brands, they just refer and create a similar one and label it as Tesco brand. This is so unethical and employees will also behave in such way which is not responsible and unethical. In consequences, this might damaged the company brand of reputation.

Customers which related to the company profit and future prospects will also are having a big impact. Due to its similarities of the products they selling, it create confusion for the customers to mistaken bought the wrong brand they wanted to. This leaves a bad image for the customer and customers will loss loyalty towards the brand which leads them to a wrong decision. Ultimately, Tesco brand might be ignored in the market and create abundant of loses for the company (Chen & Mau, 2009).

Every retailer basically has a supplier whom they can negotiate and communicate with in their business trading because of lower price to compete with other retailer. With such unethical way of branding, supplier might stop all the transaction with this company because of lack in confidence and trustworthy. Tesco itself have to find a new supplier which might incur a high cost of product and other relevant cost. Reliability is like a link for the business, if this link no longer exists, the business can no longer be running as well. In other words, suppliers play an important role in the company performance (Nayak, Sinha, Guin, 2011).

Shareholders can be the main capital sources for the public listed company like Tesco, shareholder only invest those companies with good future prospect and...
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