Nestle Case Study

Topics: Ethics, Business ethics, Operating expense Pages: 3 (994 words) Published: April 5, 2013
1. Describe what is meant by market orientation.
Answer: Market orientation is a strategy used by company to development product and services that meet the needs of the company's consumers. In other word, Market orientation means a business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers. []. In simple, it means that company reacts on what consumers need. The decision that made by manager is based on the information from market and favorite of consumers. Nestlé is one of the company using market orientation approaches which successful to build customer royalty for its consumer beside create good reputation for the company. For example, Nestlé found out from its market research that consumer have a genuine and growing interest in information about its brands so the company put a detail nutritional label in the package of product. Moreover, Nestlé add in the "Guideline Daily Amounts" (GDAs) to let consumer get the information about nutrition adult and children needs for a day easily so that they can compare whether product of the company fit the requirement of consumer also whether the product is good for their health.

2. Using an example, explain what is meant by business ethics. Answer: A corporation in America, known as WorldCom was revealed a $3.8 billion accounting fraud. The company manipulated the financial statements by counting $3.8 billion as capital expenses which was actually spent on their everyday expenses which are treated differently in accounting literature and computations. Capital spending is money invested to purchase assets which are durable in nature, like fibrotic cables or switches that direct telephone calls, so the cost is spread out over several years. According to the company, the expenses that were counted as capital expenditure involved “line costs”, which is the fee that WorldCom pays to other telecom players for the right to access their...
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