Question

Mr smith owns a chocolate candy company the manufacture the choconut big bar which he sells for$2. The chocolate bar measures 6 inches long by 3 inches wide and ½ inches thick.it is sold with the bar wrapped in foil placed in a seal brown cardboard box with the name printed white. Currently mr smith is losing money because the cost of chocolate and nuts has increased beyond his budget.

Instead of cutting back on the quality of the ingredients, mr. smith is planning to cut the size of the bar to 5 inches long by 2 ½ inches wide and keep the bar ½ thick. He will keep the same $2 price per bar. He hopes that no one will noticed the change in the size of the barif he alters the outside packaging to a cheaper brown colored paper wrap with the choconut big bar name in white on the label. Mr. smith will advertise the new package saying- “it’s the same choconut big bar,-now in a new paper wrapper”.

If you were responsible for mr smith budget problems how would you handle the situation?

Answer 1

What Mr. Smith proposing is not correct ethically. By cutting the size and not informing customers about such cut cannot be regard high in professionalism of business. If I was the responsible for budget I would have increased the price of the chocolate or try to source the raw material from different sources wo that I can lower the cost. The other option I have is to cut the size of the chocolate and which should be visible also and I can make promotional activities in large scale to let people know why we have cut the size.