Question

ORGANICS - THE ETHICS: The company "PURE OORGANIX" makes products that are packaged in rounded, solid-color...

ORGANICS - THE ETHICS:

The company "PURE OORGANIX" makes products that are packaged in rounded, solid-color bottles with gold or black text describing signature ingredients, such as Brazilian keratin therapy, Moroccan argan oil, teatree mint shampoo. The shampoos and conditioners generally sell for between $15 and $20. In 2017, the brand generated $450 million in revenue with a Net Operating Income of $30 million. Despite the brand name, none of the products are organic—the company doesn’t claim they are. The parent company wants to sell it, but large beauty companies like Procter & Gamble and L’Oréal, which seem like obvious buyers, are not at all interested.

DISCUSS:

Do you think the company could be facing an ethical issue? Why or why not?

If you were in charge of acquisitions at a beauty company, would you consider purchasing PURE OORGANIX? Why or why not?

Homework Answers

Answer #1

The company may be facing an ethical issue . The name of the company potrays that the products are organic, where as they are not . The brand name is a lisleading name leading to wrong consumer belief . Although one may claim that since we are not claiming that we are organic this does not stand true, but the fact is when you call a product oorganix you dont have to claim it to be organic . There is a definite legal issue .

I would have invested in this company , as it has some ineteresting products and is a profit making firm . Looking at the revenue of the firm , the brand would have added to my exiting strength. Also by changing the ingredients , this product could have been easily created a segment of the organic products for me , which is a very promising line of products . In my opinion it makes a lot od sense to invest in this firm .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT