Tainted Milk Powder

Question 1 Given strong profit growth, has there been some(prenominal) damage to B emboldenu. coms reputation? assist Yes, there was damage to Baidu. coms reputation. The examples of damage to Baidu. coms reputation argon * The bruits do the conjunctions information appear unreliable. * Baidu. coms users may start to boycott from employ this pursuit engine. They atomic number 18 hoping that Baidu. com may change their behavior after the protest. * overdue to the boycott activity, the build of daily visitors may reduce drasticall(a)y. * Due to the number of visitors decreased, those existing admans may withdraw their advertisement and switching to other company.As a result, they mazed valuable contracts/customers. * Baidus servingholders also may sell shoot their shargons in merchandise. As a result, the sh ar price dropped, this is also indicating that they lost unexclusive assurance. Question 2 What the future reputational damage affect and how could it be measured ? Answer * Damage everyday trust, number of viewer and user drop * Mostly for a company to gain trust and trust from the user of their product is not easy and busy time. * But, to damage it salutary take a short period of time. For example doing unethical doing in managing business operation. * Many new-sprung(prenominal)s and rumors spread in media some Baidu. om take hold received some payment from tainted draw producer for not advertise any intelligence agency about them. * No concrete evidence about the rumors, but could damage their reputation, human race trust and sureness of their source of information. * The number of viewer or user that use their anticipate engine that been lower after the spread of bad intelligence and rumors could be used to measure for the damage of public trust. * Investor not interested to invest, share price drop * The bad news and rumors about the unethical fill at law by this company triggered the public trust toward them * It make s many quite a little consider and alked about their action after the spread of issue regarding information hidden, indeed make many speculations towards this company. * Too much bad speculation been made toward their company impact to drop of share price. * We think that it would make investor or future investor exp adeptnt be not interested to invest in this company if the rumors are true due to the share price dropped continuously. * venture company profitability, low income from advertiser * When the trust or confidence from the user or bulk toward this Baidu. com has decreased, it means that the viewer or user their search engine also decreased. Thus, the better for advertiser to promote their product in the search engine which have more viewer compared to Baidu. com * Besides, we think that Baidu. com tycoon have to reduce the advertisement fee in order to draw out the advertiser use their search engine to promote products * Thus, impact from advertiser being changed to the other search engine or lower the advertising fee make the Baidu. com would faces low profitability and income. Question 3 What stairs could Baidu. com take to restore its reputation, and what challenges leave alone it have to overcome?There are 3 steps to restore the company reputation as below 1. Know The Truth * The Company provide first have to watch at themselves and seek the reality. * Is there any truth in what the people say about themselves? * Baidu. com will have to look at the rumor of how they were said to have genuine payments to withholding a companys information from online searches. 2. Take Action * Baidu. com might held a press host to admit its wrong doing and try to fix it from there. * Although there were many are perturb by the admittance, but they will be more upset if the Baidu. om have not admitted to their wrong doing. * Thats the matter related to trust and hunching that they will stand up for the mistake that have been made. 3. resolve the R umors * Baidu. com will have to overcome the rumor of how they were said to have accepted payments for withholding a companys information from on-line searches. * They will have to relegate all of their financial records. This is done in an stew to make the company financial activities as transparent as thinkable and display that they are confederate in their financial activities. This will aid the company in take the trust of the public and the public will ultimately trust the information that is contained on the search engine. The biggest challenge is regaining trust from the stakeholders, investors and then the consumers as the company bad reputation has make over a period of time. * Do not expect to suck up rid of it within a few hours or days. It will take time for people to remove the company old, bad image from their assessment and replace it with the new, pleasant one. * It is a matter of trust and knowing that one will stand up for the mistakes that have been made. T herefore the company ask to take social responsibility for the crisis. * There were innocent lives lost all because no one spoke up about the tainted product. * course there will be repercussions for all involved but consumers are forgiving if the situation is handled correctly. So, just keep on making efforts and soon, people will get used to the image of the new you. Question 4 political relations without the world have been slow to react publicly to thoughtful problems such(prenominal) as SARS, mad intimidate disease, and now melamine contamination. Who benefits and who loses because of these delays?Answer a) Benefits * Companies involved in related industry. * Governments slow reply gave opportunities for these companies to continue supply consumer with no quality product that bring harms to the consumer itself as long as the company gain benefit from it. * Eg Mad cow disease was cause through nutrient give to the overawe itself. Naturally, cows are supposed to eat grass . However, the ranchers try to cut costs by feeding these animals with dead animal. Besides, the ranchers feeding them with hormones and other chemical to fatten them up faster for marketing.In a nutshell, the ranchers along with other related parties are benefited through cost reduction as well as faster produce. * Government * Government itself gain benefit from their action. * One of the examples is from tourism industry. When the presidential term announces the serious problem face by the country, especially if it is health related, it might frighten the tourist to visit the country. Thus, it asshole affect income received by the country. * The government usually will try to protect their local market and local product.For instance, what happen in China when the news of contaminated milk spread is that it causes sales of dairy product to drop by 30-40%. * Government slow action has wedded them opportunity to search for proper event before expose it to the public. Aside from avoid panic among public, this action net also benefit them from loss of income and maintain countrys reputation. b) Loses * in the public eye(predicate) * Public were negatively affected from government slow action, especially when its involving humans life. * Eg The melamine-tainted milk powder was responsible for the deaths of four infants and the unsavoury of more than 6,200 more.If the public are aware of the situation, they wont corrupt the milk powder, thus merchant ship prevent loss of lives. * Also, it can cut publics finance when they spend their cash on the products that they cant even use. * Most importantly, public might lose trustingness on the government itself. Public rely on the information given by the government. If the government itself didnt disclose important information, from whom the public can depend on. * In addition, when the countries are facing serious problem such as diseases, the government need to diverge the limited public money to support m edical costs.It is burdensome since the public monies are use to light(a) up the mess done by irresponsible parties that only have view on profit only. * Pharmaceutical industry * It is not a one-day task in developing a new cure for new disease * The scientist needs to do research, identify the cause of disease, and find adapted chemical/element needed to produce the drugs. * When the government gave late promulgation to public, all scientists are not able to create new medicine and thus, bring loss to them in terms of profit. Question 5 In some gardenings, a purification of secrecy or manipulation of the news is tolerated more than others.How can this be remedied by other governments, corporations, investors and member of public? Answer * Governments * Government can design law to prevent this culture because it can affect public. * They can impose fine and penalization to those who are exercised the culture of secrecy. * The penalty imposed is a way to punish company and p eople who involve in this case. * It is as a warning to others firms so that they are not doing the same thing in the future. * The law and penalty should be imposed when there is evidence that the company is exercising this culture. * Corporations They should disclose all the information that concerns about public because public has the right to know what happen because it relate to them. * For example, corporations can disclose about their Corporate accessible Responsibility (CSR) in their website. They should include all information so that public didnt lost trust to them. * Investors * Investors can take action such as disapprove the unethical activities done by companies. * They have a great power towards companies because they are the shareholder. * Investors can sell their shares as a way to disapprove action taken by companies. If by victorious that action also cannot alert the company, they can be a whistle-blower by telling the authority about the company wrongdoing. * M ember of public * Member of public can prevent this culture by the change magnitude of press freedom. * They can work with press to make sure that news spread faster. But, immunity should be given for public interest divine revelation where the matters give serious harm to public. Before the immunity given, the news should be disclose to authorities both internally and externally and no action taken. Besides, public can complain to non-profit organization (NGO) or consumer association about companies wrongdoing. * Thus, when this action can be taken, companies may be thinking doubly before they hiding something from public and consequences that they are going to face in the future. References 1. Tainted- mishandle-Milk Scandal in China, Retrived marching 8, 2013 from http//www. time. com/time/world/article/0,8599,1841535,00. hypertext mark-up language, 2. Tainted Baby Formula Scandal Blows Up in China, Retrieved butt on 9, 2013 from http//blog. foolsmountain. com/2008/09/12/tain ted-baby-formula-scandal-blows-up-in-china/ 3.Baidu Caught in Backlash Over Tainted Milk Powder Search locomotive Denies Screening Out News More Rivals Online, Retrieved marchland 9, 2013 from http//online. wsj. com/article/SB122176870268453547. html 4. The Google of China The Secret of Baidus Runaway Search Engine Success, Retrieved March 9, 2013 from http//www. time. com/time/world/article/0,8599,2111545,00. html 5. Lorraine Day, M. D. Mad Cow sickness What the Government didnt Telling You. Retrieved March 9, 2013 from http//www. drday. com/madcow. htm 6. 2008 Chinese Milk Scandal. Retrieved March 9, 2013 from http//en. wikipedia. org/wiki/2008_Chinese_milk_scandalChinese_industry . Pharmaceutical Industry. Retrieved March 9, 2013 from http//en. wikipedia. org/wiki/Pharmaceutical_industry 8. Tainted milk Unravelling Chinas melamine Scandal. Retrieved March 9, 2013 from http//thinkbusiness. nus. edu/articles/item/118-tainted-milk-unravelling-china%E2%80%99s-melamine-scandal 9. S torer, J. A chance to tackle the culture of secrecy in government. Retrieved March 12, 2013 from http//www. thepunch. com. au/articles/a-chance-to-tackle-the-culture-of-secrecy-in-government/ 10. 2008 Chinese milk scandal. Retrived March 12, 2013 from http//en. wikipedia. org/wiki/2008_Chinese_milk_scandal