case1 - 1 Caiping Chen MGT411 John Millar September 15,...

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1 Caiping Chen MGT411 John Millar September 15, 2010 Colgate’s Distasteful Toothpaste 1. Identify the major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel. The major strategies issue faced by Colgate is Colgate in order gain a strong share of the Asian market without having to build its own production plant, Colgate bought a 50 percent partnership in the Hawley and Hazel group in August 1985 for $50 million. One stipulation of this agreement was that Colgate had no management prerogative: Hawley and Hazel maintained the right to make the major decision in the organization. Meanwhile, Colgate has little or no right to make major decision. Once a disagreement comes up between Colgate and its partner Hawley and Hazel, Colgate has to be pushed in a difficult position, especially as it had no management rights in its agreement with Hawley and Hazel. Even if Colgate partnership with Hawley and Hazel turned out to be very lucrative for Colgate, with double-digit millions in annual sales, Colgate cannot give up its management rights. Strategic management is the process of determining an organization’s basic mission and long-term objectives and them implementing a plan of action for pursuing this mission and attaining those objectives (Luthans, 2009). In order to formulated and implemented wisely and gain long-term profit, Colgate should to ask itself two simple questions, “Where are we going?” and “what are opportunities and threats of the place that we intent to go culture?” Before Colgate puts “Darkie” toothpaste into U.S. market, Colgate failed to survey American’s culture aspect. It leads to a wave of dissatisfaction with the logo and name from U.S. minorities and civil right groups. The protest Campaign initiated by ICCR and carried further by others definitely caused Colgate’s image to be tarnished badly in the eyes not only of African American but of all Americans. Under the pressure, even if Colgate CEO was adamantly against racism of any kind and had taken actions to exhibit his beliefs, it was powerless because of Colgate has no management rights. The major ethical issue faced by Colgate is about the logo and name that on the
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This note was uploaded on 10/11/2010 for the course MGT MGT411 taught by Professor Johnmillar during the Spring '10 term at Tiffin University .

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case1 - 1 Caiping Chen MGT411 John Millar September 15,...

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