Assignment 1

MNGT-3711

Forces and Public

Issues in Industry 

Submitted To: Submitted By:

Ron Lakes Jaspreet Kaur

T00592974
 PART- A

1. Describe the “performance-expectations gap” evident in this case – what were the
stakeholders’ concerns and how did their expectations differ from the company’s
performance?

Performance-expectations gap as a gap between what a firm wants to do or is doing and

what stakeholders expect. In this example, The Coca-Cola Company’s actions did not
meet stakeholders’ expectations. Activists in India, where several Coca-Cola bottling
plants operated, charged that the company had depleted local water supplies by diverting
water for their own use. They also maintained that Coca-Cola drinks had been
contaminated by pesticide residue in water used as an ingredient. World leaders had also
pointed to growing prospects of acute water shortages in some regions. The public’s
expectation that Coca-Cola would provide a safe product and not use more than its share
of water resources seemed to conflict with some stakeholders’ perception that the
company’s products were unsafe and that it had depeleted the groundwater near its
bottling plants.
2. If you applied the strategic radar screens model to this case, which of the eight
environments would be most significant, and why?

There are eight strategic radar screens which managers must systematically monitor.
These are the customer environment, competitor environment, economic environment,
technological environment, social environment, political environment, legal environment,
and geophysical environment. In this case, probably the most significant of the eight
would be the geophysical environment. Coca-Cola’s stakeholders were concerned about
possible scarcity and contamination of an important natural resource—fresh water. To a
lesser degree, the company also faced challenges in its political and legal environment,
since some government entities had taken regulatory action against the company.
Customers had also expressed concern about product safety. The company had identified
that its business has essential requirement of water, because it used extensive amounts
both as an ingredient in its products and in the manufacturing process. It was well aware
of stakeholder criticisms, because one of its plants had been shut down by regulators for
depleting groundwater. The company had undertaken an extensive survey of its water
 usage globally and had reached out to environmentalists. The case also describes the
actions the company decided to take—a water neutrality initiative. Finally, the case
describes the company’s efforts to evaluate its results and to share the results of this
evaluation with others.

3 In your opinion, did TCCC respond appropriately to this issue? Why or why not?
The company responded appropriately by declaring a goal of water neutrality. It said that
it would return to nature and communities an amount of water equal to what it used. It
would do this by reducing its water usage, cleaning and recycling water, and contributing
to water conservation projects. The company’s commitment was appropriate because it
addresses stakeholder concerns directly and appears to be far-reaching and
comprehensive. Evidence in the case shows that as of 2011 the company had made
substantial progress towards meeting its goal of water neutrality.

PART- B

1. Introduce the issue(s) you have selected and list primary and secondary stakeholders
influencing or influenced by this issue(s). Be specific in naming individuals, groups,
associations, and/or government bodies and describe these stakeholders' roles.

Tobacco is an agricultural commodity product, similar in economic terms to agricultural

foodstuffs: the price is in part determined by crop yields, which vary depending on local weather
conditions. The price also varies by specific species or cultivar grown, the total quantity on the
market ready for sale, the area where it is grown, the health of the plants, and other
characteristics individual to product quality.

Tobacco, one of the most widely used addictive substances in the world, is a plant native to the
Americas and historically one of the half-dozen most important crops grown by American
farmers. More specifically, tobacco refers to any of various plants of the genus Nicotiana
(especially N. tabacum) native to tropical America and widely cultivated for their leaves, which
are dried and processed chiefly for smoking in pipes, cigarettes, and cigars; it is also cut to form
chewing tobacco or ground to make snuff or dipping tobacco, as well as other less common
preparations. From 1617 to 1793 tobacco was the most valuable staple export from the English
American mainland colonies and the United States. Until the 1960s, the United States not only
grew but also manufactured and exported more tobacco than any other country.( Wikipedia)

Tobacco is an agricultural commodity product, similar in economic terms to agricultural

foodstuffs: the price is in part determined by crop yields, which vary depending on local weather
conditions. The price also varies by specific species or cultivar grown, the total quantity on the
market ready for sale, the area where it is grown, the health of the plants, and other
characteristics individual to product quality.

Smoking in public areas has emerged as one of the controversial topics in the recent past,
especially in light of the impact of smoke on people’s lives. The controversy associated with this
issue has been centered on debates regarding the positive or negative effects of smoking. Some
people have argued that they have the right to smoke whenever they feel the urge to do so while
others contend that they have the right to breathe smoke-free air. While the debate the
controversies across the globe are increasingly considering establishing measures for preventing
public smoking.

There are several reasons for the need to ban public smoking regardless of the ongoing debate on
whether such a measure infringes the right of smokers to smoke whenever they want. First,
public smoking should be banned because it exposes non-smokers to severe negative health
consequences since smoking in public areas not only affect smokers themselves but also has
considerable health effects on non-smokers (Rutherford par, 2.). Generally, public smoking
exposes non-smokers to health risks and harms that they do not understand and are unwilling to
accept. This violates the rights of non-smokers because people should only be exposed to risks
and harms they understand and chose to accept regardless of the potential negative impacts.
Therefore, banning public smoking helps in protecting non-smokers from the public health
dangers associated with second hand smoke or passive smoking.

Secondly, smoking in public places should be banned because second hand smoke or passive
smoking that affects non-smokers generates huge medical costs. These huge medical costs are
associated with the fact that passive smoking or second hand smoke generates devastating health
impacts. Non-smokers as well as the government incur these huge medical costs because of the
impact smokers have on the society when they smoke in public.

The third reason for banning smoking in public areas is the increased need to safeguard people’s
health than to protect business. While business play an important role in the growth and
development of the society and nation, they should not be allowed to operate in a manner that
generates significant negative health impacts and endangers the lives of people in the society.

Section 2. What does this mean to my family? Identify your own stakeholder role(s) in
relation to the tobacco industry and cigarette smoking in our society. Describe the biases,
perspectives, or experiences that may influence your position on this public issue.

As a stakeholder in the tobacco industry, I have some critical responsibilities that I need to fulfill
to be sincere towards the society and people living in it. Firstly, I need to find other people like
me who are willing to step up and take some action against this uncontrolled spread of tobacco. I
shall form a group whose purpose is to not only keep each other off tobacco but also encourage
others to do so. We can start by educating our family members about the harmful effects of
tobacco. It is obvious that we shall face some criticism but it is all worth it. Youth must be the
prime target as they are not fully invested in the habit and still have time to move away. We must
educate them about ways to quit smoking and how it would benefit them monetarily and also
health wise. Our next target must be the vendors. These are mostly locals and a little hard work
can make them understand and they might even stop selling it. At least convince them to not sell
to those under the age of 183.

Next step is the government and the policy makers. We should carry out campaigns to make the
government impose heavy taxes on the selling of cigarettes. It would not improve the revenue
but young people are able to afford it and hence, quit it. Fewer sales would also mean lesser
investors in the future. Most of the investors choose this field as it has lesser investment and a
greater profit for them. But higher taxes will force them to choose some other field which would
in turn create job opportunities and also result in the substantial growth of the nation. Identifying
myself as a stakeholder in the field, I need to also account for its effects on environment and all
other related factors.

Section 3. What does this mean to my company? Imagine yourself as a tobacco industry

executive and describe management of the public issue(s) from this perspective.

If I were an executive in a tobacco industry, I would have to be really careful about the response
of the masses towards the mass production of tobacco by my company. Tobacco is without any
doubt a harmful substance. It has been proven scientifically that tobacco contains more than
4000 chemicals and most of them are cause of one disease or another. Tobacco has been linked
with lung cancer over the past century while it also poses threat of mouth cancer. It does not only
affect the consumer but also those in his vicinity. That is why there would surely be much public
protest with an aim to stop the production of tobacco. As an executive I will have to ensure that
those people are provided with some significant incentives so as to keep the production going.
These incentives may include donations and charities. Small amount of money given in charity
can go a long way in improving the status of the company4. It also helps in promotion of the
brand. Tobacco companies have been seen to follow the trend of donating money in charity to
present a clear image out in public. American top produce Phillip Morris has made donations to
multiple schools, universities and hospitals. We can also keep a track of the children benefitting
from the program and eventually hire them in the company in future. This not only reduces
unemployment but company will also be able to know who they are hiring and thus get a better
workforce.

Tobacco production is heavily relied on poor countries as the labor there is cheap and so product
value is low. As an executive, I would target such countries. Making a small investment in their
prosperity would bring fortune to the company. It would establish a positive reputation and the
company will be acknowledged as one of the best. Tobacco companies are mainly targeted by
the health organizations. In order to cope them, it is best to invest in them. Company should
work in establishing better relations with health organizations and help them in better treatment
of the patients.
Tobacco is one of the most harmful and yet most widely spread drug in the present world. The
biggest product of tobacco is the cigarettes. Cigarette contains thousands of chemicals that are
harmful for health. These chemicals get into our system and disrupt the whole mechanism. Out
of the 4800 chemicals present in the cigarette, 69 of them are known to cause cancer. Nicotine
and tar are the most prominent and dangerous ones. Nicotine is the substance in the cigarette that
causes addiction in the smokers. Nicotine suppresses the senses in the brain and makes its host
victim to the dangerous habit of smoking. Once addicted to it, it is difficult to let go. Tar is a
sticky substance that tends to enter the lungs alongside the smoke5. It sticks with the lucks and
windpipe disrupting the flow of air and causing multiple diseases. Smoking is not only harmful
for the smoker but also those around him. Most of the chemicals that are inhaled are then
exhaled in the atmosphere. Anyone present around will also be breathing in the same atmosphere
and thus takes in all those harmful chemicals into his system. That is why non-smokers need to
stay away from the smokers. This is known as passive smoking and researchers believe it to be
as harmful as chain-smoking.

So, keeping all of the above points in mind, government does play a major role in the spread of
this vice. If any government decides to finish tobacco sale, it is not an issue. But the reason of
such carelessness is the heavy influences of smoking companies in the political structure of the
country. Government needs to devise plans to ensure that the effects of tobacco are minimized.
The first step is to ban smoking in public places. There should be special places designated for
smoking. This way people will be able to carry on with their habit and non-smokers will also not
be affected. Government should work on explaining people in a way that they understand the
best, monetarily. According to estimates, an average smoker in USA spends $1500 to $3300 on
cigarettes annually, which is huge sum of money6. There should be seminars explaining the
harmful effects of smoking. For those who want to quit, they should be provided with adequate
medical guidance and supported. Imposing high taxes and keeping a check on the production
companies can also help in the cause. No one likes to do business in a hostile environment, and if
such is provided to smoking companies, their investors would surely run to other fields thus help
in prosperity of the country, rather that destroying its roots. It is a proven fact that in areas where
tobacco is prohibited, there has been a significant growth in production and an improvement in
the living standards of the residents. Alone in USA, smoking accounts for $333 billion loss in
terms of healthcare and loss of productivity.
Section 4. What does this mean to my country? Discuss the role(s) of government in this
issue(s) and how it is influencing both the industry and the public. (15 marks)

Media plays a key role in the promotion of the tobacco industry. It is the one platform that links
the production companies with the consumers. In past media was only restricted to television and
newspapers but with the digitalization of the modern world, internet has also emerged to be a key
component of media. Tobacco industries have long been using media as a way to promote their
product. Cheesy advertisements were designed to lure individuals of all ages and mentality
towards smoking. It was being depicted as the only way to relieve oneself of the worries and
tensions of the world and gain success. From 1950-1970, there were several shows running on
television that was sponsored by the cigarette brands. Winston cigarettes introduced a slogan
"Winston tastes good like a cigarette should" and it became popular among the masses. Cigarette
brands even went on to criticize the report that stated cigarettes as a cause of cancer and used that
as a mockery to promote their product. There were even instances where even the cartoon
characters were shown smoking thus putting a bad influence over the kids. However, it was soon
understood that such acts were to be banned. WHO and the European Union worked to make
sure that this open advertising was stopped. As of Feb, 2005 an accord was signed by 168
countries in order to put a ban over the advertising of cigarettes7. There are many countries
where it is compulsory to add a health risk label on the cover to support the cause.

5. Media impact: Describe the media's role in this issue(s) and the perspective it is presenting
to the public. Discuss industry-sponsored media communications, as well as government
communications and reporting in the popular press. Cite specific examples, using references. 

But this is not enough. There are poor countries whose economy relies on the taxes that they
generate from the production and selling of tobacco. For instance, it is legal to advertise smoking
on national television in Zimbabwe.

In order to cope these bans, tobacco companies has come with an alternative. There are now
spending millions of dollars on flyers and cards that are displayed outside the vendor’s shop.
These posters are to lure people and especially youth towards smoking. Most of the children are
bound to visit these shops at one time or another and only one puff is enough to waste someone’s
life.
With all the other means of advertisement vanquishing, Formula 1 was one sport that attracted
the tobacco companies. Brands such as Gold Leaf and West invested huge sums on the racing
sport to promote themselves. But with end of the 20th century, even those doors started to shut
for them.

Marlboro placed its bets in the Indy Car auto racing while R.J. Reynolds Tobacco Company
found a market in auto racing. Among the other major sports relying on tobacco companies for
its sponsorship is snooker. The ban heavily affected the game for that little span of time.

So, media can play a huge role in determining the fate of smoking. If it is used in the right way
and that is as a part of anti-smoking campaign, it can help many lives and free the world of this
huge disease. But to achieve this goal, we all will have to work together and ensure that we give
our best for the cause.

References:

1. Rutherford, J.(2009, October 23). Banning Smoking in Public Areas Essay. Retrieved
from https://www.paperdue.com/essay/banning-smoking-in-public-areas-215672 2
2. McGraw,J.H.(2014). Managing public issues and stakehorlder relationships. Retrieved
from: https://testbanklive.com/sample/business-society-stakeholders-ethics-public-policy-
14th-edition-lawrence-solutions-manual.pdf
3. Tobacco Industry.(n.d.). In Wikipedia. Retrieved May 25, 2018 from
https://en.wikipedia.org/wiki/Tobacco_industry

4. Lee-Lan; Yen, Lee-Lan. 2000. “Smoking Prevalence and Behaviors of Adults in Taiwan:
A National Survey, 1999.” Poster presented at the 11th World Conference on Tobacco
OR Health, Chicago, USA.
5. Gonghuan, Lixin Fan, and Jian Tan. 1999. “Smoking in China: Findings of the 1996
National Prevalence Survey.” Journal of the American Medical Association (JAMA) 282
(13)
6. G. 1997. “Health promotion of adolescents.” Collegium Antropologicum 21:93-100.