1. Identify what you think is a very successful firm and explain why. How did it become successful?
2. Do you think there is value to the firm and to its shareholders of a strong ethical climate in the firm? Why or why not?
3. In 2004, the drug VIOXX was removed from the market by the pharmaceutical giant, Merck & Co. The drug was used to relieve arthritis pain and was especially beneficial for patients who needed a medication that was easy on the stomach. But research reports showed there was a risk of strokes and heart attacks after taking VIOXX for 18 months. Evaluate Merck’s decision on business and ethics grounds.
4. What would you consider to be the strategy of The Coca-Cola Company: cost leadership or differentiation? Why?
5. What is a commodity? Give some examples of what you consider to be commodities and explain whether you think the company making the commodity product or service is a cost leader or a differentiator and why.