Question 1

Research has shown that consumers at the bottom of the pyramid (BOP)have different aspirations than do other consumers.

Accepted Answer

The answer of Research has shown that consumers at the...

Question 2

Assuming a company found a profitable niche in serving the fourth tier (the 4 billion people at the bottom of the economic pyramid),how might such a breakthrough help the firm sell to the developed world at the top of the economic pyramid?

Accepted Answer

The answer of Assuming a company found a profitable niche...

Question 3

William Lever,one of the founders of Unilever,is known for

Accepted Answer

William Lever is known for creating soap to encourage cleanliness and reduce infectious disease through the manufacturing of Sunlight Soap. He was also a pioneer in advertising and branding, which helped to make Sunlight Soap a household name. While Unilever does focus on sustainable sourcing and reducing environmental impact, these initiatives were not directly attributed to William Lever. Although he did employ women in his factories, there is no evidence that he specifically promoted women in management positions.

Question 4

Why is profit optimization a more useful focus for firms than profit maximization?

Accepted Answer

The answer of Why is profit optimization a more useful...

Question 5

________ is central to the concept of strategic CSR.

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The answer of ________ is central to the concept of...

Question 6

A significant reason for the supremacy of market forces is the pivotal role of profit.

Accepted Answer

Profit is the main motivation for businesses in a market economy. Companies strive to maximize profits, and market forces of supply and demand ensure that the most efficient and profitable businesses succeed. Therefore, profit plays a significant role in driving market forces and determining the success of businesses in a market economy.

Question 7

Which of the following describes strategic CSR?

Accepted Answer

Strategic CSR is a highly empowering approach that considers a company's social and environmental impact as integral to its overall business strategy. It involves identifying areas where a company can create shared value for both itself and society, and it requires action and engagement rather than simply theoretical or passive posturing. Therefore, choices A and B are incorrect, and D is incorrect because it includes these incorrect options.

Question 8

Which of the following is not a component of Unilever's Sustainable Living Plan?

Accepted Answer

Unilever's Sustainable Living Plan includes commitments to reduce the environmental impact of its products, source 100% of agricultural raw materials sustainably, and help more than 1 billion people improve their health and well-being. However, there is no mention of a specific target to hire women in 50% of executive positions within the company. While Unilever does have a goal to achieve gender balance in management, it does not specify a specific percentage target for the hiring of women in executive positions.

Question 9

According to the textbook,stakeholders do not have it in their collective power to shape which firms they want to populate the economy.

Accepted Answer

According to the textbook, stakeholders do have the power to shape which firms populate the economy by choosing which firms to support through their purchasing decisions, investments, and advocacy efforts.

Question 10

According to the textbook,________ are becomingly increasingly important in developing countries for conducting business.

Accepted Answer

The textbook states that in developing countries, mobile phones are becoming increasingly important for conducting business. Option A (business school graduates) is not mentioned as a significant factor in developing countries' business operations. Option B (fixed landlines) is becoming outdated, and mobile phones are replacing them. Option D (NGOs) are not mentioned in the context of conducting business in developing countries.

Question 11

The existence of profit is a prima facie indication that the business has succeeded in producing something consumers want and value.

Accepted Answer

Profit is the surplus earned by a business after deducting all its expenses from its total revenue. In order to make a profit, a business needs to produce and sell goods or services that consumers want and are willing to pay for. Therefore, the existence of profit indicates that the business has succeeded in meeting consumer demand and providing value to them.

Question 12

The $5 T-shirt is readily available today,and its existence has profound implications for the type of society in which we live.Describe and analyze these implications.

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Question 13

Prahalad argued that poor people in the developing world needed more educational and health services provided by Western democracies.

Accepted Answer

Prahalad's argument in his book "The Fortune at the Bottom of the Pyramid" was that multinational corporations could create business opportunities and innovation within low-income communities, rather than relying on charity or aid. He believed that local entrepreneurs and businesses could drive economic growth and improve living standards, rather than simply offering education and health services provided by Western democracies.

Question 14

________,rather than ________,offers the best means for rapid social progress in the developing world.

Accepted Answer

Economic development directly impacts various aspects of a society, including health, education, and overall quality of life, making it a fundamental driver for rapid social progress. International aid, while beneficial, often does not address the root causes of underdevelopment and can create dependency.

Question 15

Unilever has committed itself to implementing ________ as a core component of strategy and operations.

Accepted Answer

The question is asking which concept Unilever has committed to implementing as a core component of strategy and operations. Of the given options, only corporate social responsibility (B) fits that description. Profit sharing (A) and cause marketing (D) may be part of Unilever's operations, but they do not necessarily indicate a core commitment. Shareholder activism (C) is not something a company would commit to implementing as part of its own operations.

Question 16

In your opinion,what was the primary cause of the BP oil company's series of serious accidents? In your response,you should explain whether or not stakeholders have it in their collective power to shape the firms they that populate their economies.

Accepted Answer

The answer of In your opinion,what was the primary cause...

Question 17

Is it OK for a for-profit company to profit from poverty? Why or why not?

Accepted Answer

The answer of Is it OK for a for-profit company...

Question 18

The idea of profit maximization is unhelpful because

Accepted Answer

Profit maximization as a sole objective can lead to decisions that prioritize short-term gains over long-term sustainability, social responsibility, and ethical considerations. It may also overlook the impact on other stakeholders such as employees, customers, and the environment. Therefore, it can distort decision-making within the firm.

Question 19

________ are the best hope for social progress in developing countries.

Accepted Answer

The answer of ________ are the best hope for social...

Question 20

Recognizing that many Indians could not afford to buy a big bottle of shampoo,________ developed single-use packets that sell for a few cents,and now the company sells 4.5 billion of them per year.

Accepted Answer

Unilever developed the single-use packets of shampoo to cater to the affordability of many Indians. The company sells 4.5 billion packets per year. Johnson & Johnson, Colgate-Palmolive, and Proctor & Gamble are also major consumer goods companies but do not have a notable history of developing single-use packets of shampoo for affordability purposes in India.

Quiz 7: The Pursuit of Profit