strategic managment business policy

RawanKariri – 12120150

MGT 418

Strategic Practice Exercise

The business firm should try to get useful information about

Competitors by:

Carefully studying trade journals: (5 = Definitely Appropriate)

Note:Studying any kind of publication by the competitors will provide a huge help in finding useful information to work with. It is an ethical and legal action, so it's definitely approachable.

Wiretapping the telephones of competitors: (1 = Definitely Not Appropriate)

Note:Wiretapping is a simply intrusion of the privacy. The information will be obtained illegally and unethically, thus it's definitely not approachable.

Posing as a potential customer to competitors: (4 = Probably Appropriate)

Note:Competitors will serve customers by providing them with general information about their products/ services and they will not leak to them any confidential information by any means. For that, pretending to be a customer is a legal action. It may not be considered an ethical one for some people, so it's probably appropriate for some companies.

Getting loyal customers to put out a phony “request for proposal” soliciting competitors’ bids: (2 = Probably Not Appropriate)

Note:To entice a loyal customer to do that, it has to contain some sort of unethical temptations as payments or free charge coupons. It may be legal action, but certainly unethical one, so it's probably not appropriate.

Buying competitors’ products and taking them apart: (4 = Probably Appropriate)

Note:Once the companies buy any products, it becomes their proprietary. They will have the full rights to disassemble, analysis, and study it in any way they want to. It is legal action, but it may take much time, money, and effort than it's necessary. Thus, it's probably appropriate in some situations.

Hiring management consultants who have worked for competitors: (4 = Probably Appropriate)

Note:consultants will provide expert advice to anyone hires them, it's probably appropriate and ethical as long as they don't force or entice them to reveal competitor's confidential information.

Rewarding competitors’ employees for useful “tips”: (2 = Probably Not Appropriate)

Note:In order to keep its valuable and sensitive information, most companies will have their employees signing a confidentiality agreement. Encouraging the competitors’ employees to breach this agreement may not have any legal consequences, but it's not an ethical action so probably it's not appropriate.

Questioning competitors’ customers and/or suppliers: (5 = Definitely Appropriate)

Note:Unlike the employees, customers and suppliers will not have a deep confidential information about the company. So, using them as a source to try to find general public information is legal and ethical action, so it's definitely appropriate.

Buying and analyzing competitors’ garbage: (2 = Probably Not Appropriate)

Note:It may be a legal action, but it most likely a breach of someone's privacy. For that, it's probably not appropriate because it's unethical.

Advertising and interviewing for nonexistent jobs: (1 = Definitely Not Appropriate)

Note:It's a dishonest act, illegal, unethical, and definitely not appropriate.

Taking public tours of competitors’ facilities: (5= Definitely Appropriate)

Note:Public tours are open to anyone, it's legal, ethical, and definitely appropriate way to observe and collect any information.

Releasing false information about the company in order to confuse competitors:

(1 = Definitely Not Appropriate)

Note:Such an act could harm the company's reputation and image, their shareholder's relationship, and most importantly their customers' trust. It's definitely not appropriate and it might have legal consequences as well.

Questioning competitors’ technical people at trade shows and conferences:

(4 = Probably Appropriate)

Note:As long as they don't pursue influencing, or intimidating them to make them reveal a confidential information, it's probably appropriate.

Hiring key people away from competitors: (5= Definitely Appropriate)

Note:It reasonable move, legal, ethical, and definitely appropriate.

Analyzing competitors’ labor union contracts: (4 = Probably Appropriate)

Note:As long as these contracts are public, it's probably appropriate.

Having employees date persons who work for competitors: (1 = Definitely Not Appropriate)

Note:impose these kinds of demand on employees, is invasion of their privacy and interference in their affairs. It's extremely unethical and definitely not appropriate.

Studying aerial photographs of competitors’ facilities:(4 = Probably Appropriate)

Note:If these kinds of photographs are available to the public (Google Earth) and not considered as confidential documents, it's probably appropriate.