Week 4 Discussion Responses - Leadrship/Ethics
WEEK 4 Discussion Responses - Leadership and Ethics
Discussion 1
Week 4- Political Issues
By R,C-
Businesses are effected in many ways due to environment, supply and demand, economic trends, and political issues. One of the most terrifying political issues is terrorism. Terrorism is a reoccurring issue across the globe throughout history. From the 9/11 attacks in New York to the most recent attack at an Ariana Grande concert in the UK, caused fear and anxiety felt by many. In some way, shape, or form different businesses were impacted in the world. One of the main intentions of terrorism is to "disrupt and destroy" ongoing businesses (Larobina and Pate 2009). Thriving businesses is essential to a strong economy and therefor an even stronger nation. Early detection and intervention of terrorism is essential because terrorism can impact a country's ability to develop, invest, attract, and maintain businesses.
Terrorism causes direct economic destruction because it destroys property causing cities and businesses billions of dollars to replace (Ross 2016). It can also cost work production if workers are killed or injured during a terrorist attack. Where there is terrorism there is uncertainty lingering in the market. After September 11, it took months for the market to recoup. International investment also decreases in a world with terrorism. Countries plagued by terrorism will have a disruption in international trade, because trade routes may be compromised and reactions to such acts will bring skepticism among other countries that may feel business relations will be unreliable due to instability. Aviation industries saw a 12% decline after 9/11 attacks in 2001 and a major increase in oil expenses. In 2001, airline industries purchased oil for $25/ barrel to over $100/barrel in 2008. Terrorism not only causes fear, but cost billions of dollars to recover. Many businesses big and small are impacted because tourism and travel typically decrease, as seen in France after the Nice attacks (Ross 2016). Although many developed countries have resilient businesses after a terrorist attack, those that are trying to develop may never be able to experience that resilience if riots and acts of terrorism are common. It is important for the government, homeland security, and businesses to act together to keep the strength and resilience of the nation.
References
Larobina, M.D. and Pate, R.L. (2009). The Impact of Terrorism on Business. The Journal of Global Business Issues, 3(1), pages 147-156.
Ross, S. (2016). Top 5 Ways Terrorism Impacts the Economy. Retrieved from http://www.investopedia.com/articles/markets/080216/top-5-ways-terrorism-impacts-economy.asp
Discussion 2
Mylan and EpiPen -
By A,B-
Back in mid 2016, news broke surrounding the very popular and widely used EpiPen, which is produced by a company named Mylan. Mylan is a globally recognized healthcare company, that markets and sells over 7,500 products. Allegations were brought upon Mylan because there was suspicion that the price of the drug has been increased an unnecessary amount, and that Mylan was taking advantage of the market.
Over several years, the EpiPen was gaining major popularity as an emergency tool to address allergic reactions. As a result, production and demand increased, and so did the price. “increasing over 500% in about a decade. Today, EpiPens, which cost Mylan around $30 to produce, go for over $600 before coupons or rebates.” (Tuttle, B., 2016)
Mylan was in an interesting place, and decided to take advantage of the market that it had. The EpiPen was one of the only products of its kind in the market and therefore Mylan wanted to make a premium on it. However, the Department of Justice stepped in to address the fact that some type of regulation and adjustment needed to occur. The product was becoming too expensive and it was clear that Mylan was just looking to take advantage of the consumer. This directly ties into social regulations, and the need to protect the consumers, environment, etc. (Lawrence& Weber, 2014, Page 172)
This also rolled into an antitrust regulation, again protecting the consumer, and ensuring that no type of price fixing was occurring. The regulations were needed to address the fact that a profit margin should be made, however that margin shouldn’t be something outstanding. Mylan has every right to make money off the product, but shouldn’t take it to an extreme.
I think it is necessary that the government steps in one cases like this. It helps protect the consumers, as well as other businesses. Clearly Mylan had the market and was going to do anything that they could to make a profit. However, the choice of increasing the product cost over 500% cost them roughly $465 million in a settlement (Weintraub, A., 2016). By correcting Mylan’s actions, the government helps the consumers and other businesses, by potentially allowing someone else to enter the market and to create some competition.
Reference:
Lawrence, A. T., & Weber, J. (2014). Business and society: stakeholders, ethics, public policy
(14th ed.). New York: McGraw-Hill Higher.
Tuttle, B. (2016, September 21). EpiPen Prices: Mylan CEO Heather Bresch & Big Pharma Scandal
Money. Retrieved May 24, 2017, from http://time.com/money/4502891/epipen-pricing-
scandal-big-pharma-politics/
Weintraub, A. (2016, December 02). Mylan CEO Bresch Admits 'Full Responsibility' For EpiPen
Price Hikes. Retrieved May 24, 2017, from https://www.forbes.com/sites/arleneweintraub
/2016/12/01/mylan-ceo-bresch-admits-full-responsibility-for-epipen-price-hikes/#
65b0b785393c
