Question

CASE 12. THIRST FIRST BOTTLING COMPANY: S.O.S
Competition in the soft drinks industry is very intense that every means to improve a company's sales position are explored. Advertising and promotional efforts are heavily relied upon at the Thirst First Bottling Company to drum up customer's interest in the company's products.

The company is engaged in the production and marketing of soft drinks. It operates plants, warehouses, and sales offices throughout the Philippines. The company has been serving the Philippine market for more than 50 years.

The manager in charge of advertising and promotion is Mr. Rolando Calanday, a graduate of a marketing course in the College of the Immaculate Conception in Cabanatuan City. The advertising and promotion unit coordinates with advertising firms in the design and production of advertising materials like billboards, posters, and streamers. The unit often produces t-shirts printed with advertising messages, which are used as promotional items. The company spends more than P20 million annually for the purpose.

Periodically, advertising and promotion unit sends the advertising and promotional materials to managers of the various sales offices of the company. The managers, in turn, hand over the materials to their respective sales teams for proper disposal. The drivers of the delivery trucks, with the assistance of helpers are directed to install the billboards and streamers on appropriate places and paste the posters in conspicuous corners of retail establishments.

At the beginning, the drivers appropriate for themselves a small portion of the advertising and promotion materials. Some of the billboards are used as partitions in the houses of the drivers. The posters are used to reinforce the walls. The t-shirts are not handed over to customers but to family members and friends. The materials are clearly not used as intended but nobody in the sales offices questions the practice or even cares to know.

One day, the general manager of the company, Mr. Marcelino de Vega, received a letter from a concerned employee reporting about the unethical practice. Immediately, the general manager called Mr. Calanday and inquired on how he was getting about his responsibility Of promoting the company's products. Mr. Calanday's reply did not satisfy the general manager.

On the same day, Mr. Calanday received an order from the general manager to clear up the problem regarding the unethical practice or he will be replaced as head of his unit.



Learning Assessment

1. propose an applicable strategic control to combat the intense effect of the competition.

2. Lay down possible approach that can be used to control the pressing problem.​

Answer 1

Answer:

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Answer 2

Answer:

The scenario presented in the passage is an example of an ethical dilemma faced by a company. The company is facing intense competition in the soft drinks industry, and the advertising and promotional efforts are heavily relied upon to improve the company's sales position.

Explanation:

The manager in charge of advertising and promotion, Mr. Rolando Calanday, coordinates with advertising firms in the design and production of advertising materials like billboards, posters, and streamers, and t-shirts printed with advertising messages, which are used as promotional items.

However, the delivery truck drivers, with the assistance of helpers, appropriate a small portion of the advertising and promotion materials for themselves.

They use some of the billboards as partitions in their houses, the posters to reinforce the walls, and the t-shirts for their family members and friends. This practice is clearly unethical, and a concerned employee reports it to the general manager of the company, Mr. Marcelino de Vega.

The general manager calls Mr. Calanday and inquires about how he is fulfilling his responsibility of promoting the company's products.

Mr. Calanday's reply does not satisfy the general manager, and he orders Mr. Calanday to clear up the problem regarding the unethical practice or be replaced as head of his unit.

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