Reference no: EM1397
This assignment is about the concept of Business Ethics & Legal Issues. The laws relating to these can be found in Antitrust laws.
Question:
Business Ethics & Legal Issues
Antitrust laws were essentially created to stop businesses that got too large from blocking
competition and abusing their power. Mergers and monopolies can limit the choices offered
to consumers because smaller businesses are not usually able to compete. Although free and
open competition ensures lower prices and new and better products, it has the potential to
significantly limit market diversity.
Look at the 2 examples below of how mergers and acquisitions have affected the way in
which companies do business.
Read each of the 2 examples below. Prepare an APA formatted research paper that responds
to the aligned questions. Specifically, your paper must:
Identify the two firms with similar problems from different countries Conduct a comparative
analysis of the firms
Analyze political, social, ethical and legal differences and their impact on management
decision-making
Provide substantive conclusion and recommendations
Submitting your assignment in APA format means, at a minimum, you will need the
following:
1. TITLE PAGE. Remember the Running head: AND TITLE IN ALL CAPITALS
2. ABSTRACT. A summary of your paper...not an introduction. Begin writing in third person
voice.
3. BODY. The body of your paper begins on the page following the title page and abstract
page and must be double-spaced (be careful not to triple- or quadruple-space between
paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black
type. Do not use color, bold type, or italics except as required for APA level headings and
references. The deliverable length of the body of your paper for this assignment is 4-5 pages.
In-body academic citations to support your decisions and analysis are required. A variety of
academic sources is encouraged.
4. REFERENCE PAGE. References that align with your in-body academic sources are listed
on the final page of your paper. The references must be in APA format using appropriate
spacing, hang indention, italics, and upper and lower case usage as appropriate for the type of resource used. Remember, the Reference Page is not a bibliography but a further listing of the
abbreviated in-body citations used in the paper. Every referenced item must have a
corresponding in-body citation.
Example 1
Federal antitrust enforcers are investigating whether a multinational pharmaceutical company
has attempted to minimize the impact of generic competition to one of its most profitable
prescription drugs. This anti-depressant drug is the company's bestseller, with sales last year
of $2.11 billion, representing a 22% increase from the year before.
The Federal Trade Commission (FTC) is conducting an investigation to determine whether
the company has engaged in activities to prevent generic alternatives to the prescription drug
from entering the market. Specifically, the FTC is challenging a practice among brand name
and generic- drug manufacturers to agree to delay the introduction of the lower priced generic
drugs to the market.
Answer the following questions:
Why would the drug maker want to stymie generic competition? Explain. What types of legal
barriers to market entry exist?
What are the possible ethical dilemmas present in this example?
Example 2
The boards of 2 major telecommunications companies recently agreed to a $16 billion-dollar
merger that would create the world's largest telecommunications company in the world.
Although some agree that the synergy between these companies could be dynamic, others
feel consumers could ultimately pay the price for the merger depending on which company
becomes dominant in the various service areas.
Answer the following questions:
Why do you think consumer advocates have expressed concern over such merger
possibilities?
Other than pricing, what are some pitfalls that consumers might have to deal with when 2
major companies merge?
What are the possible ethical dilemmas present in this example?