MOR 465 Lecture Notes - Lecture 19: Breakfast Cereal, Profit Maximization
30 Apr 2016
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Document Summary
Children have a limited capacity to judge what is right for them. They cannot sacrifice their position and profits in the competitive rte breakfast cereal industry. All three options given by the team were similar therefore did not seem mutually exclusive. An option mentioned by the presenting team that i pondered on about was option 3. By supporting caru and following established ethical practices (not giving the government any reason to impose restrictions), general mills can avoid the government interfere in their daily practices. Both the recommendation 1 and 3 involved changing the established guidelines, however since caru is a relatively smaller organization, implementing this change would be faster and cheaper. A hurdle to the implementation of the suggested recommendation of the presenting team is that general mills and kellogg are independent organizations. Caru guidelines but other organizations will have an option to not regulate their practices. This would affect the market share and profit maximization strategy of general mills.
