Tuesday, September 27, 2005

RU 486 Case Analysis

BUSINESS RISKS As with every new product, the production and introduction of the product into the market warrants certain levels of business risks. As stated in the case study, some people think that the product is morally scandalous. The American society consists of many religious individuals who do not support the women's choice and there are many that support the right to choose. Taking a side in this debate is a risk for the company because for one side to be happy, the other side will not. Therefore, it is imperative that the company not get themselves involved in the middle of abortion debate. They should produce and distribute RU 486 for other medical remedies and offer it as a means of a contraceptive off handily. Albeit, the company holds the legal and moral responsibility for their product in the US and regardless, the company's decision to promote the pill has far reaching implications both on a societal and business level (86). Another risk is its product liability. Despite the high effective and low risk rate of the pill, Murphy's Law states that somehow, something will go wrong. It may turn out that the product may have detrimental effects on certain individuals producing irreversible effects. Regardless of who is at fault, the consumer will file charges and the company will be forced to defend themselves. As mentioned before, litigation is expensive and Hoechst AG should anticipate numerous repercussions from it and should obtain excellent liability insurance in order to protect themselves from vindictive consumers.





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