Chicken International Group Case Study

Superior Essays
main aim of a business is to make profit. Finance is the lifeblood of a business and therefore, for a business to survive, it must generate profit. In order to make profit, a business must sell more and more, in other words, bigger sales. For bigger sales to be realized, a business must properly market its products to both existing and prospective customers. In its bid to market its products, a business is faced with one big challenge: to remain ethical at all times. Businesses are highly encouraged to embrace ethical practices in their activities. The strong desire to make profit shouldn’t really override ethical practice (Hartman 32).
The ethical dilemma
In this case scenario, Chicken International Group, a chicken-processing company has
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This could be a good idea. The company wants to know what the legal requirements needed to effect this idea are. The company goes ahead to find out what the legal requirements to label their chicken as “free range” are. To the company’s advantage, the legal requirement is just to open the door to the chicken house for at least 5 minutes a day, so that the chicken may wander out. This condition is easy to meet. The ethical question becomes: will all the chicken be able to wander out in 5 minutes? Is five minutes practically enough? The answer is definitely no. From a logical perspective, some of the chicken will not be able to wander out in such a short time. Five minutes will not be enough to allow the company to term its chicken as “free range”. In addition, the word “free range” may be used without taking into account the amount of space per chicken, the number of chicken or the amount of time spent …show more content…
The company should not change its production abruptly to “free range” chicken. It should change its production gradually. It should start by producing both the current category and the “free range” category concurrently. This would help the company to maintain its current customers who are used to buying their products at the current price. At the same time, this will maintain its sales volume at nearly constant value and hence avoid a slump in sales due to rapid change of product. The reason why the company should produce the two products concurrently is because “free range” chicken tend to grow at a slower rate than chicken which are completely kept indoors. Because of this reason, the “free range” chicken are always stronger and seem to have a greater nutritional value associated with their wandering

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