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Herbalife International Case Study

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The case of Herbalife International deals mostly with the question of whether they are a pyramid scheme or a legitimate company. Herbalife is considered a multilevel marketing company whose products are used for weight management and nutrition. They do not sell their products in retail stores. Instead, customers can become independent contractors by ordering the products and turn into direct sellers to other patrons. These independent contractors receive discounts towards the products they use and can earn extra income as well. Herbalife’s products include protein shakes, supplements, and snacks. They help to control hunger, support the heart, joints, and other organs. In addition, the company offers personal care products such as lotions and cleansers. The company has been accused of being a pyramid scheme several …show more content…
Herbalife has collaborated with organizations to provide essential nutrients to over 10,000 children in India.
Employees of the company can earn incentives such as complimentary products and lower health insurance costs by staying healthy and active. Herbalife was named “One of the 15 Fittest Companies in America” by Men’s Fitness Magazine (Ferrell, pg. 626).
Despite the criticism the company has received from people such as William Ackman, it continues to thrive. Customers are not discouraged from purchasing the products. Independent contractors continue to enjoy the benefits they receive without the pressure of having to recruit new members.
4. In terms of Christian Worldview, it is not clear to me whether the company expresses complete honesty towards the public regarding their income. Herbalife claims that most of the profits come from the sales and not through down line commissions. What is the reason to continue this practice and subject themselves to continuous

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