21 Aug Project 1- The Smoking Alternative
Project 1- The Smoking Alternative
The purpose of this project is for students to understand the relationship between government, business and society and demonstrate how each attempts to influence the others. In completing this project, you will discuss the role ethics plays in business and how the actions of a business can influence society. Government supports businesses but at the same time, government acts as a regulator and must address societal matters to ensure businesses act in a socially responsible manner.
Outcomes Met With This Project:
- discuss the financial, economic, regulatory, sociopolitical, and technological factors as they relate to a dynamic business environment
- describe the ethical and social responsibilities that confront a business
Skill Building:
You are also completing this project to help you develop the skills of critical thinking, writing and developing a personal brand. Writing is a critical skill because in business it is important to convey information clearly and concisely and to develop a personal brand. Developing a personal brand is important because it is the ongoing process of establishing an image or impression in the minds of others especially those in positions above you. Having a strong personal brand can lead to opportunities that include promotions.
Case Scenario:
Read the following case scenario and answer the questions that follow:
James Monsees and Adam Bowen, co-creators of Juul Labs have come under criticism for potentially marketing to teenagers the e-cigarette device. Monsees did not show much concern because he believed the small percentage of underage consumers were making a lot of noise that was distracting Juul from one of the greatest advances in public health. Believed to be safer than cigarettes, Juul devices have shown to be safer than traditional cigarettes containing fewer toxins.
The e-cigarette has captured 70% of the market share for e-cigarettes. A Juul that transforms a pod of nicotine-laced liquid into inhalable fumes sells for $34.99 with a pack of pods costing about $15.99. The company’s revenue is expected to grow to $1 billion in 2018 making the value of the company worth approximately $16.3 billion.
A major attraction of the Juul device is the variety of flavors available to smokers. Flavors include mango, fruit, crème and cucumber, all attractive to adolescents.
The Food and Drug Administration (FDA) is scrutinizing the company’s advertising to assess whether Juul has intentionally targeted teenagers. In 2009, President Obama signed the Family Smoking Prevention and Tobacco Control Act granting the FDA the authority to regulate the marketing and sales of tobacco products to reduce adolescent tobacco use. Although the FDA has authority over cigarettes, cigarette tobacco and smokeless tobacco, it does not have jurisdiction over e-cigarettes, cigars, and snus. However, the FDA proposed e-cigarettes, little cigars and other products be labeled as ‘tobacco products,’ which provides regulatory jurisdiction to the FDA under the Tobacco Control Act.
Executives at Juul have taken a position that the company did not intentionally target teenagers. Despite its statement, management at Juul admitted to knowing about the popularity of the e-cigarettes among youth. In fact, since the release of the flash-drive shaped device in 2015, teenagers have been seen vaping Juuls.
Since coming under scrutiny, Juul has changed it advertising to move away from using young models in their 20’s to models over 35 years of age. This effort was to better align its advertising to the company mission to appeal to adult smokers. In 2018, Juul Labs made another change to its advertisements that led to depicting real people who had switch from cigarettes to Juul.
Juul Labs has an official Marketing & Social Media Code that states, “We adhere to strict guidelines to ensure that our marketing is directed toward existing adult smokers.”
On October 1, 2018, the FDA made a surprise inspection of the headquarters of Juul Labs confiscating documents that furthered its efforts against marketing tobacco products to children. CEO, Kevin Burns released a message stating the goal of Juul Labs is to improve the lives of the world’s one billion adult smokers and to eliminate cigarettes. He further added that underage use of e-cigarettes is an unintended problem that goes against the company’s mission and is bad for the health of the public. Juul Labs claimed to have a common goal with the FDA in wanting to prevent youth from using e-cigarettes. Meanwhile, the debates rages on. The FDA has proposed restricting sales of most flavored products and products that resemble juice boxes or candy and for stores that verify a customer’s age and possibly require a separate, age-restricted area for e-cigarettes. In March 2019, Hawaii announced it would follow San Francisco’s lead proposing a ban on flavored e-cigarette liquids such as Maui Mango, Cookie Monsta and clove and to place restrictions on tobacco and e-cigarettes to those older than 21. Students testified before Hawaii lawmakers pleading for action as they claimed vaping in school bathrooms was adversely affecting the health of students. Hawaii’s health agency voiced concern over the negative affects nicotine can have on adolescent growth of the brain circuits that control attention and learning.
Instructions:
You will use the following steps to complete this project. Make sure to complete each step to ensure the highest possible grade.
Step 1: Course Material
For this project, you are required to use the case scenario facts and the course material. External sources are not permitted. You are not researching on the Internet or using resources from outside the course. You are expected to answer the requirements identified below showing the connection between the case scenario facts and the course material. Using course material goes beyond defining terms and are used to explain the ‘why and how’ of a situation. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally showing an understanding of the logical connections between the ideas presented in a case scenario, the course material and the question(s) being asked. Using one or two in-text citations from the course material throughout the entire paper will not earn many points on an assignment. The use of a variety of course material is expected consistently supporting what is presented. The support must be relevant and applicable to the topic being discussed. Points are not earned for mentioning a term or concept but by clearly and thoroughly explaining or discussing the question at hand.
NOTE: If external sources are used, what is presented will not count and a penalty for following instruction will apply.
Step 2: Create Headings
You will use the following headings for this project. Make sure that each heading is in place and use the headings as a guide to write each section of the project.
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