You are an independent consultant currently working for Phil

You are an independent consultant currently working for Philip Morris. Competitors are alleging that in important developing markets, such as Turkey, Philip Morris created special tobacco blends containing additives that give brands such as Marlboro an extra \"kick\". If true, practices such as this by tobacco companies put the \"standardization-versus-adaptation\" issue in an unusal perspective. If Philip Morris does, in fact, adapt its products this way, do you aruge such policies are ethical? If summoned before the firm\'s board of directors, what advice would you give regarding the company\'s policy on this issue?

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Solution

Standardization vs adaptation helps a company determine the degree of standardization or adaptions in its international operations.

Each geography and country has its own culture. The culture and traditions influences the decision making of people when buying a product. In this case Phillip Morris is using a polycentric model. This model uses the policy of adaption in every market and the product offerings differ. This helps in satisfying the needs of the unique market.

For example many beer companies in the Indian sub continent focus on making strong beers - i.e beers with higher alcoholic content.

This is neither unethical nor illegal. It is perfectly ethical. My advice to the board will be that they are doing nothing wrong. The policy of standardization has to be overlloked and the product has to be adapted as per the unique needs of different markets globally.