International Marketing

International Marketing

Introduction

The following pages will contain answers to questions mentioned in the case study, "Ethics and Airbus".

Discussion

Who Benefits and Who Suffers from the Alleged Ethical and Legal Lapses of Airbus

Airbus is alleged to have been included in unethical and illegal practices that they use to sell and market their products that is, the aircrafts to its customers. Airbus succeeded in attracting its customers by providing them with offers that were supposedly illegal. Airbus used to bribe the top officials of the government of the country to which it was selling its aircrafts. This made most of its deals with the countries and their airlines successful as compared to its competitor Boeing. Airbus was successful in grabbing the order of nine aircrafts that the Kuwaiti Airline and the government wanted to buy. The chief executive of ALAFCO's insisted that the transaction should be done using conventional means. This meant that the transaction will proceed using tenders from both Boeing and Airbus. Airbus utilized the inside knowledge and made an offer that was very close to Boeing (www.telegraph.co.uk). The Kuwaiti officials decided to go for Airbus because of the closeness of the offers and its prior relationship with Airbus. Similarly, in the case of Indian Airline, Airbus again bribed top officials of the Indian government to buy from them. This also included bribing the Prime Minister of India, Rajeev Gandhi. Airbus was successful in attracting the government despite the fact that cases were lodged against the company and the official who were involved in taking bribe from the company. In the Syrian scandals, bribe was again used to win the Syrian government over Boeing. The top officials of the government were offered handsome amounts of bribe, which led them to accept the offers made by Airbus and neglect the offers by Boeing. This was what Airbus gained using these illegal practices. However, there is a lot that Airbus lost. Airbus lost the trust of the corporate world. If the cases that are running against Airbus go against the company, then the reputation of the company will face a severe blow. Airbus benefited din the agreements in Canada and India but suffered in Syria and Kuwait. On the other hand, Boeing suffered in every case except for the case of Syrian scandal.

Public Relations Staff At Airbus Response To The Articles Appearing In The Economist, The Guardian, And Reuters News

It is one of the most important duties of the public relations staff at any company to deal with the queries of the people regarding scandals. Airbus has been found involved in a number of scandals involving the use of illegal means and bribe to attract its customers and win deals over the competitor Boeing. There have been a lot of things and news published against the company Airbus in regard to its illegal bribing practices to win deals. The public relations officers at the Airbus, as well as, the officials who generally are responsible for talking to the press need to counter ...