CASE STUDY Example | Topics and Well Written Essays - 500 words - 9

Case Study Example The employees of AIG believed that the company had an obligation to pay them their bonuses, while the public thought that the bonuses were unethical as the money had come from federal reserves. Companies should have well-detailed contracts with employees clearly showing when bonuses should be paid and cases when the company may fail to issue the bonuses, to prevent such scenarios in the future. External regulations ensure that firms and individuals act ethically towards the general public. They are very efficient as in the AIG case where a 90% tax was imposed on the bonuses thereby protecting the general public. The company had an obligation to pay the employees their bonuses while at the same time had an obligation to the public to use the bailout money prudently. To ensure that both requirements were met the company needed to pay the bonuses in installments depending on future profits that the company made. The company should have used the bailout out money first to get back to profit ways and later pay the bonuses to deserving employees. eBay pursued international growth through their three main components; products, sense of community and aggressive expansion. It had a broad range of product categories and trading platforms that offered a wide variety of pricing formats allowing it to compete directly with major competitors such as amazon.com and to penetrate new markets. eBay created trust between buyers and sellers and enlarged their market ventures through the creation of more localized sites. The greatest source of competitive advantage for eBay at the moment is its broad capital base. With an average net income of about $2 billion yearly, eBay has a large capital base that allows it to deal with competitors through acquisitions and strategic partnerships. Through acquisitions, eBay has attempted to acquire a stake in the