Use The Internet To Research A Publicly Traded Compan 917065

Use the Internet To Research A Publicly Traded C

Use the Internet to research a publicly traded company that exports to at least one foreign country. Focus on any export challenges the company may be facing. Be prepared to discuss. "Best Practices" Please respond to the following: From the e-Activity, determine which of the issues discussed in Chapter 9 would present the greatest challenge to the company you selected. Provide specific examples to support your response.

For the same company, recommend one best practice not already mentioned in Chapter 9 that would help the company address the challenge you identified. Explain your rationale.

Paper For Above instruction

In analyzing the export challenges faced by publicly traded companies, it is crucial to understand the complexities involved in maintaining compliance with international trade regulations and establishing effective operational procedures. For this purpose, Medifast, a prominent pre-packaged meal service, offers an illustrative case, as it exports to Mexico and Canada and has encountered specific export-related issues.

One of the most significant challenges Medifast faces in its export activities is establishing a robust record-keeping and audit process. Exporting food products to foreign markets involves navigating a complex web of regulations and compliance standards set by both domestic and international authorities. For example, in Canada and Mexico, food import regulations are strict, demanding meticulous documentation of the source, composition, and safety measures associated with export products. Failure to maintain proper documentation can result in delays, fines, or rejection of shipments, adversely affecting the company's reputation and bottom line (U.S. Food and Drug Administration, 2020).

Additionally, compliance with foreign policies on food safety and labeling presents an ongoing challenge. The company must adapt to varying standards and ensure that all documentation, packaging, and labeling meet the specific requirements of each importing country. An inconsistent record-keeping system increases the risk of non-compliance, which can lead to legal penalties or rejection of export shipments. For instance, in 2012, Medifast faced a significant setback when the Federal Trade Commission (FTC) ordered the company to pay a $3.7 million settlement due to deceptive advertising practices. While this incident was related to marketing, it underscores the need for comprehensive internal controls and transparent documentation across all facets of operations, including exports (FTC, 2012).

Given this context, implementing a best practice that could mitigate these challenges involves establishing a unified, digitalized record-keeping and audit system. Such a system would securely store all export documentation, compliance records, and communication with regulatory agencies. A digital platform enhances traceability, facilitates audits, and ensures real-time updates on regulatory changes, thereby reducing the risk of errors and non-compliance. For example, companies like Johnson & Johnson have integrated advanced compliance management systems to handle international regulations effectively, leading to smoother export operations (Johnson & Johnson Annual Report, 2021).

Furthermore, an added best practice would be to foster transparent communication with customers and regulatory bodies. Avoiding the pitfalls of misleading advertising—as Medifast did—necessitates rigorous internal review processes for marketing materials and claims. Companies should establish clear policies that ensure all promotional content accurately reflects product capabilities and complies with legal standards. This approach not only safeguards the company's reputation but also minimizes the risk of costly legal disputes and penalties.

In conclusion, the primary export challenge for Medifast—maintaining accurate and comprehensive record-keeping to ensure compliance—can be effectively addressed through the adoption of automated, centralized record management systems. Complemented by honest advertising practices, these actions promote sustainable international growth, mitigate risks, and enhance compliance with diverse regulatory environments, aligning with best practices in global trade management.

References

  • Federal Trade Commission (FTC). (2012). FTC Orders Medifast to Pay $3.7 Million Judgment. https://www.ftc.gov/news-events/press-releases/2012/04/ftc-orders-medifast-pay-37-million-settlement
  • Johnson & Johnson. (2021). Annual Report. https://www.jnj.com/investor-relations/annual-report
  • U.S. Food and Drug Administration. (2020). Food Import Compliance. https://www.fda.gov/food/food-imports
  • Chen, H., & Tan, J. (2019). International Trade Compliance in Food Industry. Journal of Global Trade, 12(3), 45-58.
  • Smith, A. (2018). Managing Export Documentation: Best Practices. International Trade Journal, 22(4), 65-77.
  • Williams, P. (2020). Challenges in Cross-Border Food Regulations. Food Policy, 89, 101818.
  • Brown, R., & Lee, S. (2022). Digital Solutions for Export Compliance. Journal of International Business, 17(2), 89-105.
  • Kumar, V., & Patel, R. (2019). Ensuring Transparency in International Marketing. Journal of Business Ethics, 154(2), 345-359.
  • GlobalTrade Magazine. (2021). Building Resilient Export Operations. https://www.globaltrademag.com
  • OECD. (2020). Export Control and Compliance Strategies. OECD Trade Policy Papers, No. 240.

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