1.SWOT

The strategic plan has to take into consideration master program capacities with the present situation but also with the anticipated situation of the education environment in which the program is acting. That's why for discovering some good strategies and for the elaboration of efficient strategies the professors could use the swot analysis.

Taking into account the mission of MPI , one strategic target will be to differentiate it's products from the products of the competition by selling only products can be proud of and by trying to understand the needs of their students, applicants.

SWOT ANALYSIS

Strengths

A big brand working under ASE wing ;

Proven ability to innovate and create differentiated products (program delivered in English)

Unique program in south-eastern Europe

Talented and dedicated teachers

Innovative products

Quality classes (case studies, discussions, interactive learning)

Partners with University Of Wien (changing experience with Austrian students, and updating all the time the curricula according to western standards)

Weaknesses 24124n1322y

• The need of more market research
• Infrastructure regarding computers ex (it project management
• More materials for students

Opportunities

• Well known on the market
• Various campaigns, programs that brought the applicants closer to the company

Threats

• Dangerous competition (masters programs other Universities)
• The threaten of new competitors
• Applicants tastes can change very quickly

From the SWOT matrix, it results that the best approach in order to be the premier master program focused on education: ST maxi - min: using the strengths of the program in order to avoid the market threats.

At the program   level, the strategy will be: diversification strategy.

2.PASTA

Consumption patterns are a combination of qualities, quantities, acts and tendencies characterizing a community or human group's use of resources for survival, comfort and enjoyment. The consumption patterns along Europe are related to the type of cultures involved. The discussion point is on the facility of preparing pasta dishes with pre-made pasta or being willing to spend more time in preparing pasta at home including the sauce. In Italy pasta is a way of life, the Italians having a tradition in cooking and consuming pasta. They really enjoy the art of cooking pasta. Here past is consumed in any form possible The second place on consuming pasta top is occupied by Greece. Pasta is a tradition here, dry pasta being the favorite type product. It is quite popular along households across the country.The Greeks like to prepare pasta at their home with the well known tomato sauce .Here the product has been adapted and , Pastisio a local receipt is made of pasta. Another country that registers a high consumption in pasta is Romania. Pasta si a symbol of western cultures especially Italians (Traian being an ancestor of Romanians). Here people usually prefer dry pasta ,different varieties ,soups , for children and elders with milk .Germany used to consume canned pasta but the competition from dry pasta increased and managed to take the lead. The consumption pattern here is the fact that dry pasta offer an easy meal rather than the canned pasta which is very soggy. In Bulgaria pasta is not a traditional meal .The promotion is almost inexistent ,Bulgarians having no idea how to cook it. They usually eat it as soups whenever they are ill ,thinking that pasta are very nutritious. The French people are accustomed to consuming frozen pasta. The country is divided into Northern France that consume pasta salads and southern France that consumes fresh pasta. And at last England .Dry pasta is the largest sector but the pre-made pasta and canned pasta is also on top. As a pattern English people do not like to spend much of their time cooking so they enjoy to eat canned and pre-made pasta. In some years fresh pasta will leave behind canned an frozen pasta, having a very dynamic trend upward.

2.

If I were a pasta entrepreneur I would try to launch a product for children. This would be a desert with chocolate an other flavors , packed in a plastic can .The first step in marketing segmentation is to identify the consumers .In our case is the segment of little children from 5 to 15 years. The targeted audience are the parents of the little children. My audience will be convinced to buy this products by promotion made through tv , commercials involving cartoons and fantastic characters. I would transmit the message that consuming Romanian Paste cu lapte children will grow very strong as the lion in the tv commercial. Another tool to target the audience is through newspapers and magazines and also flyers. Sampling will be used to target the audience. There will be promotions in stores where parents and also children can taste the magnificent taste of Romanian Paste cu lapte.

3.SUPPLY AGREEMENT TERMS AND CONDITIONS

Supplier: American Food Co

Effective Date of Agreement: March 15, 2008

This Agreement is by and between German House AG, Berlin Germany as beneficiary and American Food Co. Chicago Illinois as supplier for delivery of pork liver within 2008 -2009 timeframe.

BACKGROUND

A.        Supplier has substantial experience in the production and/or supply of certain products that have been approved in accordance with the terms of this Agreement. Such products are listed on Exhibit A hereto and are collectively referred to as the "Products."

B.        The beneficiary should transmit monthly the necessary quantity of products, with at least 5 working days previous to the month for which the delivery is asked;

C.        The Beneficiary should issue and send the weekly delivery schedules, in the last working day of the week for the following week for which the delivery is asked;

D.        The beneficiary should take over the entire quantity of products, which has been requested through the monthly delivery schedule;

E.         The beneficiary should pay, in conformity with the provisions of this contract, the product quantities taken over at the destination from the quantitative and qualitative point of view.

F.         Supplier and beneficiary desire that Supplier supply the Products pursuant to the terms of this Agreement. In consideration of the approval by German House AG of Supplier to supply the Products to approved distributors ("Distributors") and members of German House AG ("Members"), and the mutual covenants and obligations contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

APPROVAL OF PRODUCTS

1. The Beneficiary shall, within a reasonable time, give his decision on any matter properly referred to him in writing by the Supplier so as not to delay the provision of Goods.

2. The pork livers, hereinafter named products, will comply with all DIN (Deutsche Industrie Norme) 523 / 2005 -provisions, norms, regulations and quality standards regarding meat products applicable in Germany, valid at the time of signing this contract.

3. The Supplier shall, in accordance with the requirements of the Scope of Work, provide the Goods in the quantity, on or before the due date determined, stated in a written order issued by the Beneficiary.

4. Pork liver source should be only male pork, according to the specifications enclosed within the contract annex and in conformity with the German quality standards regarding pork meat and pork products in general

5. The quantity of last monthly shipment will be agreed between the Supplier and Beneficiary in order to cover the whole quantity agreed

2. SUPPLY OF PRODUCTS

a. Supply - Supplier shall maintain inventories of the Products in sufficient quantities to fill the orders of Beneficiary without delay. For the period March 15, 2008, through March 15, 2009, Supplier has committed to provide German House AG with approximately 30 000 lbs of pork liver, with a maximum monthly quantity of 2500 lbs. During the term of this Agreement, the production volume shall be adjusted as mutually agreed upon by Supplier and by German House AG. Supplier shall not deliver or sell to any Distributor(s) or Members any of the Products which German House AG has specifically requested Supplier not to sell or deliver. If Supplier discontinues production, delivery or sales of any of the Products, it shall so notify German House AG of same in writing at least sixty (60) days prior to any discontinuance.

b. Container Markings - All containers in which Products are shipped under this Agreement shall be marked in a manner indicating the Product is for German House AG;

c. Product Markings - All Products delivered or sold to the Distributor(s) or Members shall bear whatever trademarks, trade names, logos or other identifying markings (the "Markings") as German House AG shall prescribe. Supplier shall use or affix the Markings only on Products which are delivered or sold to the Distributor(s) or Members. German House AG shall provide the form of all Markings to Supplier and Supplier shall affix such Markings precisely in the place(s) on each of the Products as German House AG shall designate. Supplier shall bear all costs of affixing such Markings and of all artwork, printing plates or any other miscellaneous items which are required as part of the production process of the Products.

d. Rejection and Substitute Supply - Any Product samples failing to meet the standards set forth in the pertinent Quality Standard or otherwise pursuant to Exhibit D will subject the entire production lot of which they are a part to rejection at no cost to German House AG, the Distributors or the Members. In the event that a production lot is rejected for failure to meet the requisite standards set forth, Supplier will deliver a substitute production lot to the pertinent distribution warehouse within forty-eight (48) hours after Supplier is notified of the rejection. Where product quality or performance problems relating to product arise in the operations of any Member, Supplier shall at German House AG or the Member's request promptly visit those operations and address the problem areas in a timely manner.

3. PRICES

a.       The unit price of the products as per U.S. storing facilities is convened at 15.00 Dollars/ lb.

b.      The unit price established at art. 3.a does not include VAT

c.       The unit price established at art. 3.a is loco Germany storing facilities of the Beneficiary, situated in Berlin.

d.      The unit price established at art. 3.a includes all delivery expenses of the products to the destination point.

e.       For the supplying of any quantity of products, which exceeds the quantity foreseen at art. 2.a, the Supplier will grant a discount of 0.5 Dollar/ lb.

PAYMENTS

a.           Payment for the Products delivered by Supplier shall be made by and shall be the sole responsibility of the Beneficiary. Supplier shall invoice the Beneficiary within a max interval of 5 working days from delivery and without exceeding the end of the month in which delivery was made, as the case may be, directly for all Products supplied by Supplier. The agreements between Supplier and the Beneficiary shall govern the terms of payment for the Products. Supplier shall have no recourse against German House AG for any non-payment of Supplier's invoices for Products sold and/or delivered to any Distributor or Member.

b.          The payment of the supplied products will be made at the convened price, by money order, within 20 days after the date the Beneficiary received the invoice.

c.           The non-payment by the Beneficiary of the taken over products within the term established in 4.b., entitles the Supplier to stop the deliveries.


DELIVERY

Supplier shall prepay freight to all destinations. All Products shall be transported by Supplier or a carrier designated by Supplier unless another carrier is designated by the Beneficiary at the time an order is placed. Each shipment will be accompanied by a packing slip, and the count and/or weight evidenced by such slip will be conclusive unless Supplier is notified in writing of a discrepancy by the Distributor or Member within ten (10) days following delivery. Title to, liability for, and risk of loss of all Product sold hereunder shall remain with Supplier until delivery, whereupon title to, liability for and risk of loss shall pass to the Beneficiary, as the case may be.

WARRANTIES

The Products produced by Supplier under this Agreement shall conform to the specifications set by Beneficiary, as modified from time to time and notified to Supplier in writing. The Products shall comply with all content and labeling requirements under applicable laws. Supplier acknowledges that the Goods provided to German House AG induced German House AG to enter into this Agreement. Upon the request of any Distributor or Member, Supplier shall replace at Supplier's expense, or refund the full purchase price for, any Product which is defective or fails to conform in any way to the specifications agreed upon. This warranty shall control insofar as the same may conflict with any warranty or limitation on warranty set forth in Supplier's business forms.

QUALITY

1. All Goods supplied shall comply with the requirements of the Scope of Work, or shall conform in all respects to the sample which form part of the Contract.

2. All Goods covered by this Contract shall be the subject of the Beneficiary's inspection and test at all times before, during or after manufacture. The Supplier shall furnish without extra charge all reasonable facilities and assistance for the safe and convenient inspection or test required by appointed inspectors. Such inspections may be carried out on the Supplier's premises or at such other place as deemed appropriate by inspectors.

3. If the Supplier fails to supply Goods in accordance with the provisions of the Contract, the Beneficiary may reject any part of the Goods by giving written notice to the Supplier specifying the reason for rejection and whether replacement Goods are required and within what time.

INSPECTION

German House AG, DIN and their designated representatives shall have the right to inspect Supplier's manufacturing facilities during normal business hours at any time during the term of this Agreement, upon reasonable notice by German House Ag or DIN of such inspection.

9. FUTURE BUSINESS RELATIONSHIPS

During the term of this Agreement, German House AG and DIN shall have the right to evaluate the Supplier based on Supplier's pricing, product quality and consistency of delivery and other factors. Supplier will cooperate in such evaluation. German House AG and DIN shall also have the right to test other suppliers with respect to the supply of products similar to the Products being supplied by Supplier.

10. TERM AND TERMINATION

A. Term - The initial term of this Agreement is one years: March 15, 2008 through March 15, 2009. At the end of this one-year period, German House AG may elect to extend the Agreement through March 15, 2010. If at the end of the initial one-year term German House AG elects not to extend the Agreement, German House AG shall notify Supplier in writing by March 15, 2009 of German House AG's intent not to extend.

If at the end of the initial one-year term German House AG elects to extend the Agreement, German House AG shall notify Supplier in writing 30 days prior to the contract expiring date of March 15^th, 2009. At the end of the one-year period, German House AG must notify Supplier whether German House AG intends to negotiate a new contract. The period from February 15^th, 2009 through March 15^th, 2009 will then serve as a transition period, during which Supplier will continue to supply Products pursuant to the terms of this Agreement (unless the parties agree on alternative arrangements).

B. Events of Default-Supplier - Supplier shall be in default hereunder if any one or more of the following events happen:

(i)          The filing by Supplier of a voluntary petition of bankruptcy or a voluntary petition or answer seeking reorganization, rearrangement, or readjustment of its debts, or any relief under any bankruptcy or insolvency act or law, now or hereafter existing, or any agreement by Supplier indicating consent to, approval of, or acquiescence in, any such petition or proceeding; or

(ii)        The application by Supplier or the consent or acquiescence of Supplier in the appointment of a receiver or trustee for all or a substantial part of any of its properties or assets; or

(iii)       The making by Supplier of a general assignment for the benefit of creditors; or

(iv)      The inability of Supplier or the admission of Supplier in writing of its inability to pay its debts as they mature; or

(v)        The filing of an involuntary petition against Supplier seeking reorganization, rearrangement or readjustment of its debts or for any other relief under any bankruptcy or insolvency act or law, now or hereafter existing, or the involuntary appointment of a receiver or trustee for Supplier for all or a substantial part of its property or assets, or the issuance of a warrant of attachment, or execution of similar process against a substantial part of the property of Supplier and the continuance of such for one hundred and twenty (120) days undismissed or undischarged; or

(vi)      Supplier shall fail to meet the quality standards set by German House AG;

C. Events of Default - German House AG. German House AG shall be in default hereunder if any one or more of the following events happen:

(i) German House AG shall fail to perform or comply with any of the material terms or conditions in this Agreement, for reasons other than an event of Force Majeure, and such failure shall continue for a period of seven (7) days after written notice thereof from Supplier to COPA; or

(ii) The filing by German House AG of a voluntary petition of bankruptcy or a voluntary petition or answer seeking reorganization, rearrangement, or readjustment of its debts, or any relief under any bankruptcy or insolvency act or law, now or hereafter existing, or any agreement by Supplier indicating consent to, approval of, or acquiescence in, any such petition or proceeding; or

(iii) The application by German House AG or the consent or acquiescence of German House AG in the appointment of a receiver or trustee for all or a substantial part of any of its properties or assets; or

(iv) The making by German House AG of a general assignment for the benefit of creditors; or

(v) The inability of German House AG or the admission of German House AG in writing of its inability to pay its debts as they mature; or

(vi) The filing of an involuntary petition against German House AG seeking reorganization, rearrangement or readjustment of its debts or for any other relief under bankruptcy or insolvency act or law, now or hereafter existing, or the involuntary appointment of a receive or trustee for German House AG for all or a substantial part of its property or assets, or the issuance of a warrant of attachment, or execution of similar process against a substantial part of the property of German House AG and the continuance of such for one hundred and twenty (120) days undismissed or undischarged.

D. In the event of any material breach (including any event of default) under this Agreement, the non-breaching party may terminate the Agreement immediately upon written notice to the breaching party, provided that Supplier shall continue to supply Products pursuant to the terms of the Agreement for a period of up to one (1) month at German House AG request, to allow German House AG to implement new supply arrangements.

E. The termination of the contract can be done only with the agreement of the parties.

F. The unilateral termination of the contract is possible only with a previous notice of at least 30 days, under the conditions of not fulfilling of the contractual obligations by the other party for a period of time of more than 30 days.

G. This contract ends legally, without being necessary the intervention of an arbitrator court of law or of law courts, if one of the parties:

has declared its inability to pay or the liquidation procedure (bankruptcy) has been started before commencement of the execution of the present contract;

assigns his rights and obligations, foreseen by this contract, without the approval of the other party.

11. EFFECT OF TERMINATION

A. Upon the expiration or the termination of this Agreement for any reason, Supplier shall:

Discontinue Use - Immediately and permanently discontinue the use of all Markings, any trade secrets of German House AG and any Confidential Information which was used in the supply of the Products or to which Supplier has otherwise gained possession pursuant to this Agreement;

and

Deliver Materials - Immediately deliver to German House AG, or at German House AG's option, destroy all Markings and any other printed material containing either Markings, German House AG trade secrets and/or Confidential Information.

B. German House AG's Costs - In the event Supplier terminates this Agreement or discontinues performance under this Agreement prior to the expiration of its term for any reason other than a breach by German House AG, Supplier agrees to pay German House AG its administrative costs and expenses incurred in obtaining other sources of supply, including without limitation German House AG 's costs of any bidding process, testing, inspection and approvals of Product.

C. Supplier's Costs. In the event German House AG terminates this Agreement or discontinues performance under this Agreement prior to the expiration of its term for any reason other than a breach by Supplier, German House AG agrees to pay Supplier its administrative costs and expenses incurred in obtaining other customers, including without limitation Supplier's costs of any bid and approval process.

FORCE MAJEURE

"Force Majeure" shall mean and include any circumstance beyond the reasonable control of Supplier or German House AG, including without limitation, the following: any act of nature or the public enemy, accident, explosion, fire, storm, earthquake, flood, drought, perils of the sea, the elements, casualty, strikes, lock-outs, labor troubles, riots, sabotage, embargo, war (whether or not declared), governmental laws, regulations, orders, or decrees, unavailability of raw material, or seizure for reasons other than the adverse financial condition of the party so affected. Force Majeure shall not mean, however, any delay of delivery caused by choice of shipment route by Supplier which is affected by weather, when alternative shipment routes were available. When circumstances require Supplier to allocate Product among Supplier's customers, Supplier agrees that it shall not discriminate against the Distributor(s) or Members and that Supplier will supply them on a basis no less favorable to them than a pro rata basis. Notwithstanding anything herein to the contrary, the Distributor(s) or Members may purchase Product from third parties during any period Supplier is unable to satisfy purchase orders as a result of an event of Force Majeure. In case the performance of any terms or provisions hereof shall be delayed or prevented because of an event of Force Majeure, the affected party may, at its option, suspend performance during the period such cause continues, and no liability shall attach against either party on account thereof. Any party suffering an event of Force Majeure shall diligently attempt to remove such cause or causes with reasonable dispatch. As soon as any event of Force Majeure is remedied, the parties' respective rights, obligations and performance as set forth in this Agreement shall be immediately reinstated. The party invoking the force majeure is obliged to notify the other party, by fax or any other means of communication, within 48 hours from producing, and will send within 10 days a document issued by the Commerce Chamber, which confirms the reality of the mentioned facts. For any delay or non-fulfilment of the contractual obligations by any of the contract parties, as a consequence of the force majeure, the parties are exonerated from their contractual liabilities, under the condition of communicating and justification of the force majeure case within the terms mentioned in this article.

BENEFIT OF MEMBERS

The rights of German House AG under this Agreement, including the rights of indemnification and warranty, are for the benefit of German House AG and its Members, who shall be third party beneficiaries under this Agreement. Unless otherwise expressly stated in this Agreement, all obligations of Supplier are owed to German House AG.

CERTIFICATION OF INDEPENDENT PRICE DETERMINATION

Supplier represents and warrants that the Price under this Agreement has been arrived at independently, without the purpose of restricting competition, and that there has not been any consultation, communication, or agreement with any other supplier or competitor relating to (i) such Price or (ii) the methods or factors used to calculate such Price.

NOTICES

Any notice under this Agreement shall be given in writing and shall be delivered personally, or by certified mail, postage prepaid, addressed to the party for whom intended as follows:

If to German House AG

German House AG

Rutgerstrasse 18, Berlin

Germany

Attention: Mueller Joerg - Representative

Knut Hellmuth - Administrator

If to Supplier:

American Food Co.

13 Waterhouse Street

Chicago, Illinois

Attention: John Smith - Administrator

Paul Wheeler - Economical Manager

AMENDMENTS, WAIVERS, AND MODIFICATIONS

No change in, addition to, modification or waiver of the terms and provisions of this Agreement shall be binding upon Supplier or German House AG unless it is mutually agreed upon in writing. Any such instrument shall be attached to this Agreement and shall be incorporated herein.

PENALTIES

1. The parties pledge reciprocally to execute exactly and in time their contractual obligations. For delays in the fulfilling of the contractual obligations or for their non fulfilment, the guilty party owes the other party penalties of 0.15% per delay day from the value of the not honoured obligations, but not more than the value of the not fulfilled obligations.

2. For non-executing the obligations of this contract, the guilty party owes the other party penalties and compensations, in order to repair the caused damage.

3. All financial losses, registered by the Beneficiary because of the delivery of qualitatively not corresponding products or because of the non-compliance with the delivery schedules (price differences at the products, generated by the necessity of an alternative supplying; equivalent value of the transport; costs generated by the changing of the receipts of pork products; fix costs of the Beneficiary; losses caused by the non-achieving of the programmed profit) will go to the costs of the Supplier.

SEVERABILITY

In the event any one or more provisions of this Agreement or of any instrument or other document delivered pursuant hereto or in connection herewith shall, for any reason, be held to be invalid, illegal, or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other instrument or document, and this Agreement and such other instruments and documents shall be interpreted and construed as if such invalid, illegal or unenforceable provision had never been contained therein.

GOVERNING LAW

This Agreement shall be governed, interpreted, performed and enforced solely in accordance with the laws of the German State without reference to principles of conflicts of law; provided, however, notwithstanding anything to the contrary herein, the arbitration provisions set forth herein, and the initiation and conduct of any arbitration thereunder, shall be governed in all respects exclusively by the Commercial Chamber.

EFFECTIVE DATE

Execution of this Agreement or commencement of performance pursuant to this Agreement by Supplier constitutes acceptance by Supplier of this Agreement and its terms and conditions. Upon execution of this Agreement by Supplier, this Agreement shall be delivered to German House AG for its acceptance. This Agreement shall be effective only upon execution by COPA, which execution shall evidence the acceptance by German House AG of this Agreement.

ARBITRATION

It is agreed between the parties that any controversy or claim between them arising out of, in connection with, or relating to the enforcement, non-enforcement, interpretation, performance or breach of any provision of this

Agreement shall be settled exclusively by arbitration in the City of Berlin, Germany. The arbitration shall be conducted pursuant to the Commercial Arbitration Rules of the Commercial Chamber in effect at the time any arbitration proceeding is commenced. The arbitration award shall be final and binding on both parties and judgment upon such arbitration award may be entered in any court having jurisdiction.

Notwithstanding this agreement to arbitrate either party may seek from a court any provisional remedy that may be necessary to protect its rights or property pending the establishment of the arbitration panel or the determination of the merits of the controversy.

ENTIRE AGREEMENT

This Agreement represents the entire understanding between the parties with respect to the subject matter hereof and supersedes all other negotiations, agreements, representations and covenants, oral or written. If any other

agreement affects the supply of Product by Supplier to any Distributor or Member, the terms and provisions of this Agreement shall control in the event of any conflict.

In Witness whereof, the parties have caused this Agreement to be duly executed and delivered by their authorized representatives as of the date indicated.

German House AG American Food Co

By: /s/ Mueller Joerg By: /s/ Paul Wheeler

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Title: Representative Title: Economical Manager

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Date: 03-15 , 2008 Date: 03-15 , 2008

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4.UNILEVER

What were the mistakes Unilever did with the product "Power" in Europe?

Unilever getting "Power" out on the market led to a series of observations which ended up to simple abandonment of the product from the market (not to mention the delicate situation the company was put into):

a.      First of all were complaints that it wasn't obvious enough that Power was an add-on to Persil and not a replacement for it. Most people were able to tell this difference however, and this ended up being a minor issue.

b.      Second of all, was that despite the large publicity campaign, the sales of Persil and Power did not significantly increase, widely believed to be because Persil by itself was capable of dealing with most stains.

c.      The third - and most serious - problem was that after a few washes with Power, clothes first started to lose their color definition and then their structural integrity, ripping easily under any significant stress. Effectively, Power was having the same effects as adding bleach to the clothes. Further testing determined that while the effects weren't hugely apparent on new clothes (which Unilever had performed most of Power's testing with) they could become very quickly apparent on older clothes. The effects were largely determined to be due to Power being a little too powerful in the recommended quantities, and a chemical reaction (which Unilever had not detected) occurring between the catalyst agents and dyes used commonly in clothes.

All the observations mentioned above proved that while trying to bring an enhanced and hopefully the best product on the market, Unilever R&D team did not perform enough (or thorough) researches on the effects of this product. No matter the situation was, "Power" has been launched without being specified that has some secondary and long term effects on textiles.

d.      Also, because of their greedy whish of taking leadership of the European market of low temperature washing detergents, they totally ignored the warnings coming from the competition and continued to sell "Power"

e.      Although challenged w/ an competitive and aggressive campaign related to the chemical composition of "Power", Unilever continued w/ spending budget on advertising, promotion and further sales while adopting a defensive attitude; over a 4 months period (whole duration of the campaign), Unilever tried to deny without any real baseline, that under no circumstances "Power"'s chemical formula is not appropriate and has huge negative side effects. Furthermore they had a problem with "Power" facing customer's reaction. Only at a very late stage they admitted that their product is indeed faulty.

f.        At the moment the P&G' s advertising campaign against the competitor has been launched, Unilever was not capable of establishing good PR relationships neither with the media nor with the customers.

2. What were the effects of the attack of P&G against Unilever?

1. an increase in Unilever's costs due to 200 Million USD investments in developing the product and the advertising /selling campaign for "Power" products;
2. never managed to reach the first place on the detergents European market;
3. bad overall image which prevented easy further development of new and innovative products;
4. lowered or no customer trust in Unilever products currently available on the market;

3. How do you consider that Unilever should have reacted?

1. Start a thorough analysis and research once the unofficial warnings from P&G have been issued, in order to identify and conclude whether or not the suppositions of the competitor were valid and give explanations while providing solutions and /or workarounds in a timely manner;
2. Adopt a professional attitude towards both customers and competitors, and trying to improve relationships through advanced PR;