Global Strategy 3rd Edition by Mike Peng

Exercise 7

ON ETHICS: "Excessive profits" coming out of monopoly, duopoly, or any kind of strong market power are often targets for government investigation and prosecution (for example, Microsoft was charged by both US and EU competition authorities). Yet, strategists openly pursue above-average profits, which are argued to be "fair profits." Do you see an ethical dilemma here? Working in pairs, with one person performing the role of an antitrust official and the other acting as a firm strategist (such as Bill Gates), write two statements, each with a rebuttal, to support both sides of the argument.