Case Study on “Herbalife Reborn – Students will form into groups of a minimum of 3 (three)… 1 answer below »

Task: Group Report + Presentation

Topic: Case Study on “Herbalife Reborn”

Students will form into groups of a minimum of 3 (three) students and maximum 4 (four) students. You are

not allowed to submit the assignment as an individual assignment. Each group will complete a detailed

analysis and present their case assessment, analysis, and outside research to the class based on the case

study on ‘Herbalife Reborn’. The case study is available on your prescribed textbook:

Ferrell, O., Fraedrich, J. and Ferrell, L (2018), Business Ethics: Ethical Decision Making and Cases, 12th ed,

Southwestern, Cengage Learning

You are required to answer the questions located at the end of the case study and the questions are as

follows:

1. Why has Herbalife’s multilevel compensation model been confused with a pyramid scheme?

2. Describe the differences between a legitimate business model and a pyramid scheme

3. How has Herbalife demonstrated social responsibility?

ADDITIONAL RESOURCES

• FTC decision on Herbalife: https://www.ftc.gov/news-events/pressreleases/2016/07/herbalife-will-restructure-its-multi-level-marketing-operations

• Multilevel marketing vs. pyramid schemes: https://www.bbb.org/phoenix/newsevents/consumer-tips/2015/03/opportunity-or-scam-multi-level-marketing-vs.-pyrasmidschemes/

• FTC decision on BurnLounge: https://www.ftc.gov/news-events/press-releases/2014/06/usappeals-court-affirms-ruling-favor-ftc-upholds-lower-court

Ideally, your report needs to consist at least the following structure:

1. Executive Summary: ideally one page, but no more than two

2. Section 1: Introduction

3. Section 2: Main body of the report consists of the questions at the end of the case study (or as

above)

4. Section 3: Conclusions:

5. Reference List: In between 15-20 references

Attachments:

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