Essay Example on the Purpose of Ju: Offering Value, Making Profit & Serving Society

Introduction

The principal purpose of any business is offering value by the use of either products or services to customers that are paying for the value with other equivalents, mostly money. The amount received must fund the operating costs of the business together with providing for the proprietor needs. The majority of these businesses operate with the motive to get profit as they serve the society, and they are frequently affected by the social environment. This paper aims to discuss the purpose of Juul Lab business, elucidate how stakeholders are influenced by the business, establish how the social environment has shaped the business, and also explicate the relationship between business, government, and society.

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Juul Labs Business and Purpose

Juul Labs is an American based company for e-cigarettes (Creswell & Kaplan, 2019, p 4). It manufactures Juul e-cigarette, by packaging nicotine salts using leaf tobacco into single usage cartridges. Adam Bowen and James Monsees are the cofounders of Juul Labs. The Juul Labs was the leading prevalent e-cigarette in the US by 2017 with a market share of 72% by September 2018 (Levi, 2019, p7). The main purpose of Juul labs is to improve the many lives of those smoking internationally by enhancing innovation in eliminating cigarettes. The company is full of business professionals, scientists, engineers, outstanding customer service, and experts in designing and supply chain who uses technology to create an alternative to cigarettes. Juul company headquartered in San Francisco, growing rapidly and ranked as the number one vaporizer of nicotine in the US.

Juul Labs Stakeholders

The stakeholders for the company comprise the cofounders, Adam and James, CEO, Chief regulatory officer, and investors like Tiger Global Management, Fidelity Investments as well as Tao Capital. Also, other key stakeholders comprise of the government agencies controlling the tobacco market in America as well as in China. Another key stakeholder is the Altria Group, which was earlier known as Philip Morris Companies. It assimilated a 35% stake in Juul Labs for $12.8 billion in 2018 (Levi, 2019, p9). Furthermore, young people form a major part of the stakeholders since they are the majority who use the company products. The major way in which the company influenced its stakeholders, especially the investors, as well as the potential users, is through its intensive marketing via Instagram and other social media. Its substantial dependence on advertising through social channels is exceptional amongst key e-cigarette products in the US. For instance, blu and NJOY were formally endorsed mostly with marketing in televisions while Vuse and MarkTen depended on promotional outlays to stakeholders, including the vendors, and is deduced as the main influence to all its users.

The shaping of Juul Labs Business Activities

In the year 2019, and similarly, in other past years, the social environment has shaped Juul Labs' business activities in different ways. The social environment comprises the ideals, views, customs, and practices of different people. The reason for shaping is the fact that any business is always prone to its external social environment, together with its entire inner social setting. Firstly, on October 17, 2019, there were directives from the government to ban e-cigarette flavors since it is deemed socially and medically harmful in the US (Levi, 2019, p11). As a result, Juul publicized that it would terminate its mango, creme, fruit as well as the cucumber flavors being sold via its online stores. However, tobacco, mint, and menthol flavors could still be on sale. Secondly, in September 2019, Juul's marketing approach was criticized since it was deemed to target the youth, which was not socially acceptable in the US (Toffel Masko & Mehta, 2019, p5). The major themes accentuated in Juul's marketing included liberty, slackening, together with the sex appeal. Using the youth models and imagery was presumed to alluring to young people. Also, using social media influencers and associates popular among the young people was another reason that revealed that the marketing done by Juul targeted the youth. As a result of the criticism, Juul announced to stop all its marketing approaches that were seen deceptive.

Business, Government and Society

The existing issues facing Juul Lab company depict the way business, government, and society links to each other. Business mollifies different needs to people by offering them products and services in exchange for it again. Government is an edifice process in the society which, by use of authority, makes and enacts different policies and guidelines. The society comprises the system of human relations with ideas, institutions, and factual things. For example, the government has enacted a lawsuit seeking to prevent the Food and Drug Administration (FDA) from enforcing the May 2020 deadline for e-cigarette producers to acquiesce Premarket Tobacco products Application (PMTA) for them to be in US market (Toffel Masko & Mehta, 2019, p5). On its part, Juul is ensuring it produce e-cigarettes that have less nicotine content to enhance a safer society.

Conclusion

Juul Labs company is based in America and deals with electronic cigarettes since 2017. The main objective of Juul labs is to improve those smoking in the world through enhancing innovation in eliminating cigarettes. It has substantial dependence on social media advertising that is exceptional amongst major e-cigarette brands in the US, which have influenced its stakeholders. The main way the social environment shaped the company is through the social belief that it was deceptively using youths for marketing. The connection between business, government, and society is characterized by the government enacting tobacco rules to ensure the Juul company produces an acceptable product that is not harmful to society.

References

Creswell, J., & Kaplan, S. (November 23, 2019). "How Juul Hooked a Generation on Nicotine." The New York Times

https://www.nytimes.com/2019/11/23/health/juul-vaping-crisis.htmlLevi, A. (December 19, 2019). "E-cigarette maker Juul is raising $150 million after spinning out of vaping company". CNBC.

https://www.cnbc.com/2017/12/19/juul-labs-raising-150-million-in-debt-after-spinning-out-of-pax.htmlToffel, M. W., Masko, J., & Mehta, S. (2019). JUUL and the Vaping Revolution.

https://www.hbs.edu/faculty/Pages/item.aspx?num=55266