Sotheby's

In: Business and Management

Submitted By bledi224
Words 342
Pages 2
Price fixing is unethical and illegal for the simple fact that it hurts not only the customers, but also the public at large and in the long-rung, the company itself. By employing unethical strategies, these companies lose on of the most important assets they have, their reputation. The case of price fixing scheme by Sotheby’s and Christies illustrates a perfect example of how firms behave unethically when motivated solely by profit. The collusion of top managers of these two leading companies, though falling short of operating a cartel in the traditional sense, is unethical for the main reason that it disregards the interest of its external stakeholders, particularly its customers. When there is competition in the marketplace, customers can rely on this to obtain competitive pricing and services, but once the major players collude to fix the prices, this advantage is gone. This activity is directly against the principle of free markets, which are the best way to ensure that both companies and organizations benefit. The nature of the auctions industry, with two companies controlling 90 percent of the market, made it relatively easy and very tempting for these companies to illegally fix the prices in their own interest. While top managers of both companies agreed on these steps, the fact that they were able to pull along the whole organization indicates that the culture in these organization was not particularly ethical. According to the ethical model explained in the textbook, both Taubman and Tennant fall in the “manipulators” category, whereby the ends justify the means (Weiss, 2006). Then these leaders went ahead to convince their crews that this was the way to go. This indicates that the culture in both organizations were in trouble and weak cultures. Both these companies failed to balance the interests of the various stakeholders of the…...

Similar Documents

Andy Warhol

...for MTV in 1986. His famous paintings from the 1980’s include “The Last Suppers”, and a series called “Ads”. Warhol also engaged in a series of projects with younger artists, including Jean-Michel Basquiat, Francesco Clemente, and Keith Haring. Following routine gall bladder surgery, Andy Warhol died of a heart attack on February 22, 1987. After his burial in Pittsburgh, his friends and associates organized a memorial mass at St. Patrick's Cathedral in New York that was attended by more than 2,000 people. Warhol's will dictated that his entire estate, with the exception of a few items to family members, would go to create a foundation dedicated to the "advancement of the visual arts." Warhol had so many possessions that it took Sotheby's Auction House nine days to auction his possessions after his death. The auction earned more than $20 million! In 1987, in accordance of Warhol's will, “The Andy Warhol Foundation For The Visual Arts” was founded. The Andy Warhol Foundation not only serves as the official copyright holders of Andy Warhol’s artwork, but it also “has a mission to foster innovative artistic expression and the creative process” and is “focused primarily on supporting work of a challenging and often experimental nature.” [pic] “100 Cans”...

Words: 1274 - Pages: 6

It 100

...guitarist/songwriter Brett Gurewitz for seven years, until his return. Gurewitz would be replaced by formerMinor Threat / Dag Nasty / Junkyard guitarist Brian Baker, who turned down a touring job for R.E.M. at this time, and eventually becomes a permanent member of Bad Religion. September 8 – Richard A. Morse, lead male vocalist of RAM, narrowly escapes a kidnapping by armed men during the band's live performance at the Hotel Oloffs on in Port-au-Prince, Haiti; the attempted kidnapping was provoked by the performance of "Fèy", a RAM single banned nationwide by the military authorities. (Top Chart Songs) September 15 - A 1957 audio tape of John Lennon performing with The Quarrymen on the same night he met Paul McCartneyfetches £78,500 at a Sotheby's auction in London. When we talk about sports, Jingyi Le swims world record 100m women's freestyle (54.01 sec). All 28 baseball owners vote to cancel rest of 1994 season. (Historical Events ) There are also scientific discoveries like the circulation of Neth Telegraph/News of the Day reaches 800,000, Space shuttle STS-64 (Discovery 20) lands. Works Cited Historical Events . September 1994. September 1994 <http://www.historyorb.com/date/1994/september/16>. Today in History for 28th September 1994. September 1994. 1994 <http://www.historyorb.com/date/1994/september/28>. Top Chart Songs. September 1994. September 1994......

Words: 545 - Pages: 3

Buying and Selling

...Howard who thinks that education is the best way to fight plagiarism by teaching all the fundamentals of doing research and writing research papers would give students a better chance at writing, researching, paraphrasing and citing work that has been researched Computimes (Malaysia), (2001) Buying and selling on the Internet. Retrieved from www.lexisnexis.com/hottopics/lnacademic In the article written by Computimes (Malaysia) the article gives the reader insight into how buying and selling on a live auction website is done and what the buyer or seller needs to do to get started in the process of buying and selling on a live auction website it also tell about the different types of live auction websites i.e. eBay, and Christie’s and Sotheby’s. Donker, Peter P. (1996) Buying and selling on the Internet; Electronic retailing emerging as a new channel of marketing and distribution. Sunday Telegram (Massachusetts), Retrieved from www.lexisnexis.com/hottopics/lnacademic In the article written by Peter P. Donker for the Sunday Telegram (Massachusetts) the article tells of how retail stores such as Wal-Mart, LL Bean and places like these started to get their online stores started and any problems that they ran into while in the process of getting their store up and running. Goldsborough, R. (2001). Buying and selling on the internet without cash. Office Solutions, 18(5), 40. Retrieved from http://search.proquest.com.library.capella.edu/docview/216432242?accountid=27965 In......

Words: 397 - Pages: 2

Classic Chinese Art Market

...groups, investment trusts and art exchanges. I. Art Investment Funds – Shanghai-­‐based Noah Wealth Management, China MIsheng Banking Corporation, Beijing-­‐based Zhong Bo Auctions company, Shanghai-­‐based Terry Art Fund23 , The Chinese Fine Art Fund, etc. II. Auction Houses – Christie’s, Sotheby’s, Beijing Poly, China Guardian, etc. III. Museums and Galleries – Located across Mainland China and Hong Kong, for example, the Hong Kong Museum of Art 2.3.......

Words: 5169 - Pages: 21

Supply Chain Management

...establish a new technology are identified, 3 tactics in standards battles are recommended: 1) building alliances, 2) exploiting first-mover advantages, and 3) managing consumer expectations. Class: 14a Section 2: Service Type: Case Presentation Case 10: Sothebys.com This case describes the traditional "live" auction process used by Sotheby's and the online version of the same process developed by Sothebys.com. It details how both processes work, including logistics for physical goods and customer support. Also discussed is the web site design function for online auctions. In addition, the case describes the formation and initial management of a network of Associates (dealers, approved by Sotheby's specialists, who sell goods on the web site) and encourages students to infer the importance of this network in the new business model as a source of scalability. Analysis Questions 1. In the case a manager states (paraphrased) that an auction house must be the best place to buy and the best place to sell. Why? 2. How has the process of auctioning a lot changed at Sotheby's? Please contrast Sotheby's live auctions to auctions on the Sothebys.com site. Be sure to consider all elements of the auction process, including those occurring before and after the actual auction. 3. How important is customer support for the online auctions? Contrast this to its importance for live auctions. If the level of importance is different,......

Words: 6782 - Pages: 28

Trend Analysis of Artmarket

...number of individuals in these areas willing to buy work will determine the fate of the market. In addition, artwork is not fungible like other stocks and their valuation is determined by enthusiasm and advice. This aspect dictates the size of the market and sometimes risk such as loss of value (Harris, p.64). Market timing will also influence the future market immensely. Art market follows a cycle where demand is high during autumn and spring. The seasonality of the market has been the key challenge for some time and is expected to keep affecting the future demand and supply. In addition, this volatility is sometimes influenced by the financial crisis. For instance, the 2008 crisis led to a loss of sales of Phillips de Pury & Company, Sotheby's, and Christie's dropped to $803.3 million from $1.7 billion in the former year (Futia, p.143). Market Transparency has also emerged to be a key influence of the art market. Following the economic crisis in 2008, the valuation system of the art market: Byzantine, was criticized for unethical practices. The unethical complains has hit the current market and is expected to be a key market influence in the future. Secondary and primary market are expected to influence the future too. Primary market is influenced by valuation of artwork, which in turn affect the secondary market. Demand is also influenced by supply and demand. The market of artwork in the primary market is regulated by speculative means. Conclusion Following the......

Words: 1467 - Pages: 6

Product Red

...half for tuberculosis, and almost three-quarters for malaria worldwide comes from The Global FundThe concept of “performance-based funding” is central to the organization and only those grant recipients who can demonstrate measurable and effective results from the monies received will be able to receive additional financing. 100% of the funds generated by Red partners and events goes to Global Fund programs that provide medical care and support services for people affected by HIV/AIDS in Africa. No overhead is taken by either Red or the Global Fund. Red is the largest private sector donor to the Global Fund, and has generated over $150 million for HIV/AIDS programs in Africa. In November 2013 Jony Ive and Marc Newson hosted an auction at Sotheby's to raise millions for the fund. The event was attended by major celebrities including Bono, The Edge, Hayden Panettiere, and Courtney Love. Problem Statement Led by Bono, a celebrity known for his philanthropic activities over the years, and partners such as Bobby Shriver, (RED) aims to shake up the way donations are made to people infected with AIDS in Africa. In fact, the business plan adopted by (RED) could change the entire way at which philanthropy is viewed and executed in the western world. After years of lobbying the US government, Bono and Shriver were asked why the private sector would not help the cause. Slightly embarrassed at having no answer, the decision to create (RED) was made. To get the private sector to join......

Words: 802 - Pages: 4

J K Rowling

...poverty, on public assistance, to widely famous, accomplished writer, J.K. Rowling has had a roller-coaster of a life. Rowling is known world-wide by her ever popular Harry Potter books. There is, however, more to Rowling than meets the eye. The struggles she faced and the end result of her fight for a better life has made for a wonder experience for me to research. Joanne Kathleen Rowling also known as J.K. Rowling wrote a series of books that has made her more money than she could have ever imagined. Some have said it to have made her wealthier than the Queen of England. “Harry Potter and the Sorcerer’s Stone” began as “Harry Potter and the Philosopher’s Stone” which contained Rowling’s personal annotations and illustrations. Sold at a Sotheby’s auction to an anonymous bidder, “Harry Potter and the Philosopher’s Stone” raised $239,932.44 for her own charity and English PEN. (jkrowling.com) Her first book was “Harry Potter and the Sorcerer’s Stone” published in 1997 and was an immediate success. Following was “Harry Potter and the Chamber of Secrets” published in 1998, “Harry Potter and the Prisoner of Azkaban” published in 1999, “Harry Potter and the Goblet of Fire” published in 2000, “Harry Potter and the Order of the Phoenix” published in 2003, and finally “Harry Potter and the Deathly Hallows” published in 2007. All of these books are available in more than 200 countries and some 60 languages. (jkrowling.com) These books were transformed into films between 2001-2011......

Words: 965 - Pages: 4

Marketing American Western Art in China

...and beauty and deflecting the international focus from political and human rights issues. (Barboza/Bowley, 2013) “A majority of Chinese people do not trust the Chinese stock market,” said Melanie Ouyang Lum, a consultant on Chinese art. “The housing boom has slowed tremendously. A lot of people are looking to art for investment.” (Barboza/Bowley,2013) There are over 3,500 auction houses in China and countless more galleries and dealers. The two biggest auction houses in China are Poly International Auction Company and China Guardian. China currently has 4,000 museums, and since 2012, nearly 1,000 museums have opened across China. That's more than one a day. (Errera, 2014) The two major auction houses in the United States are Sotheby's and Christies. The Coeur d'Alene Art Auction is the largest and most successful auction house specializing in American Western art, and they net over $30 million per year. There are 358 billionaires in China compared to 481 in the United States. (Errera, 2014) However, just about everyone is getting in on the art market in China in hopes of making a profit by flipping works of Chinese art. Many people will take out high interest loans or even use their homes as collateral. Like any investment, there are risks, and China is loaded with risks involving inflated art values, a huge market of forgeries and fakes, and a growing number of bidders who don't pay for their purchases at auction. It's also very common for people to use art......

Words: 3576 - Pages: 15

Selling African Art Through the Internet.

...incommoded by visiting auction houses in person, and instead can bid on even the most elite of objects from the comfort of their own homes. While Christies and Sotheby’s have received a lot of press about this, other small auction houses and individual dealers (like me!) are also taking advantage of online platforms like Invaluable, Auctionata, LiveAuctioneer, Ebay, Catawiki, etc…to reach the same clients when the quality of the objects is guaranteed. Last year an ivory mask sold for €360,000 (despite a €510000 estimate), and a little auction house in France sold a Bakota for €600,000. While these examples are quite newsworthy, they are diagnostic of a wider trend in which high-end results from previously unexpected sources are less and less exceptional, and are more and more the norm. According to the “Tefaf Art Market Report, the 2014 value of Internet Sales to the Art and Antiques market was conservatively estimated at €3.3 billion, around 6 % of the total online sales, and these numbers are set to increase. From personal observation and tracking of Internet sales results, I would surmise that while the Internet art market has previously been restricted to the low to mid-market range (between €1000 and €50,000), it is highly likely to soon encompass the full value range; this was tacitly confirmed by representatives of Sotheby’s during their presentation concerning their collaboration with Ebay. I am intent on ensuring that tribal art continues to play a major role in......

Words: 662 - Pages: 3

Lolkinglol

...Background and Objectives Sotheby’s was established on 11 March 1744 in London, the founder Samuel Baker was a book store seller began his first auction on selling antique books. Sotheby's pioneering efforts to open the French market to international auction houses helps to end a 400-year French monopoly, and Sotheby's becomes the first international auction house to hold sales in Paris. In 2012 May Sotheby shattered the world auction record for the work of art ‘The Scream' sold for 120 million dollars Sotheby's is a multinational corporation, originally British but now headquartered in New York City. One of the world's largest brokers of fine and decorative art, jewelry, real estate, and collectibles. Sotheby's main objectives and focus are divided into three segments: auction, finance, and dealer. The company’s services range from corporate art services to private sales. Sotheby’s is the world’s fourth oldest auction house in continuous operation, with 90 locations in 40 countries. As of December 2012, the company had 1,446 employees worldwide. It is the world's largest art business with global sales in 2012 totaling $5.8 billion. Sotheby Sotheby’s International Realty Affiliates LLC announced that they would be targeting a global audience of high end consumers. Their 2014 marketing plan was designed to deliver 800 million overall impressions, with nearly half of that dedicated to global markets, ensuring that they are positioning the Sotheby’s International Realty......

Words: 819 - Pages: 4

Week 5 Problem Set

...com | CRM | Application Software | 1.47 | Marriott International | MAR | Hotels and Resorts | 1.48 | eBay | EBAY | Internet Software and Services | 1.48 | Coach | COH | Apparel and Luxury Goods | 1.60 | Macy’s |   |   | M | Juniper Networks | JNPR | Communications Equipment | 1.71 | Williams-Sonoma | WSM | Home Furnishing Retail | 1.72 | Tiffany & Co. | TIF | Apparel and Luxury Goods | 1.80 | Caterpillar | CAT | Construction Machinery | 1.85 | Ethan Allen Interiors | ETH | Home Furnishings | 1.95 | Autodesk | ADSK | Application Software | 2.14 | Harley-Davidson | HOG | Motorcycle Manufacturers | 2.23 | Advanced Micro Devices | AMD | Semiconductors | 2.24 | Ford Motor | F | Automobile Manufacturers | 2.38 | Sotheby’s | BID | Auction Services | 2.39 | Wynn Resorts Ltd. | WYNN | Casinos and Gaming | 2.41 | United States Steel | X | Steel | 2.52 | Saks | SKS | Department Stores | 2.57 | Source: CapitalIQ 35. Suppose the market risk premium is 5% and the risk-free interest rate is 4%. Using the data in Table 10.6 (also shown above), calculate the expected return of investing in a. 4%+1.04 × 5% = 9.2% b. 4% + 0.19 × 5% = 4.95% c. 4% + 2.31 × 5% = 15.55% Chapter 11 (pages 390–396): 2. You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The current share prices and expected returns of Apple, Cisco, and Colgate-Palmolive are, respectively, $500, $20, $100 and......

Words: 1255 - Pages: 6

Companies

...* Matthew C, Kforce  * Zhe S, UPitt  * Jake S, Red Sox Foundation  * Stephenson K, Sprint  * Justin P, Red Sox Foundation  * Mary Ann T, Gibson Sotheby's Int'l Realty  * Dick R, Greg Nanigian & Associates  * Jenny L, Kforce  * Phillip R, USTeleCenters  * Cindy B, Sunday River  * John C, Bridge Technical Talent  * Philip G, Gillins Consulting Group  * Christine S, Chaloner  * Tim M, Apogee ITS  * Greg Spurr S, Merrill Lynch  * Dominic A, DPA Communications  * Alex A, Baker Engineering & Controls, Inc.  * Cathie B, NSK Inc  * Sean B, Baystate Financial Services  * Jonathan C, Raymond James & Associates  * walker m, Martin Lawrence Gallery  * Ben D, Morgan Stanley  * Todd M, Morgan Stanley  * Peter W, Boston Rowing Center  * Mark G, Aflac  * Nadia S, RDM  * Abel J, Dynamic REI Properties  * Lisiane J, Dynamic REI Properties  * Alexandra P, JOHNLEONARD  * Katrina A, JOHNLEONARD  * Cathi C, Neighoborhood Health Plan  * Tong Mei L, Financial services marketing company  * Chuck G, IndigoVision  * Charles F, New York Life  * Jasmine J, Weichert Realtors, Metropolitan Boston Real Estate  * Andrew R, Haworth  * Justin T, Equinox  * Jack M, Edward Jones  * Peggy G, CrowdComfort  * Douglas B, BHE Cloud Computing  * Mariangel M, Mariangel......

Words: 401 - Pages: 2

Ritchies Auctioneer Ethics Case

...Hopmeyer and Stephen Ranger in 1995 (Brooks & Dunn, 2012, p. 539). Ritchie Bros. went public in 1998, and is listed on the New York and Toronto stock exchanges under the trading symbol RBA. Ritchie Bros.’ annual gross auction proceeds exceeded three billion dollars within a decade of going public (http://www.rbauction.com/web/rba/aboutus/history). In September, 2008, Ranger offered to buy out Hopmeyer; however, he wanted Hopmeyer to repay his $1 million shareholder loan (Brooks & Dunn, 2012, p. 539). Arguments ensued and offers and counteroffers were exchanged until June 2009 (Brooks & Dunn, 2012, p. 539). Ritchie’s and Sotheby’s had been holding joint art auctions since 2002, however, in June 2009 Ritchie’s was facing financial difficulties and could not pay approximately $750,000 that it owed to its consignees (Brooks & Dunn, 2012, p. 539). Sotheby’s ultimately paid the consignees in order to preserve their own reputation and severed ties with Ritchie’s (Brooks & Dunn, 2012, p. 539). Ritchie’s ultimately went bankrupt on October 26, 2009 (Brooks & Dunn, 2012, p. 539). Ritchie Bros. Auctioneers is now under the leadership of CEO Peter Blake. “Ritchie Bros. Auctioneers maintains the tradition of innovation and exceptional customer service that was established by the Ritchie brothers.”(http://www.rbauction.com/web/rba/aboutus/history). Questions 1. Are auctions a case of ‘let the seller beware’? Should people who offer their property to auction......

Words: 1331 - Pages: 6

Amazon vs. Borders

...began as an online bookstore, it has grown to sell many other products, such as: clothing, gourmet food, watches, jewelry, baby products and apparel, beauty products, sporting goods, music CD’s, DVD’s, video tapes, home appliances, electronics, and so much more. In the beginning it was a slow; after the dot com crash many companies folded; Amazon stayed and recorded a $5 million profit in the last quarter of 2001. In December 2008 Amazon replaced Merrill Lynch on the S&P 100. In 2005 Amazon launched a program for seamless shipping of goods it offers unlimited shipping for a fat rate fee called Amazon Prime. It has expanded to cover Japan, France, the United Kingdom and Germany. Amazon tried online auctioning by working with Sotheby’s but it was unable to wean in on eBay’s hold in this area. But Amazon did launch Amazon Marketplace a successful service allows a place for its’ customers sell used CD’s, books, DVD’s and other products. Amazon also operates under the label Pinson and sells a variety of house hold goods, footwear, paints, hair accessories and other products. Amazon has also launched an online music store selling music in the MP3 format, and AmazonFresh grocery service offering perishable and non perishable foods, and more recently Amazon has reached into the film production business. In 2008 it funded the production of The Stolen Child in partnership with 20th Century fox. Some Analyst believe that at the rate Amazon is growing it will be a $16......

Words: 1227 - Pages: 5

[Read More] | Mondi Color Copy Kopierpapier 90 100 120 160 200 220 250 280 300 350 Papier weiß | Sorry, the page you requested can not be found:(