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Thread: Four Graduate Business Students Analyze Herbalife

  1. #1
    JustTooMuchTime is offline Senior Scambuster
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    Jul 2010
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    Four Graduate Business Students Analyze Herbalife

    From Adam Eugenio's blog:

    "The final project in the Organizational Development class I took required us to work in groups to examine a current organization, and make strategic recommendations for growth. Before recommendations can be made, consultants must differentiate between presenting problems and underlying issues. Herbalife has so many layers of issues to analyze, it can be overwhelming. This case is a testimony to the need for transparency in business activities, as well as the need for good management practices."
    Here's their paper that does a great job summarizing many of the issues:

  2. #2
    kschang is offline Senior Scambuster
    Join Date
    May 2012

    Re: Four Graduate Business Students Analyze Herbalife

    Nice analysis though it doesn't look like they analyzed the actual laws and past cases, but that is understandable as that is somewhat beyond the scope of the paper.

    And I agree with the professor when he commented that there seems to be no discussion on whether there's any desire to implement the changes expected.

    You can sort of see the "corporate soul" in the way Herbalife had been reacting to Ackman's accusations: there is no problem, if there is we'll deal with it, shut the f*** up. And it's busy sweeping things under the carpet without any *real* changes. What has HLF really done in 2013?

    1) Tighten up the rules for lead generation that had been on the books... but never enforced... until 2013, leading to exodus of various top (including Peterson, who went out with a bullet in his head)
    2) Expand into places that don't need their products, such as Vietnam and Cambodia (virtually no obesity there, but plenty of UNDERnourishment) to sustain their growth. Why would people who live in a country with average annual income is 1000 USD and no obesity buy $32 USD cans of weight loss formula?
    3) Spend more than 10 million on lobbying, 10x more than Ackman by some accounts, employing no less than FOUR lobby firms
    4) Commission "surveys" that EXTRAPOLATE retail customers instead of producing real figures like they promised back in... June 2013?
    5) Busy hiring Latino consultants and feeding friendly Latino groups even more money for PR campaign.

    They have NO DESIRE to change anything other than cosmetic stuff.

    Frankly, they don't even know what their problem is, and they don't WANT to know.
    A MLM Skeptic (not a Cynic) covering scams, critical thinking, and psychology


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