Financial Management and Economics

Electronic cigarettes have been around for about a decade. No one is sure of what havoc they can cause yet because of how new they are in existence. Throughout the past years more and more issues have been arising from this product that was originally assumed to be harmless. Now we are faced with the question are they really as safe as we thought or should increase investigation to see what they are really capable of. So far researchers have discovered many issues with the electronic cigarettes and every month more and more issues begin the surface the air. From explosion to toxic material. These issues will not only affect their

The profitable business of electronic cigarettes has raised over $3 Billion dollars annually, vastly spread across over 466 brands which have joined the ordeal. Above all, known as a “gateway drug”, electronic cigarettes have claimed the once-ordinary lives of people, specifically to those who have turned from tobacco cigarettes. What is more, scientists have determined that not enough research has been executed to automatically assume the healthiness of e-cigarettes. Despite this, many have claimed that e-cigarettes, are, and will be the new “healthy” drug, so to speak. Provided that e-cigarettes do not release harmful smoke, they are still not safe for one’s health given that not enough research has been performed on them.

The plans of the e-cigarette go back to the 60s, and the devices idea was originally created by Herbert Gilbart in 1963. 20 years later the cigarette “smoke free” cigarette was created by Dr. Norman. Around 15 years later the e-cigarette as we know today was created by a chemist named Hon in China (N). In just 3 years electronic cigarettes began to increase in use and popularity. Overall, there are an estimated 600 different ingredients in an average e-cigarette. In the popular “Juul” e-cigarette the ingredients are, glycerol, propane glycerol, natural oils, extracts and flavor, nicotine, and benzoic acid (“What Is in a JUULpod Juice?”). The e-cigarette does not contain tobacco, but within all of these ingredients there, is one major one nicotine (“Rise in E-Cigarette use”). Most e-cigarettes do contain nicotine, which it can lead to poisoning(“Rise in E-Cigarette use”) In 2013, it was shown that the largest sale of the electronic cigarette was in local convenience

It is undeniable that the popularity and usage of electronic cigarettes or personal vaporizer devices have been on the rise since they first gained the public’s attention in the early twenty first century. In fact, one study by UBS Securities LLC shows that the value of the e-cigarette market has doubled or more each year since 2007 and was expected to double from two hundred and fifty million dollars in 2011 to five hundred million in 2012(7). Some of the growing concerns is that, like the tobacco market when it first started growing in popularity, there has been little research conducted on the long term effects of electronic cigarettes. Other causes for concern stem from the marketing and sale of these devices to teenagers. This is why the Food and Drug Administration (FDA) needs to impose restrictions and regulations on the use and sale of these devices and conduct further research on the health related effects and long term effects of their usage.

Most of these e-cigs are being advertised to teens along with other tobacco products. This ensures a long lasting profit between the teens and the adult population. In the minds of business CEO’s and the marketing managers;

On the contrary to the general concept and motif behind the production of e-cigarettes, several studies have proven that these electronic devices that were created as an unassailable and riskless alternative to derail and overcome one’s cigarette addiction and dependency, happen to be equally as harmful and destructive as the nicotine infused drug. Maria Mironidou Tzouveleki, Evanthia Tzitzi, and Panagiotis Tzitzis stated “The vapour of e-cig contains toxic and dangerous substances as the smoke of conventional cigarette but in different quantities.” (Mironidou Tzouveleki, Tzitzi, 2015, p. 235.) Ever since e-cigarettes made their debut in the market back in 2003, researches had their doubts and implications about this particular substitutive

Electronic cigarettes are devices that allow users to inhale an aerosol containing nicotine or other substances. e-cigarettes are generally battery-operated and use a heating element to heat e-liquid from a refillable cartridge, releasing a chemical-filled aerosol. Hoverboards and Electronic Cigarettes both use lithium-ion batteries that are suspected to catch fire when overcharged. Hoverboards have caused 52 fires since December, burning down 2 homes. Malfunctioning electronic cigarettes, meanwhile, have caused dozens of people to suffer serious burns and disfigurement. Authorities think that cheaply made batteries are the problem. Researches haven’t yet fully discoverd if electronic ciggarettes are harmful or not, but they know that e-cigarette users don't breathe in the same kind of carcinogenic smoke and tar that conventional cigarette smokers do. Nicotine is still an addictive chemical linked to cardiovascular disease. One girl put in a new battery in hers like she has done many times, she pressed the activation button and it exploded causing a hole in her mouth and battery acid to go all over her body. Since hitting the U.S. market in 2007, e-cigarettes, which heat liquid nicotine and other ingredients into an inhalable vapor, have been touted as a safer alternative to traditional cigarettes and a path to quitting smoking. But some lawyers and consumers say the $3.5 billion industry isn't doing enough to address a potential hazard: cheaply made lithium-ion batteries in the products that can unexpectedly explode. There have been many trials over the

Directions: Answer the following problems IN DETAIL. Your analysis must be typed and should be free of grammatical errors and “slang” terms.” Wherever appropriate, make sure you supplement your discussion with graphical analysis and equations. The graphs may be hand drawn, but please make sure they are neat. There are no restrictions or requirements on working in groups. The one exception is that each person must hand in his/her OWN work. In economic terms, there are no input restrictions; however, the output MUST be yours.

Tobacco companies should invest more in doing research to do a breakthrough invention so they could produce products that are healthier as the anti-cigarettes campaign is showing definite results. With e-cigarettes that states themselves as healthier products, maybe in the future the demand will shift again to e-cigarettes. Only by discovering new things that satisfy the customer’s want and need will the company be successful.

Although the E Cigs may have noble use, officials believe that companies are using marketing ploys to target youth. A certain brand of electronic cigarettes “Blue Ecigs” spent approximately 50 million dollars in 2013 on marketing. Some companies are also using celebrities to make smoking e cigs look cool. Experts also wonder if manufactures of e cigs are targeting youth because of the flavors such as bubble gum, chocolate, or vanilla. Some Officials are worried that this trend could undo 40 years of efforts to de-glamorise smoking. Because they contain carcinogens the FDA

Even though other leading tobacco companies, like Altria and Reynolds American, are strong competition for Lorillard, in the electronic cigarettes market, Lorillard continues to dominate. The question becomes, is the decision by Lorillard to expand its e-cigarettes business the correct action to be taking at this time? We will now take a look at three indicators that may put the potential upside of e-cigarettes business in perspective for Lorillard.

As the leading manufacturer in the moist smokeless tobacco industry, UST Inc. has long been recognized by its ability to generate high profit using low financial leverage. With a dominant market share of 77%, the company maintains a pricing power that allows it to institute annual price increases without losing costumers. However, UST’s market share was eroded significantly in recent years by price-value competitors who enter the market with lower prices. Although UST responded to these threat by introducing new products, market share still decreased by 1.6% over past 7 years. In addition, UST is also exposed to an unfavorable legislative environment, in which the company is under advertising and product promotion

I have chosen cigarettes to be my market transaction as it is has a very large and wide market. A cigarette is a product consumed through smoking and manufactured out of cured and finely cut tobacco leaves and reconstituted tobacco, often combined with other additives1,

1. The cause to the conflict in the rankings is that while the IRR ranking shows a percentage so that you can see what percentage you are making on certain amount, it does not show the size of the project.

Elementium’s primary market consists of smokers age 18-30. While the market caters primarily to males, both genders are intentionally advertised to. The company’s main advertising and promotion happens online, specifically in social media outlets. It strives to be known as a premier retailer of specialty electronic lighters. The company offers a diverse selection of electronic lighters, ranging from basic lighters at a very affordable price of 15 dollars. On the other end of the spectrum, the specialty lighters are more expensive, but still a very reasonable price of 75 dollars for the longevity that the product displays.