Quiz 6: Business Case Studies


Case Summary: Mr. Hank Kolb is the incharge for quality assurance at a plant that provides pressurized cans of lubricants and generally practices at this plant is not at par the standards. He is worried about the recent shipped out cans of lubricants which have been over pressurized due to faulty equipment. When this fault was discovered, the production supervisor vented out the excess pressure by hand but there was no typical or specific measurement of the pressure left in the can. Thus he is dilemma to call for all the shipped lubricants and antagonize the customers or should wait for complaints from them. Conclusion: As per this case, Hank Kolb should be ethical in his decision making and he should call for few samples and check the quality of them. If the cans prove to be capable of handling the pressure given to them, then nothing needs to be worried for. But if these samples show default and the cans are not capable of handling the excess pressure then without wasting any more time, he should call the shipped out cans from the customers and make the necessary changes to these cans of lubricants before shipping it again. The customers would be more than happy to hear from the supplier about the default and that the lubricants will be checked, maintained and then re-shipped to the customers once again.

Case Summary: Senior-VP for Sales Mr. Arthur Goodwin is convicted of doing a fraud with the company for which he works for "Interspeed Corporation". He has brought a vicious circle just to meet the annual target set for the company through sales. He made use of several companies like Solunet Inc., I-Way, etc. which is clear violation as per the rules and regulations of Gap. In one of such incidences, Goodwin has also been sentenced a 30 month jail after his frauds came into light. The Securities Exchange Board (SEC) sued Goodwin for his wrong and unethical conduct several times. He has been charged of showing false earnings through wrong sources. Conclusion: As per the above case, I completely boycott people like Goodwin who had been using his post and its power in undertaking fraudulent purposes and actions just for the sake of showing that his department has met the target set for it. The kind of vicious circle of investment that he has intentionally created by duping his own company is completely unethical and proper actions needs to be taken against him. The SEC took a good decision by charging Goodwin of the frauds that he undertook being at Interspeed Corp. and the jail sentence that he was termed also gave a good lesson to him. Thus this way, SEC and Interspeed Corp. could hope that Goodwin will change his ways and become ethical with his business sealings.

Case Summary: Movie Star lance Willard is consulted for a TV commercial (ad) and its endorsement for Bud's Best bacon. And the agency that is responsible for the production of this ad is L L Advertising. Annie works in this agency and has given the account for this ad. Annie comes to know that lance has recently become vegetarian and thus she consults American Advertising Federation's Advertising Ethics and Principles guidelines that suggested that ads should provide for real, honest experience of a product or a service by a person endorsing it. Thus Annie consults Lance who assures her that this brand of bacon was used to be his favorite all his childhood and he prevents eating eggs and meats just to control his cholesterol. Thus lance is going to give his true, honest experience about bacon referring to its taste and overall experience but he will not speak whether it is healthy or not. Conclusion: As per my opinion, Lance Willard should endorse this bacon brand and even L L Advertising should cast lance for this TV commercial. This is because Lance possesses the taste and experience of this brand of bacon and he just stopped eating it because of his health issues. And thus it is completely fair for lance to advertise and endorse this product as he is not going to say anything about the healthy composition of bacon and the customers are left with to choose what amount of bacon they wish to eat. Thus due to above mentioned reasons lance should endorse this bacon brand and even L L Advertising should take him for this endorsement.