Case Study

 The Speedy Sale

 Elite Furniture
 Washing Dirty Laundry
 To Spray or not To Spray
 Cosmetic Application

Rhealyn M. Maranan
ABM- Socrates
 The Speedy Sale

1. What are the relevant facts?

 Bernie wants to buy a new colored television to replace the damaged one.
 Bernie cannot wait for a week to take delivery for the new colored television so Sam decided to tell
Bernie that he can get his television within two days, and delivering it in five.

2. Who are the primary stakeholders?

  Sam, the salesperson for an outlet
 Bernie, Sam’s customer for the television set
 Michelle, the sales manager of an outlet

3. What are the ethical issues?

 Duty not to misrepresent

4. What are the possible alternatives?

 Bernie must ensure the product’s quality before purchasing and waiting for the television.
 Ask Bernie if he can still wait for the television for almost a week and promise that they will provide the
best that they can.
 Bernie can look in other outlets of colored television.

5. What are the ethics of alternatives?

 If Bernie likes the quality of the television, he can give the salesperson for a tip.
 Sam will not disappoint Bernie even though the television will be delivered after five days.
 Bernie can find television in other outlet better than Sam’s offer.

6. What are the practical constraints?

 Bernie will find another outlet which will lead to decrease in outlet’s commission.
 Bernie will get tired of waiting and can cancel his television set.
 Sam will have the pressure if he will not deliver the television in certain period of time.

7. What is the best solution?

 Sam should be honest to Bernie to avoid some issues in the outlet and so that Bernie will find other
outlets of television if he cannot wait anymore.

Washing Dirty Laundry

1. What are the relevant facts?

 Women think that commercial is demeaning and otherwise offensive as well because they thought that
the rights of the women are being infringed.
 Endirt is doing well as a brand leader in growing market and Bruce Seth is capable of beating Endirt
because of the commercial.
 2. Who are the primary stakeholders?

 Bruce Seth, the project manager

 Priscilla Wheeling
 Consumers

3. What are the ethical issues?

 Social effects of commercial advertising

 Social costs of view

4. What are the possible alternatives?

 Never mind the complain of the people and continue the message of the advertisements.
 Change the commercial without offending and demeaning women.
 Try to get the suggestions of the customers particularly the women about the commercial.

5. What are the ethics of alternatives?

 The company will boost its sales.

 There will be no complaints anymore because the customers become used to watch the commercial.
 The customers will have the control to manipulate the commercial.

6. What are the practical constraints?

 Many will get angry and have a chance to choose other company.
 Priscilla, the boss, is against the commercial.
 If everyone will suggest their own ideas on commercial, there will be a unclear connection of ideas.

7. What is the best solution?

 Change the commercial where everyone will not be offended about the message.

Elite Furniture

1. What are the relevant facts?

 Jan discovered that the Purchasing Manager had recently started buying an inferior grade of padding.
 Jan revealed it to her boss and she discovered that the company was having financial difficulties and had
to cut costs.
 Jan had stressed to her retailers because Elite Furniture products projected an image of quality.
2. Who are the primary stakeholders?

 Jan Smith
 Purchasing Manager
 Consumers buying Elite Furniture
 Retailers selling Elite Furniture

3. What are the ethical issues?

 Duty not to misrepresent

 Fiduciary Duty

4. What are the possible alternatives?

 Jan should accept the change regarding the quality of product.

 The company can decrease the price of padding.
 Inform the retailers about the change in quality.

5. What are the ethics of alternatives?

 The customers will continue to buy the product.

 If the company decrease the price of padding, the expenses of the company will also decrease.
 The retailers will understand the situation of the company regarding financial difficulties.

6. What are the practical constraints?

 There is a chance that the customers of Elite Furniture will decrease.

 Their sales will decrease because some customers prefer the high quality.
 There’s a possibility that the customers will look for other stores where they can buy good quality
padding.

7. What is the best solution?

 Jan should inform the buyers that the quality of padding is much lower than before. The management
should also decrease the price of the product because of its lower quality and for that; they will not lose
any customer.

Cosmetic Applications

1. What are the relevant facts?

 Maria is new to cosmetics industry, being a recent college graduate with limited experience.
 Hans is the Marketing Manager and he will be the one to evaluate Maria.
 Hans recommended applying the facial cream product from one to three applications daily.

2. Who are the primary stakeholders?

  Hans, Cosmetics Group Product Marketing Manager
 Maria, Assistant Marketing Communications Manager

3. What are the ethical issues?

 Deceptive advertising
 Consumer Protection

4. What are the possible alternatives?

 Suggest to the Vice President of Marketing about the changing the recommended usage rate.
 Inform the customers about the use of cosmetics.
 Maria should reveal that just one application of the product did the job.

5. What are the ethics of alternatives?

 The customers will have the full knowledge about the product.
 The company will increase its sales.
 The Director of Research will speak with Hans, siding with Maria’s objections.

6. What are the practical constraints?

 Maria will be fired.

 Hans will continue his decision with the support of Maria.
 Many customers will find the company deceiving.

7. What is the best solution?

 The best solution is to inform the customers that applying of facial cream can be done for only one
application of it.

To Spray or not To Spray

1. What are the relevant facts?

 Robert Whitney, the new product manager for Ab-Stain, faces a serious problem in his new position. He
found out that the customers are switching to national brands.
 Robert knows that hydrocarbons are needed to make a version of aerosol spray that can destroy the
ozone.
 Instead of aerosol spray, he tests the pump which does not use hydrocarbons but the consumers rate the
pump equally with the liquid form.
2. Who are the primary stakeholders?

 Robert Whitney, product manager of Crocodile Cleaners

 Consumers

3. What are the ethical issues?

 Environmental ethics

4. What are the possible alternatives?

 Innovate the product into aerosol spray of Ab-Stain.

 Focus only in liquid version of Ab-Stain.
 Find an alternative for aerosol spray without destroying the ozone.

5. What are the ethics of alternatives?

 The Ab-Stain will patronize by customers if they will offer aerosol spray.
 The company itself will have originality regarding the product.
 The company will increase its sales

6. What are the practical constraints?

 If they will offer an aerosol spray, the environment can be damaged.

 If they will stick to liquid form, the sales maybe decline.
 The decision will be at Robert’s. he has the full responsibility to evaluate the basis of profitability.

7. What is the best solution?

 Robert must not use hydrocarbons for aerosol spray. He must invent an ingredient for the spray without
damaging the nature. He can also offer the liquid version in lower prices.