Mortejo, Shan Danielle M.

February 16, 2021

BMM 2209 10:30 – 12:00 NN (TTH) BSBA MM 2nd Year

Case 3.1: "Ethical Selling at Perfect Solutions: The Case of the Delayed Product"

1. Describe the situation faced by both Scott Patterson and Larry Ingram.
Scott Patterson is a Perfect Solutions salesperson and Larry Ingram has been the CEO
of a company that has been selling Perfect Solutions goods for more than 10 years. Scott signs
a contract with Barber Distributing, the rival of Larry and Larry Ingram becomes angry
because he has been a loyal dealer for a over a decade but now his competitor in distribution
is able to sell Scott’s goods at a cheaper price. Larry meets up with Scott to talk about a new
"plant" business and asks him a favor to get the best price for him to fight his rival, Barber,
Distributing or else Perfect Solutions will no longer be distributed by Larry’s company.
As time passes by Larry informed Scott that a competitor to Perfect Solutions, called
Dymotzue, is offering him better prices compared to Perfect Solutions. He told Scott that he
will have no second thoughts on taking the deal and disregarding the 10 year relationship
that he has built with Perfect Solutions if Scott does not accommodate Larry accordingly.
Larry demand for an immediate resolution and Scott then offers a “Bond-do-Perm” solution
which will be available in a few weeks despite the fact that there are actually issues in the
manufacturing and it is very unlikely for it to be settled within the given time frame. Larry
was also informed that Barber Distributing was offering LubeExcel at a 5% cheaper price to
one of his customers. Larry asked Scott do something about it however, Scott just offered
Larry a free drum as a sample. When Larry left the office, Scott steals a glance at Dymotzue’s
price list found on Larry’s desk.

2. What would you do if you were Scott Patterson?

If I was Scott Patterson I would try my best to uphold the long term business
relationship I had with Larry as a sign of respect and gratitude. I am aware that my company
would not be standing where it is today if Larry’s company did not believe in the value of my
products at such an early stage. It is no doubt that Perfect Solutions have obtained successful
growth due to this partnership. Moreover, I would not have lied about the “Bond-do-Perm”
solution because Larry deserves to know the truth and to be given a genuine and longer
lasting solution. I would be honest if at the moment there are no efficient solutions available
but I will do my best to reassure Larry that a systematic and favorable long term solution
will be given as soon as possible. Another thing is that I would not risk conducting such
unethical behavior like snooping to see the price list of Dymotzue even though Larry
unknowing made it visible for me to see. This is because I honor Larry with high regards;
therefore, I respect his privacy and I would not break such moral business ethics.
Although it is important to nurture long lasting business relationships, I would still
consider Dymotzue’s price offerings if I know they can bring greater advantages to my
company. Knowing the treatment that I am getting from Scott which makes me frustrated, I
am keeping my options open to potential business partners that will favor and respect me
the way I favor and respect them as well.

3. What would you do if you were Larry Ingram?

If I was Larry, I would approach Scott and Perfect Solutions in a more subtle manner.
I wouldn’t immediately express my anger and dissatisfaction in such an aggressive way, since
we have been doing business for quite some time; it is only understandable that I must
approach them with utmost professionalism and respect regarding my concerns. In the
business setting, competition is always inevitable so I will also keep in mind that perhaps
Scott and Perfect Solutions provided better prices to my competitor, because Barber
distributing may have also been offering better deals to Scott compared to what my company
and I can offer to them in return. It is quite immature and unprofessional to immediately lash
out my dissatisfaction towards a long-term client just because I've made an assumption that
my trusted business partner has showed more favour towards my competitor this entire
time. Everything happens for a reason especially in a business setting; therefore, I should
gather first reliable, qualitative, and quantitative evidence before I discuss my concern
towards Scott and Perfect Solutions because after all, in business, time is gold and I wouldn't
want to waste both their time and mine due to my petty assumptions. Moreover, I must
always remind myself that the world does not revolve around me and my company. If ever I
demand an immediate solution from Scott, I have no right to expect a very viable and
effective solution in such a short span of time. All things great and effective take time to
create an implement. Hence, I must also practise my patience and understanding despite the
frustration that I feel. Lastly, I will thoroughly consider Dymotzue’s price offerings if I
genuinely see the value and better business proposition. After all, despite maintaining
worthwhile business relations, only a fool would pass out on a potential offering that would
be advantageous to more than 1 party.
4. What are the ethical considerations, if any, in this case?
There were many ethical considerations that can be pointed out in this case. First was
that Larry demanded for an immediate solution and to be fair, solutions that are made
available in a short span of time can’t be of great quality and effectivity. By doing so, due to
Larry’s impatience, Scott blatantly ended up lying to Larry’s face just to pacify him. Yes, he
came up with a “solution” but the truth was the there were too many manufacturing issues
that it was impossible for the solution to be ready in more or less a week’s time. Next was
that although Larry and Scott have been long-term business partners, they can’t expect to
not encounter competition. Yes, a few favors and better deals can be sealed but Larry’s
expectations that Perfect Solutions would only sell to them is not ideal. Likewise,
manufacturer can’t also insist that exclusivity from their distributors. The overall goal of
business is to always maximize profit and expand their market and these can only build
limitations to growth. Thirdly, Scott may have misused his company’s assets by giving
unauthorized samples to reduce the price list for Larry. This can possibly be an act of
cheating and misconduct which can lead to a direct negative company brand image if word
gets out and it will affect their other business partners in the same industry. The act of giving
free samples also seemed like bribery which is a big no no, in such business setting. The
entire act just reeks of unprofessionalism and lack of integrity. Lastly, Scott invaded Larry’s
privacy when he took a glance at Dymotzue’s price offerings.
5. What level of moral development are Patterson and Ingram operating at in this business
relationship?
Scott Patterson is the salesman at moral development level 1 for this specific business
partnership which is preconventional morality. It was evident that Scott’s actions were
fueled mainly by self-interest and he also showed lack of empathy towards existing
relationships. He did not put much value, respect and integrity to honor the worthwhile
relationship he had with Larry and his company. Meanwhile, just like Scott, Larry is also
operating at a preconventional level of morality. This is because he only sees people as a tool
for him to achieve self-satisfaction and nothing more. If he is placed in a situation that is not
beneficial to him, he pressures other people to provide instant solutions just so that his
company would not be put to risk even though certain conditions are not favorable for the
other party.