ALPHABET SOUP. ont fem age 170 Atte tepining ofthis chapter, you ed about how Alphabets ‘ounders manage employee and an fore fate Using {he inoematin proce ins chaplr you sho how Be ‘Setoanerthe wing uesione ‘QUESTIONS FOR DISCUSSION {528 Describe eames ofeach ofthe management anctons ‘stated in tcc 27, Which sls sem to be mos exemplified ‘neg Ban and Lary Pape? ‘528, What le hve goals and tatgy played in he sss Malpaet| £28, How. would you dace the conponte cule at ‘phate WHEN OLD IS NEW AND NEW IS OLD Late in 21, JCPenney made a deme move, using CBO ‘Myron Ul and binging in Ro Jason flson ws ee Cove a change agent who old invent te company ‘reve hp pace to hop pt he a Warton the Ape ‘Stefi rhe lll store on eneanmet et ‘aon His ion was clear statin Ta Ue Utd Sats, he ‘eprtnet stores chance to en it stata the dein {etic ladorn echcmet I wl be ped of oe nn ‘ton fortis compan Jehu roped ier ree pacts Se naming Pact ny, sch a Martha Sar an Joe rsh tour n igh-end camer He ao enistoned [Pe fey a destino where shoppers woul ook font fo ending tine browsing the tore Sr the ect oe ‘Rovistran arp Sor ‘Unietunatly for JCPeaey,Jtmson’s new vision was ' nese compete fale, Peaey’ lal cstarer base wat “eahoppy miter stone ond pings Theor ‘edt stant new caster ad sae ell 5 pens one {year Even the major shardaer who champoned Joss crtent Bl Ackman reed tthe company Rod mace ‘ew fl eo lamenting “One of he biggest mistake was athpe to sch change ee qc whoa slate sing {nat the mpc would be” Nae Die main rest {Gara Pipe pts out that te company fale odes thebuyersid is ee valu pine nose statgy. TCP =CED ‘Ron fon war ces shout what makes shopping fan {or wom sh ll fh nn Be bayeng? The nee Magy wos a mzmutch with the company’ ein manage fem product ns prac stages and caster base Soy {he company moved tno uy ibe cna saying he ‘Sop med to npc the mow von Acorn pn “Ameria CEO David Cush, “Dott destoy your old revense ‘Boleltre you nes proved yur creme Teas ‘heb t cPenne as pr hemes Tn Apa 2013, fcPeneys bord restated former CEO Uti, hose name oe riety Was rece with he ‘ompany's former cntomer fase athe Bos aaa 2 [PaerganChase prs, Hetar tur ing height po tt but ee prt having the pice and the value pe pin, seth tat bev wa st over te pst ear ‘ise meas tua othe mpony pe pins Hey of [maring ep poor en oft honey Scots a sunt ‘hip and othe! promt oes Ulinan pinned ttn {alow pcs of aang the company’s enone ad ‘Sjetiog te cenpuny stingy to cine eer ue ptt i Many were opis tt Ulan would baie to rstre Penney ava ntonge mor dive compan: However the a pts intmund wtb und inves came ceed ‘i 215, Uliman reigned an Mann Es pps to the CEO poston Elson had ined he company spree in le 14 pro expeence t both Heme Depot an Tet. BicEllaoe song ary i hopper are cing away ah nce salar deport owe chine lke Macy's aed Sere toward aerate ike cre sallers arch as n207, the company anus las wo case down 1310 10 sores Su toler Bueuts o 00 worker whe at these ese ‘ering mew prt nen ach toys Bey pect =p Snes and home gods designe o ppl ai ena {stomer bse that 70 percent Wren and 70 percent oe ‘mas long wih iting product ins, the company add (hime slr anda mob ap and even omerng pal ‘cigs Along wth anew Huns model the compu a0 ‘Nepean miso Help our ester id what sb over fof tie, money, and et Even hough JCPeney tamed 1 prot in 2 for he Bist ne ine 2010, he gusto sti es ae he ng sd [QUESTIONS FOR DISCUSSION ‘538, As CEOS, buh Ullnn and Jobson wee iol in the types of decane tat the CEO of JPentey mt ake sey elt to cah fh four functors ‘S91, The et dees arty fs that at sent to management Which vo shils do ou tuk willbe est Inport te CEO Eso? ‘582, Do you thin st Ron Johan change the misono Jehtoney opt iplemented noses” Beau o ‘apport your conan: What do yeu thnk wee Ron Jabson sbiggest mths? ‘Da you tin at Elson wl be uc suing ePenme, oF to le?GRAY AREA ‘The Situation {A European telecom and smartphone company has rently Setup shop in anew terstry. It caters to snes uses as wells consumers: Over the past four year, the company has ‘apendied from three stores ee a small wershouse aed pai Shop to nineteen stores, ane central warehouse and reps een ten and thre subsarchowses for outlying areas hay alo ‘moved ino online sles and has anew dedicated sales and call ‘Center pnt outside one of the major cits nthe coun Howeter, from the outset, the smartphone supply has boon problematic. The paret company di not consi the ‘compen of sealing up othe businns grew The procedure infor the smartphones toe ordered in bulk ona wecki bis aed the order sent to the European flflvent house The fale flment house picks and packs the bulk order and sends it by «courier othe incountry warchouse, which beaks it down into Smaller shipments foreach ofthe stores, sending cline sles ‘out direct to the customers The European fliment house ‘doesnot ship the balk order until they have everything i that onder instock. The smart phones are manufactured and shipped to European counties from Chia. One of the store ‘managers caloulted that an average smartphone will have already ave over 1,800 kn before teaches th consumer! ‘The Dilemma Delays case les of sles, ve stone managers have been i= centing the orering proces an buying hee smart phones ‘inety from Chinewe mpplior These ae uniter ne Inte and are at check or precesd y the parent company ‘They are, however, delivered om average five days quicker and cot aound a quorerf pce charg by the part company The accounts departinent at the parent company has otced the trasactions A arevel meeting abot ke ‘lace to decide the falar of he ve save manager. Opinions Sr very much divided on these gray-marit transactions. ‘QUESTIONS TO ADDRESS “418, What or the key ethical sues inthis situation? 4419, What do you think managers of most parent companies ‘would din the stustion described? 4420, What would youdo? exercising your ethics BAD COMPANY ‘The Situation Justin, Kara, George, and Anita all have their own small and successful furniture design and. manufacturing businesses Socialize, compare ideas, and share some clients They will often cllaborate on the Lager orders to make sure that thelr limite production facilities are not overwhelmed. thas worked well their relationship is informal and friendly, and there have not really been any serious misunderstandings ot arguments among the designers ast year, the four designers agree 40 meet once a foe night to discuss thee work share ides, compare notes on cus tomers and to sce if there are any contracts or other work they ‘an lp each other within the near fate [At the last meeting, Kara suggested that the four of them and two ober designers who are based around 4D kim away (and ‘whom they all know but havent worked with form a coopera- tive and put thee cllaboration ona more formal foting. ‘Aer some discussion and debate, the four agree to think itoverand makea final decision atthe next meeting seeded inten days time. As soon asthe meeting finished one of the ‘other to designers recommended by Kara texted each of them bout thi designer who would like to join the cooperative ‘The Dilemma “The seventh potential designer is Emma, who is oie than the ‘others and considered faniy unreliable and very difficult ‘work ith, Iscems that it was Emma who ad convinced Kara To muggest the cooperative and the expansion ofthe collabora to fom fur tobe and then to sever. sine, George, and Anita have been exchanging texts and calls fr the past coupe of days. None of them wants to work. ‘with Enuna, They are happy t include te other two designers In the cooperative along with Kara ut fear that the whole idea Will al apart. They decide thatthe best thing to do is call an emergency meeting with Kaa, express theit concerns, and ask her wy shehas chosen Emma, "The ides ofthe cooperative a good one ad wil benefit everyone; the problem is that they have not worked together so ‘lowly before, They ae also worried about Emma's epuation ‘nd whether they can actully work with her all At the same time, rita in particular i concerned aout the influence Emma seems to have over Kara and hopes it will not damage Kara's relationship wit Justine, George, and herself, QUESTIONS To ADDRESS 3419, What benefits are there to the four original designers of Joining together as cooperative? 320, Whatare the implications of ading three more people to the cooperative 321. As an independent advisor, what would you secom- rend thatthe four orignal designers do? Should they 0 forward withthe cooperative as fou, si or seven? Explain your answerUNIVERSALLY UNETHICAL? Background Information Ethical conduct can often be compromised when people seek to win business, achieve status, and make money. There ae thou Sands of eamples of employees making fase expense claims, lying o stretching the truth to customers and suppliers and ‘of managers not being as open as they should be With thei ‘ployee But just howe fr dows unethical conduct go nd how widespread iit ‘The UAE Case 19 2017, FY, profesional services fm, conducted survey in the United Arsb Emirates tat focused on ethical behavior in business context. The survey found that some 40 percent of resporuients were weling to otin eet mer in oder toimprove their cares. "The respondents were als cers bosinse's owners “These reslls were from a lange survey that covered the Middle ast and North Ac, The survey resus tend to suggest tat although some counties have introduce pun that similar numberof coworkers would te prepared todo the same Some 36 percent ‘vento to state that they would be prepared to offer a cash Incentive bribe—in order o secure busines Those who had teen co-werkers engaging in unethical behavioe were largely Crwlng to bring ff the atlention of the authorities or the practice is stil rife and seen as a necessary part of business ‘perations. In the broader survey, 57 percent of respondents tbo claimed thatthe management of thelr organization did Ile to promote high tical standards. ‘One ofthe key cance was the fact that unethical prac {ices seem to have Become pat ofthe culture of Busines, wth members of younger generations beng, a best, hesitant sbout ‘epertng instances. Mest espendentsCamed tha they would ‘ot know what todo or hve to report sich an incident FOLLOW-UP QUESTIONS 2-15, What personal, social and cultural factors do you think ‘contribute to unethical behavior inthe workplace? 2216. Do you agree or disagree withthe following statement: ‘Organizations should create an communicate appro priate proceaes fo ensure that employees know hat to-do if they winess unethical practices.” Suppor your ‘anawer with examples from your own work expetence 217, How widespread do you think unethical and coruption business practices are lel, regionally, and gla? ‘Why do you think thse the cae? 218, Tip-off and whisleblowing are the most effective way ‘of uncovering bribery and corruption in busines, Hove ‘would you ereste a proves a culture to encourage ‘whisteblowing? je measures agaist corruption and unethical behavior the EMPTY STORE ‘The Situation ou ue the cero taltrein asa ton, The store has been one by your family freee generations. Originally, You pret granlather sold but nd vopeables om the pr es, Cut after he die the tore has bee eased ur rented out toa sacesion of small busines owners, Given the loctan of {he tore none he business has sted or more than about Beyer. The Dilemma The at ena f the store hel do mel ighizen month igo wih ther ret poytents in sree. They disappeared ‘vermght an lt the bulking in avery ba sate of repair It as already cost ya considerable amount of money (oughly fal the sum you would have eceved fora est sre Yo ep the shop, You ae yi tas onthe sore anit hat eff (hres brake ver the pest four ences piping es oie, fd a fre was started inthe storeroor, ‘ou have red to find » stable tenant forthe property bt so far you have filed Several other soresin the incite sre are abo empty. You have dropped your rental charges by 2 percent to ata nant bt 0 ei interested a. The ‘roperty is nt eal sabe for conversion to domme ie Shee “ou have been approached by a charity tat wants © un ‘adropindinicin the store. Tey cant afford to pare, but {hey have promised serous thatthe propety ol damaged There willbe tafe he premises 26 hours day so breakin unl ‘You ned to decide whetherto give the charity shor tem siemonth tee eae ‘QUESTIONS To ADDRESS 1119, Whataretherolesofsuppy and demandin this scenario? 120, What are the underlying ethical ues? 121, What would you do you wer actualy faced with this situation?