7. Ethics case Swan Sports manufactures golfing equipment. Traditionally, the co

Question

7. Ethics case Swan Sports manufactures golfing equipment. Traditionally, the company has been busy all year but has noticed that ov er the past few years business has fallen off in October and November. If new business does not come in this year, the company will have to lay off some long-time employees for those 2 months. Rob Patell, a sales representative, received an order from Better Equipment Co., a competitor. Better Equipment cannot meet a customer's rush order on time and is willing to subcontract the work to Swan Sports on the condition that the Better Equipment Co. name not Swan Sports' name-appear on all products. The order is at a price substantially below Swan Sports' usual selling price. The only way this order can be produced is to use lower-quality materials than Swan Sports normally uses in its own products. Rob Patell has recommended to his supervisor that this order be accepted and that lower-quality materials be used. Patel's reasoning includes the following points: It is clearly a one-time order. Swan Sports' name will not appear on it. Workers will not have to be laid off during October and November. . In addition, a differential analysis shows that Swan Sports will lose $1,000 on the order. What should the sales supervisor consider before making a decision?

Explanation / Answer

Answer)

First of all the sales manager must consider whether the cost of long time employees maintainance costs is less than $1000 then it is not acceptable to bear the loss and if their cost exceeds $1000 then it is acceptable to bear the loss of $1000.

It is acceptable to sell the products at lower quality but first it must be conveyed to Better equipment co., by saw sports as it is ethical challenge when both parties fell that they got what they want.

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