(1) You work for the Worldwide Tire and Rubber Company as a marketing executive.
ID: 3368577 • Letter: #
Question
(1) You work for the Worldwide Tire and Rubber Company as a marketing executive. You have just been informed that a new tire made by your company has a very slight chance of resulting in a blowout which could cause a serious accident. The Engineering Division assures you that the total number of people that could be hurt by this product defect is at most 5. The problem has been corrected, but there are still 5 million of your tires out there with this slight defect. The Legal Department asserts that it would be cheaper to do nothing and see what happens. If 5 people are injured, the maximum cost to the company would be approximately $20 million in settlements. On the other hand, a product recall of the 5 million tires in use would cost at least $500 million, would generate a huge amount of bad publicity that would hurt future sales, and the effect on the price of the stock would be devastating to shareholders. Certainly, there would be no money for executive bonuses. What is your recommendation?
(b) Same scenario as above. The CFO informs you that if you recall the product, the company will go bankrupt and 3,000 jobs will be lost. What is your recommendation now?
(2) You work for the Wholesome Hamburger Company. You own 100 fast food restaurants in California. There is a big drought and people are being told to use less water. You know that it takes 1,800 gallons of water to produce one pound of beef [it takes 12 gallons of water to produce a head of lettuce, 2 gallons for one walnut, and 468 gallons of water to produce a pound of chicken]. You discuss this with the executives in your firm and they tell you that the way water is allocated by government, the company does not incur any additional expense: water will remain very cheap for business. The head of the company is soliciting ideas for its strategic plan for the future. What are your recommendations?
(3) You work in the HR Department of the GreenJet Airways Company. Most of your flights are to various Asian countries. You are hiring flight attendants to work on the planes. Several resumes have come in with photos of the applicants (the company requires a photo). The head of HR tells you that three of the applicants should be rejected because they may cause problems. One of the applicants is wearing a yarmulke, another a crucifix on a chain around her neck, and the third is clearly a Sikh with a turban. What do you do?
(4) You work for a college that is ranked in the top 50 among MBA programs. A key factor in the ratings is average GMAT scores. Currently, the average GMAT scores of new MBA students at your college is a very respectable 660 out of 800. Enrollments are declining and the VP for Enrollments says that unless the college is going to admit students with lower GMAT scores, the college will face a serious shortfall in tuition; average MBA tuition is $100k. Of course, admitting students with lower GMAT scores will hurt the rankings of the college. The VP for enrollments has an idea: Inform low scorers on the GMAT that they should go to a different school for the summer, take at least 3 credits at that school, and then apply as a transfer student. Transfer students are considered a "special admission" category and their GMAT scores do not have to be reported. What are your recommendations to the College President?
Explanation / Answer
(1) In this case ethical issue get contradict with business benefit- If something is happen due to negligence of particular quality control department personnel, in that case first check was this incidence is result of error or total negligence. If it found its part of negligence then such responsible person must be refer for disciplinary action. If in case If it found its part of possible error due to reason beyond control or under limit of tolerance in that case updated in calibration to rectify such error with the help of research team.
As to maintain ethical side, the organization must think to spend $20 million for research & if any amount still remain then it must spend for quality training activity for employee. So that this investment will help to encounter quality issue at elementary stage.
(b) As to mainting reputation- recalling tiers or 3000 job lost are artificial created fears, as in case of pressure vessel the safety factor maintain is 12 which may balance most of all possible error from engineering point of view. Hence its of least worried but it does not allow any freedom to intentionally develop artificial error for business benefit, it's an offence.
(2) Since there is a water crisis, the strategic plan has to be made in such a way that water is used effectively and also the business runs smooth. The food needs to be prepared with less water and give importance for those like lettuce, walnut and chicken. Since the mentioned items takes less water it will be a good idea to promote more of these items and keep beaf at the last if water is left out. Also increase the price of beaf so that customers also think twice and go for other food items.
(3) All the 3 people are not fit to become flight attendants. Since all the 3 people depicts their own community and to be a flight attendant you cannot showcase your community and be identical which is uniform to all other attendees. I will reject them and choose people who are good and does not give an opportunity who does not display their identity.
(4) Admitting transferred students from other colleges does not give any credibility to the college. Since the students who gets transferred will not be a good ranked students and even after transferring, they will perform the same in this college as well. Instead I suggest the president to promote his college more with what benefits they have so that good students might get attracted.
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