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Strategic Management DISCUSSION BOARD WEEK 10-BUSINESS ETHICS
Over the past several years, we have experienced a growing number of significant ethical breaches by major companies both in the U.S. and in other countries. A few examples include Wells Fargo (setting up accounts for their clients without their authorization); General Motors (hiding the problem of bad ignition switches on millions or cars for about ten years); Volkswagen (cheating on emission tests to meet government standards); Takata (putting known defective airbags in millions of vehicles); Uber (paying one of their I.T. employees not to report a data breach that affected millions of customer records); Kobe Steel (falsified inspection records for several years on aluminum and steel that did not meet required specifications, and shipped it to many customers); and Chrysler (falsifying auto sales records to show growth in sales that did not exist).
SELECT ONE of these cases and analyze it to determine some of the primary reasons why this unethical behavior occurred. Based on your analysis of the reasons, make some recommendations regarding what can be done to reduce the frequency and severity of these types of ethical breaches in the future. Look at Corporate Governance, CEO reward systems, Legal Systems, and Consumer behavior for possible areas of change.
Player 1 has the following set of strategies {A1;A2;A3;A4}; player 2’s set of strategies are {B1;B2;B3;B4}. Use the best-response approach to find all Nash equilibria.
A supplier and a buyer, who are both risk neutral, play the following game, The buyer’s payoff is q^'-s^', and the supplier’s payoff is s^'-C(q^'), where C() is a strictly convex cost function with C(0)=C’(0)=0. These payoffs are commonly known.
Pertaining to the matrix need simple and short answers, Find (a) the strategies of the firm (b) where will the firm end up in the matrix equilibrium (c) whether the firm face the prisoner’s dilemma.
Consider the two-period repeated game in which this stage game is played twice and the repeated-game payo s are simply the sum of the payo s in each of the two periods.
Two players, Ben and Diana, can choose strategy X or Y. If both Ben and Diana choose strategy X, every earns a payoff of $1000.
The market for olive oil in new York City is controlled by 2-families, Sopranos and Contraltos. Both families will ruthlessly eliminate any other family that attempts to enter New York City olive oil market.
Following is a payoff matrix for Intel and AMD. In each cell, 1st number refers to AMD's profit, while second is Intel's.
Determine the solution to the given advertising decision game between Coke and Pepsi, assuming the companies act independently.
Little Kona is a small coffee corporation that is planning entering a market dominated through Big Brew. Each corporation's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price.
Suppose you and your classmate are assigned a project on which you will earn one combined grade. You each wish to receive a good grade, but you also want to avoid hard work.
Consider trade relations in the United State and Mexico. Suppose that leaders of two countries believe the payoffs to alternative trade policies are as follows:
Use the given payoff matrix for a simultaneous move one shot game to answer the accompanying questions.
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