How might these pressures affect your judgment

Reference no: EM133430303

Reading for parts A and B

You are a sales representative at a large computer company (Microtech, Inc., which is publically traded under symbol MCT) that sells new computers and provides technical support to customers. The company offers a number of different technical support packages, ranging from unlimited technical support for three years (the most expensive package) to unlimited technical support for one month. (The least expensive package)

You are paid 100% on commission. The company employs thousands of employees of employee's national wide. Second quarter profits failed to meet analysts' expectations, thus pushing the stock price down. Unless the company makes a substantial sale quickly, it may also miss third quarter expectations, further depressing the stock price.

You haven't made a sale in a while and have two young children to support. You also understand that some executives at your company will want to exercise stock options next quarter.

You have a chance to strike a lucrative deal with a Fortune 500 company to sell them 3,000 new computers and three years of unlimited technical support. The purchasing agent from the Fortune 500 company explain that she needs 3,000 computers delivered within two months, or her company will incur high costs.

You have 1,000 new computers in you warehouse that can be delivered on time. However, the remaining 2,000 computers would have to be ordered from the manufacturer. Normally the manufacturer could have them ready for delivery within a month. However, you happened to know that the manufacturer has a long list of back-orders and will take four to five months to deliver.

Closing the deal now would ensure that your company exceeds projected sales for the third quarter. That would boost company's stock price and help executives who want to exercise stock options. You would also earn a big commission.

You have a choice. You could tell the Fortune 500 purchasing agent, "no problem," sign the contract, deliver 1,000 computers quickly, and then blame the delay of the other 2,000 computers on the manufactures. Your contract would specify that your company is not liable for manufacture delays, so you'd be covered. Or you could tell the Fortune 500 Company the truth and risk losing the deal.

Questions on Parts A and B

- What pressure do you face?

- What are the sources of pressure?

- How might these pressures affect your judgment?

- What could you do to address these pressures?

- What questions should you ask yourself as you decide whether to close the deal or not with the Fortune 500 purchasing agent. List as many questions as you can and try to answer each one. Who would be affected if you chose to close the deal with the Fortune 500 Company?

- Describe exactly how each entity/person would be affected in the short term and the long term.

- What would your final decision be?

- What ethical theory/ theories would you use to justify your final decision?

Reference no: EM133430303

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