Require autotech to honour its commitment

Assignment Help Operation Management

Reference no: EM131738156

The town of Broomville, along with local arts and athletic groups, decided to erect a new community center for sports, music, and theatre. The total estimated cost was $18 000 000. In April, Jane Borkus, president and CEO of the largest local industry, Autotech, promised to match every dollar raised through other donors, up to $9 000 000. Both she and the delighted town mayor, Geoff Johns, made the announcement over the local television station and in a joint statement in the town’s newspaper. Borkus said the deadline would be 12 months. The following January, the campaign was proceeding extremely well: other donors had pledged $5 500 000 and Borkus presented a cheque for $4 000 000 as Autotech’s “down payment and pledge of goodwill.” Unfortunately, in March, Autotech lost its major contract to supply car parts to one of the big three auto manufacturers. Anticipating a large loss at year’s end, Borkus withdrew the pledge and asked for the return of the down payment. What arguments may be made on behalf of the town both to keep the money paid and to require Autotech to honour its commitment? What do you think the decision would be?

Reference no: EM131738156

Questions Cloud

What are defensive actions : What are defensive actions? Review the Unocal vs. Mesa Petroleum case. Did the directors act in the best interest of shareholders? Why? OR

Compute multifactor productivity for last year and this year : What the labor productivity for this year vs last year? Compute the multifactor productivity for last year and this year.

Discuss what would be an effective response : For your initial posting choose one of the scenarios and discuss what would be an effective response.

Initial posting reflect on your social networking experience : In your initial posting reflect on your social networking experiences and think of any ties you have (or had) with individuals

Require autotech to honour its commitment : What arguments may be made on behalf of the town both to keep the money paid and to require Autotech to honour its commitment?

Heroic style of dramatic storytelling in film : With the plethora of comic book-based feature films there has been a surge recently in a heroic style of dramatic storytelling in film.

Variables of content and context in the leadership situation : Describe the variables of content and context in the leadership situation. What additional variables are involved in cross-cultural leadership?

Openness and transparency in democratic society : Are these steps and processes adequate enough to meet the high standards of openness and transparency in a democratic society?

Why might we tell ourselves tragic stories : Why might we tell ourselves tragic stories? Why would we want to subject ourselves to sadness, horror, and fear?

User Account

All Pages