Reference no: EM131115362
Lisa Jennings thought that at long last, her company, Assurance Technologies, was about to win a major contract from Sealgood Instruments. Sealgood, a maker of precision measuring instruments, was sourcing a large contract for component subassemblies. The contract that Assurance Technologies was bidding was worth at least $2.5 million annually, a significant amount given Assurance’s annual sales of $30 million. Her team had spent hundreds of hours preparing the quotation and felt they could meet Sealgood’s requirements in quality, cost, delivery, part standardization, and simplification. In fact, Lisa had never been more confident about a quote meeting the demanding requirements of a potential customer.
Troy Smyrna, the buyer at Sealgood Instruments responsible for awarding this contract, called Lisa and asked to meet with her at his office to discuss the specifics of the contract. When she arrived, Lisa soon realized that the conversation was not going exactly as she had expected. Troy informed Lisa that Assurance Technologies had indeed prepared a solid quotation for the contract. However, when he visited Assurance’s facility earlier on a prequalifying visit, he was disturbed to see a significant amount of a competitor’s product being used by Assurance. Troy explained his uneasiness with releasing part plans and designs to a company that clearly had involvement with a competitor. When Lisa asked what Assurance could do to minimize his uneasiness, Troy replied that he would be more comfortable if Assurance no longer used the competitor’s equipment and used Sealgood’s equipment instead. Lisa responded that this would mean replacing several hundred thousand dollars worth of equipment. Unfazed, Troy simply asked her whether or not she wanted the business. Lisa responded that she needed some time to think and that she would get back to Troy in a day or so.
Assignment Questions
1. The buyer at Sealgood Instruments, Troy Smyrna, is practicing a certain type of unethical behavior. What is the term for this behavior? Why is it considered unethical?
2. What should Lisa do in this situation? Formulate a response.
“highly achievable budget targets reduce risk of gameplaying
: “Highly achievable budget targets reduce the risk of gameplaying. The stakes associated with budget achievement in most firms, which include bonuses, promotions, and job security, are so significant that managers who are in danger of failing to achie..
|
Under what conditions is an employer required to accrue
: Under what conditions is an employer permitted but not required to accrue a liability for sick pay?
|
Income statement for sandifer manufacturing
: Working with the income statement At the end of its third year of operations the Sandifer Manufacturing Co, had $4,530,000 in revenue $ 3,342,000 in cost of goods sold $451,000 in operating expenses which included depreciation expense of $143,000 ..
|
Why might it be easier for an investor desiring to diversify
: Why might it be easier for an investor desiring to diversify his portfolio internationally to buy depository receipts rather than the actual shares of the company?
|
What is the term for behavior-why is considered unethical
: Lisa Jennings thought that at long last, her company, Assurance Technologies, was about to win a major contract from Sealgood Instruments. Sealgood, a maker of precision measuring instruments, was sourcing a large contract for component subassemblies..
|
Under what conditions must an employer accrue a liability
: 1. Under what conditions must an employer accrue a liability for employees’ compensation for future absences?
|
Discuss any benefits for a company to cross list equity
: Discuss any benefits you can think of for a company to Cross-list its equity shares on more than one national exchange, and To source new equity capital from foreign investors as well as domestic investors.
|
Critical factors that lead to successful ERP implementations
: Selection and implementation of ERP systems is time consuming and very expensive. There are a number of published cases of failed ERP systems. Research and find cases of other successful and failed ERP implementations. Summarize your findings and dis..
|
How does deferred or unearned revenue arise
: Why can it be classified properly as a current liability? Give several examples of business activities that result in unearned revenues.
|