What role do ethical issues play in forming a team

Assignment Help Operation Management

Reference no: EM131722301

Jeremy, a successful entrepreneur in the automotive industry, is a certified car fanatic who is passionate about having the latest, hottest look for his street rod. A line of new wheel rims is all the rage, and after checking the prices ($1,500 each), he decides to contact the manufacturer directly and see if he can make a better deal. He is told that they are sold only through speed shops and custom shops, and that his area does not have a sales representative. If he would agree to become a representative and get $10,000 worth of wholesale orders, the manufacturer would sell him a set of the rims at cost, in addition to paying him his commission. Jeremy agrees. Now he knows how he will get his new rims. First Jeremy goes to the biggest and best speed shop nearby and asks for the rims by name. The owner says he has never heard of them. Jeremy, after telling the owner that they are really a popular product and that he is the sales rep, leaves some literature and says he will call again. Meanwhile he hires four male students from a local college to each go into the shop once in the next 2 weeks and to ask for the rims by name. They are to indicate that they would buy them if they were available. For this he pays each student $100. He then returns after 3 weeks, and the owner reports that the rims must be as hot as Jeremy says—kids have been asking for them. He orders $15,000 worth of rims to be delivered over 6 months. Jeremy is able to buy a set of rims from the manufacturer for $335 each and receives a $380 sales commission on the total sale. The speed shop owner sells $30,000 worth of the rims and reorders after 4 months. Jeremy remains the sales representative collecting commissions, but he does not actively promote the rims.

Questions

Were Jeremy's actions ethical? Why or why not? What should he have done? What are the implications and lessons from your discussion of the case? What role do ethical issues play in forming a team, selecting advisors and investors, and other entrepreneurial activities?

Reference no: EM131722301

Questions Cloud

Best ways to avoid transportation accidents : For this discussion, let's talk about the best ways to avoid transportation accidents. What are these problems and what do you think could be done to fix them?

What potential ethics are involved in the given situation : Choose one situation and determine what potential ethics are involved in that situation. Discuss what you would do in this situation. Explain your reasoning.

Transportation of goods is based mainly on two things : The transportation of goods is based mainly on two things: size of the container and weight.

Review statement related to the polar bears : All dolphins are polar bears. Therefore, it is false that no dolphins are polar bears.

What role do ethical issues play in forming a team : What role do ethical issues play in forming a team, selecting advisors and investors, and other entrepreneurial activities?

Identify the communication problems with the email : Write a three to four page paper that answers following: Identify communication problems with email. Using the 10 Cs for Writing Effectively, rewrite the email.

Find the gain realized and the gain recognized : Individual C traded an office building (basis $65,000, FMV $400,000), Find the gain realized, the gain recognized, and the new basis for each item

Determine statement using traditional square of opposition : It is false that some recessions are not periods of economic decline. Therefore, it is false that no recessions are periods of economic decline.

What is the most annoying part of buying products online : What is the most annoying part of buying products online? Have you had any "horror stories" with certain companies when purchasing online?

User Account

All Pages