CASE STUDIES • Case 1 (Using Low Quality Materials): Bader was recently promoted as Assistant Product Manager in Elite Furniture, a manufacturer of quality furniture. During his work in the new position he has discovered that the Purchasing Manager had recently started buying an inferior (low quality) wood to make table. The table would last about half as long as the regular table; but the lower quality could not be detected by the buyer. • When Bader revealed this information to his boss, he was told that the Purchasing Manager was following orders from top management. The company was having financial difficulties and had to cut costs. The change in table quality was a quick and safe way to do so. Bader argued that selling inferior merchandise as quality product was no way to solve budget problems, but his opinion was not heard by anyone in the management. • Elite Furniture products are always known for quality which Bader had stressed to his customers. 'He could imagine that image of the shop going down quickly as consumers began to experience the low quality materials in near future. • What is the ethical issue related to this case? Identify the ethical dilemma. • If you were in the place of Bader what will you do?
CASE STUDIES • Case 1 (Using Low Quality Materials): Bader was recently promoted as Assistant Product Manager in Elite Furniture, a manufacturer of quality furniture. During his work in the new position he has discovered that the Purchasing Manager had recently started buying an inferior (low quality) wood to make table. The table would last about half as long as the regular table; but the lower quality could not be detected by the buyer. • When Bader revealed this information to his boss, he was told that the Purchasing Manager was following orders from top management. The company was having financial difficulties and had to cut costs. The change in table quality was a quick and safe way to do so. Bader argued that selling inferior merchandise as quality product was no way to solve budget problems, but his opinion was not heard by anyone in the management. • Elite Furniture products are always known for quality which Bader had stressed to his customers. 'He could imagine that image of the shop going down quickly as consumers began to experience the low quality materials in near future. • What is the ethical issue related to this case? Identify the ethical dilemma. • If you were in the place of Bader what will you do?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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