Concept explainers
Case summary:
Large trucks play an important role in logistics chain but in 2012, $333,000 large trucks were crashed, where almost 3,800 were dead, and the majority being other vehicle drivers or passengers of other vehicles were not the truck drivers. In 2014, Company W truck driver caused a major accident were he feel asleep after being awake for the complete day and crashed the car, where one person is dead and other was injured critically.
In July 2013, the Country U department of transportation’s enacted harder hours of service rules. As a result, one report claimed that these rules would bring a loss of $1 billion to the company, while another concluded that company would recognize $500 million in profit from reduced driver death.
The new rules have caused large argument and caused hardships for drivers. As one driver stated “if wheels aren’t turning, you’re not earning”.
Characters in the case:
- Company W
Introduction:
The rules are specified by government which are mandatory for everyone to follow. If they cross the rules, they have to pay penalty.
To discuss: In one’s aspect, is it ethical for T Industry to repeal the rules.
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Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning