Understanding Management
Understanding Management
11th Edition
ISBN: 9780357033821
Author: Richard Daft
Publisher: South Western Educational Publishing
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Chapter 5, Problem 1AYSED

When the idea first occurred to her, it seemed like such a win-win situation. Now she wasn't so sure.

Marge Brygay was a hardworking sales rep for Inspire Learning Corporation, a company intent on becoming the top educational software provider in five years. That newly adopted strategic goal translated into an ambitious, million-dollar sales target for each of Inspire's sales reps.

At the beginning of the fiscal year, her share of the sales department's operational goal seemed entirely reasonable to Marge. She believed in Inspire's products. The company had developed innovative, highly regarded math, language, science, and social studies programs for the K— 12 market. What set the software apart was a foundation in truly cutting-edge research. Marge had seen for herself how

Inspire programs could engage whole classrooms Of normally unmotivated kids; the significant rise in scores on those increasingly important standardized tests bore Out her subjective impressions.

Bur now, just days before the end of the year, Marge's sales were $1,000 short of her million-dollar goal. The sale that would have put her comfortably over the top fell through due to last-minute cuts in one large school system's budget. At first, she was nearly overwhelmed with frustration, but then it occurred to her that if she contributed $1,000 to Central High, the inner-city high school in her territory probably most in need of what she had for sale, they could purchase the software and put her over the top.

Her scheme would certainly benefit Central High students. Achieving her sales goal would make

Inspire happy, and it wouldn't do her any harm, either professionally or financially. Making the goal would earn her a $10,000 bonus check that would come in handy when the time came to write out that first tuition check for her oldest child, who had just been accepted to a well-known, private university.

Initially, it seemed like the perfect solution all the way around. The more she thought about it, however, the more it didn't quite sit well with her conscience. Time was running out. She needed to decide what to do.

1. Donate the $1,000 to Central High, and consider the $10,000 bonus a good return on your investment.

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what are the pros and cons of the following five-point plan?  1. Each salesperson would continue to supervise company-owned stores and independent dealers. 2. Salespeople would be given specific objectives for facilities appearance and a percentage of sales of convenience store merchandise purchases from the Company’s designated distributors. 3. Salespeople would be given mandates that no retail outlet would remain closed for more than 30 days. 4. Sales volume objectives for salespeople would remain in place. Current year volume objectives would not change. 5. Regional sales managers’ annual objectives would be revised to be consistent with salespeople’s new objectives.
Ethical dilemma problem 1: Joni is a financial planner for ABC firm. She provided all of her clients with the same products. She felt this was OK since she had thoroughly researched them years ago and found them to be excellent. By concentrating her recommendations with a few firms, she was able to receive commission bonuses. She never discussed their goals and characteristics with her clients unless they brought them up. Explain her violations of SEC and CFP regulations. Indicate what should be done.
How successful do you think this company purpose statement will be?
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