Leadership and Ethical Decision-Making
Instructions:-
Part I:
View this problem scenario A to learn more about Bill and Joe’s relationship. This scenario provides key information in helping formulate answers for assignments in Phases 1 and 2.
You are having a lunch meeting with Bill Bateman, the chief executive officer (CEO) of the Peninsula Hotel chain, and Joe Smith, the sales rep for UWEAR. During the meeting, Bill raises the topic of the upcoming contract renewal.
“I’m glad you brought that up, Bill,” Joe says. “We’re really looking forward to working with you again this year. I was happy that we were able to reach an agreement last year, and it’s been a pleasure working with you and your team.”
Joe, like most of the UWEAR and PALEDENIM employees, is feeling the pressure to perform, fearing cutbacks and layoffs because of the merger. Sales have been down, and profit margins are very slim. Last year, Joe was reprimanded when he signed the contract with Peninsula Hotels because the price that he offered was so low. However, he had no choice because his competitor, Threads4U, was also a very shrewd bidder, and Joe would have lost the contract otherwise.
“Well, it has been good working with you too, Joe. I’ve really enjoyed our friendship, and the contract was very beneficial for our company,” Bill continues, “The reason I wanted to talk about the contract today is because I just got a call this week from Samantha over at Threads4U. She’s offering to beat your price by 10% to win back our business. What are you going to do to counter that offer?”
Answer the following:
What should Joe do in this situation?
What ethical theory supports how you think Joe should react to this situation?
Why would you use this theory?
What might others with a different view than yours say in this situation?
How would you refute those opposing perspectives?
Is there a compromise or creative solution to this problem? If so, what is it? Why is it feasible?
The materials found in the MUSE may help you with this assignment such as the audio file Is a Price Cut the Answer? This file provides real world experience which may help you with this assignment.
Part II
View problem scenario A to learn more about Bill and Joe’s relationship. This scenario provides key information in helping formulate answers for assignments in Phases 1 and 2.
Note: All character and company names are fictional and are not intended to depict any actual person or business.
The meeting between Bill and Joe did not go very well, and the Peninsula Hotel chain contract is in jeopardy. Despite their personal relationship, Bill is threatening to sign a contract with Joe’s competitor, Threads4U, because it is undercutting UWEAR’s price.
Joe is desperate to save the contract because the Peninsula Hotel chain contract accounts for over 50% of his territory’s sales—without them, his future with UWEAR is uncertain. He realizes that he needs to gain approval from his management team before he moves forward with any further contract negotiations with the Peninsula Hotel chain. Complete the following in a paper of 2–3 pages:
Who are the stakeholders in this situation?
What are the responsibilities of each stakeholder to the company?
Provide at least 4 ethical responsibilities for each stakeholder.
For each stakeholder, what would be the appropriate response to the situation?
What should Joe propose to the management team?
How should he support his proposal?
Solution.
Leadership and Ethical Decision-Making
What should Joe do in this situation?
As per the reading on the lunch meeting, Joe should review on the past relationship with Peninsula hotels and UWEAR. In scenario A, it is apparent that the relationship between Joe and Bill is more of a friendship than a business relationship. Therefore, it forms of bonding through building trust. In such a situation, I feel it is a healthy relationship, stipulating that Bill technically knows what to anticipate from Joe as a sales representative and UWEAR as a stakeholder. Hence, Joe must capitalize on this situation for to form a solid basis for contract renewal with Peninsula Hotels. Also, John must bring up the brand and quality of PALEDENIUM and UWEAR. Additionally, Joe should discuss formulating a game plan on stiff competition from Thrrads4U and look out if the management team at the company can offer promotional strategies or go for a higher price cut
What ethical theory supports how you think Joe should react to this situation and why?
The virtue-based theory stipulates that virtues, or moral character, in disparity to the approach which emphasizes rules and duties, deontology or that which puts more emphasis on the consequences of actions, consequentialism (Stanford University, 2012). I would use this ethical theory as Bill challenges Joe’s ethics through confrontation about his dealings in the past contract since Thread4U are willing to place lower bids than Joe and offer a ten percent reduction in price. Additionally, utilitarianism and care ethics are essential in this case as John has to be aware of his vulnerability to sales stock and layoffs (Barrow, 2015).
What might others with a different view than yours say in this situation?
Other people will view this differently and would probably say that Joe should not renew the contract. As such, if he does so by offering another price cut it would significantly affect UWEAR in the long-run because they will not yield as much profit from sales, as well as there, will be more layoffs to recompense for the price cuts. Additionally, some will suggest that Joe must rekindle the relationship he has with Bill as a tool against Threads4U in the ten percent price that is being offered on the table.
How would you refute those opposing perspectives?
My refute to the opposing perspectives stands at going down to details on the reason behind Joe tries to compete with Threads4U since Joe has already established a core relationship with Bill and his company and there exists a bond between them. Also, UWEAR has fifty percent territorial sales with the Peninsula Hotel chains.
Is there a compromise or creative solution to this problem? If so, what is it? Why is it feasible?
Lastly, the best solution for Joe would be a comprehensive discussion on contract renewal and Threads4u price undercuts with his management team and formulate a compromise and an action plan to compete with Threads4U