Is it ethically forbidden to go out of the sales chain

Assignment Help Business Management
Reference no: EM131006636

CASE STUDY - IS IT A RIGHT OR WRONG WAY TO SELL?

Five years after graduating from Santa Clara University, Ilene Kennedy got a job in contract sales, selling high-end office furniture to large companies throughout Northern California. Ilene was a manufacturer's rep who represented ten lines of furniture to dealers who then sold the furniture to the end user-law firms and financial companies in remodel or expansion processes.

Ilene had learned about the strict chain-of-custody within the contract furniture industry from a close friend in the business. This chain was a custom in the business which permitted only certain individuals to sell to and represent those immediately above or below them in the "ladder." In the system, designers and architects who were remodeling law firms and company offices specified furniture to buy from the dealers who would, in turn, buy the furniture from the manufacturer. As a manufacturer's representative, Ilene would only be selling to dealers, architects and designers. She would not be selling to end users.

But when this chain-of-custody system was explained to Ilene by her new boss, he told her that, in reality, it often didn't work that way. He had hired Ilene to sell directly to the law firms and companies-thereby cutting out the dealers, architects and designers. By eliminating the dealers, architects and designers in the process, Ilene's firm could make a bigger profit margin. In many large deals, Ilene was bidding against dealers, architects and designers she often worked closely with-dealers she was supposed to be using at the time. The entire process made Ilene feels very uncomfortable-she felt like she was cheating the system. It was apparent that her company was using a less accepted strategy.

After a couple months, she brought the concern to her boss, the owner of the company, who was completely unsupportive.

Her boss told her that she was, "too idealistic and not a true salesperson." They were in the business to make money, not to make friends. He said she could leave if she didn't feel comfortable with the arrangement.

"I just realized I was hired for a position that was completely unethical," said Ilene.

Frustrated, Ilene did her best to balance both her role as a manufacturer's representative and her forced role in the bidding wars. On several occasions she bowed out of potential deals with end-users when she was faced with bidding against her own dealer client. In these instances the dealers knew that Ilene was going after the profit. She wasn't proud of the strategy and, knowing well that she may have to work with the dealers in the future, she decided to take herself out of the awkward situations.

But Ilene couldn't handle the balance. "I told my boss that I was uncomfortable selling to the end-users for ethical reasons," said Ilene. For the next six months, Ilene only sold to dealers and designers-as the chain-of-custody intended it.

"The option was less lucrative for me and for the company, but at least I was doing what I thought was right and fair," said Ilene.

After those six months, Ilene quit the job and began a sales job in another industry where she's found ground-breaking success.

Discussion Questions:

a. Do you think the sales strategy of Ilene's boss is unethical or just an aggressive tactic?

b. What would your advice be to Ilene on how to deal with this discomfort she felt with selling directly to end users?

c. How could this practice of breaking the chain-of-custody impact the industry?

d. Does Ilene have the obligation to push for broader changes within the system, rather than only changing her own job responsibilities to align with her personal ethics?

e. Is it ethically forbidden to go out of the sales chain?

Reference no: EM131006636

Questions Cloud

Write an essay about what is jim crow explain : Write an essay about What is "Jim Crow", Explain. The long essay would be a traditional essay that typically five paragraphs long.
Used an acidic or basic solution : Describe an example of when you have used an acidic or basic solution in your home. Let's see how many different examples we can describe.
A manufacturing company incurs direct labor costs as it : A manufacturing company incurs direct labor costs as it transforms direct material into marketable products. The cost of the direct labor will be treated as a period cost on the income statement when?
Devoting a larger share of national output to investment : “Devoting a larger share of national output to investment would help restore rapid productivity growth and rising living standards.” Do you agree with this claim? Explain, using the Solow model.
Is it ethically forbidden to go out of the sales chain : Does Ilene have the obligation to push for broader changes within the system, rather than only changing her own job responsibilities to align with her personal ethics? Is it ethically forbidden to go out of the sales chain?
Role of theory in your qualitative research plan : State what you believe, at this time, will be the role of theory in your qualitative research plan and explain any considerations that you must keep in mind regarding theory
What type of thing cherokee did to resist indian removal act : After watching the video We Shall Remain - Trail of Tears write a 2 page essay explaining what type of things the Cherokee did to resist the Indian Removal Act and what eventually happened.
Problem regarding the arbitration program : Employees who continued to work after the effective date of the new policy were deemed to have accepted it. When an employee told the president that he would not sign, he was told "not to worry about it." Subsequently, a new employee handbook was ..
Sources of inputs into the microeconomics in context model : Sources of inputs into the microeconomics in context model include:

Reviews

Write a Review

 

Business Management Questions & Answers

  Explain your mne with a brief business plan

Create a fictional MNE which manufactures an imaginary product and choose a country in which to conduct FDI. Explain your MNE with a brief business plan.

  Best methodology for dissertation researchplease show which

best methodology for dissertation researchplease show which methodology such as ethnography survey research action

  What is the purpose of yield management

How does the organizational structure differ in large hotels and small ones - describe some of the duties of the morning clerk, the afternoon clerk, and the night auditor

  Desirable planning and decision-making tools for netflixwe

desirable planning and decision-making tools for netflixwe dont know what information netflix has available internally.

  How does organizational structure implement strategy

Organizational Structure and Implementing Strategy. How does organizational structure implement strategy? What are the basic building blocks of structure?

  Benefits and drawbacks of task vs person leadership

What are some of the benefits and drawbacks to each particular style? Task vs Person Leadership, Transactional vs Transformational Leadership.

  Case study on carolcon metals

Carolcon Metals in Minnesota is in trouble. For the past 5 years, they have been losing ground to the competition in an especially fierce industry. All competitors have moved mining and production facilities to countries with lower wages and fewer..

  Describe how technology is changing the face of businesses

Describe how technology is changing the face of businesses today

  Create and fill in a quality improvement chart

Create and fill in a quality improvement chart for the high-risk area, Select one of the fictional incidents. Describe the incident under Status.

  Workplace securitygenerally what are the prerequisites for

workplace securitygenerally what are the prerequisites for employment in security services? what other requirements

  Sam orally agreed to sell jamie some land

Sam orally agreed to sell Jamie some land for $500,000. Jamie paid Sam the $500,000; Sam gave Jamie the deed to the land. Jamie took possession of the land and began building a cabin on it. One month later, Sam tried to retake possession

  Strength of organizational culturesome people suggest that

strength of organizational culture.some people suggest that the most effective organizations have the strongest

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd