Describe the cultural-ethical or business conduct issues

Assignment Help Operation Management

Reference no: EM132220313

THE HIDDEN DISCOUNT

Dr. Marsten, a researcher at University Pharma, needed an expensive piece of complex research equipment, which would include a computer and related software. He based his specs on a device he was familiar with, manufactured by BioNeeds Inc. and sent his requisition to supply management. As their regulations required, supply management issued a “request for bids” for a “BioNeeds or equal” device.

On the morning of the day bids were due to be opened, Dr. Marsten called Mr. Goodby , the Director of Supply Management, to say that he had received a bid from another company, Alternate Technologies, and that he would walk it right over. When he arrived, it was discovered that he had received an information copy of the bid and that supply management had already received the original. There was a letter attached to Dr. Marsten’s copy, which in part said:

I am prepared to offer you, at no additional cost, one additional software package. However, this offer will not be shown on the bid that has been sent to the supply management department.

According to an attached price list, the value of the additional software package was $18,500.

When the bids were opened, it was found that the Alternate Technologies price was substantially higher than the price bid by As Specified Enterprises and, sure enough, it made no mention of the extra software offered.

Dr. Marsten recalled that the Alternate Technologies sales representative had visited him during the bidding period admitted that his bid would probably be high. But the rep expressed confidence that, if Dr. Marsten were to do a proper technical evaluation, the Alternate Technologies equipment would be selected regardless of the high price.

As Dr. Marsten related this story, his face clouded over and his eyes widened. “Does this sound like a bribe to you?” he asked Goodby. Goodby leaned back and pondered what he would do next.

1. Describe the cultural, ethical or business conduct issues being presented.

2. Detail your solutions to the problems.

3. Provide an explanation of why you chose the particular solutions

Reference no: EM132220313

Questions Cloud

Develop a marketing plan for a selected group of consumers : The purpose of the group project is to provide students with an opportunity to develop a marketing plan for a selected group of consumers

What does it mean to own something in fee simple : What does it mean to own something in Fee Simple? Explain in detail and provide a real world example. What is an Easement?

Calculation of operational characteristics curve involve : The calculation of an Operational Characteristics Curve involves:

Policing policy has produced evidence of backfire effect : According to existing research, what one policing policy has produced evidence of a backfire effect?

Describe the cultural-ethical or business conduct issues : Describe cultural-ethical or business conduct issues being presented.

The department of social services represents large portion : The Department of Social Services represents a large portion of the county's budget and total number of employees.

Describe ethical sources of privacy as fundamental value : Identify the major trends that have influenced world trade and global marketing. Describe the ethical sources of privacy as a fundamental value.

What is product configuration : What is Product configuration? Can a company benefit from product configuration? Why

What is your overall plan for goal achievement : What is your overall plan for goal achievement? What resources are necessary to accomplish your plan?

User Account

All Pages