Problem based on balancing stakeholder interests

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Reference no: EM133412135

Assignment:

Based on "Balancing Stakeholder Interests and Corporate Values: A Cummins Strategic Decision", let's assume that Cummins complies with the consent decree and launches the EGR engine, what would be the impact of the Total Cost of Ownership for Cummins' EGR engine on Cummins market share? Consider the effects in the short-term and long-term.

(If you wish to calculate the total cost of ownership for the first year of ownership of different engines, i.e. the Caterpillar bridge vs. Cummins EGR, you want to consider the initial purchase of engine, increase in maintenance cost per repair, penalty per truck, and fuel consumption. For the Caterpillar bridge engine consider a 1.5% increase in fuel cost and for the Cummins EGR engine a 4% increase in fuel cost. Use $3.5/gallon as an estimate of the price of diesel fuel.)

Reference no: EM133412135

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