- "Sales management: ethical selling at perfect solutions: the case of the delayed product (video case)"
- Describe the situation faced by both Scott Patterson and Larry Ingram?
- Players of the video case include Scott Patterson, a sales person representing “Perfect Solutions” and Larry Ingram who is a CEO of “Ingram Distributing”. Ingram has been a distributor for a period of over 10 years. According to the Video case, Scott signs a competitor of Ingram known as Barber Distributing. When Ingram manages to find out about this issue, he calls Scott to discuss about it. When both meet, Ingram notifies Scott that Barber had already managed to undercut their prices by 10% in order to get the DIS project. Ingram wants Scott to get him their bid price. In order for Ingram to be secure about his business, he pressures Scott to get him the best price for the bid.
- As the case continues, Ingram points out that Dymotzue is trying to get out his business from the PS. Scott assures Ingram that he would only get the chance to buy one of the “Bond-do-Perm”. As the case is about to end, Ingram says that Barber Distributing was in his office. Ingram tells Scott that Baber was offering a 5% lower price to one his customers. In order to secure the business by helping Ingram meet the price, Scott decides to offer the product to Ingram as a free sample. Scott is left looking at Dymotzue price list placed on Ingram’s desk when the CEO manages to leave the office.
- What would you do if you were Scott Patterson?
- One of the things that I would do as the sales person, who is Scott Patterson, is to tell the truth instead of lying as Scott did. As a sales person, there is a need to employ business ethics even those that are not outlined in the law. For example, it is always important to tell the truth to customers in order to secure possible embarrassment that might emerge and destroy the relationship with the customer. The other issue I would consider if I were Scott is not to cheat Ingram about the possibility of any delay that might occur because of various reasons. Scott well knows that the product, Bond-do-Perm has some manufacturing problems and would not be available until after a period of two months. However, he decides to cheat Ingram that he would manage to offer the product within a period of two weeks of which is impossible. Cheating may result to the customer incurring huge loses if he/she fails to meet his target. Therefore, I would be sincere and honest if I were Scott.
- The other thing I would do is to follow the rules and regulations set by the company, which has employed me. This means that I would carry out business practices as entitled by the company. On this issue, I would have allowed Baber Distributing to get the business related with “LubeExcell”. Instead of breaking the company’s rules by offering free sample, I would consider this as the best thing to do if Ingram could not meet the price.
- What would you do if you were Larry Ingram?
- If I were Larry, who is Scott’s biggest distributor I would consider enlarging my business operations. This would be possible through finding job from other manufactures that might need a distributor. One of the main reasons that would contribute in taking this particular action is after realizing that Scott is not sincere and honest person. It is important for every individual associated with business practices to be truthful. This helps in meeting the set objectives and avoid any unnecessary loses that might occur. The other reason that would contribute in finding other manufactures that would give me work is the fact that it would be impossible to maintain confidence and trust on Scott. Business operations requires trust with someone who are working with and in this issue, Scott emerges to be a failure.
- The other significant issue I would consider if I were Larry is to report the matter to the company to Perfect Solutions. This would be one of the significant important options to consider after realizing that Scott is not trustworthy. The company may have other employees who might be trustworthy and reliable to work with. Moreover, reporting the matter to the company would help it in enacting the appropriate disciplinary act on Scott. This would assist in making sure that another distributor may not fall in the same trap set by Scott for his own financial benefits.
- What are the ethical considerations, if any, in this case?
- Ethical considerations in this case include ethics related to the customer. One of this particular ethics relates to misusing of company’s assets. For example, Scott uses his company’s samples to reduce list price in favor of Ingram. The other ethical consideration to related to employee in this case is about cheating. It is a wrongful act to make sales while using various unethical ways. This behavior tends to affect other sales people in the same business industry.
- The other ethical considerations include ethics when dealing with customers. One of the examples illustrated on this case relating to this issue is about free sample. Scotts uses the free samples as an act of bribing the customer of which it ethically unacceptable. Moreover, Scott makes wrong misinterpretation to the customer about the product in question. The behavior of Scott cheating about the time that Bond-do-Perm would be ready is ethically unacceptable.
- What level of moral development are Patterson and Ingram operating at in this business relationship?
- i. Scott Patterson who is the sales person in this particular business relationship is operating at level 1 of moral development. This means that Scott is in the Pre-Conventional Morality level. Scotts depicts to be motivated in self-interest and fails to care about others.
- ii. Larry Ingram who is the distributor and Scotts customer is alsooperating at level 1 of moral development in this particular business relationship. Ingram is also in the Pre-Conventional Morality level where he uses others as a tool to self-satisfaction. The case depicts that he forces Scott to do something in order he may not lose his business.
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