In: Operations Management
On Friday afternoon you received a call from a gentleman who identified himself as the chief executive officer of a firm in a small city about 100 miles from your headquarters. He wanted to charter an aircraft to make a trip to a small U.S. border town. He assured you that you would not be required to fly over the border into a foreign country or deal with customs agents. The trip would depart tomorrow (Saturday) evening, make a two-hour stop at the town’s airport, and return sometime after midnight Sunday morning.
The caller cautioned you about the confidentiality of the trip and requested that your two “most closed-mouthed” pilots fly the charter. In reply to some serious and repeated questions concerning the mission and legality of the trip and/or cargo, the caller assured you that the trip was for legal business purposes, and no contraband would be involved. He alluded to “a highly sensitive business matter” that would have an enormous effect on his firm if “the parties can agree.”
The aircraft you would have available to send is in good condition and its maintenance schedule is up-to-date; thus the trip would not endanger the readiness of the aircraft for its normal schedule the following Sunday. The prospective customer has offered you a fee that would net your firm $5,000 profit above the direct costs. The fee is somewhat large, considering the length of the trip, but the caller offered it, and you did not object.
You couldn’t find information about the firm online. Because it is late in the day on a Friday, you aren’t able to research the firm any further.
Your director of marketing is urging you to take the charter because of the potential profit and future business this firm might provide. “I’ve heard of the company. They’re in air conditioning or something like that. I’ve also heard they’re either trying to acquire another company, or they’re about to be acquired. This might be the final closing of the deal.”
1. Take the charter trip.
2. Do not take the charter trip.
As far as the information is provided by the CEO of the firm, the charter trip should not be taken. The reasons for the same are: