Question

Question #1.

Humongous Inc. is a large publicly traded manufacturer of health care products. It has a reputation as oneof the best-managed companies in the U.S.A. However, the company recently came under fierce criticismby the government for charging exorbitant prices to consumers.Investors have responded negatively tofears that the government would reform the health care sector and make an attempt to reign in prices. As a result of these fears, Humongous’s stock price lost 30% of its value in the past year.

To try to appease the government and counter possible government intervention, Humongous justpurchased Teeney Corp., a discount health care supplier. Investors have responded positively to thisacquisition, pushing Humongous’s stock price back up by over 10% since news of the acquisition becamepublic.

While Humongous Inc.’s acquisition of TeeneyCorp. could provide Humongous with a foothold in a growing part of the discount health care sector, a real problem lies in the mission of Teeney Corp.   Teeneyhas built a successful business by providing consumers with unbiased, objective health care advice and guiding them to the best prices available. However, now that it is owned by Humongous, Teeney’scustomers have expressed doubts about whether Teeney can remain objective and unbiased in recommending the best health care products at the best price.

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Assume that you are a manager charged with bringing Teeney Corp. into Humongous Corp and helpingthe two companies to integrate. Please answer the questions below. Please make sure to break up your answer into paragraphs, starting a new paragraph whenever you start a new idea.

Are you facing an ethical issue? Why or why not? Do Teeney’s customers have reason to doubt the futureobjectivity of the company? Why or why not? If this is a problem, what steps can you take to mitigate that problem? (This answer could be about one or two paragraphs).

As a manager charged with bringing Teeney into Humongous, what are your ethical and legal obligations to Humongous? To Teeney? To the customers of both? What do you owe shareholders? Are there other stakeholders? If so, what do you owe them? (This answer could be about two or 3paragraphs).

Answer 1

Customers are certainly the most significant stakeholder in an organization thus it’s very crucial and vital as a business to function reasonably and constantly while ensuring to provide consumers with an adequate and pleasing experience of honesty and clarities in marketing and then following it up with delivering the promises made. Thus it’s very important to identify and acknowledge the expectations of your consumers and then sincerely offering cost-effective quality products and services which indeed facilitates to develop a fundamental base towards faithful and trustworthy consumer.

Suppliers are also considered to be an important stakeholder for the organization thus it’s very crucial and significant to maintain a loyal and trustworthy relationship with your suppliers furthermore it’s also very important to take care of each other's business interests and function justifiably and truthfully with them which indeed facilitate to organize and administer more efficiently the distribution processes which in fact assist in reducing the inventory costs and stock outs.

Shareholders anticipates that the business administrators meet their expectations and obligation and frame effective and efficient business policies and strategies to ensure the enterprise is being managed effectually by enduring the functionality of the business is being maintained within the legal framework and adequate ethical standards are been adequately met furthermore it’s also important for the administrators to ensure profitability and produce cost-effective quality products and services to provide maximum satisfaction for their consumers.