Question

In: Operations Management

You sell new Chevys. A prospect is deciding between a Chevy Cruze and a Mazda 3....

You sell new Chevys. A prospect is deciding between a Chevy Cruze and a Mazda 3. She tells you that reliability is the #1 criterion in choosing the car. “I hate getting into my car to go to work and then it won’t start. Or the vulnerability of being on the side of the road waiting for a tow truck." She thinks the Chevy is more reliable than the Mazda. You think she's wrong but you aren’t sure. You’re thinking of checking Consumer Reports and letting the customer know what you find.

Answer the 3 questions below in complete sentences.

  1. Who are the primary stakeholders?
  2. What are the Ethical Issues?
  3. What actions do you think should be taken?

Solutions

Expert Solution

1. The primary stakeholders in the above case are : the customer (prospect) and Chevys.

2. The ethical issue here is that the prospect feels Chevys' reliability is higher than Mazda's. However, you doubt it. You are facing an ethical dilemma between doing what is right i.e. checking out the Consumer reports and assuring customer to inform her about your findings on the reliability between the two cars or, going with the customer's opinion and encouraging he to make the purchase. Thus, fulfilling your duties.

3. I feel you should take the more ethical path, i.e. find out about the reliability from consumer reports and other sources and inform the prospect that you would find out and inform her. This would not only mean you fulfill your ethical duty, but also generate trust that would be truly beneficial for your company. Help create a brand recognition of being honest and facilitate positive word-of-mouth publicity.


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