
International Dimensions of Organizational Behavior 5th Edition by Nancy Adler ,Allison Gundersen
Edition 5ISBN: 978-0324360745
International Dimensions of Organizational Behavior 5th Edition by Nancy Adler ,Allison Gundersen
Edition 5ISBN: 978-0324360745 Exercise 4
Prestige, a North American-based global firm, sent American Frank Quick to the Middle East to scout out possibilities for increasing the market for a particular Prestige product. Two other global firms compete directly with Prestige for this market, Companies Y and Z.
Frank has spent a year in one Middle Eastern country and has made considerable progress. He has made it quite clear to prospective buyers that Prestige offers a much better product than does the competition. Frank has been working especially hard to obtain a large order from the top officials of a large local company, Ajax, rather than having Ajax place their order with either Company Y or Z.
Ajax presently buys some products from Prestige and some from Companies Y and Z. While admitting that it regards Prestige's products as uniformly superior, Ajax claims it chooses to spread its business among the three suppliers as a hedge against possible failure of supply. Nonetheless, Frank is persisting in his dogged efforts to make Prestige Ajax's sole supplier.
Recently, Ajax's vice president of purchasing invited Frank to his office and informed him that Ajax would be willing to gradually taper off business with Companies Y and Z, primarily because Prestige offers a better product. He adds, however, that under-the-table payments are rather common in his country, and proceeds to hint broadly that he accepts substantial payments from both of the other two companies. Subtly, he indicates that if Prestige pays him an amount equal to the combined payments of Companies Y and Z, Prestige will become his exclusive supplier. However, if Prestige refuses, he will keep Prestige's present contract at its existing level, while expanding Ajax's business with Companies Y and Z, who, he claims, are prepared to make even greater payments than in the past.
What moral grounds does a company have to try to change the country?
Frank has spent a year in one Middle Eastern country and has made considerable progress. He has made it quite clear to prospective buyers that Prestige offers a much better product than does the competition. Frank has been working especially hard to obtain a large order from the top officials of a large local company, Ajax, rather than having Ajax place their order with either Company Y or Z.
Ajax presently buys some products from Prestige and some from Companies Y and Z. While admitting that it regards Prestige's products as uniformly superior, Ajax claims it chooses to spread its business among the three suppliers as a hedge against possible failure of supply. Nonetheless, Frank is persisting in his dogged efforts to make Prestige Ajax's sole supplier.
Recently, Ajax's vice president of purchasing invited Frank to his office and informed him that Ajax would be willing to gradually taper off business with Companies Y and Z, primarily because Prestige offers a better product. He adds, however, that under-the-table payments are rather common in his country, and proceeds to hint broadly that he accepts substantial payments from both of the other two companies. Subtly, he indicates that if Prestige pays him an amount equal to the combined payments of Companies Y and Z, Prestige will become his exclusive supplier. However, if Prestige refuses, he will keep Prestige's present contract at its existing level, while expanding Ajax's business with Companies Y and Z, who, he claims, are prepared to make even greater payments than in the past.
What moral grounds does a company have to try to change the country?
Explanation
The moral grounds that have to be implem...
International Dimensions of Organizational Behavior 5th Edition by Nancy Adler ,Allison Gundersen
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