Case Analysis - Everyone Does It
IV. Executive summary
Purpose of the report
The purpose of the report is firstly, to give an introduction of the satellite company described in the case and the concept of business ethics which are of great importance in today’s business world. Secondly, we will analyze the case presenting two alternatives which could lead to different behaviors and outcomes. Finally, we will provide a recommendation how the key person should act in the described situation from our point of view.
Analysis summary of the case
The ethical problem is caused by various factors. On the one hand, the satellite imagery industry is a highly attractive and fast-growing market, so all participating companies heavily rely on acquiring and keeping their clients to be able to compete. On the other hand, all companies depend on venture capitalists who provide the financial means for the companies’ projects. Due to current negotiations with a Japanese client, Jim has to decide of whether to act ethically correct or rather in favor of the company.
According to scenario 1, Jim discloses the information about the delayed completion date. Consequently, further negotiations with the Japanese would be cancelled and the advance contract would be made with a competitive company.
The second alternative, described as scenario 2, would be to withhold the information from the customer. As a major consequence, ISI would probably get the contract and the financial future of company would be secured for the moment. As possible negative consequences, the company's reputation could be damaged and possible contract conditions could result in compensation claims of the Japanese company. However, the company is prepared to take this risk than to lose the contract to one of ISI’s competitors. In the best case, the contract will be signed and the delay will be tolerated.
Recommendation
It is recommended that ISI should conceal the delay of the launch date and to use the published one. By doing so,
Purpose of the report
The purpose of the report is firstly, to give an introduction of the satellite company described in the case and the concept of business ethics which are of great importance in today’s business world. Secondly, we will analyze the case presenting two alternatives which could lead to different behaviors and outcomes. Finally, we will provide a recommendation how the key person should act in the described situation from our point of view.
Analysis summary of the case
The ethical problem is caused by various factors. On the one hand, the satellite imagery industry is a highly attractive and fast-growing market, so all participating companies heavily rely on acquiring and keeping their clients to be able to compete. On the other hand, all companies depend on venture capitalists who provide the financial means for the companies’ projects. Due to current negotiations with a Japanese client, Jim has to decide of whether to act ethically correct or rather in favor of the company.
According to scenario 1, Jim discloses the information about the delayed completion date. Consequently, further negotiations with the Japanese would be cancelled and the advance contract would be made with a competitive company.
The second alternative, described as scenario 2, would be to withhold the information from the customer. As a major consequence, ISI would probably get the contract and the financial future of company would be secured for the moment. As possible negative consequences, the company's reputation could be damaged and possible contract conditions could result in compensation claims of the Japanese company. However, the company is prepared to take this risk than to lose the contract to one of ISI’s competitors. In the best case, the contract will be signed and the delay will be tolerated.
Recommendation
It is recommended that ISI should conceal the delay of the launch date and to use the published one. By doing so,