Jeff Pankoff is professional a mechanical engineer works for National Corporation. National Corporation has 8,000 employs around the world, and their annual sales are around $600 million. National Corporation is a successful company which has been in business for over 100 years.
The company is divided to three divisions: to machine division, component division, and tool production facilities and Jeff was assigned to the tool division. He starts working there as mechanical engineer. While Jeff was working for National Corporation, he enrolled in a close by university for graduate study. However, before finishing his Master he was transfer to Ireland. After three years of working there, he was promoted to chief engineer.
The National's Tool division where Jeff works produces a broad line of regular tools of approximately 90% of sales and specials of approximately 10%. Jeff responsibility was the purchase of capital equipment and the selection of production methods used in the manufacture of the product.
Jeff went to California to purchase a computer numerical controlled (CNC) machining center that would cost $250,000 for the plant. This plant is about 90% of Airplane Company sales. Jeff was concerned by the sales projections. Thus, there was an appointment between him and the plant manager Ben Ehlke, and the chief of tool manager Tom Kelly to make sure about the rightness of the CNC cost. Also, Ehlke pointed out that airplane company expectation for the next five years. At that time, Jeff did not know about the purpose of the machine and nobody told him about the $40 million contract until he walked to Kelly’s Office. Jeff realized that their company has the expertise to produce that part, and he also realize that because the sale representative was not there he cannot behave on behalf of the sale. Although Jeff was not in sale, he acted on his own accord.
The next day, Bob Jones came to Jeff’s office arguing with him about making a decision