Student Motor Company Case

Student Motor Company started its operations one year ago and is competing against Ford and GM. The company has annual revenue of $30 billion per year the net worth of the company is $7.7 billion and its income after tax is $983 million. Recently the market position of the company is eroded by competitors from local and foreign markets, especially Volkswagens. The company has launched its new subcomponent Zinger. Zinger was a project car whose objective was to build a car at or below 2000 pounds to sell for no more than $8000 new. The preproduction testing and development takes almost 43 months and the company has planned to bring Zinger in market little above two years. Besides that, the differential housing is related to exposed flange as
In the organization decision made by the individuals or groups are influenced by the culture of the company. Ethically made decision is a moral one; and employees should decide what they think is the right course of action by rejecting the route that would lead to the short-term profit. Current situation has created ethical dilemma about reputation of Zinger. Most of the specialist has considered that the company does not consider the quality management. The company has launched the car without prior sufficient inspections and crash tests. However the product is not up to the standards, this is why it has hauled on the road. On the other hand the competitors like Ford, GM and Volkswagen are offering proper ethical policy and rules which makes them competitive in the market. The company ignored ethics and social responsibility and the product has caused damage to the customers. Unethical practice of the company was, normal production testing and development of an automobile takes 43 months, while Student Motor Company managed to bring Zinger to the production stage in a little over two years. Furthermore, the Zinger barely meets the emission standards. This indicates that the company did not spend adequate timing in inspection and quality maintenance of different parts of Zinger. Customers and investors are two key stakeholders who affected through this dilemma. Ethical behavior of
We have several option for fuel system redesign. This option would cost our Student Motor Company additional $11 per vehicle. Under the strict $8000 budget restriction, even this nominal cost seemed large. This cost would be 2.5 times larger ($137.5 million) than the resulting benefits ($49.5 million). But if the Student Motor Company decide to go with this alternative, company would set an example of ethical behavior and organization’s social responsibilities. The main social influence that organizations need to focus on, is the policy to do what is right. If an organization uses this policy then the ethics and principles throughout the organization will be of the highest standard and would allow employees the opportunity to support the standards of the organization. If the Student Motor Company have ethical climate in their organization and if they understand the social responsibility towards their primary stakeholders like customers, government, and local communities, then the company may increase its profits. Being social responsible may be the right thing to do, and it is usually associated with increased profits, but it doesn’t guarantee business