Sky Air Inc.: Business Ethics Case
Brock A. Reeves
University of St. Thomas
Summary of the Case Study Sky Air Inc. was an airline with its head office in Idaho Falls. It came into being in 1986. Its founder, Samuel Kaplan, was once an air force mechanical engineer. Apart from his engineering background, Mr. Kaplan was also a talented golf player. Having been born and brought up in Idaho Falls, Kaplan found out that there was a gap in the airline industry there. He believed that the region needed an extra carrier bearing in mind that the only airline, Vixenne Air, was performing poorly. Other problems related to the services offered by Vixenne Air included ineffective services to the customers and violations of the air safety
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Sub Problems The offer of $6 million raised other problems for Mr. Kaplan as he seemed unwilling to take the amount. He was not sure whether to sell the whole firm, negotiate to have the buyer increase the amount if he increased the percentage of the shares or come up with other strategies to generate extra income. It was the main case that raised the three subproblems among others such as his sales strategy. Additionally, if Kaplan were concerned with extra liquidity, he could have forgone the idea of adding an extra car and another company apartment.
Main Players The main entities in the case were Sky Air Inc. and Thyestean Ventures’ officials. The Chief Executive Officer of Sky Air Inc., Samuel Kaplan, and Thyestean Ventures’ managing partner, Stacy Simms, were the two main characters who drove the case. In this case, Kaplan had the task of promoting his company to ensure that it maximizes its profits. He was solely responsible for all the operations of the company as well as forming partnerships when a need arose. Mr. Kaplan was branded as a hard working entrepreneur, having grown a business from scratch. He knew that he would have to make this sound decision on his own. Stacy Simms had the responsibility to Thyestean Ventures to incur minimal expenses and maximize shareholders wealth.
Models of Business Ethics In this case, a good model of business ethics would include the plus model of decision-making. According to the model, it is
BSkyB (British Sky Broadcasting) better known as Sky operate in television broadcasting and telecommunications markets. Formed in 1990 by the merger of Sky Television and British Satellite Broadcasting the company
The problem to be investigated is the application of business ethics. In the business world, ethics are extremely important. Ethics are prime elements that help a business to grow and to become more productive. It is by applying proper business ethics that a business can operate in a moral or ethical business environment and managed to conduct all activities in a manner that maximizes profits while not compromising all other non-economic concerns(Schwab, 1996). Businesses have over the years failed to nurture business ethics in order to fulfill shareholders' interests and to have a culture that is oriented towards profit maximization and high performance(Jennings, 2012; Sims & Felton, 2006). This has led business to have gray areas in their activities. Gray areas are those situations or problems that do not fit exactly into any ethical analysis. These are the activities which may be represented to be immoral as a result of lying and false representations on the part of the business.
If Mark and Todd choose this option, they could budget accordingly each month. If they are struggling they could forgo the additional principal payment during any given month. By choosing this option, S & S Air could save money and have flexibility in the mortgage payments.
Around the time of the housing crisis in the US, Hollate Manufacturing underwent a series of major changes at key managerial positions. The former CFO, Jack Brennahan, became the new CEO. Brennahan helped conduct the search for a new CFO to fill his spot, and they eventually decided on William Blackburt. Blackburt was hired mostly due to his prior success at growing a manufacturer through acquisitions. Despite the recent economic downturn, Hollate had success with their first acquisition and IPO and were looking to continue to grow the company through further acquisitions. When Blackburt was hired, he negotiated aggressively for his compensation package to include significant bonus opportunities based on higher revenue growth. Shortly prior to Blackburt being hired, Hollate’s board also underwent some changes. Mike Soltany was the Audit Committee Chair. The two other members of the board were recruited by and were acquaintances of Brennahan’s. Eventually this board would become even closer with one another and with other members of management at the firm. Once operations got underway with Blackburt as the new CFO, he was an aggressive supporter of Hollate making further acquisitions. This strategy seemed to work for the company and things seemed to be looking up. The positive environment at Hollate and the personal relationships that formed among top managers led to a strong sense of trust among top management. Eventually, this sense of trust paired with the focus on meeting
This will be an over view of ethics as it relates to business in our society. Concepts from Philosophy will seek to describe the correlation between actions that are classified as morally right or ethical in our dealings with each other as human beings. Clear and concise examples will be given as well as ways in which to improve upon business ethics.
Business ethics refers to the consideration of moral decisions and responsibilities in the process of operating a business. Business ethics, practiced throughout the deepest layers of a company, become the heart and soul of the company 's culture and can mean the difference between success and failure. Values drive behavior and therefore need to be consciously stated, but they also need to be affirmed by actions. Ethical business environments are created with foundations of integrity, accountability and commitment.
MSP has more than enough runways with the four runways to support even the most
Business Ethics is a set of moral principles applied in the commercial world. Business ethics provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. An ethical approach is becoming necessary both for corporate success and a positive corporate image. Following pressure from
1. Ms. Zhang wanted to keep things simple by assuming a stock purchase using the maximum amount of leverage available to conduct the merger, and she assumed that the acquisition debt could consist of a single tranche amortizing monthly over 10 years, but with bullet payment to bring AirThread’s leverage ratios in line with those of the industry. So from 2008 to 2012, the D/E ratio of AirThread would change continuously until the bullet payment is paid, so we expect to use APV valutation method from 2008 to 2012, since it is more efficient to adjust the PV of FCF than to figure out the annual WACC. From 2013, the D/E ratio of AirThread would be in line with the industry, indicating the company will rebalance its D/E ratio, so we expect to
Ethics are principles of behaviour that distinguish between right and wrong. Resnik (2011) defines ethics as” a method, procedure, or perspective for deciding how to act and for analysing complex problems and issues” (p.1). People face ethical decisions; however, People working in business frequently face ethical decisions. Business ethics is the evaluation of business activities and behaviour as right or wrong (Society for Business Ethics, 1991).
Business Ethics are defined as “moral principles that guide the way a business behaves” (Businesscasestudies, 2017). In order for any business or individual to act in an ethical
While an organization is often confronted with the numerous issues in need of effective decision-making processes, their ability to utilize their code of ethics is proving more vital to their success in today’s society (The only way is ethics. 2015). Furthermore, an organization’s willingness and ability to sacrifice possible profits in order to ensure the well-being of their stakeholders, signifies both their type of ethics and the degree in which it influences their business transactions. Therefore, an ethical decision can be classified as a decision that is intended to either maintain or improve the reputation and/or welfare of an organization and their participants, as well as their prospective growth. Despite the fact that ethical decision-making
Business ethics and values are closely related, their effect and application in business activities correlate and they make one to ask very important questions that may or may not guide an individual in an organisation to make an ethical decision.
1. a. Sealed Air is a company that manufactures and distributes a variety of protective packaging materials and systems. It was founded in 1960 and has grown rapidly throughout its first 25 years of business. During 1987 and 1988, it became apparent from a performance side that management needed to focus on the manufacturing component, which historically was neglected in favor of marketing and sales. Although their revolutionary and significant products have gotten them to where they are, the company was reliant on their “old ways” causing a causing efficiency and external problems. When inspecting the efficiency ratios of Sealed Air from 1987 to 1988, the collection period increased from 58.24 days to 61.36 days interpreting that it is taking longer to collect credit sales from their distributers. This expresses a negative sign from business partners. Sealed Air’s inventory turnover ratio went from -6.37 to -6.36 showing no dramatic change, but shows that the company sold more goods than held inventory due to the fact a customer will pay for it. Lastly, their payable day’s ratio went from -39.56 to -38.69. Again, not a significant change, but shows that Sealed Air’s distributors aren’t waiting to receive payments. Their profit margin from 1987 to 1988 decreased about 1%, but in 1989, increased about 1.5%. Sealed Air’s operating performance has remained stable from the periods
The book I chose is “Business ethics: Ethical decision-making” 10th edition is written by O. C. Ferrell, John Fraedrich, Ferrell. It was published by Cengage Learning in 2014. This book consists of almost 340 pages and five parts. According to Amazon this book is among top seller. Something extraordinary about this book is that, this book highlight several cases related to the business ethics that help the reader to develop better understanding of how to solve several ethical issues in different situations.