Ethical Dilemma For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment. The accounting, human resource, supply chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures—with much of the purchasing being done at hundreds of regional stores—were not a good fit for the software. At the very least the customizing will add $250,000 to the implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget. What do you do?

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Answer 1

Textbook Question

Chapter 14, Problem 1ED

Ethical Dilemma

For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment.

The accounting, human resource, supply chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures—with much of the purchasing being done at hundreds of regional stores—were not a good fit for the software. At the very least the customizing will add $250,000 to the implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget.

What do you do?

Expert Solution & Answer

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

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Students have asked these similar questions

What are the basic assumptions of CVP analysis?

CASE SCENARIO: You are a manager at an upscale Confrence Hotel. You have an Annual Meeting booked for 100 people for a very prestigious company. Due to some error at the back end you and your team mess it up and only make arrangements for 50 people. Your confrence rooms are fully booked as it is year end time , and you are unable to provide them with an arrangment for extra 50 people immedietly . The host is really upset and is unhappy with the customer service you have provided. Using the 4 Stage Recovery Model (Pre-recovery, immediate recovery , follow-up recovery and lesson learned ) explain how in each step will you solve the problem and what will be your strategy. Conclude with the final lesson learned by the company for future

Identify the assumptions and limitations of CVP analysis.

Answer 2

Textbook Question

Chapter 14, Problem 1ED

Ethical Dilemma

For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment.

The accounting, human resource, supply chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures—with much of the purchasing being done at hundreds of regional stores—were not a good fit for the software. At the very least the customizing will add $250,000 to the implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget.

What do you do?

Expert Solution & Answer

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

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Answer 3

Textbook Question

Chapter 14, Problem 1ED

Ethical Dilemma

For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment.

The accounting, human resource, supply chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures—with much of the purchasing being done at hundreds of regional stores—were not a good fit for the software. At the very least the customizing will add $250,000 to the implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget.

What do you do?

Expert Solution & Answer

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

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Answer 4

Textbook Question

Chapter 14, Problem 1ED

Ethical Dilemma

For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, you will reach your yearly quota and get a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment.

The accounting, human resource, supply chain, and marketing teams put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their purchasing procedures—with much of the purchasing being done at hundreds of regional stores—were not a good fit for the software. At the very least the customizing will add $250,000 to the implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget.

What do you do?

Expert Solution & Answer

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

Answer 8

Expert Solution & Answer

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

Summary:

A potential ERP customer has been evaluating the presumptions built into the software which is being sold. If the sale is made the person will get his quota and a nice bonus. If the sale is lost, the person has to look for another job.

The different departments have approved the purchase of the software. But after analyzing their recommendations the person finds that there are many purchases in stores which do not make a good fit for the software.

To determine: The course of action for the person.

Answer 12

Answer to Problem 1ED

The person must try to resolve the problem before selling the software to the customer. The person can discuss with the sales section to know about prior occurrences of similar problems and solving them.

Answer 13

Explanation of Solution

Course of action for the person:

The person must look to discuss the issue with the sales representative manager to know if they have encountered any similar problems earlier and how they solved it. The person may be willing to resolve the problem with the customer by sharing the development costs.

The person can look at the finance department to ask for if there is any allocation in the budget to handle such issues. The person cannot sell the software to the customer masking the shortcomings present in it. By doing so, the practice becomes unethical and becomes a bad business in the long run.

Answer 14

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