According to the Packaging Systems Incorporated (PSI) case study, the move by the company to cut down supply to the shredded market and to increase supply to pallet overwrap market is of high unethical values. The business move to concentrate on the well-doing market and cut down the shredded market is a good aim, but the approach taken has considerable effects on many customers.
The company failed to reconsider its customer needs when they decided to lay down the list of setbacks that did not show the expected returns. With the situation being of aim for the greater good of the company, the move by the company to cut back 30% of the shredded film and diverting the emphasis of pallet overwrap film market would have done by gradual steps until the company would be able to satisfy all its customers’ margin. The company sales cut off move only shows the concerns to the customers’ needs is of little appreciation (McClaren, 2013).
Also, one of the other unethical terms of agreement subjected by the company to its customer is having a written assurance of supply should be first planned before indulging in search agreement. It is unethical for any business to use false guarantee to its clients or customers without accessing the company capabilities in fulfilling the agreement. A good scenario is seen when PSI faces significant setbacks by the fire in one of their production station, therefore, having to implement unexpected strategies. This shows that the company had no any other back plan despite a substantial commitment to its customers (Carroll "Buchholtz, 2014).
Braxton’s argument with Chandler was of considerable importance in trying to show his doubt on the idea of rolling over some of the shredded companies. Also, Braxton action to continue with Chandler move to cut of sales to some of the customers was unethical as a professional salesperson for the company. Braxton as a salesperson of the company should always consider in portraying the best image of the company unlike the strategy laid out in letting off some of the company’s customers. The later consequences experienced by the company show the firm could maintain its entire market after even messing up the pallet overwrap film market expected to be exploited as of potential.
Chandler’s action was highly unprofessional and unethical, especially in the cutting off some companies customers. The company should have strategized sales methods that could have curbed the entire market(McClaren, 2013). Chandler should have concentrated on improving the poor market instead of cutting off sales to the market; this would have improved more of the company’s market. Chandler should also have considered some of the ethical practice for the company before implementing, i.e., the written guarantee to the customers.
As to the affected customers, the company should input strategies to minimize the cost of damage of unexpectedly cutting off the supply. Some of the strategies should include compensation means for trouble cost of the uncalled interruption. The essential detailed execution should direct the sale representative on the importance of good company image to the customers. As to the part company production, it should always have the specific strategic means that will able to satisfy the entire market. Therefore, any agreement the company will about with customers should always of high importance in the satisfaction of customer wants (Carroll "Buchholtz, 2014). With these strategies well implemented, the effect minimization to both customers’ needs and PSI production and sales levels.
References
Carroll, A., "Buchholtz, A. (2014).Business and Society: Ethics, sustainability, and stakeholder management. Nelson Education.
McClaren, N. (2013). The personal selling and sales management ethics research: Managerial implications and research directions from a comprehensive review of the empirical literature. Journal of Business Ethics, 112(1), 101-125.
