04 Aug Ron Kapra is sales manager at Electra Toy Company, a retail toy store specializing in electronic games
Dumping Inventory: Should This Be Part of Your Presentation?
“Ron Kapra is sales manager at Electra Toy Company, a retail toy store specializing in electronic games. Ron’s brother-in-law Jerry works for the company that manufactures the Lasertron electronic game. Jerry mentioned to Ron that the company is coming out with the Lasertron II in three months. However, it will not be announced to retailers for another two months.
Lasertron II will have advanced technology over the present model. The new game cartridges will not be compatible with Lasertron I. Once Lasertron II comes on the market, consumers will want it and not the present model. Jerry explains that for any of the present models the retailer returns after the introduction of Lasertron II, the manufacturer will refund to the retailer the retailer’s original cost of Lasertron I”.
(Read the remaining case at the end of the chapter and respond to the following questions 🙂
Questions
What are the ethical considerations, if any, in this case?
At what level of moral development are Ron and Bill operating in this business situation? Explain your answers.
What would you do if you were Ron?
What would you do if you were Bill?
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