Guide DIALING FOR DOLI AFS

Guide DIALING FOR DOLI AFS

‘ ,., :::.: -.,… .ii , r. are a Salesperson and your company’s CRM forecasts that your quarterly sales will be substantially under quota. You call your best customers to increase sales, but no one is willing to buy more.

Your boss says that it has been a bad quarter for all the salespeople. It’s so bad, in fact, that the vice president of sales has authorized a 20 percent discount on new orders. The only stipulation is that customers must take delivery prior to the end of the quarter so that accounting can book the order. “Start dialing for dollars,” she says, “and get what you can. Be creative.”

Usingyour CRM, you identifr your top customers and present the discount offer to them. The first customer balks at increasing her inventory: “I just don’t think we can sell that muchl’

“Welli you respond, “how about if we agree to take back any inventory you don’t sell next quarter?” (By doing this, you in- crease your current sales and commission, and you also help your company make its quarterly sales projections. The additional product is likely to be returned next quarter, but you thinlg “Hey, that’s then and this is nowJ’)

“OK/’ she says, “but I want you to stipulate the return option on the purchase orderl’

You know that you cannot \ Tite that on the purchase order because accounting won’t book all of the order ifyou do. So you tell her that you’ll send her an email with that stipulation. She increases her order, and account- ing books the full amount.

With another customer, you try a second stra:?lri Instead of offering the discount, you offer the product a: : jl price but agree to pay a 20 percent credit in the next qua:rr:

That way you can book the full price now. You pitch ::1r., offer as follows: “Our marketing department analyzed ;,u’ sales using our fancy new computer system, 6nd u,s k:, :Hri that increasing advertising will cause additional sales. S:, tir you order more product now, next quarter we’ll give lc,: .tlltl percent of the order back to pay for advertising.”

In truth, you doubt the customer will spend the mr:l*’ on advertising. Instead, it will just take the credit and s:: :n

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.ger inventory. That will kill your sales to the company quarte! but you’ll solve that problem then. :r’en with these additional orders, you’re still under .a. In desperation, you decide to sell product to a ficti-

-: company that you say is o,arned by your brother-in- ‘r-ou set up a new account, and when accounting calls

– crother-in-law for a credit check, he cooperates with : scheme. You then sell $40,000 of product to the ficti- -: company and ship the product to your brother-in- . garage. Accounting books the revenue in the quarter,

– , ou have finally made quota. A week into the next quar-

rur brother-in-law returns the merchandise.

,-nsider the email you write that agrees to take the -:,rduct back. e. Is your action ethical according to the categorical im-

p erative (pages 20 -21) perspective?

b. Is your action ethical according to the utilitarian per- spective (pages 56-57)?

c. If that email comes to light later, what do you think vour boss will say?

l ::gardingyour offer ofthe “advertising” discount: a. Is your action ethical according to the categorical im-

perative perspective?

b. Is your action ethical according to the utilitarian perspective?

trIISCUSSIclN OUESTItrtNS

Meanwhilte, unknown to you, your company’s ERP system is scheduling production. The program that cre- ates the production schedule reads the sales from your activities (and those of the other salespeople) and finds a sharp increase in product demand. Accordingly, it gen- erates a schedule that calls for substantial production increases and schedules workers for the production runs. The production system, in turn, schedules the material requirements with the inventory application, which in- creases raw materials purchases to meet the increased production schedule.

c. \.[4rat effect does that discount have on your com- pany’s balance sheet?

Regardingyour shipping to the fictitious company: a. Is your action ethical according to the categorical im-

perative perspective?

b. Is your action ethical according to the utilitarian perspective?

c. Isyouractionlegal? Describe the effect of your activities on next quarter’s inventories.

Setting aside ethical and legal issues, would you say the enterprise system is more of a help or a hindrance in this

example?

3.

4.

5.

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