Oreck Company Case Study

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About the Company and David Oreck

• “David Oreck founded the Oreck Corporation in the United States in 1963. The company’s principal manufacturing facilities are in Cookeville, TN.”
• “In 2001 Oreck had 200 Oreck-owned stores across the nation, and worked out a licensing deal for investors who can set up Oreck Prototypes for a $75,000 investment.”
• “The vast majority of Oreck sales took place over the telephone or through the mail.”
• David Oreck was born in Duluth, Minnesota. In New York City it was revealed that his true calling was working as a salesman. He sold everything from televisions, microwaves and Whirlpool appliances; he ascended to become general sales manager. In 1963 he left to form Oreck Corporation. Since Whirlpool
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3. Customers are less likely to return if they feel that they always get pressured into buying things they don’t need. They should not be pressured into sales instead sales reps should listen more attentively to the customers, and attend to what the customer actually needs.

4. Sales force should not be forced to sell products to the customers. They should provide proper and useful information to help the customer’s need.

5. Fair and reasonable salary allows for a greater commitment from the employees to the company. Training staff members needs time and effort, but if there is a high turnover rate, then in the end the company will lose precious time and effort.

According to Milton Friedman “the only social responsibility of business is to increase its profits.” As with the case study, Mr. Paulson solely aims for maximizing profit. “Acting "responsibly" risks reducing profits or forgoing revenue in the name of social good.” “Profits are the most important, but not the only behavioral constraint of the firm.”

A solution for raising the awareness on business ethics would be by formalizing an ethics policy and or code of ethics. “When firms design an explicit code of ethics, they are attempting to transform moral ambiguity in their environment into organizational self-commitment by rules and values.” “Firms that have codes of ethics are not making statements about

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