Identify the ethical issues that arise in this case study.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Rajan, a customer of Jacky's looking for a Radio set. Rajan is particularly interested in purchasing a Radio, according to Michelle, the sales manager for the consumer electronics department at the cheap retailer. He informs Jacky, the salesperson at the cheap store where he believes he will get the best bargain, that his old radio recently died and he is desperate to listen up on his favourite songs. The sooner he can purchase and receive a replacement radio, the better, he explains. Jacky is aware that in three and a half weeks, the model Rajan appears to prefer significantly more than the others will go on sale for 10% off.

He suspects, though, that Rajan is not willing to wait that long and may seek employment elsewhere. Additionally, Jacky will get less commission on the discounted price. As a result, he concludes that notifying Rajan of the planned sale makes little sense.

When Jacky informs Rajan that the radio set, in which he is interested is now unavailable and will not be available for another week, Rajan is angry. Fearful of losing the business, Jacky rushes to the back room and asks Michelle, his sales manager, whether anything can be done to expedite delivery. Michelle states that this is impossible and proposes that Jacky inform Rajan that the store can obtain the set within 24 hours and sell him the demonstration model. Michelle emphasises that the sample is in brand-new condition, and Rajan will have no idea.

Jacky believes that selling the demonstration model to Rajan is inappropriate. Jacky considers an alternative sales strategy in light of the fact that it will take five working days to receive a fresh set at the store. She informs Rajan that he may expect a set in two days, then phones him the next day to inform him that it will be sometime next week due to a backlog of orders at the factory. Jacky is unsure how he will be able to secure the deal today.

 

QUESTION :-

Identify the ethical issues that arise in this case study.

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