Management with Marketing
Before the industrial revolution, the majority of the firms had a single individual supervised process for the business, including both selling and manufacturing, and sales department was not as developed as it is today but just set up by several sale people. At that time, Managers pay most attention on their manufacturing problems rather than develop the marketing area of the industry. As the time move on, nevertheless, because of increasing economy intense competition and large-scale manufacturing enterprises, lots of separate functional departments like human resource department, financial department, marketing department and technical department were established, especially sales department had gone upper into very significant place in organization. Meanwhile, it seems that personal selling is indispensable in sales management.
Personnel selling, involved in promotion activity, act as an oral communication with potential and current clients. In addition, it regards as the most direct way for firm’s representative to know more about customers’ needs and solving their problems. However, is there an ethical problem while salesman making a sale? If it is exist in modern personal selling business, what would happen and how serous is it? This essay will lead you a conception of what effect it would have in the organization and how it suggested to be solved by examining the Harvard business review case ‘How low will you go (April, 2006)’
What is the problem with the company? How serious is it? The Harvard business review article ‘How low will you go (April, 2006)’ refers to an ethical problem in the organization. The sale man Galen took his clients to a strip club in order to make an important sale for the company, In fact, his opportunistic action did not make his boss Bob satisfied, but brought the company a lot of troubles.
Firstly, this unethical problem which caused by Galen could denigrate the whole company’s reputation, as known to all, there is no doubt that how significant the Reputation is to a company and to some extend it is even more crucial than the quality of product sometimes. As a result, Good reputation can not be set up by one day success, or either not by money. It takes long time and extremely hard work to rear a good reputation for an organization, once a good reputation is built up, it would bring huge amount of profit in the business, but it would be easy to break down, taking the case of SK-II scandal.
In china, ‘Procter & Gamble Co.’s P;G label, for branding purposes, their products are almost everywhere in china, helping to build one of China’s most trusted names in advertising and manufacturing. But September 2006, its flagship high-end beauty-care product, SK-II, came close to derailing the credibility P&G forged with consumers over the nearly 20 years it has operated in China. Further, according to The McKinsey Quarterly, in 2003 China was P&G’s sixth largest market, up from 10th three years earlier. Not only did China’s General Administration of Quality Supervision, Inspection and Quarantine allegedly find traces of chromium and neodymium toxins in SK-II, P&G was seen as aloof to consumers’ concerns. Although it has suspended sales of SK-II on the mainland, it failed to facilitate product refunds to the satisfaction of many consumers by suspending refund centers and instituting a hotline that reportedly didn’t always work for individuals.
Other groups have since abated concerns over SK-II. South Korea’s Food and Drug Administration, for instance, said the toxin amounts were too small to pose any health risks. Media organizations in Hong Kong also independently found through testing that chromium was present in samples of SK-II competitors.’ (YOUNG.M & LIU.Y, 2006) therefore, it is can be leant that a firm’s reputation is so hard to accumulate and once a good reputation is denigrated, it would be so much more difficult to retrieve.
Apart from that, Many companies have specific policies and guidelines on business operation ways. The working ways from the staff can mostly represent the organization culture and marked by the customer or business partner as reputation. Their employees are trained on ethical issues. They are many ways to let customers know the products well, however, going to the strip club is definitely meaningless and it is nothing to do with business, and it is for sure that customer wants to know the real value of the products which maybe they have not got too much chance to go through them. And in this case, OptiMotors has very good quality of product, as this main reason they can get many orders and no need to do things out of rules. Go to the stripe club may make bad impression on the clients and even deny business with OptiMotors. In another aspect, if the sales work very hard by flatter on customer can lead customer lose the confidence with the company and its product.
Secondly, It affects the morale of employees. In the aspect of the organization’s culture and value system, those give the sense of direction and passion for staff in their career life. Once the company has incorrect value view or uses some unusual tactic on business will affect the staff’s morale and confidence. OptiMotors might lose many excellent employees whose value system resist them going to strip club. The employees might also suspect the managerial decision when they learn that the company tolerates these behaviors. It will even have more impact on female employees who are likely to feel uncomfortable on lap dancers and sex. Also in the modern business, more people prefer a fair, open and no discrimination working environment as many company try to achieve this target.
In addition, it is likely to foster the unethical behaviors of the clients In a normative business project, every participant has the equal status and should respect each other. As the representative gives too much flattering to the client will make a unfair situation. Such things always happen in the reality business. Clients ask the representative to pay for unnecessary fee and private expense. To develop the business need to use a clean and properly way. Galen’s behaviors are likely to divert clients’ attentions on the value that OptiMotors’ products could provide. The clients who make the decisions based on happiness rather than value of products might take it further to ask for other personal benefits. In additional, not every are interested in such kind of business but no choice as business routine.
Last but not least, It puts company into the risk of lawsuit. In recently year, the business scandal is always exposal to public. We consider the scandal in two areas. First, the worst effect of high level manager to have fun in stripe club. Second: the staff and public’s opinion of such behavior. And in many countries the law has certainly the policy about the business bribery and the relative regulations.
For example, in China, the civil servant is not allowed to play golf, not allowed to be big share of business and go abroad for luxury product shopping. So as in business, each part of groups should have a bottle line of business customer entertaining. But how the money and gift is spending, legal or illegal, unethical or properly, those points should be taking account to the decision. And Does Galen thinking about the effect of taking the client goes to the stripe club? How others and boss will see this things. Going to strip club denying female employees the opportunity to earn a living commensurate with their contributions and capability violate the law and it likely to bring lawsuits to the company.