written case analysis of Sears auto shockFull description
case studyFull description
1
case studiesFull description
OTSDFull description
case study on beautiful concept of six sigma....
Engineering Management case study
noneFull description
MOTILAL DASSFull description
trialFull description
Full description
wsFull description
yes
Full description
case study
Full description
Full description
Case Study on Tehzeeb
fdsfsdf
HSG CASE STUDY
Case: Sears, Roebuck and Co.: The Auto Center Scandal
Determine all the facts:
Symptoms of Problem
Began experiencing serious financial difficulties in 1980s
Wal-Mart pulled ahead in market share, leaving sears lagging
40% decline in earnings
Sears unveiled a productivity incentive plan to increase profits in its auto center nationwide (bad mistake)
Sears checked for issues but not having an initial system and assuming employees would behave ethically was a mistake
Did not have proper auditing system in place.
Root of Problem
Law suits were set out for Sears with accusations that Sears violated the state' and auto repair act and sought to revoke licenses of all Sears auto centers in California.
Consumer complaints about brake repair
Sears accused of misleading customers and charging them for unnecessary repairs.
Root of problem attributed to Sears Auto Centers compensation system.
Only admitted to small infractions
Cover up cost Sears millions
Ethical issue cost them Americans trust
Unresolved Issues
Eliminating the incentive compensation program for service advisors
Substituting commissions based on customer satisfaction
Eliminating sales quotes for specific parts and repairs
Substituting sales volume quotes
Roles of Key Players
Stakeholder:
Consumers:
Bought products that they did not need
Services they did need were not completed or jobs were not half done resulting lawsuits.
Employees:
Sold things to customers that were not needed.
Many things were overlooked and undone due to greed of incentives.
Management:
Managers did not focus on the consequences of their decisions.
They did not consider what was universally correct based on virtue or what was socially acceptable.
Shareholder:
Lost trust as well and started to doubt
Community:
Lost trust in the Sears brand
Ethical Issues Involved
Deontological
Duty
Obligations
Principles
The deontological perspective is relating to philosophical theories that state that the moral content of an action is not wholly dependent on its consequences it was the rights of the company to seek profits out they did not consider the right of employees or the customers.
