"I pledge on my honor that I will not offer, give or make available; that I have not offered, given or made available; that I will not receive, use, or agree to accept; and that I have not received, used or agreed to accept, any assistance (and that I have not consulted and will not consult any sources other than the readings assigned for this course) in preparing or completing this writing assignment - or in preparing and completing any other writing assignment (including any substitute assignments) - in BMGT 496 for Spring 2013 at the University of Maryland, Robert H. Smith School of Business. I further pledge on my honor that I will not offer, give or make available any assistance directly or indirectly to any other students in preparing or completing any assignments (including any substitute assignments) in subsequent offerings of BMGT 496 at the University of Maryland, Robert H. Smith School of Business."
Model Proposal for the Ford Pinto Case
Internal Corporate Memorandum
To: Tom Malone and Bud Hackert Date: 14 February 2013
From: Nicole Heylmun, Project Manager
Re: Seleris should not pay Devin for information on the Silicon 6 Project cc: Martha McCaskey
Context: Seleris Associates Industry Analyst Division is currently working on a project with a long-time client. The client wants Seleris to obtain information about the cost structure of a newly opened plant that produces computer chips similar to those of the client company. As of the last meeting, Seleris, and the consultant working on the case, Martha McCaskey, had not obtained any new and relevant information for the client. However, it was revealed to the client that McCaskey was in touch with a consultant who would be able to provide them with the information needed, given the right incentives. The client then agreed to double the fee paid if the information was collected, and promised future business. Yet, the information needed is possibly proprietary, and could cause legal ramifications for Seleris and for the individuals involved in the project should the consultant turn them in. The question proposed is what decision should be made to maximize Seleris’ Net Operating Profit in the long run.
Proposal: Seleris should not try to pay the consultant in order to obtain proprietary information.
Reasoning: By adopting my proposal, Seleris could or would incur disadvantages in the following manner and extent: Ford would certainly lose the present and future business of the important client. This could also cause further ramifications through negative word of mouth from this client to Seleris’ other clients.