A Salespersons Dilemma - Whos Interests Come First - Case Study Example

A SALESPERSONS DILEMMA Whos Interests Come First? Problem ment Janet Holcombe was a relatively young specialist working as a salesperson for TheDaily News website and app. One of the clients of The Daily News is Harry Godowski – the owner of the city’s largest jewelry store in the city who had been spending his $75,000 yearly advertising budget with Janet on TheDailyNews.com. However, Janet was approached by Sy Abell who has set three key conditions for establishing cooperation with the Daily News: information on Godowskis expenditures and schedules, guaranteed page positions, and a 33 percent discount off Godowskis rates (Warner 4). Analysis of the Problems If I were Janet I would not accept the business deal offered by Sy Abell as it would be unethical and unprofessional behavior. Abell’s offer is conflicting with the ethical and moral standards, as it requires unethical behavior towards its key competitor, the owner of the jewelry store, Harry Godowski. Janet has already established good and reliable relationships with Mr. Godowski and the fact that he invests 100% of his marketing budget to The Daily News is a strong argument. Warner’s statement that “it is not smart business to undo a trusting relationship and bite the hand that will feed your company in future years” is perfectly applicable to this situation (Warner, Chapter 3, p. 2). By cheating and gouging Janet will jeopardize revenue of the company and there is no guarantee that Sy Abell and the company he represents will become The Daily News’ client in the long-term perspective. Janet, being a salesperson, should act ethically in order to increase her self-esteem, self-confidence, and self-image. This behavior will give positive results to both Janet and the company she works for. In case if the deal is taken, it would be necessary to tell something to Harry Godowski. While it will be possible to say it when Mr. Godowski sees the Hess banners above his on the Daily News website, but I suggest that it would be helpful to apply the principles of Emotional Intelligence and ethics, and inform him before the Hess banners are placed on the website. It will be necessary to communicate a sense of caring for Mr. Godowski while informing him about the news. Also, it might be logical to offer him an alternative solution and explain the benefits of this solution. May be, there could be developed some exclusive offer to Mr. Godowski which will keep him satisfied with the Daily News. If I do not take the deal offered by Sy Abell, I would need to give proper arguments to my sales manager. The reasons of why I did not take the deal would be based on the pillars of business ethics, the necessity of building trustful and respectful relationships with clients in the long-term perspective, and the risks associated with the unethical behavior, such as acceptance of Abells’ offer. I would argue that the company’s credibility would depend on my credibility acting as a salesperson on behalf of the company, and therefore, my personal conduct and ethics are crucial for The Daily News (Warner Chapter 3, p.7). It would be also important to explain to the sales manager that by deceiving one of our loyal customers, the reputation of the company will be threatened and might result in the public negative reaction (Warner Chapter 3, p. 2). Janet should explain the five C’s to the sales manager, defining each element separately. These elements would include: responsibility to consumers and their conscience, responsibility to customers, responsibility to community, and responsibility to a company (Warner Chapter 3, pp. 4-7). It is important to remember also that ethical behavior of the company preserves its greatest assets, its reputation in the long-term perspective (Warner Chapter 3, p. 4). The risks are too high, and the benefits of the Abell’s offer are quite questionable as the reputation of this man is doubtful. There might be developed some counter proposals to Sy Abell. First of all, I would comment to him that his demands are conflicting with the corporate code of ethics. I would also suggest that if tomorrow there will be a new client with better proposal and the company will ask about Hass schedule, budget, and other confidential information, the Daily News will not meet this requirement enabling fair competition on the market. Taking into consideration the fact that the Daily News is the leader on the market, the company’s position for dictating rules is much stronger than Sy’s position. Counter proposal would be placement of banners on the website without disclosure of any confidential information regarding the business of Mr. Godowski. If I were Janet I would handle Sy’s pass at me with applying the principles of Emotional Intelligence, such as: handling of own emotions and impulses, courageous, and optimism. I would try to explain to him the ethical principles applied in the Daily News Company (if any) and would try to ensure him that his demand is not the best solution. Recommendations for solutions to the problems Janet is recommended to act ethically in relation to herself, customers, partners, and the company she works in. However, for employees to act ethically, the companies should create and communicate code of ethics, where will be listed the ethical standards and code of behavior of salespeople. In case if the Daily News Company will pursue only financial benefit despite the risks related to business reputation, Janet is recommended to leave the company and look for another job. As Warner explains employees should not become a whistle blower if executives of an unethical companies do not follow the rules and principles of the code of behavior. However, Janet might focus on more positive outcomes, and explain all the risks and potential problems associated with the Sy’s deal. The Daily News’ management is recommended to reject Hass’s offer and to focus on establishing trustful and reliable relationships with other customers, such as Mr. Godowski. Implications your recommendations will have on the operation of the organization The implications of the above given recommendation will have different effects on the operation of the organization. In case if Janet will leave the company because of unethical approach of the management to serving customers and doing business, the organization will lose valuable employee and will discourage ethical behavior among other employees as they will fear about losing their jobs if they would act as Janet. If the company will introduce code of ethics or code of ethical behavior there will be some obvious positive outcomes for the company. Salespeople will adhere to the ethical principles and will strengthen company’s reputation on the market. While it might take some time before the company will achieve planned performance, the result will have positive long-term effect and will be attractive for greater number of clients and partners. People who will read the Daily News also will see that the company is not advertising everything it is paid for, but is quite selective to its partners. This aspect will definitely increase reader’s loyalty and will help to maintain the number of existing readers as well as attract new readers. In such a way, the Daily News will become even more attractive and desirable media platform for both potential and existing advertisers. However, besides these benefits it is worth to mention that there might be some negative effects in the short-term perspective for the company, as it will lose some of its clients and frighten off some potential advertisers. References: Warner C. A Salesperson’s Dilemma (2013). Warner C. Media Selling, 4 ed. Read More