Can you please answer question 1

B Chapter 4 Assignment - Principle X Raider Inc PLB Ethics Case-2016 ( x Ethics Case Assignment Sp 15 X + X - -> C @ File | C:/Users/molly/Downloads/Raider%20Inc%20PLB%20Ethics%20Case-2016%20(1).pdf M Paused E Raider Inc PLB Ethics Case-2016 (1).pdf 1 /2 70% + Management 3610 Ethics Assessment Case utilization of new "digital printing techniques" designed to produce smaller quantities at lower unit Jon, Rick, and Beth had been friends for a long costs. Jon would intervene as a "consultant", time and their relationship had been very profitable. working a couple of days per week, coaching the They met while each was working toward an MBA at remaining management team on how to organize, the esteemed Jennings School of Business - Middle lead, and control the business. The prospects were Tennessee State University. Together, the three good, with the strategy developed by the Raider Inc. developed a business plan for a company that would team, that PLB would soon be generating cash. acquire businesses and after graduation they "gave it Then Rick asked, "What about Johnson a go." Their company, Raider Inc., had purchased Printing?" Johnson Printing had been a loyal and several distressed companies and had either trusted PLB vendor, continuing to provide novels developed them to become "cash cows" or had sold during lean and prosperous times as a true strategic them for great profit. Beth's strength was marketing partner. Johnson Printing had inventoried books and Rick was a finance specialist, and Jon was the allowed extended terms on its accounts receivables management guru who developed strategy and kept with PLB. Without Johnson Printing's support, PLB the group on task. might not have survived the last few years, much less Another company, Pacific Life Books (PLB), enjoyed growth in the book segment of its business. appeared on the radar as a possible acquisition PLB owed Johnson Printing $250,000. This candidate. Jon, Rick, and Beth visited the company represented PLB's largest accounts payable, by far. and had gathered information related to their "Of course, we'll default on that unsecured debt," particular business discipline. This was not their Jon quickly replied. Jon's answer didn't surprise "first rodeo." The trio worked methodically, not Rick. Rick countered, "I am not sure I am completely wasting time by stepping on the turf of another. It comfortable with that. Johnson Printing is a small was now time to compare notes and determine if company, a blow that big could put them out of proceeding to acquire the company was a good move. business." Surprised that Rick would question the Jon called a meeting of the three to consider the strategy, Jon stated, "We'll give them the opportunity possibilities. As was their norm, the three met in to do business with us in the future. As for the Raider Inc.'s conference room to deliberate. These $250,000, if they choose to pursue legally we'll just intense sessions took most of a day and sometimes bankrupt PLB and continue to execute our strategy. spilled over into another. In front of them lay all the As for you, me, and Beth, we'll be protected by the related information: financial statements, marketing C-corp status of both PLB and Raider Inc." (Note: reports, lease agreements, etc. Generally, when one company buys another, they Pacific Life Books was a publishing company legally assume both the assets and the liabilities.) which specialized in novels related to life on the Rick paused and said, "I know we've successfully American West Coast under the theme "life near the executed this type of maneuver, walking away from a ocean". Beth reported that the company's brand was company's previous debt, several times in the past. I solid and could be the basis of a strong marketing recognize that we've never suffered legal recourse effort going forward. Rick identified the cause of the from vendors we've defaulted on. But several loyal company's distress. In an effort to lower unit costs, vendors have suffered much because of our actions; PLB typically procured large quantities of books we drove more than a few out of business. We've from its supplier; the result was a large growing made a lot of money buying and selling companies.. inventory that continually drained PLB's cash a lot of money. In the first few years, the only way coffers. Jon provided insight into the organizational we could do a deal like this was to default on the chart and management culture at PLB; vast accounts payable. But now, is it necessary that we improvement opportunities were available on that put another good vendor in distress to get this deal front. However, if a sale of PLB wasn't consummated done?" soon, PLB's existence was threatened. After much deliberation, a potential strategy was developed. Raider Inc. would purchase equity in PLB, converting it to a privately owned C-corp, and the previous owners would continue as minority owners. The inventory would be reduced through the This case is solely for the use of MTSU's Principles of Management Classes and cannot be duplicated in any way. Type here to search O 21 9 w 92% 11:46 AM 60 F Partly sunny 9/23/2021B Chapter 4 Assignment - Principle X Raider Inc PLB Ethics Case-2016 ( X Ethics Case Assignment Sp 15 X + X - -> C @ File | C:/Users/molly/Downloads/Raider%20Inc%20PLB%20Ethics%20Case-2016%20(1).pdf M Paused E Raider Inc PLB Ethics Case-2016 (1).pdf 2 /2 70% + Questions for Ethics Assignment: 1. What is the ethical issue in the case? What makes this an ethical issue? 2. Who are all of the stakeholders that are impacted by the ethical issue in the case? Discuss how the ethical issue impacts each stakeholder. 3. Discuss at least three solutions for Raider Inc. to solve the ethical issue. Be sure to discuss the impact of those different solutions for the organization and stakeholders. 4. Recommend a course of action for Rick to resolve the ethical issue. What steps should he take? Be sure to discuss the benefits and risks of this course of action. 5. Assuming that the leaders of Raider Inc. do not want their employees to behave unethically, what are several (at least three) things that can be done to improve the ethical climate? What steps can the managers at Raider Inc. take to guide employees to make more ethical decisions? This case is solely for the use of MTSU's Principles of Management Classes and cannot be Type here to search O EI 9 W 92% 11:46 AM 60 F Partly sunny 9/23/2021