QUESTION #$1$

You are a Supply Chain Manager for Primo Caf$,$ reporting to Marco, who is the Chief Operating Officer. Meredith is the Engineering Supervisor for Primo Caf$.$ Annually, Meredith tests the best products from Primo Caf$$s competitors to confirm that the Caffissimo is still the best coffee maker on the market. This year, while testing CofeRUs $($a competitor to Primo Caf$)$ best product, The Magnifico, she finds that it is superior to the Caffissimo in many parameters. She reconfirmed her test results, documented her findings, and reported the results to the management team at Primo Caf$.$ Ryan, Primo Caf$$s Vice President, Engineering, asked Meredith to take apart The Magnifico to understand why it might make a superior cup of coffee.

To everyone$$s surprise, Meredith found out that The Magnifico uses a temperature gauge from ACG, one of Primo Caf$$s suppliers in the Caffissimo! Marco has always assumed that ACG$$s main business was in large kitchen appliances $($ovens$,$ refrigerators, microwaves, etc.$)$ and that ACG$$s only customer in the coffee market was Primo Caf$.$ While Primo Caf$$s agreements with ACG do not limit ACG to only conduct coffee maker business with Primo Caf$,$ Marco always assumed that ACG would not work with Primo Caf$$s competitors!

Ryan is very upset $$How could ACG treat us like this! Where is their loyalty to us$!?!$ Marco, you need to find out how CofeRUs is using ACG$$s gauges, and why it is performing better than the Caffissimo!$$ Primo Caf$$s management team seems to side with Ryan$$ACG is not a loyal supplier and they need to rectify this situation in Primo Caf$$s favor immediately.

Marco and you call ACG$$s President, Tracy Anderson, and explain the issues with Tracy. Tracy states that Primo Caf$$ is a very important customer, but that ACG never considered their business relationship to be exclusive. Yes, ACG is selling temperature gauges to CofeRUs, but ACG never would disclose Primo Caf$$s company secrets to any other company, and likewise, ACG will never disclose another company$$s secrets to Primo Caf$.$ Furthermore, they manufacture gauges for CafeRUs at a different location than their manufacturing plant for Primo Caf$$s gauges so that intellectual property between customers is kept separated.

Marco and you review Primo Caf$$s written agreements with ACG again. The documents do not state that there is an exclusive relationship. Ryan and the rest of the management team still want to know details regarding The Magnifico$$s design and performance criteria, so that it could possibly be integrated into the Caffissimo$$s design. Marco asks you for a recommendation on how to proceed.

QUESTION $1$ CONTINUES TO NEXT PAGE

Applying the ethical framework presented in Week $1$s materials, complete the following.

Step $1$: Recognize an Ethical Issue

$$ Is this an ethical or legal issue, or both?

Step $2$: Get the Facts

$$ What are the relevant facts of the case?

$$ What facts are not known?

$$ What individuals$/$groups have an important stake in the outcome?

$$ Do you know enough to make a decision at this point? Why or why not?

Step $3$: Develop Potential Alternatives

$$ Develop three creative options for acting.

$$ Have all the relevant individuals$/$groups been considered in your options? Explain.

Step $4$: Take Action & Measure Impact

$$ Develop a detailed plan for implementing one of your alternatives. What would you do first, second, third, etc.

$$ What is the right metric$($s$)$ for measuring the success of this action?

$$ Does your metric align with your ethical goals? Explain.

Step $5$: Reflect on Outcomes

$$ How might you adjust$/$improve your course of action if things do not go according to plan?$\text{'}$