Question: The Bean Boiler is Primo Caf's most basic model. The main materiais used in manufacturing the Bean Boiler are aluminum and plastic. There are lots


The Bean Boiler is Primo Caf's most basic model. The main materiais used in manufacturing the Bean Boiler are aluminum and plastic. There are lots of suppliers for these materials. At present, Primo Caf's total cost for producing a Bean Boiler is $13 per unit and the product is competitively priced at $20 per unit. There are lots of other coffee makers that are very similar to the Bean Boiler on the market. Still, sales of the Bean Boiler are very stable. The company reliably sells 24,625 to 25,375 units of this product per month. The Family Man is Primo Cafe's mid-market offering. Primo Caf manufactures most of the Family Man in-house, but buys the glass pot and the electronics that control the on/off function and the timer. At present, final assembly of the inhouse manufactured parts and the purchased sub-components occurs at Primo Caf's facility in Grand Rapids. Total cost for producing the Family Man is currently $32 per unit and each unit is sold for $34.99. The Family Man's sleek, artistic design and range of unique colors helps to distinguish it from a wide selection of similar products offered by competitors. Prices for direct competitors range from $25 to $45. Sales of the Family Man range from 19,400 to 20,600 units per month. The Caffissimo is Primo Caf's high-end offering. Primo Caf produces the external casing for the Caffissimo in-house, but buys all,of the important subcomponents from external suppliers. The most important sub-components for the Caffissimo are the gauges that regulate the temperature and pressure of the water as it is forced through the coffee grounds. The proper working of these gauges ensure that the Caffissimo produces a perfect cup of coffee at brewing. The Caffissimo's design is a closely held company secret. The machine has won industry awards both in terms of its coffee making process and its external looks. Currently, the Caffissimo costs $375 to produce and sells for relatively high price and unique design, demand for the Caffissimo is difficult to Six months. ago, you received an urgent phone call from Marco. He was notified from ACB's local salesperson that one of ACB's suppliers' factory was destroyed by a flood in Thailand. ACB is a sole source, strategic supplier of the large metal pieces on the outside of Caffissimo. The metal pieces are produced by ACB with a proprietary metal alloy and painted in vibrant colors. VBS, the tier 2 supplier destroyed by the flood, provides the vibrant paint dyes to ACB. Marco was in a tailspin. if ACB runs out of dyes before they can find another source to replace VBS, Primo Caf may have to stop production of the Caffissimo! Fortunately, you are more level-headed than Marco. Through your investigation, you found out that ACB has enough inventory (in-house and in-transit) of dyes to keep the Caffissimo in production for the next 4 months. Unfortunately, VBS' factory (their only factory) was fully destroyed, and likely will take 12+ months to recover. So, between Primo Caf and ACB, a new tier 2 supplier will need to be identified and qualified. ACB committed to take the leadership role in finding a new dye supplier, but Marco wants you to be involved in the sourcing process and qualification of the dyes / colors. ACB quickly identified three possible sources for these unique dyes-one in Vietnam, one in The Philippines, and one in Taiwan. They asked you to attend site visits at each of the potential suppliers to understand if they have the technical capability, quality culture and managernent commitment to be a supplier to ACB (and a tier 2 supplier to Primo Caf) ACB and you visited all three suppliers and decided that two are more than capable - the suppliers in Vietnam and Taiwan. Color samples were given to both suppliers and sample dyes from both suppliers were sent to ACB and Primo Caf Unfortunately, both suppliers had difficulty to meet Primo Caf's color standards. After two unsuccessful color match iterations with both suppliers, ACB and you decided to focus efforts with the supplier in Taiwan. ACB and you flew back to Taiwan to visit the supplier and were able to work through the issue for a successful color match! In fact, off the record, Marketing thinks that the colors are even better than what was produced with VBS' dyes. The great news is that you were able to complete al.ot this work in just over 3 months, so Caffissimo production never stopped! Today, Marco came into your office. The Primo Cafe leadership team is concerned about the potential of a global recession and is carefully looking at each department's budget and expenses. Due to your travel expenses and the significant qualification costs associated with approving a new dye supplier, Marco is 565,000 over budget. When he explained this to the Primo Caf Leadership team, Primo Cafe Accounting said this isn't our problem-ACB should pay for these expenses. And the Legal team believes that Primo Cafe can legally require $65,000 reimbursement from ACB. Marco acknowledges that ACB's sense of urgency and competence in finding another dye supplier was outstanding- Marco and you agree that S65,000 is a reasonable cost for the work that you completed on this project. Marco is scratching his head on what to do next. Marco wants a recommendation on what Primo Cat should do. Applyine the ethical framework presented in class, complete the following. Applying the ethical framework presented in class, complete the following. Step it Recognize an Fthical Issue - Could this decision or situation be damaging to someone or to some group? Explain. 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 decisian 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
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