Question: You graduated six months ago from a Boston MBA program.You earned your degree part time in the evenings so that you could continue your work

You graduated six months ago from a Boston MBA program.You earned your degree part time in the evenings so that you could continue your work as an advertising assistant at a prestigious Boston firm.You are thankful that your firm financed a large portion of your degree and that you were able to support your spouse and young child while attending classes.

Green Move was one of several marketing positions for which you interviewed.You were attracted to Green Move because it struck you as "young and energetic" with the potential for tremendous growth.The interview consisted of a single meeting with the three founders who explained that your primary objective would be to expand the sales of the Zero Pedal to the southwestern part of the United States.It was explained that your success at Green Move would be measured exclusively on the expansion of the Zero Pedal into this new market.Your modest salary would be supplemented with stock options in Green Move in proportion to the product expansion.

You learned during the interview that Green Move was replacing a "bad fit" employee whose departure was "mutually agreed upon" after only six months.You gladly accepted the position with a handshake and agreed to complete the necessary tax forms to begin work in two weeks.The only documentation you received was a stock option agreement.You never received any employment training, instruction, or manuals.

Three months have passed since you started at Green Car and you have made several friends including Doug, a product engineer on the development of the Zero Pedal.Much to your surprise, Doug has explained in confidence his concern regarding the operation of the Zero Pedal in warm climates.He claims that the bike accelerates dangerously after the solar panels have been exposed to temperatures exceeding 100 degrees Fahrenheit for four consecutive hours.Apparently, his team had uncovered this defect during the design of the Zero Pedal.He tells you that he planned a report outlining the dangers of the acceleration and that he shared his findings with your predecessor and that he was suspicious of his firing.Doug believes that your predecessor was fired because he questioned management about this defect.

Doug tells you that your predecessor presented the cost per bike to fix the defect to the board but that Robert claimed the report was incomplete without a comparison to the costs of "not fixing" the bike.Robert also claimed that he could not imagine a situation in which the bike would be exposed to those conditions.The two had a heated discussion and two weeks later you responded to the job posting.

Doug further discloses that regulations under the National Highway Traffic Safety Administration (NHSTA) that would otherwise limit the production of the Zero Pedal do not apply because the bike is not "gas powered."As a result, the production of the Zero Pedal is entirely unregulated.

You are wondering about the decision you have to make for the product safety problem on your return trip from Scottsdale, Arizona where you had met with several sporting goods chains to discuss the roll out of the Zero Pedal.The buyers seemed impressed by the Zero Pedal but you did have a curious encounter at your final stop.There, the buyer causally mentioned that he would personally expect payment of a "special "$5,000 annual fee to place the product on its shelves.

While this problem is in the "latency stage" should Green Move apply the cost/benefit analysis in analyzing safety concerns about the product? What are the risks?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!