Case Study: Business and Corporate Law: Green Move
In regard to the information given by Doug, the most appropriate step is to invite other specialist in the engineering field to ascertain his claims, after which report back to the directors with a more concrete argument on the need to address the matter seriously. It is common knowledge that it will be rather hard to rebuild a brand if it starts to collapse due to errors that could have been dealt with internally. It is evident from the reasons Doug informed about the suspension of the predecessor that it is the concerns that he raised that led to the fate that befell him. The pressures at hand include convincing the directors why the issue needs to be addressed urgently, estimating the costs associated with redesigning the bicycles so as to make them safer for use in warmer climates, and finally, identifying new market frontiers so as to create more sales avenues.
In solving this matter, much is needed to be done with understanding the net effects of making necessary adjustments to the product, both positive and negative. Defining the problem is very important and, more so, understanding the problem by sharing it with the other management team that must also understand what the problem is. Therefore, achieving a mutual understanding informs that there is a problem that needs to be addressed and having everyone on board ensures that there are no disagreements arising in the process of trying to introduce ways of dealing with the problem. In such a way, the main part of decision making will not be a personal issue but be a resolution arrived at by all players involved in production as well as management. To achieve all this, information will be provided to every member of the management as well as production teams. The information will contain numerous details to ensure that every aspect is tackled independently, with emphasis laid on issues and effects, making adjustments, cost implication of making the adjustments, and finally, the challenges the product will face in the market.
Relationships with retailers play an important role in the distribution network. Therefore, it is recommended that the company may consider paying them the “special $5000” annual fee as this will create confidence among the retailers. It is important to note that they will not only be helping in distribution, but they will save the company from setting up new sales store in all those markets and the salesforce of personnel. In fact, this action may be considered as being unethical or even illegal. It is imperative to note that the retailers need to cover the cost of renting their premises as well as advertising. Thus, this amount will help in covering these costs while the products are on their shelves. There is nothing wrong with making such arrangements with the customers as long as that does not violate any law or even being considered unethical. As long as there is a mutual agreement by the parties involved, that will pass the legality and ethical tests.
There are numerous reasons to conduct the cost/benefit analysis at the latency stage. At this stage, adjustments can be made with very little impact on the total production cost. In addition, at this stage many innovative measures can be incorporated with minimum effort as there are numerous developments that progress, and carrying a cost/benefit analysis will help in determining the best technology to be adopted. It is also important because the production cost can be evaluated and unnecessary processes and procedures can be scrapped out to make the production process efficient and effective.
Realizing that Solar Group is an independent company from Zero Pedal, there is no single reason to justify the interference of the affairs of another company. The reason for this is the fact that it goes beyond the legal stipulations that justify independence and the need to respect the integrity of other parties. Additionally, it denotes the ethical provisions of treating other parties in the society. It should be noted that what is legal in Bangladesh remains to be so even if it is illegal in the U.S. These are different countries, and each is governed by its own laws, and the standards, which each of them uses, are definitely not going to conform. However, if the Solar Group had signed an agreement with Zero Pedal on the wages of its employees and that no children should be used as laborers, it will be important for Robert to intervene and ensure that Solar Group follows their agreement. There will be no reason to terminate the agreement as both companies will have something to lose. There is high unemployment rate in Bangladesh, and if the agreement is to be terminated, it means that the workers will lose their source of income. Equally, the Zero Pedal Company will lose their source of raw materials at a relatively low cost, and it might take a long time to enter into a new agreement for the production of the raw materials.
The working conditions are the major concern for most American companies, and according to expectations, even the partners from other countries should adopt American standards. However, the reality is that such cannot be the case as the economic level of each country is different and there are other factors that affect the implementation of these conditions. Hence, there is not much that Robert can do to influence the changes as much as there was an agreement on the issues raised. It is reasonable to raise concern on the impact of the information the blog will publish on its site. This is because the information will influence the legitimacy of the products of Zero Pedal Company and its association with the Solar Group Company, which undermines the rights of its workers. It is likely that if such information reaches to the public, the sales of the Zero Pedal Company will definitely fall, which will result in entire liquidation of the company. Labor practices are one of the most sensitive aspects, and any violation of the rights of a company’s employees should not be undermined.
Given that the decision of expansion had been discussed and there is a general agreement on the issue, it will be of absolute importance to place a bid for the property. There are varying descriptions of the portrayed product destined to serve the main provisions of the company in addition to the amelioration of the Russian society. The fact that this is a government property leads to the postulating of more assurance that the property in question would not be overpriced. Other enabling factors that crop into the equation make the property more attractive as a possible investment platform. Owing to the fact that the property was leased following a competitive bidding process, there is no reason as to why Viktor should adopt the second envelope. This is not only illegal but is an act of corruption that will compromise the process, which is supposed to be transparent and fair to all participating competitors. Each competitor should be accorded equal opportunity to make the offers that they feel are worth the property, and as it is said, the best match will win the bid.
Had Viktor included the second envelope, which could have amounted to a criminal record of bribery, this could result for him to not only getting imprisoned but also missing the chance to acquire the property on behalf of the company. The move to expand the business to Russian had been discussed, and it is important because the company will be able to operate in foreign markets. This also presented an opportunity for the company also to on its operational cost by engaging in low cost production. Viktor also added that there is much skilled labor in Russia, which is not very expensive. Based on these issues, the move to expand the company operations to Russia is justified and will be a great opportunity to expand.
The need to continue making production at low costs may have led the company to ignore some of the issues that touched on the legal operations, as well as not paying much attention to the ethical implications. For example, the company had patented its technology hence had no competitors, which made them a monopoly helping them assume the most important aspect that is to provide its customers with safe products. The company also had received a government loan at no interest hence did not mind that their debt was going to increase. The implication on this was that the company was not paying attention to finding ways to increase its product capacity as would have been witnessed had the company borrowed money from commercial entity. In regard to the issue of allowing Solar Group to keep them supplying the raw materials, Green Move had no power to compel its partner in paying its employees better wages since from the defense of Solar group, the company was already paying better than most companies in Bangladesh. In relation to Solar Group using child labor, the company also did not have the ability to monitor this issue. It is only the government of Bangladesh that is responsible for its people and has the power to prosecute the Solar Group management, which the Green Move company did not have.
The Green Move company faces residual risks that include continuous use of a technology that has defects and which is not regulated making them a monopoly that is not under any kind of supervision. The mentioned solar panels are not designed to regulate on energy that could lead to over speed of the bicycles; thus, the users are not able to control the machine. This will also lead to the risk of being sued by the customers over not taking into account the need to make adjustments and fitting the bicycles with an energy regulating gadget. As such, the liability of treating patients involved in accidents resulting from the use of Zero Pedal bicycles would be an expensive encounter that the company could also have avoided if they fixed the defects of their technology.
Green Move had numerous issues that needed to be fixed, and this meant looking into the short and long-term needs of the company. The issues that need to be considered immediately include making radical implementation to fix the defects of the Zero Pedal project, which is likely to affect the sales. This is proved by the fact that the blogger who claims to publish a video on the operations of Solar Group informs about a company that is said to be employing child labor and a key partner to Green Move. It is also said that Solar Group underpays, which is something that the Green Move should consider leveraging with its partner even though they operate in different countries that view differently the way the labor force should be treated. In addition, the company needs to think of using better ways of advertising; this is necessitated from the fact that the company has been able to make sales all over the American market. In the long term, the Green Move company needs to consider looking for a new strategic partner that will be providing them with the raw materials aside from the Solar Group.
If this company would not be able to meet the requirement of the agreement, then it will be prudent for Green Move to find a new partner that will not tarnish their name and involve with a company that does not respect the rights of its workforce. Green Move’s decision to go public in the future will contribute immensely to finance the planned project to expand its operations to Russia. The proceeds from the sale of its shares will also assist the company to make the required adjustments on the technology of the Zero Pedal. This will sustain the long term existence of the company and build customer confidence on their product by guaranteeing safety. The technology management team should be expanded to cover all the technology aspects of the product rather than relying on external sources. In turn, this will ensure that all the risks are looked into and that there will be no doubt that the products being produced have no defects.
Governments of any given country have a responsibility of monitoring all the activities carried by companies within their jurisdiction. The government of Bangladesh has a responsibility to look into the claims of the Solar Group employing children to work in their company. It is not the responsibility of the American government to supervise the Solar Group, which is not under its legislation. In as much as there was an agreement between the Green Move company and Solar Group, the American laws are no binding among the two companies, and that means that whatever is illegal in the US remains to be legal in Bangladesh. The American government has a responsibility to ensure that there are proper set standards on technology and its use. It is evident that due to the negligence of the government and not questioning the defects that Zero Pedal bicycles might have, there are numerous risks that the users will face. In as much as the American government was trying to promote a new innovation, it is important to know that giving loans to companies at no interest will not be ethically wrong or illegal.
The company needs to know that it has a responsibility to serve its debts and pay interest since this is a business oriented structure as opposed to a charity structure with the aim of making profit. In the case of leasing the property in Russia, the government of Russia ought to understand that a bid is a competitive affair and one needs not to pay any facilitation fee to its appointed manager. This amounts to criminal activities, and no government should be involved in such activities or even promote them. The manager property should have been charged with involving in corrupt activities and being imprisoned for that matter. Therefore, it is the responsibility of an independent government to keep controlling what happens within their borders as well as promoting the rule of law and its application without being biased. It is also the role of the government to promote human rights and protect the vulnerable groups of society from being oppressed by those in charge of private entities.