04-014 Ch01 pp5

3/10/04

4:53 PM

Page 84

2. A consumer advocate organization conducted a survey to determine whether

Wendys hamburgers were really any more hot and juicy than any other hamburgers. After testing a Big Mac, a Whopper, a Teen Burger, and a Wendys Hot
and Juicy, each hamburger brand received approximately the same number of
votes for being the juiciest. The consumer group advocated that Wendys should
not advertise its hamburgers to be the juiciest. The company indicated that its
own tests showed different results and that the image of the burger was the
important thing, not the test results. Should the advertisements cease or not?
______ Cease to advertise
______ Continue to advertise
3. After several profitable years, the Bob Cummings Organic Vitamin Company was
made available for sale. Bobs movie and television appearances precluded him
from keeping track of a large company, and it became apparent that, if present
trends continued, the company would either have to expand substantially or lose
a large share of the market. Several firms were interested in purchasing the company for the asking price, but one firm was particularly aggressive. It sponsored
several parties and receptions in Bobs honor; a 35-foot yacht was made available
for his use during the summer; and several gifts for family members arrived during
the holidays. Bobs wife questioned the propriety of these activities. Was it appropriate for Bob to accept the gifts? Should he sell to that firm?
______ Proper to accept
______ Not proper
______ Should not sell
______ Should sell
4. John Waller was hired to coach football. After two seasons, he was so successful
that he was named coach of the year by UPI, Sporting News, and ESPN. He was
also very vocal about the need to clean up cheating in college athletics, especially
among competitor schools in his own conference. He heard rumors about inappropriate alumni gifts to some of his own athletes, but after confronting those
involved, he received assurances that the rumors werent true. At the beginning
of the next season, however, he received conclusive evidence that seven of the
starters on his team, including an All-American, had received financial benefits
from a wealthy booster. What should Waller do?
______ Kick them off the team
______ Suspend them for several games
______ Warn them but do nothing
5. Rogers company had been battered by competition from Asian firms. Not only
were Asian products selling for less money, but their quality was substantially
higher. By investing in some high-technology equipment and fostering better
unionmanagement relations, Roger was relatively certain that the quality gap
could be overcome. But his overhead rate was more than 40 percent above
that of the competitor firms. He reasoned that the most efficient way to lower
costs would be to close one of his older plants, lay off the employees, and
increase production in the newer plants. He knew just which plant would be
the one to close.
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CHAPTER 1 DEVELOPING SELF-AWARENESS

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