Uuniversity’s Name
Joe’s Options
Joe needs to ensure that he does not lose PENINSULA Hotel as a client, but at the same time cutting prices by 10 percent would be detrimental for his job prospects. Therefore, he needs to offer Bill with the advantages of renewing the contract with UWEAR. Joe has several options, he can promise that UWEAR will offer better customer services than Threads4U and convince Bill that the competition cannot match the service standards. After getting approval from the management, Joe can also offer revenue generating opportunities for PENINSULA Hotel such as company meetings, conferences, corporate lunches, promotional events, etc.
Ethical Theory
Joe’s reaction would be beneficial for his company as they will retain an important client, himself as he will retain one of his most important clients, and PENINSULA Hotel as they will get a new revenue stream in the form of UWEAR. Therefore, this scenario can be best related to the Utilitarianism theory of ethics. According to Utilitarianism, an action is considered morally right, if the results of the action are more beneficial than more non-beneficial for everyone (The University of Tennessee Martin, n.d.).
Using Utilitarianism
In this case, Utilitarianism needs to be used as this is the only way Joe can help himself, his company and his client. Without providing advantages to all parties involved the solution might not work. For example: Joe cannot convince Bill to agree to a higher rate, if no opportunities are passed along with the deal. Similarly, Joe will struggle to convince his superiors at UWEAR to retain him without one of his major revenue generators.
Alternate View
The superiors at UWEAR might feel that they are already providing a discounted rate to PENINSULA Hotel and agreeing any partnership to retain them should mean they need to pay more than the discounted rate.
Refuting Opposition
The superiors can be convinced with the offer on Bill’s table from Thread4U. They need to be explained that PENINSULA can easily move on with the additional 10 percent of discount on offer from the competition. Also, it is important to explain that losing a client due to cost reasons might be tough to retain in the future without offering discounts.
Compromise
The compromise would be to convince bill to agree on a long-term deal for 2-3 years, rather than renewing year-on-year basis. This would mean management will feel PENINSULA is locked in for coming future and Joe’s revenue stream will be attractive during the period of merger. Also, Bill would be offered revenue generating opportunities by hosting several UWEAR based events in the hotel. The compromise is feasible as the other alternative would mean UWEAR would loose PENINSULA Hotel as their client.
Stakeholders
In this situation, the stakeholders are UWEAR, PENINSULA Hotel, Bill, Joe, and Threads4U. Each of them has something to gain or lose from the transpiring events related to the contract renewal between UWEAR and PLEDENIM Hotel.
Responsibilities of Stakeholders
UWEAR AND Threads4U have the responsibility of bringing PENINSULA on-board as their client and increasing the revenue of their company. Increase in revenue would mean, both companies would fulfill their responsibility towards stakeholders in their organizations of managing old revenue streams or generating new revenue streams. Joe’s responsibility in this scenario is to ensure that he retains PENINSULA Hotel as a client and ensures that additional discount is not provided to retain the customer. Bill’s responsibility is to ensure that he agrees a contract that reduces the expenses of PENINSULA Hotel and maintains the services provided by either UWEAR or Threads4U. PENINSULA Hotel needs to increase its revenues like any other business and offer made by Joe seems beneficial (Dimitriades, 2007).
Ethical Responsibilities
For businesses like UWEAR, PENINSULA Hotel and Threads4U, ethical responsibilities are increasing stakeholder income, indulge in ethical business practices, secure new clients, and maintain profitable operations. As an employee of UWEAR, Joe is responsible to retain old clients and develop new business, maintain communication between clients and UWEAR, agree profitable contracts for UWEAR, understand and execute sales based on company policies. Bill’s ethical responsibilities include reducing expenses of the hotel, impartially select partners, work in the best interest of stakeholders, and achieve deliverables.
Response of Stakeholders
Joe needs to develop a proposal to present to the management at UWEAR, which includes the proposed solution to maintaining the rate, offering revenue generating opportunities to the client, and agree a long term deal to assure the future. Bill and Peninsula Hotel needs to wait for the proposal from UWEAR as agreement could be financially beneficial for Peninsula Hotel. UWEAR and Threads4U need to prepare their offer for Peninsula Hotel and need feedback from Joe and Samantha.
Joe’s Proposal to Management
Joe needs to present all the facts to the management before proposing his solution. After communicating the offer from competition, Joe needs to discuss his plan of maintaining the rate, but hosting company’s events, meetings, and conferences at the Peninsula Hotel. Also, Joe needs to add that the company should request Peninsula Hotels to agree a long term deal to ward off competition for the long term.
Support for Proposal
Joe needs to inform the management at UWEAR that Peninsula Hotel is a major client, which should not be lost so close to the merger. Also, Joe needs to inform the management that losing Peninsula due to cost related reasons would mean losing them for long term, unless a greater discount on services is given in the future.
References
Dimitriades, Z. S. (2007, November 12). Business Ethics and Corporate Social Responsibility in the e-Economy: A Commentary. Retrieved January 17, 2017, from http://ejbo.jyu.fi/articles/0701_1.html
The University of Tennessee Martin. (n.d.). Ethics. Retrieved 17 January 2017 from, http://www.iep.utm.edu/ethics/
