9 hour dead line-600 words
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1. Write 600 words on this case study
1st Case study
Read Aggressive Sales Quotas or Unfair Business Practice? and complete the questions at the end of the case study.
Aggressive Sales Quotas or Unfair Bus. Practice? - Markkula Center for Applied Ethics (scu.edu)
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Aggressive Sales Quotas or Unfair Business Practice?
1. Home
2. Markkula Center for Applied Ethics
3. Focus Areas
6. Aggressive Sales Quotas or Unfair Bus. Practice?
"In the advertising industry, money is the bottom line-regardless," said Peter Allen, a customer service representative for a large-scale online directory. It was 1999 and the online business was booming. Everyone in the city wanted to get in on the Internet revolution, but many didn't really understand what that even involved.
Peter was new to the industry. He was given his territory, the city of San Francisco, and told to sell as much advertising as possible-at any cost-both to the company's existing clients and to new customers. For his first few months on the job, Peter focused on getting to know the existing customers and evaluating their current advertising packages with the company. Peter was surprised to find that many of his customers were small business owners-auto-body shops and family-owned restaurants that already had large advertising packages way beyond their needs. His boss, the director of customer service, had already set Peter's quota at a level that presumed that many more sales were possible. Yet, in Peter's judgment, the market was saturated.
"These small shops thought that the Internet was the next best thing," said Peter. "They didn't even understand what the Internet actually was."
Peter couldn't fathom how these small businesses got persuaded into spending so much money on advertising. "The businesses you would least think to look up online were the businesses with the most expensive advertising packages," said Peter.
Peter was getting daily phone calls from the home office, pressuring him to meet his numbers and sell the most in his territory. Peter complained to the sales manager, who said that Peter had to be honest. "It was my obligation to set things straight," said Peter.
With the support of his manager, Peter told the top executives of the company that the sales team in San Francisco needed to have some leeway in meeting the quota. Unlike other sales territories, San Francisco, as the hub of the high-tech world, was cluttered with competition and, with companies cropping up everywhere in Silicon Valley, Peter and his team didn't have the luxury to selectively pursue businesses. Instead, they had to go after any and every business possible because other online directories were quickly entering the San Francisco market. The executives feared that changing the quota for San Francisco would lead to other territories vying for lower quotas as well. But Peter's case proved strong enough: The executives decided to "look the other way" for the San Francisco territory.
Peter went to each business and gave them an honest evaluation of their advertising needs-often recommending they downgrade their packages with the company.
"We moved them into more appropriate packages and became number one in customer retention," said Peter. "We lost money in the short term, but in the long term we made money through referrals and retention."
Discussion Questions:
· Describe, specifically, the ethical dilemma that Peter faced.
· What are virtues Peter needed to act as he did? What do you think motivated him?
· What were the risks Peter faced in making this decision?
· What factors do you think assist people in making moral decisions in the face of a great deal of pressure?
Jessica Silliman was a 2006-07 Hackworth Fellow at The Markkula Center for Applied Ethics.
June 2007
Jun 1, 2007
· A Model for Leadership Ethics
· Create an Ethical Decision Making Framework for Your Organization
· Articles
· Cases
· Videos
· Benison: The Practice of Ethical Leadership
· Teaching Note: Interview of Theranos Whistleblower, Tyler Shultz
MARKKULA CENTER FOR APPLIED ETHICS
Vari Hall, Santa Clara University 500 El Camino Real Santa Clara, CA 95053 408-554-5319
· ABOUT THE CENTER
· News
· Donate
· PROGRAMS
· Events
· Training
· RESOURCES
· Articles
· Cases
· Accessiblity icon Accessibility
· Title IX
© 2021 · Accessibility
Login|SCU on Facebook SCU on Twitter
SCU.EDU
· Search
COVID-19 Update: For the safety of our community, certain restrictions will remain in effect on campus during summer and fall 2021. Find updates at Prepared SCU.
· ABOUT THE CENTERABOUT THE CENTER CATEGORY LINKS
· FOCUS AREAS FOCUS AREAS CATEGORY LINKS
· ETHICS RESOURCESETHICS RESOURCES CATEGORY LINKS
· ETHICS SPOTLIGHTSETHICS SPOTLIGHTS CATEGORY LINKS
· EVENTS
· DONATE
Aggressive Sales Quotas or Unfair Business Practice?
1. Home
2. Markkula Center for Applied Ethics
3. Focus Areas
6. Aggressive Sales Quotas or Unfair Bus. Practice?
"In the advertising industry, money is the bottom line-regardless," said Peter Allen, a customer service representative for a large-scale online directory. It was 1999 and the online business was booming. Everyone in the city wanted to get in on the Internet revolution, but many didn't really understand what that even involved.
Peter was new to the industry. He was given his territory, the city of San Francisco, and told to sell as much advertising as possible-at any cost-both to the company's existing clients and to new customers. For his first few months on the job, Peter focused on getting to know the existing customers and evaluating their current advertising packages with the company. Peter was surprised to find that many of his customers were small business owners-auto-body shops and family-owned restaurants that already had large advertising packages way beyond their needs. His boss, the director of customer service, had already set Peter's quota at a level that presumed that many more sales were possible. Yet, in Peter's judgment, the market was saturated.
"These small shops thought that the Internet was the next best thing," said Peter. "They didn't even understand what the Internet actually was."
Peter couldn't fathom how these small businesses got persuaded into spending so much money on advertising. "The businesses you would least think to look up online were the businesses with the most expensive advertising packages," said Peter.
Peter was getting daily phone calls from the home office, pressuring him to meet his numbers and sell the most in his territory. Peter complained to the sales manager, who said that Peter had to be honest. "It was my obligation to set things straight," said Peter.
With the support of his manager, Peter told the top executives of the company that the sales team in San Francisco needed to have some leeway in meeting the quota. Unlike other sales territories, San Francisco, as the hub of the high-tech world, was cluttered with competition and, with companies cropping up everywhere in Silicon Valley, Peter and his team didn't have the luxury to selectively pursue businesses. Instead, they had to go after any and every business possible because other online directories were quickly entering the San Francisco market. The executives feared that changing the quota for San Francisco would lead to other territories vying for lower quotas as well. But Peter's case proved strong enough: The executives decided to "look the other way" for the San Francisco territory.
Peter went to each business and gave them an honest evaluation of their advertising needs-often recommending they downgrade their packages with the company.
"We moved them into more appropriate packages and became number one in customer retention," said Peter. "We lost money in the short term, but in the long term we made money through referrals and retention."
Discussion Questions:
· Describe, specifically, the ethical dilemma that Peter faced.
· What are virtues Peter needed to act as he did? What do you think motivated him?
· What were the risks Peter faced in making this decision?
· What factors do you think assist people in making moral decisions in the face of a great deal of pressure?
Jessica Silliman was a 2006-07 Hackworth Fellow at The Markkula Center for Applied Ethics.
June 2007
Jun 1, 2007
· A Model for Leadership Ethics
· Create an Ethical Decision Making Framework for Your Organization
· Articles
· Cases
· Videos
· Benison: The Practice of Ethical Leadership
· Teaching Note: Interview of Theranos Whistleblower, Tyler Shultz
MARKKULA CENTER FOR APPLIED ETHICS
Vari Hall, Santa Clara University 500 El Camino Real Santa Clara, CA 95053 408-554-5319
· ABOUT THE CENTER
· News
· Donate
· PROGRAMS
· Events
· Training
· RESOURCES
· Articles
· Cases
· Accessiblity icon Accessibility
· Title IX
© 2021 · Accessibility
Login|SCU on Facebook SCU on Twitter
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Skip to main content SCU.EDU OFFICES & SERVICES SCHOOLS & CENTERS Search COVID-19 Update: For the safety of our community, certain restrictions will remain in effect on campus during summer and fall 2021. Find updates at Prepared SCU. ABOUT THE CENTERABOUT THE CENTER CATEGORY LINKS FOCUS AREAS FOCUS AREAS CATEGORY LINKS ETHICS RESOURCESETHICS RESOURCES CATEGORY LINKS ETHICS SPOTLIGHTSETHICS SPOTLIGHTS CATEGORY LINKS EVENTS DONATE CONTACT US Aggressive Sales Quotas or Unfair Business Practice? Home Markkula Center for Applied Ethics Focus Areas Business Ethics Business Ethics Resources Aggressive Sales Quotas or Unfair Bus. Practice? "In the advertising industry, money is the bottom line-regardless," said Peter Allen, a customer service representative for a large-scale online directory. It was 1999 and the online business was booming. Everyone in the city wanted to get in on the Internet revolution, but many didn't really understand what that even involved. Peter was new to the industry. He was given his territory, the city of San Francisco, and told to sell as much advertising as possible-at any cost-both to the company's existing clients and to new customers. For his first few months on the job, Peter focused on getting to know the existing customers and evaluating their current advertising packages with the company. Peter was surprised to find that many of his customers were small business owners-auto-body shops and family-owned restaurants that already had large advertising packages way beyond their needs. His boss, the director of customer service, had already set Peter's quota at a level that presumed that many more sales were possible. Yet, in Peter's judgment, the market was saturated. "These small shops thought that the Internet was the next best thing," said Peter. "They didn't even understand what the Internet actually was." Peter couldn't fathom how these small businesses got persuaded into spending so much money on advertising. "The businesses you would least think to look up online were the businesses with the most expensive advertising packages," said Peter. Peter was getting daily phone calls from the home office, pressuring him to meet his numbers and sell the most in his territory. Peter complained to the sales manager, who said that Peter had to be honest. "It was my obligation to set things straight," said Peter. With the support of his manager, Peter told the top executives of the company that the sales team in San Francisco needed to have some leeway in meeting the quota. Unlike other sales territories, San Francisco, as the hub of the high-tech world, was cluttered with competition and, with companies cropping up everywhere in Silicon Valley, Peter and his team didn't have the luxury to selectively pursue businesses. Instead, they had to go after any and every business possible because other online directories were quickly entering the San Francisco market. The executives feared that changing the quota for San Francisco would lead to other territories vying for lower quotas as well. But Peter's case proved strong enough: The executives decided to "look the other way" for the San Francisco territory. Peter went to each business and gave them an honest evaluation of their advertising needs-often recommending they downgrade their packages with the company. "We moved them into more appropriate packages and became number one in customer retention," said Peter. "We lost money in the short term, but in the long term we made money through referrals and retention." Discussion Questions: Describe, specifically, the ethical dilemma that Peter faced. What are virtues Peter needed to act as he did? What do you think motivated him? What were the risks Peter faced in making this decision? What factors do you think assist people in making moral decisions in the face of a great deal of pressure? Jessica Silliman was a 2006-07 Hackworth Fellow at The Markkula Center for Applied Ethics. June 2007 Jun 1, 2007 Business Ethics Resources A Model for Leadership Ethics Create an Ethical Decision Making Framework for Your Organization Articles Cases Event Summaries Online Courses Videos Benison: The Practice of Ethical Leadership Teaching Note: Interview of Theranos Whistleblower, Tyler Shultz MARKKULA CENTER FOR APPLIED ETHICS Vari Hall, Santa Clara University 500 El Camino Real Santa Clara, CA 95053 408-554-5319 Maps & Directions Contact Us SCU on Facebook SCU on Twitter SCU on Linkedin SCU on YouTube SCU on Instagram ABOUT THE CENTER News Privacy Policy Ethics Experts for Media Donate PROGRAMS Focus Areas Events Training Email Sign-up RESOURCES Ethical Decision Making Articles Cases Curricula Accessiblity icon Accessibility Title IX SANTA CLARA UNIVERSITY © 2021 · Accessibility Login | SCU on Facebook SCU on Twitter Skip to main content SCU.EDU OFFICES & SERVICES SCHOOLS & CENTERS Search COVID-19 Update: For the safety of our community, certain restrictions will remain in effect on campus during summer and fall 2021. Find updates at Prepared SCU. ABOUT THE CENTERABOUT THE CENTER CATEGORY LINKS FOCUS AREAS FOCUS AREAS CATEGORY LINKS ETHICS RESOURCESETHICS RESOURCES CATEGORY LINKS ETHICS SPOTLIGHTSETHICS SPOTLIGHTS CATEGORY LINKS EVENTS DONATE CONTACT US Aggressive Sales Quotas or Unfair Business Practice? Home Markkula Center for Applied Ethics Focus Areas Business Ethics Business Ethics Resources Aggressive Sales Quotas or Unfair Bus. Practice? "In the advertising industry, money is the bottom line-regardless," said Peter Allen, a customer service representative for a large-scale online directory. It was 1999 and the online business was booming. Everyone in the city wanted to get in on the Internet revolution, but many didn't really understand what that even involved. Peter was new to the industry. He was given his territory, the city of San Francisco, and told to sell as much advertising as possible-at any cost-both to the company's existing clients and to new customers. For his first few months on the job, Peter focused on getting to know the existing customers and evaluating their current advertising packages with the company. Peter was surprised to find that many of his customers were small business owners-auto-body shops and family-owned restaurants that already had large advertising packages way beyond their needs. His boss, the director of customer service, had already set Peter's quota at a level that presumed that many more sales were possible. Yet, in Peter's judgment, the market was saturated. "These small shops thought that the Internet was the next best thing," said Peter. "They didn't even understand what the Internet actually was." Peter couldn't fathom how these small businesses got persuaded into spending so much money on advertising. "The businesses you would least think to look up online were the businesses with the most expensive advertising packages," said Peter. Peter was getting daily phone calls from the home office, pressuring him to meet his numbers and sell the most in his territory. Peter complained to the sales manager, who said that Peter had to be honest. "It was my obligation to set things straight," said Peter. With the support of his manager, Peter told the top executives of the company that the sales team in San Francisco needed to have some leeway in meeting the quota. Unlike other sales territories, San Francisco, as the hub of the high-tech world, was cluttered with competition and, with companies cropping up everywhere in Silicon Valley, Peter and his team didn't have the luxury to selectively pursue businesses. Instead, they had to go after any and every business possible because other online directories were quickly entering the San Francisco market. The executives feared that changing the quota for San Francisco would lead to other territories vying for lower quotas as well. But Peter's case proved strong enough: The executives decided to "look the other way" for the San Francisco territory. Peter went to each business and gave them an honest evaluation of their advertising needs-often recommending they downgrade their packages with the company. "We moved them into more appropriate packages and became number one in customer retention," said Peter. "We lost money in the short term, but in the long term we made money through referrals and retention." Discussion Questions: Describe, specifically, the ethical dilemma that Peter faced. What are virtues Peter needed to act as he did? What do you think motivated him? What were the risks Peter faced in making this decision? What factors do you think assist people in making moral decisions in the face of a great deal of pressure? Jessica Silliman was a 2006-07 Hackworth Fellow at The Markkula Center for Applied Ethics. June 2007 Jun 1, 2007 Business Ethics Resources A Model for Leadership Ethics Create an Ethical Decision Making Framework for Your Organization Articles Cases Event Summaries Online Courses Videos Benison: The Practice of Ethical Leadership Teaching Note: Interview of Theranos Whistleblower, Tyler Shultz MARKKULA CENTER FOR APPLIED ETHICS Vari Hall, Santa Clara University 500 El Camino Real Santa Clara, CA 95053 408-554-5319 Maps & Directions Contact Us SCU on Facebook SCU on Twitter SCU on Linkedin SCU on YouTube SCU on Instagram ABOUT THE CENTER News Privacy Policy Ethics Experts for Media Donate PROGRAMS Focus Areas Events Training Email Sign-up RESOURCES Ethical Decision Making Articles Cases Curricula Accessiblity icon Accessibility Title IX SANTA CLARA UNIVERSITY © 2021 · Accessibility Login | SCU on Facebook SCU on Twitter ShareThis Copy and Paste
