Business / Case Studies/ Business

Case Studies/ Business

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Autor:  anton  30 November 2010
Tags:  Studies,  Business
Words: 393   |   Pages: 2
Views: 715

Case Synopsis:

Guido Paolluci Knitwear Company is a very successful manufacturer of medium to better knit garments. The firms merchandise is well known in its field as a result of years of regular advertising in a variety of fashion magazines as well as repeated store ads. They have over two thousands accounts and a sales volume approaching $10 million per year. Meryl, the spokesmen of the buyer Bensons persuaded Bill Samuels (who is in charge of marketing and sales functions) to give her exclusive sales rights to the Guido line. It would be a great economic profit for Bill but it violated the Federal antitrust statutes as well as being an unethical decision. Meryls proposition cuts out smaller realtors that has already been selling the line although at a much smaller volume. For example, Jerry and Harold are the small realtors that are being affected; they have legal rights to take action since their business is at stake.

Retail Issues:

• Ethical Standards

• Wages and Benefits

• Legal Requirements

• Social responsibility

• Personal ethics

• Discrimination

Alternative Solutions:

• If I was Jerry and Harold and wanted to handle the situation properly I would get my attorney a threaten Bill Samuels for discrimination, civil and criminal action. I would ask to be full reimbursed for the profits that had been lost due to the Guido line not coming in and also sue him for violating ethical standards of the company. The only disadvantage is that they are losing out on money to hire an attorney, and also losing out on money from the Guido line that they had not got in the mean time.

• The law can also protect against collusion between manufacturers and retailers from discrimination against small retailers by the Robinson Patman Act which is a piece of legislation that was designed to limit price discrimination. It is an attempt to protect small business by forbidding their giant competitors from getting an edge by using their size to obtain lower prices.

Final Solution:

Jerry and Harold should first try and sit down and have a talk with Bill Samuels and try to figure out what he was just trying to exactly succeed in doing by not sending them their orders. If Bill is being irreconcilable Jerry and Harold should get their attorney and take Bill to court for discrimination of a small business, going against the Robinson Patman Act, and ethical standards in a company.



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