HP provided AAA with sophisticated equipment and reliable repair service, for several years. AAA returned a failed piece of equipment. A meeting was held which included Juanito Rios, AAA's representative; Sonia Martinez, HP's customer services, and Miguel Lopez, an HP engineer expert in the kind of equipment AAA had returned

1. Mrs Martinez "official position" is the following: the piece of equipment is all right. However, during the course of the meeting it becomes apparent to Mr. Lopez that the problem has to be HP's. He suspects that the equipment was not properly tested out by HP, and that it failed because of an internal problem. Should Mr. Lopez say anything about this in presence of the customer, or should he wait after the meeting to discuss this with Mrs. Martinez.

2. Mr. Lopez keeps silent during the meeting. After meeting he talks with Mrs. Martinez about his diagnosis. He suggests they tell AAA that the problem is HP fault, and that HP will replace the defective equipment. Mrs. Martinez believes that is not wise to acknowledge that is HP's fault. For her a "good will" gesture to replace the equipment should be sufficed. HP's management decides to tell AAA that they will adjust the customer's needs "because you have been such a good customer all these years." HP replace the equipment at its own expensive, it does not tell AAA the real nature of the problem. Discuss HP resolution of the problem. Should HP's way of handling the problem be of any concern to Mr. Lopez at this point, or is it basically a "management problem"?

3. Many engineers eventually move into management positions. If Mr. Lopez moves into management, what lessons, if any, might he take with him from the above situation?