Ask Operation Management Expert

What are the ethical dilemmas of the main characters in this case and explain why.

Choose from this list:

taking things that dont belong to you, saying things you know are not true, giving or allowing false impressions, buying influence or engaing in conflict of interest, hiding or divulging information, taking unfair advantage, commiting acts of personal decadence, perpetrating interpersonal abusepermitting organizational abuse, violatin rules, condoning unethical actionsand balancing ethical dilemmas.

Case:

Tenron, INC large energy company is comprised of an exploration division, a development division, a transportation division, marketing division. The transportation division purchased natural gas from the company’s own gas development division, but the majority of the transportation division’s purchases were smaller private gas producers. The contracts called for the transportation division to take and pay for gas, regardless of whether or not it has resold the gas.

Energy prices dropped dramatically, and the transportation division found that for every ten units of natural gas it was forced to take and pay for them the private gas producers, it could sell only one unit. At some point, the transportation division will not be able to continue this money-losing practice caused by its contracts with these gas producers.

If the transportation division refuses to take delivery of the gas, the producers will sue (and they probably would win) Tenron, which has sufficient assets to pay these judgments. Or, Tenron could protect its assets by selling the transportation division. Then the new owner could threaten the gas producers that if they do not renegotiate the contracts, the new owners will put the new transportation company – which would have far fewer assets than Tenron had – into bankruptcy to protect the new company from paying the producers’ judgments. (The Bankruptcy Judge will discharge (cancel) all the debts, even court judgments, of the now bankrupt new company.)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93076896

Have any Question?


Related Questions in Operation Management

Conflictdefine functional versus dysfunctional conflict in

Conflict Define functional versus dysfunctional conflict in a work group and explain how you can increase functional conflict and decrease dysfunctional conflict. Develop a response that includes examples and evidence to ...

For this assignment you will need to find 2 articles in

For this assignment, you will need to find 2 articles in business that can help describe what are IT strategic initiative being undertaken by an organization are like. Choose a different organization for each of the arti ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Over 30 years ago michael porter identified a holistic

Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility i ...

You are the contracting officer for an air-to-ground

You are the contracting officer for an air-to-ground missile development program. A contract for pre-production models of the missile was awarded by your predecessor and the contractor is behind schedule. In a program me ...

The ikea case provides an excellent opportunity to apply

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 cou ...

Can you answer for me the following questions about social

Can you answer for me the following questions about social loafing and the three main causes of free-riding. 1. Give a description of the phenomenon of social loafing. 2. Give a description of the phenomenon of free-ridi ...

1 analyzing the bridgestonefirestone and ford motor company

1. Analyzing the Bridgestone/Firestone and Ford motor company, is it sufficient to use the ISO/QS 9000 standards as the main basis of vendor/product selection? 2. What position to these cars company ( 1. Volkswagen, 2. F ...

Research the effect of primary and secondary seat belt laws

Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities. Explain how epidemiologic studies influenced the development of current seat belt laws. Describe how ...

Please provide a brief paragrap of the key takaways from

Please provide a brief paragrap of the key takaways from each of the following topics: Designing Clear Visuals in business reports Designing Successful Documents and Websites Writing Winning Proposals

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As