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Alexander Gavin's Dilemma

In: Business and Management

Submitted By gunshy
Words 645
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CASE NO. 4 – Alexander Gavin’s Dilemma:

Cultural Relativism and Business as Usual

I. Point of View:

Professor Hennessey

II. Statement of the Problem:

The dilemma of Alexander whether to accept the deal or compromise his ethics.

III. Objective/s: 1. Appeal on the proposal and proceed to the regular bidding process. 2. Advocate correct sound business ethics.

IV. Areas of consideration:

1. Alexander Gavin, a Senior Project Manager of El Sahd Construction Company in Kuwait. Mr. Gavin was offered a proposal by the Ajax’s Manager to increase the bid amount to $33 Million of the project in Iran. Of the $3 Million increase, $1 Million will be his share for not disclosing the matter. If Mr. Gavin will not accept the deal, he will experience a physical harm. He was already involved in the pay-offs before, but this time he was put in to a situation where his ethics is on the line. Gavin needs to make a decision that will benefit the company in the long run.

2. El Sahd Construction Company is a prosperous company, with an excellent reputation for producing a timely and cost effective way on major construction project in the Middle East. Two months ago, Mr. Gavin participated the bidding on Iran project. The company put in a bid of $30 Million to Ajax Ltd. to be the principal sub-contractor on a project in Iran.

3. Ajax Ltd is a British based-company. As the company’s business culture, the Ajax’s Manager had a proposal to Mr. Gavin that the bid price will be amounted to $33 Million in order to pursue the project. The increase of $3 Million will be $1 Million for the Ajax’s Managing Director, $1 Million Ajax’s Manager and $1 Million to Mr. Gavin. Ajax’s Manager chose Mr. Gavin is the key in order to close the deal at their requested bid amount. In order to Mr. Gavin will not disclose the matter,...

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...Case – 1 ALEXANDER GAVIN’S DILEMMA: CULTURAL RELATIVISM AND BUSINESS AS USUAL April 10, 1983 Dear Professor Hennessey: I have not talked with you since my participation in The Executive Program at Tuck School in the summer of 1978. Many times I’ve hoped I might come back to visit but my life has been one surprise after the other, and I have been too busy to take any vacations in recent years. I want to tell you about a situation that happened to me recently. I know you will be interested in it, and if you have time I’d like you to tell me what you would have done had you been in my position. As I think you know, I am Senior Project Manager for the El Sahd Construction Company in Kuwait. The company is a prosperous one, with an excellent reputation for producing in a timely and cost-effective way on major construction projects in the Middle East. The Chairman and Chief Executive Officer is a wellknown Kuwaiti and my direct boss is another American expatriate who is Senior Vice President for urban construction projects. Two months ago, we put in a bid to be the principal subcontractor on a project in Iran. Our bid was $30 million, and we expected to bargain with Ajax, Ltd., the British-based company asking for the bids. We had built a heavy profit into the $30 million. I was asked to go to Tehran on March 3rd to talk with the Ajax manager of the major project. That manager told me that we were going to get the job. I was delighted. The job meant a lot to us. We......

Words: 557 - Pages: 3