Premium Essay

Brixton

In:

Submitted By gagann
Words 317
Pages 2
2-1 Ethics Case: Brixton Surgical Devices
Brixton Surgical Devices, a public company with sales of over $900,000,000, is one of the world’s largest productions of surgical clamps, saws, screws, and stents. Its business involves production of both stock items and customs pieces for doctors at research hospitals.
At the end of the third quarter of 2011, it became clear to Ed Walters, chief operating officer, and Robin Smith , chief financial officer, that the company would not make the aggressive annual earnings target specified by the board of directors. In consequence, Ed and Robin would not receive bonuses, which historically had averaged about 35 percent of their base compensation. The two devised the following strategy.
“Here’s what we’ll do,” suggested Ed. “We’ve never offered our customers a discount. Let’s change that right now. We’ll offer a 25 percent discount on all orders placed in October and November for delivery in December of 2011.”
“That will certainly boost fourth-quarter sales,” said Robin. “But you know, it won’t really increase total sales. It’ll just transfer some sales from the first quarter of 2012 to the fourth quarter of 2011. Of course, 2011 is where we need earnings to hit our bonus target. Hey, I’ve got another idea. We can also jack up productions of our stock items in the fourth quarter. With our high-priced production equipment we’ve got a ton of overhead. But the more we produce the more overhead we can bury in inventory. With lower unit costs and higher sales, profit will go way up. Let’s get going on execution. I’ve got to get the marketing people working the promotion, and you’ve got to update the production schedule. This could end up being our best year ever in terms of bonuses!”
Required
Are the proposed actions of Ed and Robin ethical? What is the likely effect of their actions on shareholder

Similar Documents

Premium Essay

Kimberley Crenshaw Intersectionality

...Not only are they from Brixton, but they are also a minority. Similar to the Moore case, these students, while Londoners, do not represent it since they are a Brixton Londoner. Additionally, many of them are Minority Brixton Londoners. Their issues are unique to their borough as well as their cultural experience. Using an intersectional lens, councilmen and women would likely be able to develop their projects more inclusively, and receive more local support. However, this does not appear to be the case in Brixton, nor in the other areas of London we visited, with the evident discontent for the gentrification worming its way through the...

Words: 1533 - Pages: 7

Free Essay

Unit 21 Creating Business Document Level 1

...DANIA’S RESTAURANT 88 Brixton Road Brixton SW22BL TEL: 00442020304050 Website: www.dsr/ltd.co.uk PURCHASE ORDER P.O number: 08811 | Date 25/09/13 | CompanyP&A Maintenance33 Brixton Hill RoadSW12BLLondon | Telephone number:0044-2010203040Email address: pamaintenance@hotmail.com | Product Code | Description | Quantity | Price | 04441 | Bottle of wine | 2 | £45 x 2 | 02121 | Ham and Cheese Sandwich | 10 | £3.5 x 10 | 03142 | Tuna Sandwich | 10 | £4.5 x 10 | 01234 | Salad Tray | 4 | £5 x 4 | 05141 | Coke cans | 24 | £2 x 24 | Subtotal | £238 | Vat 20% | £48 | Total | £286 | DANIA’S RESTAURANT 88 Brixton Road Brixton SW22BL TEL: 00442020304050 Website: www.dsr/ltd.co.uk CREDIT NOTE To: P&A Maintenance Date: 30/09/13 33 Brixton Hill Road INVOICE: 0881 Brixton CREDIT N: 1188 SW12BL QTY | Description of items | Unit price | 1 | Bottle of wine | £ 45 | 2 | Tuna sandwich | £4.5x2 | 1 | Salad tray | £5 | Subtotal | £ 59 | VAT 20% | £ 12 | Total | £ 71 | REASON FOR RETURN Unfortunately these products are beyond the due date. DANIA’S RESTAURANT 88 Brixton Road Brixton SW22BL TEL: 00442020304050 Website: www.dsr/ltd.co.uk INVOICES To: P&A Maintenance Date: 30/09/13 33 Brixton Hill Road INVOICE: 0881 Brixton CREDIT N: 1188 SW12BL Description | Quantity | Price | Bottle of wine | 2 | £45 x 2 | Ham and Cheese Sandwich | 10...

Words: 446 - Pages: 2

Free Essay

Discuss Ways in Which Social Developments Associated with ‘Thatcher’s Britain’ Are Reflected in ‘Babylon’.

...growing up in Brixton, South London. To many it stood out because it reflected the very dark, depressing realisms of Britain at the end of the 1970s. Back then it wasn’t really received by the public, probably because it revealed the hard naked truth of Britain, but now it’s known to be one of the best British films ever made. Its about a young Rastafarian rapper who has hopes to rise above the trails of his daily life and succeed at a sound system completion. Around this time Margaret Thatcher becomes the new prime minister of 10 Downing Street. She was regarded as one of the most important prime ministers of the 20th century being credited for breaking ‘post war consensus’ in British politics. Thatcher re-invigorated capitalism, allowed for market forces to ‘let rip’. All of this, as well as increasing inequality between the rich and poor and also in some ways between the whites and the ethnic minorities. This is fully reflected in Babylon. A way in which social developments associated with Thatcher’s Britain that is reflecting in Babylon is police brutality. An example of this was when blue in the film gets chased b police for no reason and then beaten up. Then later accused of something he did and taken to court. Police brutality was prominent around this time, mainly due to the police’s racism. The black youth had had enough. At the end of the film blue stands his ground. This police brutality then led to the riots of 1981. The rioting erupted in Brixton, in the south...

Words: 415 - Pages: 2

Premium Essay

2-1 Ethics Case: Brixton Surgical Devices

...2-1 Ethics Case: Brixton Surgical Devices Brixton Surgical Devices, a public company with sales of over $900,000,000, is one of the world’s largest productions of surgical clamps, saws, screws, and stents. Its business involves production of both stock items and customs pieces for doctors at research hospitals. At the end of the third quarter of 2011, it became clear to Ed Walters, chief operating officer, and Robin Smith , chief financial officer, that the company would not make the aggressive annual earnings target specified by the board of directors. In consequence, Ed and Robin would not receive bonuses, which historically had averaged about 35 percent of their base compensation. The two devised the following strategy. “Here’s what we’ll do,” suggested Ed. “We’ve never offered our customers a discount. Let’s change that right now. We’ll offer a 25 percent discount on all orders placed in October and November for delivery in December of 2011.” “That will certainly boost fourth-quarter sales,” said Robin. “But you know, it won’t really increase total sales. It’ll just transfer some sales from the first quarter of 2012 to the fourth quarter of 2011. Of course, 2011 is where we need earnings to hit our bonus target. Hey, I’ve got another idea. We can also jack up productions of our stock items in the fourth quarter. With our high-priced production equipment we’ve got a ton of overhead. But the more we produce the more overhead we can bury in inventory. With lower unit costs...

Words: 413 - Pages: 2

Free Essay

Case 2-1 Ethics Case Brixton Surgical Devices

..."Analysis paralysis" is a slogan implying that tons of data can be researched and evaluated. Comment on the idea that, perhaps, too much analysis might talk yourself out of a viable opportunity. Lets take a case study involving Steve Stephenson who isolated a lucrative business opportunity. It involved him investing $100000 in cutting edge technology which would provide more leverage in servicing his customers with a revolutionary new service. Steve got to analyzing the cost of just purchasing a building and spearheading the merger two companies to form Lykins-Signtek Inc, based in Florida, Naples to be specific. a designers of specialized items like street signs and mailboxes. Steve justified in his mind potential low ebb of cash flow and a need to stabilize the freshly merged companies before embarking on any large ticket item. As a result there was a 6 month hesitation and delay in acquiring the new technology. By Stevenson’s calculations, the new equipment would have paid for itself in 6 months which totaled the amount he spent over analyzing the purchase which invariably cost him potential revenue. He was paralyzed by his analysis. He may have very well not purchased the new equipment which would have gradually made him obsolete to his clientele. He needed that equipment to stay relevant. Many companies delay and waste the competitive advantage of a window of opportunity and allow the competitor to zero in on a decision that is being dragged out in long board...

Words: 305 - Pages: 2

Premium Essay

Gentrification Definition

...Definition of Gentrification: Gentrification is just one of the nebulous social issues taking place within modern Brixton, as London becomes more globalized and newer forms of ‘urban renewal’ are put into place. This particular urban phenomenon is best characterized as gentrification, which is defined for the purposes of this argument as a middle-class effort to undermine the local populace’s business, structure, and daily life by asserting their own values (Merriam-Webster). Expressed in expansive economic terms by Eric Clark, gentrification is noted as: “a process involving a change in the population of land-users such that the new users are of a higher socio-economic status than the previous users, together with an associated change in...

Words: 1928 - Pages: 8

Premium Essay

Operation Swamp 81: A Sociological Analysis

...It was discovered that police discrimination against ethnic minorities was greatest in situations where police officers had scope to exploit their own intuition, stereotypes and racial prejudices. The Brixton Riots 1981 exemplified Fitzgerald’s thesis, as it was common practice for policemen to target black people on the streets. Operation Swamp 81 was introduced to tackle street crime, it permitted the police to stop and search and sequentially jail individuals on the basis of a mere ‘suspicion’ of wrongdoing. Within the first six days of the operation 943 people were stopped and searched and 11814 people were arrested signifying an upheaval of racial profiling rather than criminal intent. Lord Scarman issued an influential report in 1982 on the causes of the rioting in which he concluded that the black population in Brixton had been subjected to indiscriminate, disproportionate policing under what became known as the sus laws, albeit they have been abolished as a part of Scarman’s recommendations. Anti-racist scholars have agued that the use of sus laws in Brixton was symptomatic of a wider political context in which citizenship lines were being redrawn in ways that meant some people were second class citizens which did not have full rights compared to white counterparts in particular14. Institutional racism emerged due to the murder of Stephen Lawrence, it distinguished...

Words: 761 - Pages: 4

Free Essay

Gentrification

...Gentrification is the process of upper or middle class people moving into previously  lower class areas which increases in taxes and property value, as well as changing a district’s  culture.   Wealthier people moving into a poorer region increases property value and small  community stores, as well as removing former residents due to them not being able to afford the  sudden new taxes. Small cultural dime stores or restaurants are replaced by fast food or malls to  please this new rich population, who would rather have something quick.   This is such a controversial topic because on one hand schools, roads, crime rate, people  who have been living in this community for generations are suddenly reduced to living on the  streets because their once reasonable rent, increasing drastically. Rare cultural businesses are  replaced by a common McDonald's or Starbucks for production rather than quality.  Gentrification will lead to poverty in many families and independent people because  families who live in low priced apartments, once gentrification takes place those people and  families won’t be able to afford their households. Gentrification also leads to poverty by taking  money from taxing in order to have the money to rebuild those complexes which many people  can’t afford to do because they need to provide for themselves and their families if they have  one. ​ Because of gentrification people lose a lot of money that could be used for their personal  lives in...

Words: 1982 - Pages: 8

Free Essay

Stalin

...Broadwater Farm riot From Wikipedia, the free encyclopedia The Broadwater Farm riot occurred around the Broadwater Farm area of Tottenham, North London, on 6 October 1985. The events of the day were dominated by two deaths. The first was that of Cynthia Jarrett, an African-Caribbean woman who died the previous day due to heart failure during a police search at her home. It was one of the main triggers of the riot in a context where tension between local black youth and the largely white Metropolitan Police was already high due to a combination of local issues and the aftermath of another riot which had occurred in the Brixton area of London the previous week following the shooting of a black woman (Dorothy 'Cherry' Groce) during another police search. The second death was that of PC Keith Blakelock, the first police officer since 1833 to be killed in a riot in Britain.[1] Contents * 1 Death of Cynthia Jarrett * 2 Day of disturbances * 3 Death of PC Blakelock * 4 Aftermath * 5 Trials * 6 Inquest * 7 See also * 8 References * 9 Bibliography Death of Cynthia Jarrett At 13:00 hrs on 5 October 1985 a young black man, Floyd Jarrett, was arrested by police, having been stopped in a vehicle with an allegedly suspicious car tax disc.[2] He was taken to nearby Tottenham police station and charged with theft and assault (he was later acquitted of both charges). Five and half-hours later, D.C. Randle and three other officers decided to search his...

Words: 1088 - Pages: 5

Premium Essay

Gentrification on Our Doorstep!

...Gentrification on our doorstep! In this article I will be exploring the term “gentrification” and analysis its real meaning in the real world. I will be also exploring the causes and damages gentrification causes in today's society. The term “gentrification” was coined by British sociologist Ruth Glass in 1964 to describe the influx of the middle class displacing lower class worker residents in urban neighbourhoods.The term was published in Ruth Glass’ book ‘London: aspects of change’ she stated that “One by one, many of the working class neighbourhoods of London have been invaded by the middle-classes—upper and lower” she also claimed that “Once this process of “gentrification” starts in a district it goes on rapidly, until all or most of the original working-class occupiers are displaced and the whole social character of the district is changed.” Many sociologists have tried to explain the causes of gentrification, sociologists Bruce London and J. John Palen came up with a list of five explanations these were: demographic-ecological, socio-cultural, political-economical, community networks, and social movements. These explanations were published in a book in 1984 called ‘Gentrification, Displacement, and Neighborhood Revitalization’. These are seen as the most accurate causes of gentrification. The first cause of gentrification (according to ‘Gentrification, Displacement, and Neighborhood Revitalization’), is demographic-ecological, which endeavors to illustrate gentrification...

Words: 1756 - Pages: 8

Free Essay

Week 5

...to make. Therefore, if Nick ask “Why do you want to know?” he is just asking in another way “What decision are you trying to make?” If the senior manager want to dropp the product, Nick should give him information on the incremental costs that will be saved if the product is dropped. If she is thinking of increasing production, Nick should provide the incremental cost associated with such Decision. For example, if the product is dropped, the company could save the cost of buying production equipments, raw materials, and the cost of labor. None of these costs are pertaining to a decision to increase a production run by 100 units since none of these costs will change with the addition of 100 units to production. Case 2-1 Ethics case: Brixton Surgical Devices These decisions that Ed (the COO) and Robin (the CFO) are trying to make in order to assure there bonuses really does not violate Generally Accepted Accounting principles (GAAP), since the company has actual orders that shipped before the end of the year, this would need to be disclosed in the footnote in the annual report or shareholders will be misled and think there is an increase in revenue, and we all know that disclosure is likely to be intentionally obmitted. Increasing production to lower unit costs and bury fixed production costs in inventory, certainly takes money from shareholder. Based on the ethical framework we learned in chapter 1, these strategies are unethical because the company is using shareholder’s...

Words: 314 - Pages: 2

Premium Essay

Case 2-1

...CASE 2-1 Ed Walters & Robin Smith from Brixton surgical Devices plan to increase inventory and give discounts of 25% discounts is unethical in this case because this plan is executed for their own good to gain bonuses not for the company’s interest. What they did will certainly decrease overhead cost by distributing it among inventory stock but in the balance sheet it will show that the inventory is more than the cash and so the quick ratio will be very low, and the increase in production means an increase in material and labor hours and machine hours therefor there is an increased cost here. On the other hand when they will give the 25% discount on orders placed in October and November for delivery in December this doesn’t guarantee the increase in sales and if sales does increase this will certainly affect first quarter of next year sales negatively, and with a company that never gave discounts before 25% is a big percentage. Another dilemma is that the production should follow the market demand not the other way round with their strategy the production might be too large for the demand, if they follow the JIT (just in time) production process they will save a lot of money on the inventory stock The shareholders objective is focused on the company’s interest and in long term profit but what Ed and Robin did is a short term benefit which leads to increasing their bonus for this year (you get what you measure) and a decision of giving discount should come through several series...

Words: 340 - Pages: 2

Free Essay

Riots

...resulting chaos generated looting, arson, and mass deployment of police. The events were also called "BlackBerry riots" because people used mobile devices and social media to organise them. Disturbances began on 6 August, after a protest in Tottenham following the death of Mark Duggan, a local who was shot dead by police on 4 August. Several violent clashes with police ensued, along with the destruction of police vehicles, a magistrate’s court, a double-decker bus, and many civilian homes and businesses, thus rapidly gaining attention from the media. Overnight, looting took place in Tottenham Hale Retail Park and nearby Wood Green. The following days saw similar scenes in other parts of London, with the most rioting taking place in Hackney, Brixton, Walthamstow, Peckham, Enfield, Battersea, Croydon, Ealing, Barking, Woolwich, Lewisham and East Ham. From Monday 8th until Wednesday 10 August, other cities in England including Birmingham, Bristol, and Manchester, along with several towns, saw what was described by the media as "copycat violence". By 15 August, about 3,100 people had been arrested, of whom more than 1,000 had been charged. Initially, courts sat for extended hours. There were a total 3,443 crimes across London linked to the disorder. Along with the five deaths, at least 16 others were injuredHYPERLINK "http://en.wikipedia.org/wiki?title=2011_England_riots&action=edit" as a direct result of related violent acts. An estimated £200 million worth of property damage was...

Words: 328 - Pages: 2

Premium Essay

Case Study

...believe with research and gathering trending facts, the best alternative will be selected. A very helpful tool in this decision making process is the incremental analysis. Incremental analysis is a key tool to aid throughout the process. It can be essential in identifying the best alternative or course of action when several avenues are available. This analysis tool is based on the differences between costs and revenues. In this situation when an alternative is to drop the product like D45s the most relevant cost information needed would be direct costs associated with the product itself. Then the change in income would be considered when coming to a final decision to remove D45 or to increase production. Case Study 2-1 Ethics Case: Brixton Surgical Devices No, Ed and Robin’s decision on boosting inventory and persuading their customers with discounts in the fourth quarter is unethical. Their acts to scheme and manipulate production will have an impact on the investors. The shareholder value is based on the “business value,” which is estimated based upon the present value of the forecasted cash flows. Ed and Robin are giving them a false perception of their business value. The idea to inflate profit...

Words: 344 - Pages: 2

Free Essay

Public Services

...Transcript of Positive and negative images of the public services Positive and negative images of the public services FONTS Brutality Corruption Racism Racism has long been a charge leveled at the Public services by the media, for example the Brixton riots in the 80's, stopping and searching black youths in the 1990's or the lack of recruitment of ethnic minority officers. How ever it took the murder of Stephen Lawrence to put the subject on the political and media agenda. Brutality The media shows incidents of the Public services portraying them as if they are using excessive force. Sometimes their claims are unfunded and damage the public perception of the Police. Image of the Public services The public services are portrayed in a variety of different ways by the media. The coverage can be both real, such as Police interceptors or through fictional programs such as Casualty or The Bill. ( And we all know Bradshaw loves The Bill :) A UK study shows that The Sun newspaper dedicates around 30 per cent to crime news. This highlights the time and energy spent on the portrayal of the Public services. Blind obedience The media sometimes choose to portray the public services as lacking discipline and judgement if they blindly obedient when following orders. Blind obedience An example of this was the Hillsborough disaster when West Midlands Police ran their own inquiry into the handling of the disaster by South Yorkshire Police, who orchestrated a cover-up, falsified...

Words: 442 - Pages: 2