Assignment Example | Topics and Well Written Essays - 2500 words

Assignment ExampleThis is because in case Jills operational costs rise and is non able to sell product at high school toll in the market bank will switch default option risk and will also face potential payment risks by Jill. Second stakeholders are the employees which power be fired from job because the company mogul not need them for the more automated system of take. Also, employees with older skills of production might be affected as they will no more be suitable for the job of new production process. Next stakeholders to be effected are customers who might face the issue of high prices in case of high product cost to Jill. Companys first aim is to cover their costs and hence if Jills costs rise with the new equipment it might price the product at a slightly higher price which might not be acceptable to the customers. Lastly, competitors would be affected by this action. This is because competitors might inadequacy the new mode of production and hence they might not be a ble to produce efficiently compared to Jills company. At the same time competitors might also gain as in case Jill raises price of the product, competitors can increase their sales by keeping low price of their product. Changing production technology is what is of more concern and convenience to the internal management of any company and customers have nothing to do with it. So, Jills decision might have no effect on its reputation. Hence Jill should think of saving her costs rather than following her high cost passion blindly. (b) Ethics can be defined as any action which synchronizes with the gener whollyy accepted principles of right and abandons the wrong. Ethics in business follow the rule of true, accurate and complete development sharing among all the parties with the disclosure of benefits as well as risks of any project. In this case, benefits are being portrayed to the bank by Jill in a very reasonable manner but at the same time. CVP analysis and fixed costs control prob lem is hidden by Jill because of the fear of not getting the loan from bank. Ethical concern in this case is the true and fair representation of teaching as the information provided by Jill to bank is not accurate and does not represent every side of the picture. Jill has highlighted the benefits of this project to the bank only in order to get the loan but has been hiding the information of high fixed costs due to this new production equipment. So, Jill has been showing the bank only the bright side of this project and ignoring the area which can hire concern to the management of bank. In this case, bank can be in trouble in future with a high risk of default in case Jill is not able to sustain profits with this new investment. So, Jill is unethically showing the wrong and incomplete side of the picture to bank. I would think ethically and ensure that I share the full and accurate information with my bank. When we put a proposal in front of a third party who is red to put at st ake the money of another third party(banks customer) in our business, there is a need to be very sensitive towards all the two parties involved one directly and other one indirectly. So, I would ensure to share the complete results with my bank and appeal for loan. This is because being ethical is the study concern for any business and I would never like to be the reason of trouble for my stakeholders especially those who have invested their money and the