The Manager of a Business Unit of a Large Corporation

question 77

Essay

The manager of a business unit of a large corporation made some projections regarding sales and profits for the upcoming final quarter of the year. The managers' performance evaluation and compensation depended significantly on his ability to meet budget goals. The manager discovered that the final quarter would have to be a particularly good quarter in order to meet these goals. He decided to implement a sales program offering liberal payment terms in order to pull some sales that would normally occur next year into the current year. Customers accepting delivery in the fourth quarter would not have to pay the invoice for 140 days. Also, he sold some equipment that was not being used and realized a significant profit on the sale.
Required:
Are these actions ethical? Why or why not?

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Definitions:

Promotion

A marketing tactic that involves raising awareness of a brand, product, or service to increase sales or public visibility through various channels.

Availability

The degree to which a product, service, or resource is obtainable or accessible when needed.

Awareness

The degree to which consumers know about a brand, product, or service, recognizing its existence and features.

Unsought

Refers to products that consumers do not typically think about buying or do not know exists until they see them.