Allen Calls PepsiCo, the Makers of Pepsi Cola, Saying That

question 77

True/False

Allen calls PepsiCo, the makers of Pepsi Cola, saying that he's an employee of Coca-Cola and he has the Coca-Cola secret recipe. The recipe is legendary as a closely guarded secret supposedly known to only a handful of people in the world. They arrange a meeting. Allen begins the meeting by stating that he acquired the recipe legally, and the PepsiCo representative says that she believes him and PepsiCo will buy it. Allen in fact stole the recipe. Since PepsiCo does not know specifically that the recipe was acquired improperly by Allen, the company cannot be guilty of misappropriation.

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Definitions:

Ethical Lapses

Instances where individuals or organizations fail to act in accordance with their ethical principles or standards.

Supply Chain

A system involving the production, handling, and distribution of goods and services, from raw materials to the final consumer.

Make-Or-Buy Decision

A strategic choice businesses make between internally manufacturing a product or purchasing it from an external supplier.

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside the expertise of the main business.