Quix flash card
the following questions will be based off of this insterts
Sure Start Batteries is a manufacturer of automotive batteries. The business was started in Wilmington, North Carolina, in 1994 and has focused its business on traditional car batteries throughout North and South Americas. The corporate headquarters for Sure Start are in and around Wilmington where the majority of the battery manufacturing still takes place. However, when Sure Start expanded to South America in 2011, they also opened a small corporate office in Buenos Aires to help manage the business throughout the continent. They have no major contracts with auto manufacturers to have the batteries placed in new cars, but Sure Start batteries are a commonly found brand for replacement batteries. Although the company has been mildly profitable since its founding, the chief executive officer, Charlie Wicker, has hoped for opportunities to grow the company beyond its traditional market.
Charlie recently began a new research division in the company to focus on a rechargeable battery for use in electric cars. The electric car industry is still fairly new, and there are many companies still trying to establish themselves as industry leaders. Thus, Charlie feels there is an opportunity for Sure Start to enter the market at the early stage and become a mass producer of electric car batteries. Sure Start is still continuing the production of traditional car batteries, but it does not plan to invest any more into future research and development. When Charlie first announced the new research division, there was some resistance from long-term employees and managers who were concerned about the change in focus. Their main complaint was that the financial investment required may be too big of a risk considering electric cars still yield such a small percentage of total automotive sales. They worried that if the new research resulted in financial losses for the company, it would ultimately result in a loss of jobs.
The new electric battery completed development late last year and became available to purchase in January. The battery has been highlighted by several trade publications for its impressive performance and competitive price. Because of the positive publicity and good reputation, the firm has been able to sign contracts as a battery supplier for small, electric car manufacturers in both Europe and Asia. Similar to when Sure Start first expanded into South America, they will be required to place corporate offices on both continents. Charlie and most of the senior leadership team are from the United States. They have some concerns about the expansion into Europe and Asia because of the many variables they may not be prepared for. For example, they are unsure what to expect for work culture in these new markets. Additionally, they recognize that there will have to be significant changes to how the company handles marketing, sales, and product pricing. Finally, it is expected that new manufacturing facilities will be established in these new markets because the transportation costs of the heavy batteries would be too high if they continue to handle all manufacturing in North Carolina.
While Charlie wants to focus manufacturing the electric batteries in Asia, employees in North Carolina are concerned Sure Start may eventually decide to move all battery manufacturing there. So far, Charlie has assured employees that they do not have intentions to move current production out of the United States. Additionally, he believes expansion of the company will ultimately make Sure Start a more profitable company. He hopes becoming a more profitable company will make them an even more stable employer long-term. In addition to helping with these concerns, Charlie also recognizes there will be a large need for effective hiring and training for the new offices in Europe and Asia.
The current plan is to temporarily relocate the chief operations officer, Carl Spith, to the Asian headquarters in Vietnam and the chief of human resources, Kim Arkle, to the European headquarters in Germany. Charlie believes that having these two trusted leaders on location as they open these new offices will help with hiring decisions and maintaining the corporate visions as they start with many new employees. Charlie has specifically chosen Carl to be in the Vietnam office because they plan to focus rechargeable battery manufacturing in Vietnam where labor costs are low.
Shortly after Kim begins working in the company’s European headquarters, a new trade policy is enacted that requires electric cars in Germany to contain 75 percent domestically produced parts or the automakers will have to pay a 10 percent ad valorem tariff on parts from other countries. Kim and Charlie make plans to establish manufacturing operations in Germany within two years. Before Sure Start is able to establish manufacturing in the country, several electric cars in Germany are reported to have issues with overheating. The German Transportation Agency suspects that the batteries are at fault and is investigating the incidents. All the batteries in the affected cars were manufactured and imported by Sure Start.
Charlie is tasking the chief marketing officer, Cynthia Troutman, with developing and communicating a marketing brand and vision that will win over customers with the new electric battery by communicating its safety while also recognizing the firms’ longevity in traditional car batteries. They hope this will help keep existing employees motivated. This will be a challenge because the marketing strategy must balance the concerns of existing employees and the stability of the long-term business plan with the promising future of a new product offering. Additionally, the marketing strategy must translate across multiple continents, cultures, and languages.
Because the majority of senior leadership and other employees have been in and around the same location, there was never a strong emphasis on corporate communications. However, with four corporate offices spread throughout the world and a physical separation of senior leadership, there must be an effective channel for them to communicate and be unified in their decision-making. The vision and communication for the company must then extend internally to employees around the globe to ensure a unified vision and message that builds employee morale. Finally, communications to suppliers, investors, customers, and communities must be coordinated to maintain a unified message from the firm and sensitive to the many cultural practices where they operate.
The chief financial officer, Darris Johnson, wants to be proactive about managing the cost implications of a significant and rapid expansion. In an effort to avoid major financial mistakes, Darris recommends that all current management and all new managers hired have clearly defined goals for achievement. He believes each department and division should identify current deficiencies and methods for improvement as part of their goals. Darris would additionally like managers to prioritize the goals into short-term and long-term categories, prioritizing the most important of each category. Darris hopes that these goals will form the foundation of financial decision-making if and when resources become more constrained.
Which employee characteristic is Charlie addressing in the decision to relocate Carl Spith and Kim Arkle?
Ethics
Morals
Culture
Standards
Ethics
As Sure Start expands internationally, Charlie is focused on addressing concerns that domestic employees have about the new product.
Which issues should he address with existing employees about their concerns?
Societal
Policy
Personal
Culture
Personal
Which organizational ethical level is Charlie addressing in relocating Carl and Kim?
Societal
Personal
Moral
Internal policy
Internal policy
An employee in the accounting department discovers that an element in the financial statement is not in compliance with the company’s required financial record keeping. The employee reports this to management. The manager instructs the employee to take no action. What next step should the employee consider taking?
Report it to outside stakeholders
Report to higher level management
Remain silent
Try to fix the error on their own
Report to higher level management
Charlie wants to be cautious in his goal setting for Sure Start’s new offices because of lessons learned from opening the office in South America.
Which outcome is he concerned about?
Having unrealistically high goals may cause employees to compromise ethical standards
Having basic goals so the employees can feel successful by accomplishing them
Establishing a corporate culture where employees are motivated without the use of goals
Establishing high goals, which will cause employees to fail meeting them
Having unrealistically high goals may cause employees to compromise ethical standards
