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Case from journal
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Reference no. JIACS15-07-05
Published by: Allied Business Academies
Published in: "Journal of the International Academy for Case Studies", 2009

Abstract

Derived from observation and field interviews, this case centers on Bob Harris, the new Assistant Controller of Zenith’s parent company, United Truck Corporation, and Dave Manning, the Service Manager of the Yonkers facility. Bob Harris had been brought into Zenith by United Truck Corporation because the old operation, Magnum International Trucks, was losing money and United wanted the renamed firm (Zenith) attractive enough for a sale to another International dealership. Dave Manning first came to Bob Harris’ attention when Dave was paid a bonus incentive for the month yet the Yonkers Service Department only contributed $ 2,484.42 to the firm’s profit margin. Bob spoke with Dave and explained that Dave’s bonus would in the future be based upon the facility’s profits rather than gross sales. This would avoid the impact of heavy sales at the end of the month and returns the following week. Dave remained silent on this topic. The second time Dave Manning was confronted by Bob Harris was when there was a short fall in inventory at the Yonkers facility based upon a misplaced transmission. Bob confronted Dave in-person with this discrepancy and therein Dave resigned. Students are left wondering what actions should or would Bob Harris take in light of this missing inventory and Dave’s obvious attempts to avoid be held accountable for said items. This case was primarily developed for undergraduates taking a course in business ethics, although the case does include issues in accounting (inventory control) and the legal environment of business (corporate theft). The case specifically deals with how a firm handles the discovery of possible corporate theft and students should therefore have been exposed to material on white-collar crime. The case also deals with possible conspiracy to commit a crime (the RICO act) since one might wonder why and how the inventory control system did not indicate missing inventory prior to this time period. The case has a difficulty level appropriate for sophomore level or above. The case is designed to be taught in one class period (may vary from fifty to eighty minutes depending upon instructional approach employed, see instructor’s note) and is expected to require between two to four hours of outside preparation by students (again, depending upon instructor’s choice of class preparation method).
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Abstract

Derived from observation and field interviews, this case centers on Bob Harris, the new Assistant Controller of Zenith’s parent company, United Truck Corporation, and Dave Manning, the Service Manager of the Yonkers facility. Bob Harris had been brought into Zenith by United Truck Corporation because the old operation, Magnum International Trucks, was losing money and United wanted the renamed firm (Zenith) attractive enough for a sale to another International dealership. Dave Manning first came to Bob Harris’ attention when Dave was paid a bonus incentive for the month yet the Yonkers Service Department only contributed $ 2,484.42 to the firm’s profit margin. Bob spoke with Dave and explained that Dave’s bonus would in the future be based upon the facility’s profits rather than gross sales. This would avoid the impact of heavy sales at the end of the month and returns the following week. Dave remained silent on this topic. The second time Dave Manning was confronted by Bob Harris was when there was a short fall in inventory at the Yonkers facility based upon a misplaced transmission. Bob confronted Dave in-person with this discrepancy and therein Dave resigned. Students are left wondering what actions should or would Bob Harris take in light of this missing inventory and Dave’s obvious attempts to avoid be held accountable for said items. This case was primarily developed for undergraduates taking a course in business ethics, although the case does include issues in accounting (inventory control) and the legal environment of business (corporate theft). The case specifically deals with how a firm handles the discovery of possible corporate theft and students should therefore have been exposed to material on white-collar crime. The case also deals with possible conspiracy to commit a crime (the RICO act) since one might wonder why and how the inventory control system did not indicate missing inventory prior to this time period. The case has a difficulty level appropriate for sophomore level or above. The case is designed to be taught in one class period (may vary from fifty to eighty minutes depending upon instructional approach employed, see instructor’s note) and is expected to require between two to four hours of outside preparation by students (again, depending upon instructor’s choice of class preparation method).

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