Bus 5910 Written Assignment Unit 4

BUS 5910 Management Capstone – Written Assignment Unit 4
Written Assignment Unit 4

“Blaze Manufacturing” University of The People
Sep.– 2022
Instructor: Dr. Lee

Introduction
Blaze Manufacturing is a New York-based textile manufacturing company. The company
manufactures textile products such as curtains and bedspreads. Despite its tiny size, the firm is
prepared to generate big quantities if the order is accepted for long-term commercial
performance. The study paper will identify the problem, its underlying causes, potential
solutions, and, ultimately, a plan of action.
Identification of the problem
Blaze Manufacturing Comparing has received a substantial order that is currently being
negotiated at a selling price of $77/unit (Causseaux & Caster, 2016). Wendy, the company's
interim controller, has been hired to assess the profitability of an order before it is accepted.
Wendy calculates the profitability analysis of the order with the new client after careful
deliberation. As a result, the total cost per unit is more than the negotiated price, and the
corporation will lose money on every unit sold at that price unless the price is inflated. Wendy
concludes that the order should be refused if the price is not raised. This causes a squabble
amongst Joe, Bill, and Wendy, with Blaze eventually accepting the order. The corporation
encountered ethical difficulties that needed to be resolved but were not, culminating in the firm's
liquidation (Causseaux & Caster, 2016).
What operational situation(s) created the problem?
Joe, who is given a salary plus a yearly bonus based on the company's sales income, and Bill,
who is paid a commission on sales, are not concerned with the company's overall profitability.
They are compelled to accept the order because of their bonus/commissions.

Another issue has arisen because the first step in addressing ethical conflicts is to follow "your
organization's stated rules for the settlement of such conflicts" (Causseaux & Caster, 2016).
Wendy works for Omega, although Omega has assigned her to provide support to Blaze's
management. And she reports to Joe, the President of Blaze, in the context of that duty. Which is
directly related to the issue. That raises the question of whether she should follow Omega's or
Blaze's policies.
Prescribe possible alternatives: The case study provides proposed solutions on page 16 of
the case. Review and evaluate these solutions by providing pros and cons for each.
Wendy's proposal is succinct and supported in two distinct ways, both of which result in losses.
In her first analysis with gross margin, she considers fixed overhead. On the second, she
disregards fixed production costs because they will not vary, rendering them meaningless
(Causseaux & Caster, 2016). However, neither technique results in a profitable order for the
corporation, only for its employees via commission.
Recommend a plan of action (decision/implementation).
Wendy should raise the topic with her immediate supervisor, Joe, to resolve it. Joe, on the other
hand, is entangled in the situation. Wendy should prepare a report on the situation and submit it
to Omega because she eventually works for Omega, which owns a substantial amount of Blaze
shares.
In addition, each case study response should also state why this case is important and
relevant to a study of business.
Business ethics are a reflection of the business standards that an individual or company adopts
when doing transactions. Business ethics are vital because they give a layer of protection to the
organization, allow for company growth, save money, and help people to avoid certain legal
ramifications. When corporate greed takes over, certain legal restrictions are imposed on each
individual. If they are violated, indictments, prosecutions, and hefty jail sentences may be the
sole options for unscrupulous businessmen and women. This scenario isn't as extreme, but these
are some of the consequences of unethical behavior.
Support your observations with research and logic. Discuss what limitations exist with the
case study information provided. What other material would be important to your
analysis?
It would be useful to know who owns what percentage of Blaze's company and who has the final
word. It would also be beneficial if there was an indication of if either organization has any
policies in place for resolving ethical problems, which was not provided.
References
Causseaux, W. & Caster, B. (2016). Blaze Manufacturing: An Ethical Analysis. Journal of
Business Case Studies, 12(1), 13-18.

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BUS 5910 Management Capstone – Written Assignment Unit 4

Written Assignment Unit 4

Instructor: Dr. Lee

Blaze Manufacturing is a New York-based textile manufacturing company. The company

solutions, and, ultimately, a plan of action.

Identification of the problem

liquidation (Causseaux & Caster, 2016).

What operational situation(s) created the problem?

They are compelled to accept the order because of their bonus/commissions.

corporation, only for its employees via commission.

Recommend a plan of action (decision/implementation).

relevant to a study of business.

are some of the consequences of unethical behavior.

Business Case Studies, 12(1), 13-18.

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