How Low Will You Go? - Bob Carlton Ceo of Optimotors Industries

SUMMARY OF THE CASE

Bob Carlton was the CEO of OptiMotors Industries, a midsize engine-parts fabricator. Due to expansion and investors recommendations, he hires Galen McDowell as head of the sales department. Galen obviously knew what he was doing and he was successful at his job. However, his sales methods were questionable and unethical causing employee issues and also questioning Bob’s moral and ethical stance.

CENTRAL PROBLEM

The central problem is Bob Carlton’s lack of leadership. Though, he knew how to make high quality engine custom parts, he lacks the manager know-how of dealing with employees and customers. Here are several examples:

• OptiMotors Industries does not have a formal sales policy that articulates and clearly defines sales processes. Galen and his team do not have any sales guidelines so they are free to do whatever they feel is necessary to complete the sales.

• Though Bob questioned Galen’s decision to bring potential clients to the strip club, he did not object. This act can be seen by the rest of Galen’s team as an approval to any sales tactic whether ethically, legally or morally questionable or not.

LIST OF POSSIBLE SOLUTIONS TO THE CASE PROBLEM

• Create a formal business document that gives guidelines on sales policies and procedures. This document should align with legal, moral and ethical beliefs and must be also be in line with the company’s principles.

• With the creation a sales guidelines and policies, give Galen an opportunity to change their sales tactics that align with the company. If he is not willing to change his methods, Bob must act quickly and inform his investors of his intention to terminate Galen as head of the sales department.

• Bob must organize and schedule a sales seminar that will discuss the new sales guidelines and emphasize on better customer relations by proper business practices and tactics.

• He must also spearhead an equal opportunity seminar that concentrates on discriminatory acts in the workplace.

• Because he is the CEO, Bob needs to inspire his employees with the vision that they are a world-class custom parts manufacturer for world-class customers. The products OptiMotors manufacture sell themselves through its high-quality and not through Red Ruby Strip Club.

SOLUTION

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