The task force is doing great. Your team has managed to successfully  analyze two complex cases arising from NBD operations and is now ready  to move on to the third case file the CEO Yoon provided you, the Norms and Nations case file.  This case involves an internal dispute among three of NBD’s executive  board members—the VP of manufacturing, the VP of marketing, and the VP  of product design—arising from a series of mistakes made when  distributing a product.

The CEO has asked the task force to write a report with its findings  and recommendations for how NBD should handle this situation.  Specifically, the report needs to answer the following questions:

  • Was the Chinese supplier ethical in shipping more than 300,000 cases  made of real leather instead of the requested faux leather material,  even though the supplier was not charging NBD anything extra for the  higher cost of real leather? Explain why or why not using ethical theory  and principles.
  • When the manufacturing VP contacted the Chinese supplier to  complain, the supplier could not understand why NBD was not pleased  about receiving a real leather case, given that NBD was still paying for  the less expensive faux leather one. Is there a cultural difference  between customer expectations and business transactions in the West and  in Asia? Explain.
  • As an organization, what strategic errors did the task force observe  in the decision making by various individuals in this situation? By the  design VP? By the manufacturing VP? By the marketing VP?
  • What is the appropriate strategy going forward? Conduct a SWOT  analysis and PESTEL analysis to decipher what NBD should do in light of  these strategic errors.