The Student Motor Company Case Study

INTRODUCTION

This paper provide a detail analysis of case of The Student Motor Company (SMC), which produced an unsafe, small family car, The Zinger, to regain its market share in industry when It realize SMC losing its market share. The SMC’s Chief Executive Officer, make hasty decision to produce small size family car to target middle class customers. However, their profit margins are three to four times of the car. Ethical dilemmas, poor decision-making practices, over ruling quality standards along with bypassing the compliances of environmental and safety regulations affected their repute quite badly. Their short-terms solution techniques proved to be terrifying in later periods. In addition, ethical & economic alternative are also discussed

Moral aspects in marketing the product, providing true value of their money, are the base lines of code of ethics. These Ethics are presumed to be the lifeline of the organization, although they are mostly unwritten but practice of them is essential for the survival of business. Even all the stakeholders of the business i.e., SMC must observe, learn and follow this code of Ethics (Faraci, 2014). Decentralization of decision making SMC regarding the concept and production of new car in inevitable for SMC and they need to realize the need of that time. Ezigbo, Charity. A (2012) also advocate the same concepts and highlight that organizational effectiveness is dependent upon the decentralization and participative or situational leadership is the most appropriate styles in ensuring better decision-making and eventually the organization become successful (Ezigbo, 2012). Their justifiable profit approach with maximum possible benefits against the amount spend by its customers are also need to considered in rigorously. Garvin (1984) explained the concept of quality and concluded that organization need to ensure the quality of product with different perspective and its more important then selling the numbers. It is selling of the reputation of company. Company should include all eight elements of the quality in the product that are performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. Moreover, company should consider the product quality from user-based approach, manufacturing concern based approach, product base approach, transcendent approach, and the value based approach. Also made their product differentiate it from other and cause competitive edge over other in the market or industry (Garvin, 1884). These all recommendation