Eva McNanny thought that at long last, her company, Eva Holdings Tech, was about to win a major contract from BennyQueen Limited. BennyQueen Limited, a maker of precision measuring instruments, was sourcing a large contract for component subassemblies. The contract that Eva Holdings Tech was bidding on was worth at least GHS3.7 million annually, a significant amount given Eva Holding’s annual sales of GHS44.4 million. Her team had spent hundreds of hours preparing the quotation and felt they could meet BennyQueen Limited’s requirements in quality, cost, delivery, part standardization, and simplification. In fact, Eva had never been more confident about a quote meeting the demanding requirements of a potential customer. Nick Coffie, the buyer at BennyQueen Limited responsible for awarding this contract, called Eva and asked to meet with her at his office to discuss the specifics of the contract. When she arrived, Eva soon realized that the conversation was not going exactly as she had expected. Nick informed Eva that Eva Holdings Tech had indeed prepared a solid quotation for the contract. However, when he visited Eva Holdings’ facility earlier on a prequalifying visit, he was disturbed to see a significant amount of a competitor’s product being used by Eva Holdings. Nick explained his uneasiness with releasing part plans and designs to a company that clearly had involvement with a competitor. When Eva asked what Eva Holdings could do to minimize his uneasiness, Nick replied that he would be more comfortable if Eva Holdings no longer used the competitor’s equipment and used BennyQueen Limited’s equipment instead. Eva responded that this would mean replacing several hundred thousand Ghana Cedis’ worth of equipment. Unfazed, Nick simply asked her whether or not she wanted the business. Eva responded that she needed some time to think and that she would get back to Nick in a day or so. Required 1. Do you think the buyer at BennyQueen Limited, Nick Coffie, is practicing ethical or unethical behavior? Explain why you think it is ethical or unethical behavior with relevant example. 2. Advice Eva on what she could do in this situation. (30 Marks)
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Answer 1= If we look at the given case, it is clear that the buyer was not acting ethically as it was forcing the other company to use its own machines and equipment. Rather than focusing on the capabilities, expertise in fulfilling the procurement requirements and other important aspects of procurement management, the manager of BennyQueen Limited was more focused on the used equipment.
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