Organization Management Journal


Firing a sales staff which acts in an immoral and illegal manner may appear to be an easy solution, but, as the staff at Existo’s finds out, is only the tip of the iceberg of the company’s real problems. Students are confronted in this two-part case with two critical decision points: In Part A one of Existo’s customers has in her possession a seemingly fraudulent letter from one of the exsalesman from the Springfield operation which offered the customer a higher discount than the original contract agreement. Students are asked how to proceed from the CFO’s perspective given the firm’s core values of putting the customer first and maximizing shareholder wealth, coupled with the possibility of fraud on the part of either/both the ex-salesperson and the customer. In Part B the CFO decided to stand by the original discount agreement and Steve Krump, the account manager, conveyed the bad news to the customer. The customer had a very negative reaction and threatened to pull her business. Steve notified the CEO and the regional manager who asked Steve to save the account. The three met with the CFO and came to a decision, but the CEO wondered whether their decision will set a bad precedent and if this was the beginning of a much larger problem. Students are asked how to proceed at this point from the CEO’s perspective given the facts of the case.