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The Sole Supplier Essay

985 words - 4 pages

Internal stakeholders:
Employees
Shareholders
Board of direction

External stakeholders:
Pacemaker Company
Doctors
Patients
Other companies that use our transistors

Obligations:
The obligation our company owes to the internal and external stakeholders is to make sure we
have enough supply. Since we are the sole remaining supplier of the transistors, we need to make sure
we have enough quantity of the products, which is very important. Also, our company needs to develop
the transistors, by spending time on researching and developing the new technology. And we will try
our best to bring up the transistor’s stronger capacity and longer lifetime model. Also, we need to
...view middle of the document...

If we don’t sell, and people
start to die because they need pacemakers to live, we could be sued by patients and the pacemaker
company. Also, in terms of technology, new technology does not have proper laws of regulation, so in
terms of selling the transistors to the company, we may be held liable in the event that bad things
happen with the people who use the pacemakers.

Financial Issues:
Our company has a responsibility to serve in the best interests of our shareholders and to
protect their investments. If we were to face a lawsuit from faulty transistors, and from people dying,
our company’s stock price would fall and be in danger, and the shareholder’s investment would be in
danger as well. Also, if we continue to supply the transistors, we will make a huge profit from it, as we
are the only suppliers in the industry. We can monopolize the market, as we are the sole supplier.

Theory Applying to the Case:
The major theories applied in to this case are Egoism and Utilitarianism.”Egoism can be defined
as the narrow or even exclusive focus on the individual and his or her concerns.” In this case, the
transistor company should think about whether they should be self concerned and draw back from
supplying the transistor or continuing supplying and saving people’s lives while may facing potential
lawsuits. Utilitarianism may be defined as the doctrine that the useful is good and the greatest
happiness for the greatest number. In this case, to be utilitarianism can be explained as the company
may consider the profit by selling the transistor to Heart Pacemaker Company.

Solutions:
Alternatives 1:
The first option come to mind is to terminate the supply to the heart pacemaker company.
By doing so, the company can avoid potential lawsuits, reduce and protect the internal stakeholders.
Also, the company can withdraw from the heart pacemaker market and focus on other...

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