Upcoming Contract Renewal, Case Study Example

The current situation facing Joe is a very tricky one and needs to be handled in a specialized manner. This is a monopolistic competition, and since he had already set targets, he should look for other options, to offer the company. For example, the use of discriminatory pricing in order to produce a reasonably good offer that serves the needs of both parties should go well in retaining the business. Ethical values and morals need to be upheld all the time and thus, Joe needs to investigate other avenues like advertising, giving coupons to customers among other options that will enable him retain the business especially since the cut off price is low. Nevertheless, Joe should not give be pressurized into going below his target since no profit will be attained from the business operation.

Utilitarian theories and deontological assessments will be placed for Joe’s situation because they are moral theories that assert the rightness of an action. However, it is determined by the probable or actual consequences that the action has for the maximum number of people affected by that accomplishment. In essence, the theory looks into having an action or practice being right as it leads to the best possible balance of good consequences over those of the bad consequences for all affected parties. The rules in this theory are treated as useful guidelines because they help in determining ethical behaviors of individuals. Despite the rising demands of a particular situation, the rule of utilitarian’s hold a central position in morality and therefore, Joe should apply this theory since it covers all behavioral aspects. In addition, the decision-making process of this theory puts into account certain tools that encompass risk assessment and cost-benefit analysis, which determine the greatest utility. Moreover, the theory focuses on the ends and not the means, required in achieving those ends since it recalls that all individuals in a society are not to be treated in the same manner.

Other people who uphold a different view will not agree with the application of this theory. This is because of the main arguments that arise against utilitarianism, which questions whether happiness units or other values of utilitarian are measurable and comparable in order to determine the best alternative action among available alternatives. Measurement of the theory is the major problem and has made many people not to relent from using this theory in making ethical decisions. Individuals opposing perspectives only argue their points in terms of having business coming in and yet, they have not weighed other options like operating costs for the company. Business people need to weigh the value of the contract before committing to it because some of them lead to further damage of the organization’s reputation.

In this situation, a creative solution would be to offer Peninsula Hotels vouchers, coupons and gift hampers for their visitors. This will be a promotional tactic in a way, but for Joe, he will be maintaining business opportunities that can last a long time. Contracts are not easy to come by, and since Joe has this one at hand, he should strategize on ways and means of retaining his status in the competing hotel industry.