Case Analysis 1

1.)

A.)        Nicolo Pignatelli as a manager would abide to all the decision that are presented to him. Managers often use the process of planning, deciding, and evaluating to accomplish the goal they are after. In this case Pignatelli wants to operate an oil refinery at full capacity which is 6 million tons while restricted to only 3.9 million to produce. Pignatelli should pay a large sum of money to the Swiss bank. The reason why Pignatelli should pay is because he has Mobil breathing down his neck waiting for money and oil to put out from the refinery. After all this time of constructing an oil refinery and putting in hundreds of million dollars, Pignatelli initial goal would be to make profit quick.

B.)        I would personally take a Negotiator Role to get my oil refinery working at full capacity. I would get a government official to obtain the permission to run the refinery at full or 80% capacity which would be able to produce at the most 5 million tons of oil. Then if needed ask one of my more-influential partners like Mobil to put pressure on government officials the run at full or at least 90% capacity. If all else fail I would take it into my hand and deal with paying money to the government, or just operating the refinery at 95% capacity to make as much profit as possible. My goal would be to make money of this refinery and be a strong competitor in Italy oil production. I would do whatever it takes to get my company with the bigger companies because with that money will produce later on.

 

2.)   This falls into the Moral intensity factor in applying the knowledge of temporal immediacy. When the bribe money is paid to the briber he or she is now responsible for not just getting the job done, but if anything happen the blame and responsibilities would be on the briber. However the manager in this case Pignatelli would be mostly responsible but would not get a harsh penalty just enough to where he won’t do it again. So it does not absolve him completely but his punishment shouldn’t be too harsh. With this in mind Pignatelli would consider this in his option.

 

3.) It doesn’t justify paying them, but it gives the company a little breathing room in case something happens. Some companies’ looks for externalities that can happen when take this situation into hand. Managers have to be able to take the responsibilities of the magnitude of the consequence. Also in chapter 3 they talk about how companies try to go for early wins in order to make profit as quick as possible. So in this case if Pignatelli main objective is to produce as soon as possible they will most make bribes to get to his goal.

 

4.) If Pignatelli plans on staying in Italy for a long period of time, has must make an environmental friendly refinery. So yes they should take extra money out from somewhere to make their oil refinery above and beyond regulations to have an environmentally safe refinery. This makes the consumer happy there for they will buy oil from Gulf.

 

5.) At first I would have been upset about it, however after learning a little about management I would be fine as long as my paycheck comes in with the right amount. I understand now that bribes in this case is one of the best option, because the refinery won’t have a good pay out if it works under stander level of 6 million tons. In other words, if the company does not make immense profit, my paycheck might be small or worse I might be fired. In the reading we learned that the world and people and the way of thinking is so divers now that many people will likely have different ideas to this situation. However, I would be fine with it because I would rather want a risk taking type of manager ordering me around then one who follows the rules.  If Pignatelli takes the decision of bribing, he is following an Entrepreneurial Role, which is a strong fit role for a manager who wants their company to compete with top of the line companies. If the situation was starting to affect me, then I will go ahead and talk it out with Pignatelli, but in a way so I won’t get fired because of high demands. I would never take it to the media because like Pignatelli, I am trying to make a decent income. If I go to the media and tell them my story it only affects me, because no company would like to hire me. Due to the fact that I would be complaining about a company business and with that making it public.