Case Study:

You own a cement company, and deal with most the local contractors for cement, sand, etc. You have a reputation of high quality products, and for good customer service with your customers. Your foreman has just run the standard quality control tests you have performed regularly on your products.

When the test results are ready, you discover that the new batch of product is 9% less durable than your usual material. It is still well above all industry standards and meets all building codes and requirements for the purposes for which it is intended, but it is, nevertheless, not up to your usual standards. Throwing it away would cost your company many thousands of dollars.

You decide to sell the cement anyway and increase the net sale and earn more profit.

Support your answer with logic and reasons.

Answer may vary from student to students.

Questions:

1-Should you tell your customers about the cement and quality?

2-Should you discount the price to increase more sale and earn more profit? Is it ethical profitable business?

3-Would you use this cement on foundations for your own house?