Question On the way home from the launch party celebrating Plaxcor Metals entrance into the international arena, Donald Fields should have been smiling. ProblemHe was part of the team that had closed the deal to sell component parts to Asian Business Machine, after his company had spent millions trying to break into this lucrative market. ProblemSeveral more deals were riding on the successful outcome of the first international venture.

The expansion into new markets was critical to Plaxcors survival. ProblemAs CEO Leslie Hanson had put it: If we arent global within five years, we may as well close up shop. Fields was tense because of news he learned tonight: intense bidding for the first sale and several last-minute changes requested by the customer had forced Plaxcor to heavily modify its production process. ProblemThe production manager had confided that The product is a mess but still better than most of the competition. ProblemHe went on to assure him that, although well below normal standards, the variability would probably not cause any problems and could be worked out after a few more orders.

Fields had spent the last few months selling Plaxcor on its quality reputation. ProblemHe knew they could probably get by with the first runs and meet the opening deadline. ProblemHe was afraid that telling the customer of the potential problems or extending the deadline would risk not only this deal but pending projects as well. ProblemBut he knew if problems arose with the products, Plaxcors future in the Asian market would be bleak. ProblemDonald Fields was not sure Plaxcor could afford to gamble its entrance in the international market on a substandard product.

WHAT DO YOU DO? Solve

1 Ask the customer for an extension of the deadline, and bring the products up to standard.

2 Gamble on the first runs, and hope the products do not fail.

3 Inform the customer of the problem, and let the customer make the decision.