READ AND ANSWER QUESTION

THE COMPANY Green Move is a startup company that focuses on environmentally friendly and sustainable transportation products. Its three founders and current shareholders, Robert, Lewis, and Viktor attended the same MBA program in Boston. Robert and Lewis were high school friends from an affluent Boston suburb while Viktor grew up in Russia. The three agreed that their collective mindset could best be described as "competitive with a cam trank wilco wong fam conscience." They support the fundamentals of capitalism and agree that the free market Word tom operates to the benefit of society. Robert serves as the CEO of Green Move and Viktor serves as the Chief Technology Officer while Lewis has moved on to other opportunities. All three serve on Green Move's board of directors along with two other corporate 7people intotal officers and two outside investors. The seven directors along with the other corporate officers and several of Robert's relatives who invested heavily in Green Move own all of the stock. Much of the startup funding, however, was the result of a $15 million government loan at zero percent interest as part of an Investing in Green Technology GUYinitiative. Green Move is incorporated in Delaware and maintains a corporate office in Boston. The last year has been very exciting at Green Move and the perceived value of its shares has increased steadily. In fact, there are rumors that that Green Move will soon go public. This is due largely to the much anticipated launch of the Zero Pedal; a solar powered bicycle that includes a small throttle and brake system. Green Move recently received a patent on the technology enabling the use of a small solar panel that propels the bike at speeds close to 15 m.p.h. The popularity of the Zero Pedal has been limited to the northeastern part of the United States mostly due to "word of mouth" advertising throughout area colleges and universities. twov of refer Jett boy choresup art iswants from PART A - YOUR EMPLOYMENT AT GREEN MOVE You graduated six months ago from a Boston MBA program. You earned your degree part time in the evenings so that you could continue your work as an advertising assistant at a prestigious Boston firm. You are thankful that your firm financed a large portion of your degree and that you were able to support your spouse and young child while attending classes. Y slidwe didne notebet Josruffin is not abasked toorbs rout Green Move was one of several marketing positions for which you interviewed. You were attracted to Green Move because it struck you as "young and energetic" with the potential for tremendous growth. The interview consisted of a single meeting with the three founders who explained that your primary objective would be to expand the sales of the Zero Pedal to the (southwestern part of the United States. It was explained that your success at Green Move would be measured exclusively on the expansion of the Zero Pedal into this new market, Your modest salary would be supplemented with stock options in Green Move in proportion to the product expansion. You learned during the interview that Green Move was replacing a "bad fit" employee whose departure was "mutually agreed upon" after (only six months. You ( 2 )gladly accepted the position with a handshake and agreed to complete the necessary tax forms to begin work in two weeks. The only documentation you received was a stock option agreement. You never received any employment training, instruction, or manuals. Three months have passed since you started at Green Car and you have made several friends including Doug, a product engineer on the development of the Zero Pedal. Much to your surprise, Doug has explained in confidence his concern regarding the operation of the Zero Pedal in warm climates. He claims that the bike accelerates dangerously after the solar panels have been exposed to temperatures exceeding 100 degrees Fahrenheit for four consecutive hours. Apparently, his team had uncovered this defect during the design of the Zero Pedal. He tells you that he planned a report outlining the dangers of the acceleration and that he shared his findings with your predecessor and that he was suspicious of his firing. Doug believes that your (predecessor was fired because he questioned management about this defect. & tien nhiem Doug tells you that your predecessor presented the cost per bike to fix the defect to the board but that Robert claimed the report was incomplete without a comparison to the costs of "not fixing" the bike. Robert also claimed that he could not imagine a situation in which the bike would be exposed to those conditions. The two had a heated discussion and two weeks later you responded to the job posting. Doug further discloses that regulations under the National Highway Traffic Safety Administration (NHSTA) that would otherwise limit the production of the Zero Pedal do not apply because the bike is not "gas powered." As a result, the production of the Zero Pedal is entirely unregulated. UP toan tooin ko te kiem sout You are wondering about what to do about the product safety problem on your return trip from Scottsdale, Arizona where you had met with several sporting goods chains to discuss the roll out of the Zero Pedal. The buyers seemed impressed by the Zero Pedal but you did have a curious encounter at your final stop. There, the buyer wcausally mentioned that he would personally expect payment of a "special "$5,000 annual fee to place the product on its shelves. Questions A A.1 What will you do about the product defect information that you have learned about from Doug? What are the relevant pressures? What questions or problem solving models will you consider in making your decision? How would you apply the model to arrive at a solution to the problem? J A.2 Will you pay or recommend that your company pay the special $5,000 fee to have the Zero Pedal placed on the shelves of the sporting goods store? What are the relevant considerations? Is it legal? Is it ethical? Both? A3. While this problem is in the "latency stage" should Green Move apply the cost/benefit analysis in analyzing safety concerns about the product? What are the risks