Scenario 5:

Mike Schoenfeld is vice-president of Left Bank in Lane Cove and active in

Roseville community affairs. Schoenfeld also serves on the board of directors of

Baker Publishing Company in Chatswood. Baker is expanding and relocating its

plant. At a recent meeting the board members decided to buy land which is being

rezoned. The owner of the property Jack Fletcher is a customer of Left Bank.

Fletcher is completing a divorce and Schoenfeld knows that Fletcher is eager

to sell his property. In view of Fletchers difficult situation, Schoenfeld believes

Fletcher would accept almost any offer for the land. Realtors have appraised the

property at $5 million.

Apply the ethical judgement to help Schoenfeld decide what his role should be in

Baker's attempt to buy the land from Fletcher.

Consider Mike's dilemma, in addition to the facts in this problem, the board of

Baker Publishing is considering additional options. First there is a comparable

site in the same general area with and appraised value of $3.9 million. But

this location is home to a woodland fungus that may aid in the treatment of

diabetes. Second, the board is considering expanding the existing location's

square footage by 25%. The board has received a bid of $3.2 Million on the new

construction from Schoenfeld's brother-in-law.

Assume the following: if the board makes an offer on Fletcher's' property, it will

propose a price of 3.5 Million.

If an offer is made on the comparable site, it will be $3.4 Million. If the board

chooses to remodel and expand the current location, the bid price will be

accepted.

Your task is to spreadsheet that weighs the issues associated with each

scenario option and calculate the best choice.

After you have prepared your spreadsheet, answer these questions:

1. What additional issues did you include in your list?

2. Which option does your spreadsheet suggest the board choose?

3. For each option, which issue did you weigh the most? (In other words which

issue was most important?)

4. If you were Schoenfeld which option would you recommend to the board and

why?