How should George respond to this proposal?
Use the Instructions for Case Analyses to craft a response to this case, articulating the main issues and ethical dilemma. Review the assessment criteria below before you begin writing.
Case Study: The Pizza Puzzle
Topic: Deceptive Advertising
Involved Parties:
George Hansen, General Manager of Augusta Marigold Inn, a Subsidiary of Hospitality Enterprises
Sharon Coombs, Food Services Manager, Augusta Marigold Inn
George Hansen is General Manager for the Marigold Inn in Augusta, Georgia. Sharon Coombs is Restaurant and Food Services Manager for the Inn. She reports to George. Two years ago, Sharon noticed a decline in room service business, the highest margin portion of her operation. This decline
coincided with an increase in the national sales of pizza delivery and carryout firms as well as an increase in the number of empty pizza boxes from these firms being left in guest rooms in the Inn. Her immediate response was to install a pizza oven in the kitchen and offer room service pizza to guests.
The effort met with modest success, though it was well below her expectations. Questionnaires completed by departing guests revealed a problem of product quality.
Focusing on this problem, Sharon improved the Inn’s pizza until blind taste tests judged it at least equal in quality to the products of the two major pizza delivery competitors in Augusta. Sales did not improve, convincing Sharon that the problem was a perceived mismatch between the hotel’s image and guests’
expectations of pizza makers. Guests simply did not seem to believe that the traditional steak and seafood restaurant at the Inn could make a high-quality, authentic pizza. Based on this conclusion, Sharon presented the following proposal to George:
Sales of room service pizza are stagnant due to guests’ misperception that our product is lower inquality than that of competitors. This misperception is based on the belief that until we disassociate our pizza from the Marigold Inn name. Therefore, to capture more room service pizza business, we should
create a ‘Napoli Pizza’ image for our guest room delivery service by:
Preparing ‘Napoli Pizza’ brochures for each guest room, complete with a phone number with a prefix different from that of Marigold Inn.
The number will reach a special phone in room service, which will be answered, “Napoli Pizza,
authentic Italian pizza from old, family recipes.”
Using special ‘Napoli Pizza’ boxes for delivering room service pizza to guests.
Issuing ‘Napoli Pizza’ hats and jackets to room service personnel for use in pizza delivery. Room service waiters and waitresses will wear these garments to deliver pizza. They will change to their regular uniforms for other deliveries.
How should George respond to this proposal?
Case analsysis Instructions:
Use these guidelines along with the stated assessment criteria to craft your case analyses.
Relevant Facts –
(A) Overview of pertinent points.
(B) Describe the background of the situation or business that is relevant to the ethical problem(s) or dilemma(s) of the Case.
(C) Highlight information that sets the context for analysis.
Ethical Issues –
(A) State the ethical problem(s) or dilemma(s)
(B) Demonstrate a comprehension of ethical concepts.
(C) Describe the ethical aspects of the Case.
Identifying Stakeholders –
There are always a set of “usual suspects” in a Case, so be sure to list everyone who might be connected. Remember that business decisions have far reaching effects, so consider anyone who might be affected by the ethical considerations of the Case.
Possible Alternatives –
(A) Identify solutions can be described for each ethical issue identified.
(B) List all solutions and approaches to identified ethical issues.
(C) Alternatives may be drawn from the Case, Readings, or personal experience including
outside readings
Ethics of the Alternatives –
(A) Critically assess the alternatives identified for possible recommendation.
(B) Describe the ethical implications of each alternative.
(C) Consider external and internal aspects of ethical proposals.
(D) Apply the “utilitarian” perspective (costs and benefits).
1. Which of the alternatives would provide the greatest benefit to the greatest number?
2. What are the costs in each of the alternatives?
3. Which of the alternatives has the highest “cost” factor associated with it?
4. Do the benefits of honesty at all costs outweigh the benefits of obeying the directive?
of a supervisor?
(E) Apply the “rights” perspective.
1. What does the stakeholder have the right to expect?
2. Which of the alternatives would you want if you were each of the stakeholders?
(F) Apply the “justice” perspective (benefits and burdens).
1. Which alternative distributes the benefits and burdens most fairly among the
stakeholders?
2. Which stakeholders are most affected by each alternative?
Practical Constraints –
(A) Possible obstacles to the implementation of the identified alternatives.
(B) Ethical problems that may come up in executing each alternative.
(C) What unwanted outcomes may result from each alternative?
(D) What aspects of the market might obstruct each alternative?
Specific Action –
(A) Make a recommendation
(B) Analysis should provide context for whatever is recommended.
(C) Support recommendations with the readings or other literature.
