MGT 422 SEU Resolving Ethical Business Challenges Case Discussion

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 2
Business Ethics and Organization Social Responsibility (MGT
422)
Due Date: 9/04/2022 @ 23:59
Course Name:
Student’s Name:
Course Code: MGT
Student’s ID Number:
Semester: Second
CRN:
Academic Year:2021-22-2nd
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Learning Outcomes:
No
CLO-4
CLO-6
Course Learning Outcomes (CLOs)
Illustrate the role of social responsibility in the functional areas and strategic
processes of business and a comprehensive framework for analyzing and resolving
ethical issues and dilemmas in an organization.
Write coherent project about a case study or actual research about ethics.
Read the case given and answer the questions:
Case Study
Resolving Ethical Business Challenges *
Kent was getting pressure from his boss, parents, and wife about the marketing campaign
for Broadway Corporation’s new video game called “Lucky.” He had been working for
Broadway for about two years, and the Lucky game was his first big project. After Kent
and his wife, Amy, graduated from college, they decided to go back to their hometown of
Las Cruces, New Mexico, near the Mexican border. Kent’s father knew the president of
Broadway, which enabled Kent to get a job in its marketing department. Broadway is a
medium-size company with about 500 employees, making it one of the largest employers
in Las Cruces. Broadway develops, manufactures, and markets video arcade games
Within the video arcade industry, competition is fierce. Games typically have a life cycle
of only 18 to 24 months. One of the key strategies in the industry is providing unique,
visually stimulating games by using color graphics technology, fast action, and
participant interaction. The target markets for Broadway’s video products are children
aged 5 to 12 and teenagers aged 13 to 19. Males constitute 75 percent of the market.
When Kent first started with Broadway, his task was to conduct market research on the
types of games that players desired. His research showed that the market wanted more
action (violence), quicker graphics, multiple levels of difficulty, and sound. Further
research showed that certain tones and types of sound were more pleasing than others. As
part of his research, Kent also observed people in video arcades, where he found that
many became hypnotized by a game and would quickly put in quarters when told to do
so. Research suggested that many target consumers exhibited the same symptoms as
compulsive gamblers. Kent’s research results were well received by the company, which
developed several new games using his information. The new games were instant hits
with the market. In his continuing research, Kent found that the consumer’s level of
intensity increased as the game’s intensity level increased. Several reports later, Kent
suggested that target consumers might be willing, at strategic periods in a video game, to
insert multiple coins. For example, a player who wanted to move to a higher level of
difficulty would have to insert two coins; to play the final level, three coins would have
to be inserted. When the idea was tested, Kent found it did increase game productivity.
Kent also noticed that video games that gave positive reinforcements to the consumer,
such as audio cues, were played much more frequently than others. He reported his
findings to Brad, Broadway’s president, who asked Kent to apply the information to the
development of new games. Kent suggested having the machines give candy to the game
players when they attained specific goals. For the teen market, the company modified the
idea: The machines would give back coins at certain levels during the game. Players
could then use the coins at strategic levels to play a “slot-type” chance opening of the
next level. By inserting an element of chance, these games generated more coin input
than output, and game productivity increased dramatically. These innovations were quite
successful, giving Broadway a larger share of the market and Kent a promotion to
product manager. Kent’s newest assignment was the Lucky game—a fast-action scenario
in which the goal was to destroy the enemy before being destroyed. Kent expanded on the
slot-type game for the older market, with two additions. First, the game employed virtual
reality technology, which gives the player the sensation of actually being in the game.
Second, keeping in mind that most of the teenage consumers were male, Kent
incorporated a female character who, at each level, removed a piece of her clothing and
taunted the player. A win at the highest level left her nude. Test market results suggested
that the two additions increased profitability per game dramatically. Several weeks later,
Brad asked about the Lucky project. “I think we’ve got a real problem, Brad,” Kent told
him. “Maybe the nudity is a bad idea. Some people will be really upset about it.” Brad
was displeased with Kent’s response. Word got around fast that the Lucky project had
stalled. During dinner with his parents, Kent mentioned the Lucky project, and his dad
said something that affected Kent. “You know, son, the Lucky project will bring in a
great deal of revenue for Broadway, and jobs are at stake. Some of your coworkers are
upset with your stand on this project. I’m not telling you what to do, but there’s more at
stake here than just a video game.” The next day Kent had a meeting with Brad about
Lucky. “Well,” Brad asked, “what have you decided?” Kent answered, “I don’t think we
should go with the nudity idea.” Brad answered, “You know, Kent, you’re right. The U.S.
market just isn’t ready to see full nudity as well as graphic violence in arcades in their
local malls. That’s why I’ve contacted an Internet provider who will take our game and
put it on the Internet as an adult product. I’ve also checked out the foreign markets and
found that we can sell the machines to the Mexican market if we tone down the violence.
The Taiwanese joint venture group has okayed the version we have now, but they would
like you to develop something that is more graphic in both areas. You see, they already
have similar versions of this type of game now, and their market is ready to go to the next
level. I see the Internet market as secondary because we can’t get the virtual reality
equipment and software into an Internet mode. Maybe when PCs get faster, we’ll be able
to tap into it at that level, but not now. So, Kent, do you understand what you need to be
doing on Lucky?”
Question(s):
1. Identify and discuss the ethical and legal issues? What are Kent’s options? (600
words)- 5 Marks
2. Discuss the acceptability and commercial use of sex, violence, and gambling in the
United States. (Minimum 2 options & 2 consequences, 400 words)- 3 Marks
3. Are marketing sex, violence, and gambling acceptable in other countries if they fit
their culture? (At least 2 options, 300 words)-2 Marks
*This case is strictly hypothetical; any resemblance to real persons, companies, or
situations is coincidental.
Rubrics for grading:
Q. No Criteria/ achievement
levels
Student should explain
both the legal and
ethical issues in this
1.
case and Kent’s
options. 600 words.
2
Students should point
out the acceptability
and commercial use of
sex, violence, and
gambling in the United
States. 400 words.
Good mark
Average Mark
Low Mark
Good and clear
explanation of
the legal and
ethical issue and
Kent’s options is
discussed with
proper
references.
Marks: 5
Concepts are
clearly explained
along with
proper
references
Good and clear
of the legal and
ethical issue and
Kent’s options is
discussed
without proper
references.
Marks: 2.5
Student does
not examine the
legal and ethical
issue and Kent’s
options related
to the case.
Marks: 0
Student explains
only one or two
concepts without
the references.
Marks: 1.5
Concepts are
not clear, and
the explanation
is incomplete.
Marks: 0
Marks: 3
3
Students should argue
marketing
sex,
violence,
and
gambling acceptable in
other countries if they
fit their culture. 300
words.
Arguments are
well explained
and justified
with proper
references.
Marks: 2
Arguments are
provided but not
clearly explained
and no
references are
provided.
Marks: 1
No arguments
are given.
Marks: 0

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