These alternatives are available to Juanita:
1. She cans totally refuse Smith’s advice. Juanita can negotiate with SenCo’s lenders to reduce SenCo’s capital and discharge its debt. And then, she can lay off some employees for a period to decrease expenses; she also has to reform the MXT sensor’s internal circuitry and open up the market to help SenCo get through the hard time. 2. She can not completely agree with Smith. By partially accepting Smith’s requirements, Juanita can ask Smith to become the vice president (or offer a title to him) of SenCo. First, Smith must sign the contract for the MXT module sales with SenCo and make advance payment as well; and then SenCo will give the money to Smith by installments in wage form (the $500,000 can be net of tax). Then, SenCo can give the money to Smith in a legal way and extricate itself from a plight. Of course, SenCo will still have to reform the MXT sensor’s internal circuitryStakeholders that are involved in Juanita’s decision:
For the first alternative
Employees in SenCo and their families: For people who work for SenCo, the result of choosing the first alternative could be severe. Some of them might lose their jobs. Unemployment will not only impact SenCo’s employees, but also will hurt their families. They might lose their houses or cars, and then live an unstable life. b.
Juanita and owners of SenCo: If she chooses the first alternative, she will set up herself in a very tough and challenging situation. She will carry the full duty of saving SenCo. Meanwhile, the owners of SenCo might have to face another bankruptcy if Juanita and her management team can’t solve the situation. c.
John Smith: If Juanita chooses the first alternative to solve her dilemma, Smith’s “plan” will come unstuck. d.
Vehicles’ consumers: If Juanita chooses the first alternative, these vehicles’ consumers will not be in a dangerous situation, since the refusal would not put a deficient MXT sensor into...
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