Case on: Rajwant Engineering: Survival or Ethical Values?

Course: BUS 520

Section: 04

Name ID

Tasmim Farah Anika 2415207060

Joyti Roy 2325109060

Afrina Akter Hira 2415079660

Tasnim Rukaiya Islam 2325313660

Date: 31.03.2024
Table of Contents
Introduction....................................................................................................................................5
Defining the problems and possible alternatives:..........................................................................5
1. Ethical Dilemma with Client Co:..........................................................................................5
2. Financial Challenges:.........................................................................................................6
3. Dependency on ClientCo:...................................................................................................6
4. Operational Inefficiencies:..................................................................................................6
5. Holistic changes for the long run:.......................................................................................7
6. Decision-Making Process:..................................................................................................7
Conclusion.....................................................................................................................................7
Introduction
The case of “Rajwant Engineering: Survival or Ethical Dilemma” presents a compelling scenario
of a tug of war between survival in a highly competitive market and standing on the ground to
uphold ethical standards. In this report, the case has been critically assessed and explored
possible solutions to harmonize between sustaining in the short and long run and ethical
adherence in the modern business landscape.

Defining the problems and possible alternatives:

From the information provided in the case, it is understandable that. H. S. Sokhi, the owner of
Rajwant Engineering Pvt. Ltd. (REPL) is facing issues that have brought him down to the point
where sustaining an aggressive market may cause give up on morals and values. In cases like
this, implementing the Rational Decision Making Model would be practical.
The observed complications the company is dealing with and possible solutions:

Ethical Dilemma with Client Co:

○ Mr. Sokhi needs to escalate the issue to the higher management of ClientCo and address
the unethical behavior of the procurement manager.
○ REPL can seek Legal Counsel to navigate the situation protecting REPL’s interests,
without compromising integrity.
○ He can consider engaging in ethical leadership by seeking guidance from REPL's top
management or external ethical advisors to navigate the situation in a manner consistent
with the organization's values and ethical standards.
○ The company needs to seek other alternatives to secure the contract, such as renegotiating
the terms and providing value-added services.

Financial Challenges:
○ Prioritizing outstanding payments and negotiating payment plans with creditors will be the
right thing to do initially. This will alleviate immediate financial pressure.
○ The further step should be refinancing or restructuring existing loans to lessen the cash
flow and stop accumulating interest.
 ○ Also, REPL should implement a strategy for cost-efficient movement to optimize resource
utilization and minimize expenses. This will help the company to bring the most output in
minimum resources.

Dependency on ClientCo:
○ The company needs to make profiles to have several sources of revenue. Implementing
diversification strategies in line with organizational adaptation theories to reduce
dependency on ClientCo and mitigate risks associated with reliance on a single client
could be an option. It can foster strategic alliances and partnerships with other
organizations to expand the client base and create opportunities for revenue
diversification. Also, Diversification of REPL's client base can be created by actively
seeking new contracts and partnerships in different industries or geographical locations.

Operational Inefficiencies:
○ Investing in IT infrastructure and ERP software can be a wise investment to enhance
operational efficiency.
○ The HR should plan Training and development for the unskilled employees. Introducing a
Performance Management system and Variable-based pay will encourage the employees
to skill themselves up.
○ There should be an arrangement of workshops for employees that will help them keep
good relationships with their coworkers and thus avoid workplace clashes. The company
can also arrange a tour/sports tournament to create bonding among the employees outside
the workplace.

Holistic changes for the long run:

○ REPL needs to work thoroughly with the Senior Management and develop strategies for
sustainable growth, innovation, and a USP that will make them different from their
competitors. Also, a budget should be allocated to R&D to understand the emerging
market.
 ○ The company can foster Participative Management that will develop commitment and
initiative within work teams. As well as a better incentive structure should be introduced
to align employee performance with organizational goals.
○ REPL should make a strategy to strengthen relationships with current clients and reduce
the risk of client turnover.

Decision-Making Process:
○ Being the owner of REPL, Mr. Sokhi should seek advice and input from trusted advisors,
industry experts, and key stakeholders to evaluate different alternatives and assess
potential threats and opportunities.
○ Transparent communication should be maintained with employees, clients, and
stakeholders.

While working on the complication evaluating the priorities and weighing each decision criteria
should be done. After defining the obstacles the further phases should be to evaluate and select
the best alternatives for the company’s well-being. Certainly solving the financial crisis is the
highest urgency in this case.

Conclusion
In facing a dilemma between survival and ethical values, Rajwant Engineering must carefully
navigate the complex landscape without compromising its core principles. By prioritizing ethical
leadership, engaging with stakeholders, and implementing strategic restructuring, the company
can aim to overcome its challenges while upholding its ethical standards. This approach not only
ensures long-term sustainability but also shapes a strong name and trust among stakeholders,
contributing to the company's resilience and success.