MKTG 732 Winter 2020: Marketing Case Study on International Sales

This case study analyzes the challenges faced by Matthew Kwong, a salesperson for Certec Limited, during his first sales trip to the Middle East. The case revolves around a potential $2.7 million deal for computerized traffic flow management systems, where Matthew encounters a request for a payoff from the public works minister's assistant. The assignment explores the ethical dilemmas of bribery, commission, and contract negotiation within an international context. The solution discusses whether paying a commission is necessary and how to navigate ethical considerations, referencing OECD guidelines on bribery and tax deductibility. The analysis considers the importance of local laws, sales strategies, and the impact of ethical decisions on business operations and international trade, focusing on the importance of maintaining ethical standards and adherence to legal parameters.

Running head: MARKETING
Case study on marketing
Name of the student:
Name of the university:
Author note:

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1. Paying commission is necessary for Mathew in terms of acknowledging the efforts of the
personnel towards assisting in the completion of the tasks. He can pay the commission to the
sales manager, which would be fruitful in terms of gaining an insight into the legal
parameters applicable in the deals and contracts for completing the sales operations.
Indulging in meetings with the sales manager and president would act assistance for Mathew
to organize the calculations according to the sales volume. According to the arguments of
Srivastava and Tang, (2018), this approach would be effective for retaining them in order to
formulate effective plans for enhancing the coordination in the firms. A remuneration
package would be effective for the sales manager to avert the instances of financial
instabilities, which enhances the stability in the services, especially those of the investments.
2. Payment of commission is varied from firms to firms and situation to situation. Charging
fees helps the firms to maintain the flow of the operations. In case of the savings account,
charging fees with a minimum balance incurs services charges. This is the case when the
withdrawals is more in a month. Bennett et al., (2016) highlights that in most of the cases,
brokerage fees is charged for keeping the accounts of the clients activated. Dormancy is also
the case, which is considered in this context. Verification of the brokerage fee schedule is
important for investing in the services. Management and Advisory fees is also important in
terms of enhancing the efficiency in the investment funds. Indulging in meetings with the
finance admins is effective in terms of upgrading the knowledge about the ways to salvage
the deal in an ethical manner.
3. According to the recommendations of OECD, tax deductibility of the bribes is prohibited
in case of the foreign public officials. Such disallowances is binded within the legislative
parameters, which have the same effect. Oecd.org (2020) is of the view that this approach is
effective in terms of reducing the further occurrence of the instances of corruption and
bribery. In case of every member, the reviews of the operations need to done through the

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consideration of frameworks catering to the assessment of whether the services fulfil the
needs, demands and requirements of the taxpayers. In Canada, the operations are governed
through the means of Convention on Combating Bribery in International Business
Transactions. This is under the department of the Organization for Economic Co-operation
and Development. The emphasis is on the eradication of bribery. According to the revelations
of International.gc.ca (2020), bribery is perceived as a “non-tariff” barrier towards trade. In
this context, Srivastava and Tang, (2018) highlights the importance of 2009 recommendation
towards maintaining the decorum and harmony in the foreign business transactions. The
typical components in this context are Mutual Administration Assistance in Tax Matters,
Officially supported Export Credits and Proposals for Bilateral Aid and Procurement. The
Peer Review process relates to the evaluation of the proposals for contracts and negotiations,
which is crucial for assessing the presence of the corruption and bribery.

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References
Bennett, A. M., Baker, S. M., Cross, S., James, J. P., Bartholomew, G., Ekpo, A. E., ... &
Stovall, T. (2016). Omission and commission as marketplace trauma. Journal of
Public Policy & Marketing, 35(2), 280-291.
International.gc.ca (2020). Corruption. Retrieved 11th Feb 2020 from
https://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-
domaines/other-autre/corruption.aspx?lang=eng
Oecd.org (2020). OECD anti-bribery convention. Retrieved 11th Feb 2020 from
http://www.oecd.org/corruption/oecdantibriberyconvention.htm
Srivastava, R. V., & Tang, T. (2018). Coping intelligence theory: coping strategies,
satisfaction and sales commission. Journal of Business & Industrial Marketing 9(2),
pp100-150