APPENDIX
Role-Play Exercises
WHY USE ROLE-PLAY EXERCISES?
The role-play exercise, or simulation, is an activity in which the class is divided into teams of five to six
students each. The students read a very short case situation and are then assigned roles in the simulated
organization. They are provided with varying levels of information about the scenario. The teams then
interact to provide recommended courses of action representing short-term, mid-term, and long-term
consideration. Each team experiences the group dynamics and tension that can occur between different
departments and individuals seeking to protect their own interests.
The role-play exercise is a teaching tool that provides students with a realistic experience in a simulated
organizational setting. This tool can help students recognize important issues that companies, managers,
and employees may face on a daily basis. Beyond a case analysis approach, these exercises simulate the
complexities of relationships and incomplete information that are pervasive in an organizational setting.
Also, the exercises seek to enhance inherent conflicts between certain departments within the
organization. Additionally, the exercises provided include an ethical component to help students
recognize the ethical, legal, and social dimensions of decision making in marketing organizations.
Therefore, a key goal is to improve individual awareness of the complexities involved in making
marketing decisions. Finally, we hope to gain students’ absolute involvement and participation in class.
By participating in simulation exercises, students can develop their leadership skills and engage in
problem solving activities directly related to marketing issues.
INSTRUCTIONS FOR CLASSROOM USE
The simulation complements and enhances traditional approaches to business learning because it:
1. Gives students the opportunity to practice making decisions that have business consequences
2. Recreates the power, pressures, and information sharing that affects decision making at upper
levels in an organization
3. Provides students with a team-based experience enriching their skills and understanding of group
processes and dynamics
4. Uses a debriefing and feedback period to allow for the exploration of complex and controversial
issues in business decision making
The simulations can be used in classes of any size, as the instructor can run independent role-play case
teams to fit the class size. Teams generally consist of five to six members. Several possible
implementation methods exist. Two options are provided below.
Option 1: Implementation in a 50–75 minute class period
5. Develop teams of five members (depending on roles used). If only three to four participants are
available per team, then the more important and complex roles should be selected for the members
of the team.
2 Appendix: Role-Play Exercises
6. As an introduction to the exercise, have each person read the role-play simulation background
page.
7. Assign each person a role to play and give him or her the specific role description to read. Ask
each person (role) to present their feedback and interaction with the group, based on the role that
they are assigned.
8. Indicate the desired outcomes of the process (for example, press conference, written, or oral
presentation of short-term, mid-range, and long-term recommendations to address the ethical
issue, etc.).
9. Depending on the outcomes specified above, allow the teams to proceed without interruption for
at least 45 minutes. The instructor may visit teams to answer questions and stimulate discussion
on key issues.
10. Create a classroom situation appropriate for teams to share their insights, decisions, or
recommendations. The instructor may require each team to turn in a written report.
11. Link simulation issues, processes, and outcomes to both experiences in the course and learning
objectives. Debrief the class about the alternatives, team perspectives, and potential implications.
Discuss issues that emerge commonly which appear to provide significant insights in helping the
organization deal with the ethical issue.
Option 2: In class and outside independent work
12. Follow step #1 from Option 1.
13. Follow step #2 from Option 1.
14. Follow step #3 from Option 1.
15. With a discussion in class (as the instructor allows), indicate that the desired outcome is a specific
decision, but then assign students to conduct independent research and reflection before the next
discussion session to be held in class. At this second in-class meeting, each participant brings in a
short, written position statement and rationale to inform the discussion. This statement should be
based on the participant’s role and understanding of the situation and its consequences.
16. Let the teams meet during class for brief discussion sessions (30 minutes or so) over the next two
weeks. Indicate that outside meetings are permissible and encouraged.
17. In the third week, each team makes a presentation on the decision with supporting rationale.
Allow questions and comments after each presentation, and encourage other students to critically
examine each team’s decision.
18. Conduct a debriefing session to examine consistency in the decisions and rationale.
19. Link role-play case issues, processes, outcomes, and experience to course concepts and learning
objectives.
Appendix: Role-Play Exercises 3
TEACHING OVERVIEW ON NATIONAL FARM AND GARDEN
EXERCISE
The National Farm and Garden role-play exercise was designed with the goal of giving students the
opportunity to use their knowledge and skills in solving a dilemma related to a product defect. The
simulation centers on a garden tiller that has a safety protection guard that is difficult to reattach after
cleaning. There have been incidents of injuries to animals and children when the tiller is run without the
guard. Various functional members of the organization have to be prepared for a meeting and to make
recommendations for dealing with the negative publicity and possible legal liability associated with
damages related to product use. The class should be looking not only at the right thing to do, but also at
how to implement the decision.
The students’ recommendations should consider product recalls and classes to properly address
cleaning and reinstallation of the guard. Relabeling the instructions to clarify the reattachment process
for the guard should also be addressed. For the longer term, the company should consider a product
redesign to provide a more foolproof mechanism for attaching the guard. Also, there is a need to
evaluate the public relations damage and legal liability associated with product injury cases.
4 Appendix: Role-Play Exercises
ROLE–PLAY EXERCISE ONE
National Farm and Garden, Inc.
Background
(Everyone reads)
National Farm and Garden, Inc. (NFG) was incorporated in Nebraska in 1935 and has been a leading
supplier of farming equipment for more than 60 years. Over the last five years, however, demand for
NFG’s flagship product, the Ultra Tiller, has been declining. To make matters worse, NFG’s market
lead was overtaken by the competition for the first time two years ago.
Last year, NFG expanded its product line with the “Turbo Tiller,” a highly advertised and much
anticipated upgrade to the Ultra Tiller. The product launch was timed to coincide with last year’s fall
tilling season. Due to the timing of the release, the research and development process was shortened,
and the manufacturing department was pressed to produce high numbers to meet anticipated demand.
All responsible divisions approved the product launch and schedule. In order to release the product as
scheduled, however, the manufacturing department was forced to employ the safety shield design from
the Ultra Tiller. When attached, the shield protects the user from the tilling blades; however, it is
necessary to remove the shield in order to clean the product. Because of differences between the Ultra
and Turbo models, the Turbo’s shield is very difficult to reattach after cleaning and the process requires
specialized tools. Owners can have the supplier make modifications on site or at the sales location, or
leave the shielding off and continue operation. All product documentation warns against operating the
tiller without the shielding, and the product itself has three distinct warning labels on it. Modifications
are now available that allow for the shield to be removed and replaced quite easily, and these
modifications are covered by the factory warranty. However, most owners have elected to operate the
Turbo Tiller without the safety shielding after its first cleaning.
Over the last year, a number of farm animals (chickens, cats, a dog, and two goats) have been killed by
Turbo Tillers being operated without the guard. Two weeks ago, a 7-year-old Nebraska boy riding on
the back of an unshielded tiller fell off. When the tiller caught the sleeve of his shirt, his arm was
permanently mangled, requiring amputation. One of the child’s parents owns the local newspaper,
which ran a story about the accident on the front page of the local paper the next day. NFG’s CEO has
called an emergency meeting with the company’s divisional vice president, director of product
development, director of manufacturing, director of sales, and vice president of public relations to
discuss the situation and develop a plan of action.
All rights reserved. Copyright by O.C. Ferrell and Linda Ferrell. The research and conceptual assistance of
Larry Gonzales, Pat Hansen, Heidi Hollenbeck, Marilynn Hill, Michael Mitchell, Craig Hurst, Bill Haskins,
and Dana Schubert is gratefully acknowledged.
Appendix: Role-Play Exercises 5
Divisional Vice President
(only the student assigned to this role reads this page)
You are the divisional V.P. and have been with the company for many years. Historically, you have not
been a pushy individual and generally prefer to stay in the background. When there are major decisions
to be made or crises to address, you are frequently not available. The CEO recently put you on a 60-day
“action plan” to improve your division’s output; failure to achieve this plan will result in your
termination, even though you are just a few years shy of retirement. Therefore, you now find it
necessary to satisfy not only your own objectives, but the CEO’s very high expectations as well. This
has caused great turmoil within all divisions as you place increasing pressure on your subordinates.
As the divisional V.P., you are focused on coordinating all departments. You are responsible for output
from the sales, manufacturing, and field service engineering departments. The R&D department, which
must sign off on all new products before they are approved for production, is not under your
supervision.
Recently, you received a memorandum from the director of R&D outlining some potential problems
with the development and testing of the Turbo Tiller. The memo was copied to you, the director of
manufacturing, and the director of sales. You agreed with the director of manufacturing not to share the
contents of the memo with your CEO because you felt that bringing this small concern to his attention
would cause unnecessary problems for each division. Moreover, the CEO is known for his abrasive
personality and has a history of yelling at bearers of bad news.
The CEO has called an all-hands emergency meeting at 7:00 A.M. tomorrow. You are expected to bring
all knowledge of this situation with you for discussion and creation of a comprehensive action plan.
6 Appendix: Role-Play Exercises
Director of Product Development
(only the student assigned to this role reads this page)
You are the director of product development. Although you have a master’s degree in mechanical
engineering from Stanford University, you are originally from the inner cities of Chicago, where you
grew up in the school of “hard knocks.” From previous experience, you tend to be rather
uncompromising about products that are engineered within your organization. Your engineering team
has been very successful in the past, and you are quite proud of the many new successfu1 products your
department has developed.
You originally fast tracked the Turbo Tiller product due to constant pressure, particularly from the
director of sales. However, upon further investigation, you have become concerned about the
implementation of the product’s safety shield. Consequently, you recently sent a memorandum to the
director of manufacturing, director of sales, and the divisional vice president outlining the fact that
consumers could sue National Farm and Garden under the state’s strict liability doctrine, which holds
manufacturers, distributors, wholesalers, retailers, and others in the chain of distribution of a defective
product liable for the damages caused by the defect regardless of fault. Moreover, plaintiffs could cite
the state’s concept of defect of manufacture when the manufacturer fails to (1) properly assemble a
product, (2) properly test a product, and (3) adequately check the quality of the product’s component
parts or materials used in manufacturing. You now believe that NFG has violated all of these “defects
of manufacture.”
Having received no response to this memo, you are contemplating whether to escalate the issue by
going to the CEO. The only reason you have not already done so is the CEO’s historic temper when
confronted with negative situations.
The CEO has called an all-hands emergency meeting at 7:00 A.M. tomorrow. You are expected to bring
all knowledge of this situation with you for discussion and creation of a comprehensive action plan.
Appendix: Role-Play Exercises 7
Director of Manufacturing
(only the student assigned to this role reads this page)
You are the director of manufacturing. A graduate from the University of Alabama with a bachelor of
science degree in industrial manufacturing, you have worked for NFG for twenty years. You are
required to provide reports to top management on a weekly, monthly, and quarterly basis. Top
management creates the exact measures of performance that you provide; although you have a say in
what these reports focus on, you often disagree with their exact focus. Your overall performance is
evaluated based more on numbers of units produced than on quality. Despite this, you enjoy working
for the company. You consider the group like family, and especially appreciate the effort the CEO has
made to make you feel valued and supported.
You are aware of the difficulties the Ultra Tiller guard poses when used on the Turbo Tiller. Due to the
Turbo Tiller’s larger size, the guard is nearly impossible to replace after removal. Reattachment of the
shield requires a professional machine shop and additional assistance. However, with your knowledge
of statistics, you know that, even without the shield in place, the chances of an animal or a person being
injured by the Turbo Tiller are small. Thus, you agreed with the divisional V.P. to bury a memo sent by
the director of R&D stating related concerns. You both felt that the risks were small enough and that
raising these concerns to your superiors would only cause headaches and paperwork. Furthermore, you
need to stay on schedule in order to reach your volume goals if you are to earn your bonus.
You have also received several e-mails from the manager of the field service engineering department
about reports of farmers operating the Turbo Tiller without the guard. When you requested statistical
data regarding the number and location of occurrences and any related accidents, the field service
engineering manager replied with field data indicating that more than 85 percent of all Turbo Tillers are
eventually operated without the guard.
The CEO has called an all-hands emergency meeting at 7:00 A.M. tomorrow. You are expected to bring
all knowledge of this situation with you for discussion and creation of a comprehensive action plan.
8 Appendix: Role-Play Exercises
Director of Sales
(only the student assigned to this role reads this page)
You are the director of sales and have been with NFG for more than ten years. You were recruited from
a competing firm and have more than 25 years of sales experience in the industry. Because of sagging
sales, you face extreme pressure from above to meet your numbers. However, you feel that sales
forecasts have been set unrealistically. Furthermore, these aggressive forecasts create churning within
your department as your sales staff consistently complain that their quotas are unrealistic. Although you
are adamant that declining sales are industry and product offering issues, you are reluctant to raise these
concerns to the CEO because of his history of ripping the heads off messengers bearing bad news. You
have witnessed this phenomenon firsthand as the CEO literally screamed at a coworker who brought a
problem to his attention. On the other hand, the CEO has promised you a new Dodge Ram if your
department reaches its numbers this year. Of course, you enthusiastically promised to achieve these
results and quickly ran from the room.
The Turbo Tiller has been a much-anticipated addition to your stagnant product portfolio, but you were
concerned that it would be delayed due to red tape and wrote daily e-mails to the R&D manager about
getting it to market on a timely basis. You have received a memo from the R&D manager about some
legal concerns over the Turbo Tiller. However, you feel that these concerns are manufacturing’s
problem, not your department’s. Furthermore, because the director of manufacturing received a carbon
copy of the memo, you are sure that the concerns will be addressed appropriately.
You have organized training on this product for your sales staff that included proper operating
procedures and the dangers of standing within five feet of the tilling blades. Independent of these
training sessions, you arranged a separate class on how to address and downplay these concerns with
customers.
The CEO has called an all-hands emergency meeting at 7:00 A.M. tomorrow. You are expected to bring
all knowledge of this situation with you for discussion and creation of a comprehensive action plan.
Appendix: Role-Play Exercises 9
Vice President of Public Relations
(only the student assigned to this role reads this page)
You are the most recent addition to the management staff at NFG, having been with the company for
just three years. You obtained a bachelor’s degree in human resources from Ohio State University, and
a master’s degree in communications from Florida State University. Prior to working with NFG, you
handled public relations at a nonprofit organization for five years. You took this job because you
thought it would be a personal challenge to represent a larger for-profit business. Besides, you were
raised in Nebraska, and are a farmer at heart.
Nearly six months ago, you learned that the company had developed and released a product that has
some safety concerns. Most department heads were not concerned about the problem because of a lack
of solid evidence that a danger existed. You have been monitoring the situation, although it has not
been your highest priority due to recent union negotiations. Recently, the CEO informed you that a
corporate meeting is eminent. As the V.P. of Public Relations, it is your responsibility to gain
information about public opinion to present to the CEO. As you begin to collect this information, you
find disturbing news. Many consumers don’t trust NFG because of its handling of a chemical spill five
years ago. Additionally, many rumors are circulating about NFG’s hiring practices.
You know that a single negative event can wipe out a company’s reputation and destroy favorable
customer attitudes established through years of expensive advertising campaigns and other promotional
efforts. In this situation you need to minimize the negative publicity, yet still address the media. You
suddenly wish the company had developed a crisis plan before this happened.
The CEO has called an all-hands emergency meeting at 7:00 A.M. tomorrow. You are expected to bring
all knowledge of this situation with you for discussion and creation of a comprehensive action plan.
10 Appendix: Role-Play Exercises
ROLE–PLAY EXERCISE TWO
VWeb*
Background
(Everyone reads)
VWeb was founded as Videopolis in 2003 by two former employees of RCA, where they had learned
television broadcasting, electrical engineering, satellite downlinking, and telephone networking
applications. Today, VWeb is a communications company that specializes in creating video and web
conferencing technology to connect people from across the world. The company does not produce
meetings, conferences, or programs, but instead facilitates the web conferencing process. VWeb’s most
profitable product, the “DigiV Service,” provides users with the ability to combine a conference call
with web conferencing.
VWeb’s “Broadcast Service” is also popular. It stores and plays prerecorded programs and broadcasts
them to clients’ meeting rooms around the world. If a remote site is not immediately available to view a
meeting or program from VWeb, the client can download the program from VWeb’s password
protected file sharing service. VWeb does not explicitly state that recording programs from its
“Broadcast Service” is forbidden. Company policy is that all viewing sites must obtain their own
permissions from the owners of the content to record any copyrighted materials. There are some
concerns that this policy may be facilitating the copying and distribution of copyrighted material.
Videopolis became VWeb after it was acquired by TeleWide Corp. fifteen months ago. When
Videopolis was started, the founders had a clear vision for growth, hiring only the best employees and
purchasing the best equipment in more than sufficient quantities to ensure a high 54 firm with high
hopes of stock options, promotions, and bonuses based on future growth prospects. Several employees
had purchased expensive homes and cars in anticipation of these bonuses and promotions.
Unfortunately, the founding partners sold out directly to TeleWide before granting any options or
bonuses to Videopolis employees. After the merger, TeleWide immediately instituted a hiring and
equipment-purchasing freeze and virtually froze all salaries. The new corporate parent also set
aggressive sales and growth goals for VWeb and developed a highly incentive-based pay structure for
upper managers who achieved their goals. This resulted in a considerable amount of turnover, as those
employees who could afford to leave promptly did so, placing tremendous stress on those who stayed
and had to pick up the slack. Many of the employees who remained after the buyout believed that
promises have been broken and that they were misled about advancement opportunities.
VWeb’ chief legal counsel has sent an e-mail message to arrange a meeting with the CEO, vice
president of operations, vice president of human resources, and the vice president of marketing and
sales to discuss a number of legal and ethical issues concerning potential legal issues at the company.
* This simulation was created under the direction of O.C. and Linda Ferrell for classroom discussion. The
research and conceptual assistance of Dana Schubert, Brian Hayes, Carrie Ann McDonough, Jeff Sawyer,
and Jon Mullen is gratefully acknowledged.
Appendix: Role-Play Exercises 11
Bryce Kerwin, Vice President of Marketing and Sales
(Only the student assigned to this role reads this page)
Bryce Kerwin is the vice president of marketing and sales for VWeb. One of the first employees hired
by the Videopolis founders, Bryce was among the core group of employees who were promised stock
options and promotions if the company ever went public. Bryce is middle-aged, divorced, and has two
children. Bryce drives an old beat–up car and has used all the family’s financial resources to get into a
new, larger house. Relying on the promised stock options, raises, and bonuses, Bryce is now stretched
to the limit and is beginning to deeply resent the company because the promised money may never
materialize. Alex Rockwell, VWeb’s CEO, has told Bryce that the marketing and sales department can
make the difference in helping the company achieve its objectives. Rockwell has implemented a very
attractive bonus plan for Bryce if the department achieves its objectives, but the numbers are so
aggressive that Bryce feels they are unattainable.
Bryce has been concerned recently by reports that operations can’t handle the current workload, and by
rumors that Videopolis has lost its edge. Bryce wonders if this is indeed the case and whether the
company can grow at all, let alone by the 100 percent target number set by the new CEO. Bryce’s sales
force is also young, inexperienced, and not very familiar with the company’s products. Bryce has been
driving the sales force very hard in an effort to reach the company’s goals (and because Alex has made
several threats referring to Bryce’s “lack of motivation”). Bryce senses the tension in employee morale,
but doesn’t know how to address the issues. Bryce was a pivotal employee who helped make the
company successful through hard work and wonders why, instead of rewards and recognition, the new
management delivers orders to work even harder.
In response to Bryce’s incessant pushing, in order to book sales the sales reps are stretching the truth
and making promises that the company can’t keep. Although Bryce personally hates this practice, it
does bring in customers who later learn what VWeb can actually do, and usually stay with the company
(once Bryce meets with them to do “damage control” and pacify them). VWeb has also started doing
business with unfamiliar companies that have high demands for secrecy and privacy. Unfortunately,
promises to satisfy their demands remain unfulfilled due to limitations in current technology and the
increased risk of cyber hacking. VWeb’s product the “Broadcast Series,” which involves playing
feature-length programs and broadcasting the signal around the world, is not interactive, so aside from
equipment costs, it’s virtually pure profit for VWeb. However, growth for this line has begun to slow as
more of its clients prefer interactive services. The DigiV Service, on the other hand, has high prospects
for growth, but competitors are quickly catching up by releasing similar services.
Yesterday Bryce received an e-mail from M.J. Marshall, the company’s chief legal counsel, indicating
that there may be intellectual copyright infringement issues with the Broadcast Series and some of the
firm’s contracts with customers. The attorney has called a meeting with all of VWeb’s upper managers
tomorrow to discuss the issues. The CEO has indicated that the vice president of human resources also
wants to address some employee issues at the meeting. Bryce hopes that the meeting does not relate to
the sales force’s tendency to stretch the truth to customers, because Bryce has really stretched both
company policy and personal morals in order to achieve the high goals. Bryce is not looking forward to
the meeting.
12 Appendix: Role-Play Exercises
Alex Rockwell, CEO
(Only the student assigned to this role reads this page)
Alex Rockwell was brought in by TeleWide as the CEO of VWeb at the time of the Videopolis buy out.
Alex is a young executive whose entire seven-year professional career has been with TeleWide. Upon
graduation from the University of New Hampshire with a B.S. in Marketing and an MBA, Alex began
working in TeleWide’s marketing department and quickly worked his way up within the organization.
Prior to taking the reins at VWeb, Alex had a successful two-year stint as the CEO of a small digital file
sharing company that had also been acquired by TeleWide. After making some cuts and refocusing the
staff, Alex was able to turn a mediocre company into a very profitable one. Because of the cuts, some
of the digital file sharing company’s employees began to refer to Alex as “Hacksaw,” which gave Alex
a strange sense of pride because it suggested that Alex had the guts required to make unpopular but
necessary decisions to make the company profitable.
Alex believes that this appointment to VWeb will be the final stage of professional grooming prior to
landing a corporate vice presidency at TeleWide itself, with its greater responsibility and prestige. After
observing other successful executives being appointed to posh TeleWide corporate positions, Alex
believes that two to three successful years at VWeb will guarantee Alex’s own appointment to one of
these coveted positions.
Alex is a loyal TeleWide employee to the bone. When a corporate mandate came down to increase
revenue by a minimum of 50 percent, Alex confidently replied that anything less than 100 percent
would be unacceptable. Alex claimed to have studied VWeb’s bottom line and determined that it was
simply not being run efficiently. In reality, Alex had made this assessment by gut feeling, without
taking the time to actually sort through the figures in order to identify areas for improvement and
savings. Alex gauged the average company employee to have little sense of urgency and observed
many unnecessary (in Alex’s opinion) tasks being performed. Thinking a fear tactic would be the best
method to achieve results, Alex has been on a fifteen-month rampage to get the desired bottom-line
numbers. The word around VWeb is, “it’s Alex’s way or the highway.” Through terminations and
employee turnover, more than half of the current staff has tenure of less than one year. Now it seems
that Alex has a problem with the firm’s chief legal counsel, M.J. Marshall. Alex feels that M.J. is too
young and lacks the drive to do what it takes to get things done the Alex Rockwell way; perhaps M.J.
should be the next one to be “Hacksawed.”
Alex is quite excited about VWeb’s new DigiV Service offering. The product involves extending the
DigiV Service to mobile technology such as the iPad and other tablet computers. As tablet computers
continue to grab market share from laptops, extending the DigiV service to tablet computers and even
smartphones has enormous possibility for VWeb and could propel it beyond the competition. The
margins on this service are very high, and Alex believes that expanding the service could greatly assist
the company in achievinh its goal of a 100 percent increase in revenue. Unfortunately, the service has
stalled as many key employees working on the project have left the company. Alex also questions some
of the privacy implications of the service’s proposed features.
Alex recently received a vague e-mail from M.J. Marshall requesting a meeting to discuss potential
legal problems that could be brewing within the company. Upon learning of the meeting, Sam Arnold,
the company’s vice president of human resources, asked that employee issues be placed on the agenda
as well. Alex is deeply concerned because potential lawsuits of any magnitude or employee
dissatisfaction could dramatically affect the bottom-line numbers and Alex’s chances for a corporate
V.P. position at TeleWide.
Appendix: Role-Play Exercises 13
M.J. Marshall, Chief Legal Counsel
(Only the student assigned to this role reads this page)
M.J. Marshall is the bright young attorney hired by Videopolis’ founding partners to act as their chief
counsel just before the TeleWide buy out. M.J. is single and has been practicing law for just a few
years. Before coming to work at Videopolis, M.J. was on the fast track to a partnership in a firm that
specialized in intellectual property and copyright protection. M.J. jumped at the opportunity to be chief
counsel at an interesting high-tech company that offered better than average pay and the potential for
stock options. Soon after being hired by Videopolis, M.J. purchased a new sports car and a loft in a
renovated warehouse in the trendy downtown area. When Videopolis was bought out by TeleWide,
M.J. was one of the few employees who retained their original salary and received stock options in
VWeb. Being the chief counsel, M.J. was concerned about making a good impression on the new
owners, not to mention the much needed salary to cover a large student loan, mortgage, and car
payments.
Things have finally settled down after the merger, and M.J. is just now reviewing the contracts signed
by Videopolis’ founders in order to identify problems. Many of the old Videopolis deals were open
ended, based on a handshake, and some had strange provisions especially concerning copyright
violations. M.J. has identified some specific concerns about the company’s Broadcast Series. M.J. has
received complaints from some employees regarding the programs that are being broadcast over
company lines. Being familiar with the laws surrounding intellectual property and copyright protection,
M.J. suddenly realizes that VWeb could be liable for copyright infringement if the copyright owners
view the broadcasts and recognize their programs as unauthorized copies. M.J. also knows that the
federal government has been threatening to crack down on Internet companies for violations of
copyright laws. M.J. has also learned that there may be privacy concerns for its popular product DigiV.
Because web conferences between different parties often deal with sensitive company information, it is
essential that DigiV have security features in place to prevent outside parties from hacking into the
system and “listening in.” M.J. was recently informed that there was a potential privacy breach in its
system and that the company’s security features might not be sufficient to protect from the latest
criminal activity from cyber hackers.
Although M.J. recognizes that these issues must be dealt with, M.J. also knows that the DigiV Service
is the CEO’s baby and that Alex will be very sensitive to any changes in the program. Nonetheless,
these issues could potentially be time consuming and very costly to VWeb. It could also put DigiV’s
possibilities of expansion in the mobile technology industry on hold indefinitely.
To add to the pressures M.J. faces, the CEO has hinted to M.J. that if the situation is not managed
satisfactorily, TeleWide will bring in a new legal counsel who can satisfy the company’s needs.
Recognizing the need to get a handle on the situation, M.J. has decided it is time to call a meeting with
the top executives. M.J. dreads the meeting, knowing it could affect a number of employees, but
believes that these issues must be brought out into the open.