182 Simulations
SIMULATION SIX
Parcel International Express
Background Information
(Everybody Reads)
Parcel International Express (PIE) located in Europe provides international shipping of documents
and freight as well as contract logistics. PIE’s global headquarters are located in Paris and Brussels
in Europe, Atlanta in North America, and Hong Kong in Asia. Major competitors include FedEx,
DHL, UPS, TNT and national Post carriers such as the United States Postal Service and Royal
Mail. The goal of PIE is to practice customer orientation by developing loyalty through efficiency
and quality of all services offered. While PIE must conform to all regulatory agencies in the areas
that it operates, it operates in a highly competitive environment that requires employees to meet
specific performance requirements. PIE therefore faces many risks related to organizational
decisions, employee conduct, and external environmental issues created by numerous stakeholders.
Today a number of firms are living through their own version of scandals similar to the scandals at
Enron, WorldCom, and others. One headline grabbing scandal after another is giving capitalism a
negative image with key stakeholders. Most of the current scandals do not lead to bankruptcies, but
the impact on government policy could be great. More recently there have been questions about
transparency related to underhanded dealings and the undermining of public trust. Key issues of
interest to the company relate to wage inequities, financial reporting, tax avoidance, and conflict of
interest in carrying out corporate responsibilities.
Simulations 183
damage the reputation of the company. In this meeting, the objective is to identify ethical risk areas
in the each area of responsibility. The goal is to make recommendations for immediate action,
changes over the next six months, and finally a longer term strategic approach to improving ethical
conduct related to these risk areas.
184 Simulations
Casey Evans Vice President of Ethics and Social Responsibility
(Only the student assigned to this role reads this page)
You have been with PIE for the past 20 years. You started working in a customer contact center
while you finished a college degree in management. After finishing your degree you became a
front-line manager and supervised operations in a transportation center. Next, you moved to two
corporate headquarters and worked in human resources. After finishing your Masters of Business
Administration on a part-time basis, you developed an interest in ethics and social responsibility.
You were invited to join this newly formed ethics and social responsibility department. Your
concentration in social responsibility, ethics, and legal issues in your Masters program helps
provide the background you need for this position. Last year, you were offered the newly
established position of vice president of ethics and social responsibility.
In the beginning, you thought the CEO had good intentions but felt that his true intent was to
support the Vice President of Public Relations and Vice President of Human Resources in
smoothing out image issues related to the company‘s citizenship. With the launch of a new ethics
and compliance program, your job is shifting—to gain employee support for this new initiative.
Simulations 185
Robin Maignan, Vice President of Marketing
(Only the student assigned to this role reads this page)
You have been vice president of marketing for the past five years. During this time, you notice that
sales have been increasing at a slower rate. You are tasked with managing those numbers and
driving revenue for PIE. Before joining PIE you were the marketing manager for the European
division of FedEx. In this position you faced severe competition and had to work hard to make the
numbers. As you have moved from positions as a middle manager and local manager you have
excelled at operational and tactical plans to achieve goals set by the CEO. You have developed
marketing strategies for PIE to become an industry benchmark for innovation and performance.
186 Simulations
Loren Chanchey, Vice President of Operations
(Only the student assigned to this role reads this page)
As the Vice President of Operations, you’re responsible for coordinating the efforts of worldwide
operations and focus on the importance of staying competitive. This past year, when profits began
to slow, the CEO expressed concern that operations needed to improve its performance, because
the cost of basic commodities and supplies were increasing at a rapid rate, and that there was a
Last year your spouse called you a workaholic and filed for divorce. Your career and loyalty to PIE
is now your main focus in life. Each month you travel to different operational facilities and witness
firsthand the efficiencies that are being achieved with new technology. You have all the processes
in place and do not want to disrupt the system. The new ethics and compliance program is
something you don‘t have time to invest in, and you feel that employee misconduct is not your
responsibility. You are not happy with being at this meeting because it is a threat to operational
efficiency. In your position you can‘t afford to compromise competitive advantages in favor of
performance objectives. You will be out of a job if you don‘t deliver operational excellence.
Simulations 187
Sidney Dolce, Vice President of Finance
(Only the student assigned to this role reads this page)
You joined PIE ten years ago after leaving the position of Vice President of Finance with a
trucking company. You enjoy evaluating projects to see if they will be profitable, and deciding
how to best invest the company’s money. The industry is expanding, but faces many challenges
such as increasing fuel costs, as well as increases in the cost of supplies and labor.
You have found your career educational and rewarding, but very stressful. Every night you take
long walks and mentally review the day’s numbers for the next day‘s meeting. It is hard for you to
stop thinking about challenging issues related to managing the finances of PIE. As a finance
person, you are used to a regulatory environment that provides rules and exact procedures to
188 Simulations
Terry Nely, Vice President of Human Resources
(Only the student assigned to this role reads this page)
You are a member of the seasoned management team. You started working at PIE in 1992, three
weeks after finishing your undergraduate studies in human resource management. Being the
youngest V.P. has posed several challenges including not having an equally weighted role in
important decision making. Although it is negligible to outsiders, several employees have noticed
your lack of clout. You have worked diligently to move up through the ranks to obtain your current
position, and have a mild resentment for those who consider you and your human resources
function trivial. Nobody better understands the pool of employees than you do.
You know that many employees are skeptical and afraid of the potential changes. The company is
going to need to address the employees’ concerns about an ethics and compliance program. In its
effort to make the best decisions, in the past PIE has alienated the workers through a lack of
communication.
SUPPLEMENTAL/EXAMINATION CASES
Using teaching cases for examination purposes can help the instructor gauge a student’s depth of
understanding of the material. The instructor should deduct points if the student fails to identify the