Table of Contents
Table of Contents Table of Contents ii 1 What are the business problem(s) involved in the case? 1 2 What are the ethical issues raised by the case? 2 2.1 Formalist Analysis 2 2.2 Utilitarian perspective 3 2.3 Virtue ethics perspective 4 2.4 Descriptive ethics framework 5 3 What would Alex Brown do? 6 4 Conclusion 7 Appendix 1: Scoring two courses of action based on Formalist Perspective 8 Appendix 2: Scoring two courses of action based on Utilitarian Perspective 9

What are the business problem(s) involved in the case?
Is Chinese subsidiary of Pharmacyl Inc., successful? No. Evidences are that they (1) have not achieved outstanding results in this important market, (2) have not become market leader and overtaken local competitors yet, and (3) have not created solid base to expand to other parts of the country.
Why have they not been successful yet? Because they were having ineffective leadership and management practices. Evidences are that manager (1) does not know what their subordinates were doing, and (2) could not motivate subordinates to obtain good results.
Why have they had ineffective leadership and management practices? Because they got serious problem with communication throughout company. Evidences are that (1) employees are struggle to tell the truth of what they think is the real root cause of the issue they are facing to their line manager, (2) manager could not communicate easily and frankly with employees – or he did not know how to do it, (3) manager believes that Pharmacyl’s medicines are superior to competitive products, while (4) employees think that the effectiveness of other companies’ medicines is almost the same as Pharmacyl’s products.
Why they have got communication issues? Because they have different and conflict views about the core assumptions and values of the business.