For the Sears Auto Cases, when I first read it, I didn’t think the incident was that serious, since the most doubtable questions were the standard of the Sears Auto is different from what the BAR used, second, the methods of investigation used by BAR sounded not fair, they used high mileage, older vehicle model with severe repair problems and that needs only minor brake repair. Further, the BAR intentionally replaced the failed parts with new parts such that the new parts are being aged to look like it’s an old spare part. Was the method of investigation used by BAR fair enough and justifies the purported findings? Third, the incentive system of Sears auto, I did notice that, but I didn’t think about too much on that part, because this is a very common way which are used in many different industries such as what we discussed in the class, hospital, insurance, mortgage, sells…
During the discussion in the class, I realized, although the incentive system itself is a good system for company to increase revenue, encourage employees to sell more, but in another hand, without an effective supervision system, people are easily focus on the quality and ignore the quantity and also because of more commission, some behaviors may cause ethics issues such as overselling, high pricing priority and so on.
When it comes to the question that how could Brennan do for such incident, in the discussion, some advised Brennan should try do an out-of-Court agreement with BAR, some said Brennan should fight back by questioning the way used by BAR and also some suggested Brennan should pay back the over-charged to the customers. In my opinion, all mentioned above are all different ways to save the reputation and integrity of Sears, this is a very signal, since all of us put the reputation in the high priority and try to mitigate the impact. This case give an good example for my future business decision, any kinds of incentive system should be considered very carefully before launch it, if anything unexpected happened, we need fix it immediately.