Local Motors co-creation model Case Study Example | Topics and Well Written Essays - 1500 words

Local Motors co-creation model - Case Study Example Moreover the design talent is easy to identify but not all the designs are easy to develop and build them into new cars. On the other hand, the pro of this co-creation model is that it enables LM to come up with a new way of thinking in the car industry, which is â€Å"Design by the crowd, built by the customer†. Furthermore, microfactories, which have been built around USA and where cars are manufactured, can be optimal places for the customers and LM to cooperate and coordinate. Built by the customer is Local Motors’ community-oriented marketing strategy. LM also wants to encourage customers to bring their family and friends during the building of their car to not only give a customer-friendly and personal touch to the process but also to lessen the work load of LM staffs. However, the disadvantage with this process is that many potential customers might not have the â€Å"time or the enthusiasm about cars to spend weekends cooped up in a factory† (Norton and D ann, 2011). This innovative strategy has attracted many new customers and car enthusiastic to follow and be part of the community. 2.  How did the co-creation model unfold in practice?The central to Local Motor's co-creation model in practice is attracting a robust set of both professional and amateur car designers who could design the cars that LM would build. In that direction, LM along with its contractors began work to build an online community in which designers can post their car designs or design concepts, as well as suggest and collaborate on others' designs.

Ethical problem Essay Example | Topics and Well Written Essays - 1000 words

Ethical problem - Essay Example The action of the managers to hide some information to the shareholders is unethical. This is because, ethical behavior requires that any decision reached by the management should be a truthful one, and thus any action that is mean to hide the truth from the shareholders is unethical (Frederic, 17). This type of conflict falls under the category of conflict referred to as Normative ethics, in a subset referred to as professional ethics, which requires that the professional conduct of individuals within an certain professions should act in accordance with set standards of right and wrong, and the deviation from such conduct eventually creates an ethical conflict (Weiss, 41). The classification of this ethical conflict under the Normative ethics category is informed by the fact that Normative ethics apply a practical approach towards arriving at an ethical decision, which has to do with the duties that individuals should follow and the implication of behaviors of an individual on other s (Frederic, 31). Explaining the conflict can happen in the corporation Normative ethics conflict can happen in organizations due to conflicts of interests, where the interests of the professionals tend to compete with the obligations and responsibilities of the professional (Weiss, 72). The managers can hide information from the shareholders, so that they can favor their interests at the expense of the interests of the shareholders, considering that he interest of the shareholders and those of the management are always conflicting (Frederic, 22). Therefore, the managers can hide a potential investment venture to the stakeholders, which would have long-term benefits for the shareholders through enhancing organizational growth, and prefer to pursue short-term investments that will result to short term benefits for the shareholders, to avoid taking risks, while also trying to make a name amongst their peers and other corporate commentators, who evaluates organizations on the basis of their short term revenues and performances (Weiss, 49). Further, the managers might hide the long-term benefits of an investment from the shareholders, and instead pursue short-term investments, so that they can increase the revenues in the short-term and benefit from salary increments and promotions, at the expense of pursuing investments that may have no revenue benefits in the present, but will yield more benefits and revenues for the shareholders in the future, such as investment in Research & Development (Frederic, 44). The effect of this conflict on the stakeholders This conflict has an adverse effect on the shareholders, since it works towards making the shareholders lose their future value of investment, while the managers are the ones who benefit from the conflict, through financial gains and promotions. Another effect of the conflict on the stakeholders is that; it erodes the trust that the stakeholders had on the managers, since the existence of such a conflict shows that the managers are not favoring the