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Professional and Managerial Ethics Caselet
Group 3 – Chan, Paulma, Sarmiento, Saul, Serilo

Limaha Inc. is a world-renowned toilet manufacturer founded in 1967. Limaha led the innovation of advanced bathroom utilities and mainly caters to First Class airports and 5-star hotels. The recent Asian economy boom has led to increased demands of Limaha toilet bowls for the business expansion of their loyal clients. In response, the company has decided call for this unprecedented increase in production that must be met as soon as possible. Jenny Panaguiton, the purchasing manager of Limaha’s main office, was tasked to choose a supplier of premium porcelain to be used in the production of their patented No Pressure toilet bowls. This production will include a big production contract with a new posh hotel in the country’s capital whose construction is about to end with the installation of their bathroom fixtures. After careful analysis from 20 suppliers by the purchasing department, Jenny was presented and left to decide between two suppliers: O Mang China and Teddy B. Solutions.  O Mang China offered superior porcelain at a high price. This price along with other costs necessary to deliver the porcelain to the production plants was estimated to exceed the company’s budget. Although Limaha can choose to go ahead and allocate more capital for this transaction, it could result to lower company profits if the previously agreed sales price of No Pressure toilet bowls is not increased. If Limaha decides to charge a higher price on their new product, there is a high possibility that the hotel client would back out from the contract and change to another toilet manufacturer for confirmed business ventures next year.

Teddy B. Solutions, on the other hand, offered a lower price for the porcelain materials which is well within the company’s budget. Christopher Barrido, the company’s Vice President for Production even greatly encouraged Jenny on choosing Teddy B, as the...
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