: The Super-Scooter - Case Study Example

If the super scooters are released to the market without addressing the safety issue, the company is likely to lose $1,650,000 in lawsuits. However, the company will lose $3,000,000 if it stops the sale and fixes the fuel tanks of the 30000 super scooters already in the warehouse. The other lose it will experience will be in terms of losing market share and competitive advantage since their greatest competitors have also produced a similar low cost, low weight scooter and are on the verge of releasing it to the public.

Egoism is the philosophical theory that oneself is and should also be the motivation that leads to an action. It basically advocates for employment of selfishness in any action one is taking which means an individual should think about what will benefit or provide loss to them first before the needs and wants of the rest of the people (Shaw 43). Basing the argument on this theory, the CEO of Honda should consider what is best for the company first rather than put the needs of the rest of the people first.

According to the research carried out by the company’s accountant and legal department, the cost of releasing the super scooters into the market without making any changes to its fuel tank as suggested by the safety tests are way less than delaying the release. By delaying the release of these super scooters and making changes to the tanks by adding a layer of aluminum to avoid being affected by accidents, it will cost the company $3 million. Other than the monetary costs, the delay which is approximated to be six months will see the release of the wonder scooter which is a similar product by Hyundai Motorcycles which is Honda’s main competitor.

If the wonder scooter is to hit the market first, the super scooter will lack market even though the company came up with the idea first. This will mean further loss and not a chance of breaking even in the market place in the near future