Product ecalls and How it Affects the Company
Product ecalls

Traceability

Industry effected

Healthcare ecalls

Food Industry ecalls

Instances of Product recalls

Effects on the Company

Financial Loss

Loss of reputation

Legal and regulatory issues

Handling of Product ecalls

Treatment of ecalled Products

Communications Strategy

Product recalls are one of the sensitive business areas in the operation of any organization. The businesses tend to recall its products due to various reasons including minimizing the risk of injury for consumers, the compliance requirements in legal and regulatory perspective, and to protect the brand image in the market. There are various other reasons that are discussed and elaborated in the later sections. The product recalls are critical for different industries but especially for food chains and healthcare organizations the importance is increased. The businesses also establish well planned and thought out systems to ensure that they have a policy and system in place to perform product recalls in cases of emergency and regular practice for expired…...

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References:

Ganesan, S. (Ed.). (2012). Handbook of Marketing and Finance. Edward Elgar Publishing.

Germann, F., Grewal, R., Ross Jr., W.T., & Srivastava, R.K. (2013). Product recalls and the moderating role of brand commitment. Marketing Letters, 1-13.

Granata, L.A., Flick Jr., G.J., & Martin, R.E. (Eds.). (2012). The seafood industry: species, products, processing, and safety. Wiley. com.

Sodhi, M.S., & Tang, C.S. (2009). Modeling supply-chain planning under demand uncertainty using stochastic programming: A survey motivated by asset -- liability management. International Journal of Production Economics, 121(2), 728-738.

Product Recalls: Reaction
Every now and then, I will turn on the morning news and hear that there has been a product recall for something I consider vaguely absurd, such as a product that can possibly cause harm if it is misused in some extraordinary fashion. However, I have also heard about product recalls in which there are serious questions about the safety of the product. An excellent example of this occurred several years ago, when some Mattel toys were found to contain harmful substances like lead that could injure a small child if swallowed, which is a common occurrence when children play with toys. Given the bad publicity which can ensue if a company's product results in an injury or the death of a user, being aggressive about instituting product recalls, versus taking a 'wait and see' approach, seems to be the superior strategy.

The Dell and Pinto instances are case…...

This will improve the overall quality of product that is being produced and it ensuring that mistakes are minimized as much as possible. In the event that there are any kinds of quality or safety issues, both companies should deal with them immediately by: identifying the problem, finding solutions that will address them for good and initiating recalls on the product. This will take place from the top management all the way down. If this kind of approach can be taken it would have reduced the chances that there will be possible crisis situations. While at the same time, it is creating a strategy that will quickly deal with these issues before they become out of control. ("Principals of Total Quality Management," 2011) ("Dealing with Defects," 2011) (Vogel, 2009)
Prepare to manage the Crisis, recognize the Crisis, contain the Crisis, resolve the Crisis, and profit from the Crisis.

To prepare and…...

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Bibliography

Principals of Total Quality Management. (2011). Cliffs Notes. Retrieved from:  http://www.cliffsnotes.com/study_guide/Total-Quality-Management-TQM-.topicArticleId-8944,articleId-8931.html 

Dealing with Defects. (2011). CMA. Retrieved from:  http://www.cmalaw.net/Articles/Dealing-with-Defects-Product-Recalls-and-Product-Liability-Suits.shtml 

Smith, N. (2000). Harvard Business Review of Crisis Management. Boston MA: Harvard Business School Press.

Vogel, A. (2009). Study Describes. Eurekalert. Retrieved from:  http://www.eurekalert.org/pub_releases/2009-05/giot-sdw051109.php

Doing so, of course, turns out to be a lot harder than expected for Isabella and the pair of priests (Evan Helmuth and Simon Quarterman) she recruits to aid her. here's other exorcisms to behold before they can get to poor Maria, so as to acquaint unsuspecting Isabella with the process as well as to drum up a few gratuitous scares -- or attempts, at least. Soon enough, Isabella and her pals are caught up in a whirlwind of multiple possessions, exorcisms, and rituals that combine both modern technology and conventional religious practices -- the best that science and faith can offer.

Although the film has been widely reviled for its questionable acting and an ending that makes the Blair Witch Project seem outright climactic, there are certain aspects of it that make it passable for a (late) night's entertainment. he special effects are featured prominently, with bodies flying wall-to-wall and…...

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The Devil Inside is loosely based upon the experience of a woman who murdered three people in 1989 while allegedly possessed and undergoing an exorcist. The film intersperses actual footage from that traumatic occurrence -- such as the 911 call made by murderer Maria Rossi (portrayed in the film by Suzan Crowley) -- in an attempt to simultaneously underscore a sense of historical austerity and cash in on the contemporary voyeuristic value that is so popular in today's television. Confined to a mental institution in Rome that is assumed to be part of the Catholic Church, Maria spends the next 20 years or so mutilating her skin in both conspicuous and inconspicuous locations, leaving no doubts as to why she's there. The action heats up when her daughter Isabella (Fernanda Andrade) attempts to aid her mother by having another exorcism performed on her to restore her degenerate mind.

Doing so, of course, turns out to be a lot harder than expected for Isabella and the pair of priests (Evan Helmuth and Simon Quarterman) she recruits to aid her. There's other exorcisms to behold before they can get to poor Maria, so as to acquaint unsuspecting Isabella with the process as well as to drum up a few gratuitous scares -- or attempts, at least. Soon enough, Isabella and her pals are caught up in a whirlwind of multiple possessions, exorcisms, and rituals that combine both modern technology and conventional religious practices -- the best that science and faith can offer.

Although the film has been widely reviled for its questionable acting and an ending that makes the Blair Witch Project seem outright climactic, there are certain aspects of it that make it passable for a (late) night's entertainment. The special effects are featured prominently, with bodies flying wall-to-wall and horrific crunching sounds of bones being twisted out of place. Andrade, Helmuth and Quarterman are no slouches when it comes to screaming, as the high-paced action gives them plenty of opportunity to practice. Those looking for a thought-provoking flick with true suspense and a plot worthy of the name, however, had best keep looking. The Devil Inside is great for graphic images, eerie music, and sound effects that go from soft to blaring in a moment's time…all the standard horror film treats. Anyone asking for more than that, however, may be asking too much.

Products Liability esearch:
Mattel Inc. is a company that was founded in 1944 by Elliot and uth Handler that designs, manufactures, and markets a huge range of toy products. The firm is headquartered in California with its core product lines including Hot Wheels die-cast vehicles, Barbie fashion dolls, Disney toys, Fisher-Price preschool toys, and games like Scrabble. While Mattel also manufactures its toy products based on license agreements with movie makers, most of its toys are produced outside its huge market in the United States i.e. Southeast Asia. Actually, the firm's principal manufacturing facilities are located in several countries in Southeast Asia like Malaysia, China, Thailand, Indonesia, and even Mexico. Since its inception, the company has continued to experience significant growth that enables it to generate huge revenues. By 2007, its revenues had grown to $5.97 billion with its three largest customers accounting for 41% of sales across the globe. However,…...

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References:

Andersen, M. (2009, October 16). Mattel Settles Lawsuit Over High Levels of Lead in Chinese

Toys. Retrieved June 10, 2012, from  http://www.usatoday.com/money/industries/retail/2009-10-14-mattell-lead-in-toys-settlement_N.htm 

"CPSC Overview." (n.d.). U.S. Consumer Product Safety Commission. Retrieved from Consumer Product Safety Commission website:  http://www.cpsc.gov/about/about.html 

Lacorte, V.L. (n.d.). Mattel, Inc.: The Lead paint Recall. Retrieved from Tuck School of Business

Product-Harm Crisis Management Interventions and Outcomes Comment by John House: Please name your files as shown in the instructions. This is very important.
Product harm crisis is one of the primary functions of an organization. Organizational leaders are required to invest in product-harm crisis management to minimize the negative consequences of poor management of a product-harm crisis. Failure to effectively manage product-harm crisis can result in causing losses or harm to an organization and its stakeholders. Organizations of the modern day are more vulnerable than any time before to adverse impacts of product crisis that that can happen at any point in the supply chain. In order to effectively mitigate the possibility of experiencing product related adverse incidents; it would be necessary to embrace continuity management that can help an organization handle product-harm crisis. This focus of this study is to explain the objective of product-harm crisis as one of the…...

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References Comment by John House: Do not type this in bold print.The first line of a reference entry begins at the left margin. Indent the second line.

Bilkey, W. J., & Nes, E. (1982). Country-of-origin effects on product evaluations. Journal of Comment by John House: See pp. 198-202 in the APA manual for a discussion of periodical reference formats.The second and subsequent lines of a reference entry must use a 1/2-inch hanging indention. Look up hanging indention in Word Help. Hint: When typing the first line, set the lower arrow on the Word ruler to 1/2-inch.

international business studies, 89-99.doi:10.1057/palgrave.jibs.8490539

Chen, Y., Ganesan, S., & Liu, Y. (2009). Does a firm's product-recall strategy affect its financial value? An examination of strategic alternatives during product-harm crises.

Journal of Marketing, 73(6), 214-226.doi.org/10.1509/jmkg.73.6.214 Comment by John House: See pp. 198-202 in the APA manual for a discussion of periodical reference formats.The second and subsequent lines of a reference entry must use a 1/2-inch hanging indention. Look up hanging indention in Word Help. Hint: When typing the first line, set the lower arrow on the Word ruler to 1/2-inch.

Product Liability Tort
RISK AND RESPONSIILITY

A tort is a civil wrong, loss or harm inflicted by a person's behavior upon another (LII, 2010). While it is not necessarily an illegal act itself, the law allows the person harmed to recover his loss or receive compensation for the harm. It differs from a crime wherein the person's harmful act affects society in general. A claim of tort may be filed in a civil court. The three main elements of a tort are duty, the breach of that duty, and the injury or harm caused by the breach. The four main types of torts are intentional, negligence, strict liability, and nuisance. One type of negligence torts is products liability (LII).

Products liability can be incurred by any or all of the persons involved in the manufacturing chain of a product for the damage it causes (LII, 2010; Lim, 2012). It may be the manufacturer…...

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BIBLIOGRAPHY

Harb, T. (2008). 7 essential elements of ERM and the role of internal audit. The Institute of Internal Auditors. Retrieved on December 29, 2012 from  http://www.inconsult.com.au/Articles/Essential%2520elements%2520of%2520role%2520of%2520Internal%2520Audit.pdf 

LII (2010). Products liability. Legal Information Institute: Cornell University Law

School. Retrieved on December 30, 2012 from  http://www.law.cornell.edu/wex/products_liability 

Lim, K. (2012). How can businesses reduce product liability risks? Globial International

Product Contamination
In October of 1982, seven people in Chicago died after taking Extra-Strength Tylenol (Effective crisis management). The product has been tampered with once it reached the shelves by an unknown suspect who had laced the capsules with lethal doses of Cyanide. efore the incident Tylenol had a thirty-seven percent market share and revenue of approximately $1.2 million. Immediately following the cyanide poisonings, its market share fell to only seven percent and some predicted the product would never recover. However, Johnson & Johnson initiated a successful public relations campaign that quickly revised the product.

Directly after discovering that the deaths in Chicago were caused by the Extra-Strength Tylenol, Johnson & Johnson made a decision to place customer safety ahead of company profits (Kaplan). Instead of trying to cover up the situation, the company immediately alerted consumers across the nation not to consume any type of Tylenol product. It warned consumers not…...

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Bibliography

Companies in Crisis - What to do when it all goes wrong. Retrieved February 28, 2005 from Web site:  http://www.mallenbaker.net/csr/CSRfiles/crisis02.html 

Effective crisis management. Retrieved February 28, 2005 from Web site: http://iml.jou.ufl.edu/projects/Fall02/Susi/tylenol.htm

Kaplan, T. The Tylenol crisis: How effective public relations saved Johnson & Johnson. Retrieved February 28, 2005 from Web site: http://www.personal.psu.edu/users/w/x/wxk116/tylenol/crisis.html

(O'Reilly, 2003, p.2) But the company is not legally liable if it did all necessary testing, warning, and reasonable evaluation of safety, if for example, an unexpected result occurs through the use of the product.
O'Reilly finds the reasonable person standard troubling, as the reasonable 'average' consumer will not have specialized knowledge that a manufacturer should have about the product he or she is selling. He believes government agencies have too much responsibility to monitor product safety (O'Reilly, 2003, p.3) Also, there is little incentive for CEOs to acknowledge harm and incurr potential lawsuits.

ot only is there negative publicity for consumers, but for corporate investors as well, because of the financial losses that ensue after a recall. For example, the article cites a medical diagnostics company, which failed to satisfy FDA inspectors regarding the quality controls of its factory, recalled thirty products. The company's annual corporate report listed recall costs…...

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Not only is there negative publicity for consumers, but for corporate investors as well, because of the financial losses that ensue after a recall. For example, the article cites a medical diagnostics company, which failed to satisfy FDA inspectors regarding the quality controls of its factory, recalled thirty products. The company's annual corporate report listed recall costs of $181,000 and overall costs, including inventory write-off and impairment of assets, that totaled $12,752,000..(O'Reilly, 2003, p.1)

Managerial Perspective

Obviously, greater liability for failures to recall products should strike fear into the heart of management -- increasing legal costs, and even technical costs, as companies would be responsible for employing staff to conduct routine tests to discover if a product was in need of a recall on a regular basis because of a hidden design flaw, lest the company become liable. However, it is also noteworthy that product violations may cost the company even more revenue if recalls take place, and voluntary recalls can garner good publicity for the consumers, if not for investors. No business would wish the additional responsibility advocaed by the lawyer in the article, but the issue raised is an important one for businesses. It reminds companies must be vigilant about product safety above and beyond the minimun legal standard of compliance lest the law step in and regulate the issue further.

J&J Recalls
Johnson & Johnson - a Quality Catastrophe

After 50?plus product recalls in 15 months, the $60 billion company is fighting to clear its once-trusted name

In the modern business world, management is often faced with a difficult challenge to find the right balance between short-term profitability and long-term sustainability. Given the intense pressure they face to increase profits and reduce costs, it is often the case that managers will sacrifice sustainability for profitability. This often results in a decrease in quality which can have long-term implications. In the case of Johnson & Johnson, it does not seem like a few managers have made errors on the side of short-term profitability. Rather this position has seemed to permeate much of the organizational culture. Not only does this deviate from the values that the company was founded on, but it also is having a significant detrimental effect on consumer perceptions of the brands…...

Consumer Learning and Product-Harm Crisis
Define a product-harm crisis

A product-harm crisis refers to a situation that can trigger serious damages to a company. A crisis can threaten an organization's system and cause drastic changes in a manner that that the firm's system operates. A crisis often has a disruptive impact on organizational, social, and environmental systems. In most cases, can lead to extensive damage accompanied by significant costs imposed upon the organization, individuals, and society. A succinct definition of a product harm crisis is best understood when the causative factors are identified as seen in this study. Besides comparing various studies on the phenomenon, the study offers recommendations on how the problem can be mitigated as it can severe the operations of even successful organizations.

For organizations, crises are higher consequences and lower probability events that can jeopardize the most important organizational objectives. However, the ability for an organization to manage a…...

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References

Chen, Y, Ganesan, S., & Liu, Y. (2009). Does a Firm's Product-Recall Strategy Affect Its Financial Value? An Examination of Strategic Alternatives During Product-Harm Crises. Journal of Marketing, 73(6), 214-226

Lei, J., Dawar, N., & Gurhan-Canli, Z. (2012). Base Rate Information in Consumer Attributions Of Product-Harm Crisis. Journal of Marketing Research, 49(3), 336-348

Vassilikopoulou, A., Lepetsos, A., Siomkos, G., & .Chatzipanagiotou, K. (2009). The Importance of Factors Influencing Product-Harm Crisis Management Across Different Crisis Extent Levels: A Conjoint Analysis. Journal Of Targeting, Measurement, and Analysis For Marketing, 17(1), 65-74

Yannopoulu, N., Koronis, E., & Elliot, R. (2011). Media Amplification Of A Brand Crisis And Its Effects On Brand Trust. Journal Of Marketing Management, 27(5/6), 539-546.

In addition, the recall constitutes an expectation of substantial change before products actually reached consumers, placing it in compliance with 402A. obins & obins lived up to its legal and its ethical responsibilities.
Question 4

The Blanchard and Peale method of determining ethicality consists of three checks, which can be applied to both the decision to avoid the $0.35 per-package charge to automate recalls and to the "fake" recall process of the company (Lankard, 1991). First, the models asks if the action is legal, both in terms of governmental laws and company policy; the answer for both dilemmas in this case is "yes." The second test is whether the action is balanced and fair, promoting "win-win" solutions; here, the answer in both cases is more ambiguous. The additional costs of medications from the UPC rule would have been passed on to consumers, which is a "lose" to some extent even though…...

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References

Adminsitrative Procedure Act. (n.d.). Accessed 18 April 2012.  http://www.archives.gov/federal-register/laws/administrative-procedure/553.html 

402A. (n.d.). Accessed 18 a /  http://biotech.law.lsu.edu/cases/products/402a-b.htm 

Lankard, B. (1991). Resolving Ethical Dilemmas in the Workplace. Accessed 18 April 2012.  http://www.ericdigests.org/pre-9220/focus.htm 

Radcliffe, M. & Brinson, D. (1999). Contracts Law. Accessed 18 April 2012.  http://library.findlaw.com/1999/Jan/1/241463.html

Toyota Recall
The objective of this study is to examine how employees of Toyota view of the company changed after the defect the company had in the Toyota Recall Crisis as compared to their view of the company before the crisis. As well, this work will examine the benefits that Toyota offer to its employees.

Employee's View: Prior to the Recall

Employees of Toyota were hesitant prior to the recent recall on Toyota vehicles to admit to errors or to reports problems in the company's vehicles and according to reports, the management of the Toyota company perpetuated this fear in their employees. Failure to report problems during the manufacturing process is blamed for the failure of the equipment, which resulted in approximately 60 deaths and another 57 injuries. This is reported to have placed a great deal of stress on employees when attempting to explain the problems to the public. This also is…...

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Bibliography

Liker, Jeffrey K. And Ogden, Timothy N. (2011) The Toyota Recall: Missing the Forest for the Trees. Ivey Journal Dec 2011. Retrieved from:  http://www.iveybusinessjournal.com/topics/marketing/the-toyota-recall-missing-the-forest-for-the-trees 

Relations with Customers: Social and Economic Aspects (2003) Environmental and Social Reports. Retrieved from:  http://www.toyota-global.com/sustainability/report/sr/03/pdf/E_c65_83.pdf

The lack of cultural sensitivity and focus led to EuroDisney only attaining 5% of their anticipated volume on opening day. If all of these problems with the marketing of the concept to the government, selection of leaders, definition of concessions and rides weren't enough, the pricing was outside the range of what many French families could afford. In the first years of its existence, Disney partnered with high-end rail service Eurostar to get families from England, which had a strong conversion rate with the British Pound, to visit. This further angered the French, and also made Disney appear elitist, which is a big problem in France, which prizes its egalitarianism. It has since cost Disney well over $1B to manage their way out of this problem (Curwen, 1995).
Microsoft Windows Vista

Introduced in January, 2007, Windows Vista is easily the worst operating system produced in the last ten years. It is…...

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References

Curwen, Peter. (1995). EuroDisney: The mouse that roared (not]). European Business Review, 95(5), 15.

Rosen, Deborah E., Jonathan E. Schroeder, Elizabeth F. Purinton. (1998). Marketing High Tech Products: Lessons in Customer Focus From the Marketplace. Academy of Marketing Science Review, 1998, 1.

Aaron Weiss. (2006). Who needs Windows Vista? NetWorker, 10(4), 18-26.

Chinese Toys
Product Dumping in the Developing Sphere

The United States maintains an array of consumer protections through government regulatory oversight that are designed to preempt or recall the distribution of potentially hazardous products, attire or medication. These standards are based on a combination of liability issues, public health matters and economic imperatives. As the discussion here notes, however, said standards vary considerably according to nation. This gap in needs between those living in industrialized nations vs. those in the developing spheres largely serves as a justification for the variation in standards. However, as denoted by the article "Made in the U.S.A. -- Dumped in Brazil, Africa, Iraq . . ." this variance often leads to practices on the part of U.S. manufacturers and government agencies that are highly vulnerable to ethical scrutiny.

Indeed, as the article in question shows, the United States has made a regular practice out of approving the sales…...

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Works Cited:

Shaw, W.H. & Barry, V. (2010). Made in the U.S.A. -- Dumped in Brazil, Africa, Iraq. Cengage Learning.

1. Analyzing the Effect of a Global Economic Downturn on Sony Corporation's Key Metrics

2. Exploring the Impact of Technological Advances on Sony Corporation's Performance Metrics

3. Assessing the Consequences of Increased Competition in the Electronics Industry on Sony Corporation

4. Investigating the Influence of Currency Fluctuations on Sony Corporation's Financial Metrics

5. Examining the Effects of Supply Chain Disruptions on Sony Corporation's Key Performance Indicators

6. Evaluating the Impact of Changes in Consumer Preferences on Sony Corporation's Sales and Revenue

7. Simulation of Different Marketing Strategies and their Impact on Sony Corporation's Market Share

8. Analyzing the Effects of Government Regulations on Sony Corporation's Profitability

9. Exploring....

1. Paragraph

2. Background on Inspection Service