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…...

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

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.

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

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

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.

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.

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.

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

Ethics, Product uality HighTech, Inc.
Disclosure to the CEO and other relevant aspects of upper-level management who are able to 'pull' the dangerous chip from the market until the needed alternations are made is imperative. PR and marketing must also be consulted about the best way to 'spin' this particular negative development. This must be done before actual injuries occur. A recent study found that "reactive recalls -- recalls due to an incident, injury or death -- were more likely than preventive recalls to result in exchanges, which dramatically reduced the recall time" as well as reduced injury ("What companies must do to recover from a product recall," 2014). If the company is forthcoming, effective damage control is possible, but only if the company is proactive. Relevant government safety personnel must also be consulted at the Consumer Product Safety Commission so that information about recalling the product can be issued.

It is…...

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Q2. Harley-Davidson Inc.

For a company to continue to remain relevant in the 21st century, it must continue to generate new customers, given that existing customers will gradually age out of the product. For Harley-Davidson this is especially critical, since even the most dedicated riders will at some point have to 'hang up their helmets' as they age. "This isn't a coincidence. Harley-Davidson is a brand whose sales depend disproportionately -- almost exclusively, in fact -- on middle-aged Caucasian males. Riders younger than 40 generally lack the time, interest or the bankroll to buy a Harley. But by the time they get into their 60s or older, the noise and joint pain have begun to make riding lose its allure. You might still ride in your 60s, but you're doing it less frequently and you probably aren't buying a new bike" (Sizemore 2013). Its new program to create a safer and more friendly image is a way to attract new customers who might otherwise be intimidated by the motorcycle company's tough image and the unsafe reputation in general of riding a motorcycle.

On Porter's Value Chain (which includes inbound and outbound logistics; operations; marketing and sales; and services) the Rider's Edge Program would comprise both a marketing technique and services component ("Porter's Value chain," 2014). Technically, allowing anyone who can pass the Motorcycle Safety Foundation's written test and driving test to be eligible for instructions on how to ride a Harley from local dealers is a service but by promoting this service, Harley hopes to enhance its reputation for safety and generate interest amongst a younger generation of consumers.

This is the point that customers would go different locations and they received poor service. The lack of accountability is what contributed to the communication breakdown.
How could the crisis be avoided?

The way that this crisis could have been avoided, is by implementing a policy of improving employee training and communication. The way that this could have been conducted, was to teach everyone on the store level how to deal with irate customers and stay within company policies. This would have prevented these situations from spiraling out control, by satisfying their needs and admitting to possible mistakes that were made. Once this occurred, it would have meant that the image of the company would have improved.

Prepare to manage, recognize, contain, resolve and profit from the crisis

The best way to deal with these kinds of issues is that Wal Mart must completely revaluate these situations. The way that this could have…...

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Bibliography

Consumer Complaints. (2011). Consumer Affairs. Retrieved from:  http://www.consumeraffairs.com/homeowners/walmart_lawn.html 

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

Bianco, A. (2007). Wal Mart. New York, NY: Doubleday Press.

Marquard, W. (2007). Wal Smart. Chicago, Il: Marble Leadership.

Such data gathering helped decide the number to be produced and the time frame to be given for the manufacturing process for the first batch at least. Similarly, data is now sought on the problem that has developed and for the development of alternatives for addressing the problem and achieving a better procedure for the future.
Alternatives

Management is aware that what the company needs are both short- and long-term solutions, and the two are clearly linked. If the short-term solution includes a product recall, for instance, then the long-term reputation of the company may suffer and require specific attention. The alternatives for the short-term include the following:

product recall ignore the issue as if it were a one-time freak accident continue to sell the product with a warning label sell the current inventory while also taking a look at the product and its manufacture for possible changes for the future

An added…...

Contemporary agency theory dictates that managers only act in the interest of maximizing shareholder (owner) wealth (Roberts, 2004). This standard can be reasonably viewed as the minimum ethical standard that the president of a company should have. Taking this view, Thomas Koltun is essentially in damage control mode. Because of the mistakes of the company in the past, Koltun is faced with significant downside risk from mishandling this situation. It could also be reasonably argued that Thomas Koltun still bears responsibility for the original ethical imperatives that the company has had all along as the result of bringing the Travel-Lite to market. If three-quarters of these products are as yet unaccounted for, then the company still bears ethical obligations as defined by the CPSC with regards in particular to consumers.

There are serious implications associated with a mishandling of these obligations. The company has suffered ethical failures in relation to its…...

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Works Cited:

Health Canada. (2005). Recalling consumer products -- a guide for industry. Health Canada. Retrieved April 26, 2010 from  http://www.hc-sc.gc.ca/cps-spc/advisories-avis/child-enfant/recalling-guide-2005-04-rappel-eng.php 

Rose, J. (2007). Communication styles. Suite 101. Retrieved April 26, 2010 from  http://trainingpd.suite101.com/article.cfm/communication_styles 

Johnson, R. (2008). Kant's moral philosophy. Stanford Encyclopedia of Philosophy. Retrieved April 26, 2010 from  http://plato.stanford.edu/entries/kant-moral/ 

Sinnott-Armstrong, W. (2006). Consequentialism. Stanford Encyclopedia of Philosophy. Retrieved April 26, 2010 from  http://plato.stanford.edu/entries/consequentialism/

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....

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2. Background on Inspection Service