With mention to your petition for fixing a study proposing immediate class of action to be taken sing the Salmonella taint at Southern Pasta Company. a study has been enclosed which analyses the state of affairs. states the nucleus job. the appropriate options available to you and their standards for rating. and concluding recommendation with proposed action program. It is recommended that you call the clients and allow them cognize about the contaminated batch.
Executive Summary
Mike Valenti has discovered that a salmonella contaminated batch has been delivered to an of import client. The new venture has made Mike’s company the merely major participant and therefore it is of import to maintain that advantage by non losing of import clients. He has to make up one’s mind on a class of action which should non merely work out the job at manus. but besides address the basic underlying job of clang of civilizations of the two companies. It is recommended that Mike should name the client eating houses as it is a measure towards turn toing the present issue every bit good as the root job
Situation ANALYSIS
After cognizing approximately bringing of Salmonella contaminated pasta to a major client of Southern Pasta Company ( SPC ) . a company acquired by Michael’s Homestlye Pasta ( MHP ) merely three hebdomads ago. Mike Valenti has to make up one’s mind his classs of action. He can non incur heavy fiscal losingss and seeking to incorporate that would intend put on the lining lives of guiltless clients. The stuffed pasta is a forte merchandise and with the acquisition of SPC. MHP is the lone major participant in the market. Thus the clients are dependent to a big extent on these two companies. The client dependence is validated by the fact that the client did non end contract with SPC after the May 2001 callback. In malice of keeping an advantage over the eating house concatenation. Mike has to worry about stuffed pasta being taken off the bill of fare. The client was one of the major grounds for Mike’s involvement in SPC and histories for 14 % gross revenues.
Therefore any action taken should take into history the importance of go oning this history. There has been no nutrient poisoning study from the eating houses after the May callback. although the quality of merchandise supplied by SPC is fishy. So it can be concluded that the eating houses have robust criterions for cookery. Mike besides hasn’t been able to pass adequate clip at Tampa. Thus the procedure of welding the civilization of two companies has been affected. This can be seen as ground why Jones came frontward merely after 3 hebdomads when he developed a small trust in the new direction. The employees at SPC are used to following orders. ethical or non. and used to working under an autocratic direction. Thus the difference in two civilizations can be seen as the underlying root job. while the issue at manus being merely a symptom of the job. So any determination is to been taken has to work out the contaminated batch issue every bit good as reference the basic job of clang of the civilizations.
PROBLEM STATEMENT
What class of action would be consistent with MHP’s working civilization and lead to minimal fiscal. legal and repute hazard for Mike Valenti and his company? Option
* Do non name the client eating houses and swear their cookery criterions * Call the clients and allow them cognize about the taint so that the necessary cookery criterions can be maintained CRITERIA FOR EVALUATION
* Financial Implications* Short term: Losingss for the peculiar batch in inquiry* Long term: Possibility of losing the client* Legal deductions* The repute of the company* Ethical and societal duty towards the clients every bit good as the concluding consumers.* The determination should be consistent with the civilization of MHP and turn to the implicit in job of difference and struggle of civilizations in the two entities
Evaluation OF OPTIONS
* Do non name the clientsThe New Year’s Eve is among the largest gross revenues twenty-four hours for the eating houses. It would be merely conservative to presume that all the dishes might non acquire proper cooking clip in malice of robust criterions. due to high traffic. Therefore the possibility of no eruption in this state of affairs is possible yet improbable given the big figure of eating houses functioning the contaminated pasta. In instance there is no eruption. there are no fiscal. legal or repute hazard to be looked at. But in instance there is an outbreak so SPC has to portion the duty with the eating houses. The short term fiscal loss implies sharing the colony sum to be paid in instance of a case. The long term loss could be losing the client. If the client discovers that the Mike did non inform them even after holding the cognition of the taint. they will end their contract with SPC.
Legally. Mike has limited liability and if any one were to acquire ill. the liability can be placed upon the old proprietor. But here once more if anyone was to attest against Mike. say one of his directors. that he was cognizant of the taint. he can hold serious legal branchings for his inactivity in instance of possible deceases. Besides the repute of Mike and MHP would travel for a flip. Irrespective of an eruption or non. non informing the client would impact Mike’s attempt to convey MHP’s civilization into SPC. It would direct a signal to Jones ( and others perchance cognizant of the state of affairs ) that Mike isn’t different from his old employer. Mike would ne’er acquire the same grasp from SPC’s employees as he gets from the MHP’s and therefore will happen it hard to develop a similar healthy on the job civilization. * Name the clients
Leting clients cognize about the taint gives them a opportunity to do certain that they cook the nutrient as per the needed norms. But the eating houses may make up one’s mind to non utilize the contaminated batch and inquire for a refund for the same. There is a possibility of them taking the pasta out of their bill of fare or looking for another provider. But since they did non exchange from SPC after the May 2001 callback. it can be assumed that they have no other possible providers. Besides they would be willing to give Mike a opportunity given his path record.
There wouldn’t be any legal deductions in this option. There would nevertheless be deduction for Mike’s and MHP’s repute. which is now integrated with that of SPC. Since this is a concern to concern service. the FDA will hold limited intercession. Still there is possibility for local imperativeness releases. but this should non make lasting harm to the eating houses and SPC’s image.
Most significantly it will put an illustration for everyone at SPC. By making the ethical thing Mike will transfuse assurance among his directors and workers. He can distinguish himself from their old employer and get down welding MHP’s civilization with that of SPC’s. Recommendation
Based on the rating. Mike should name the client. There is possible fiscal hazard in both options but Mike’s moral bets should outweigh other deductions. His attempt to extenuate the clang of civilizations between his two companies is besides best served by naming the clients. ACTION Plan
* Call the client eating houses. Since clip is running out it should be made certain that all eating houses are contacted before dinner clip. * Communicate to the client how this was brought to Mike merely hours ago. Besides guarantee him that proper cheques will be installed from now on. * Check for taint in stored batches and destruct the contaminated batch. * Look for other possible causes of taint and mechanise the procedure as in MHP every bit shortly as possible to avoid complete closure in instance of FDA review.
