Product Safety and (Preemptive) Recalls Harvard Case Solution & Analysis

Product Safety and (Preemptive) Recalls Case Solution

What are the main arguments against this course of action?   What are the reasons & rationalizations that must be addressed?

Course of Action

Since the organization is proposing to launch a uni-product for the adults and the infants both with the neutral labeling and packaging strategy, such is an unethical action, since it is putting the health of the adults at stake, because of the fact that it reduces the Flu shots in the individuals, effecting the overall immunes system of the individuals.

In addition, the pursuance of the strategy may put the company’s reputation at stake in the long term and may deteriorate the brand image in the infant segment as well, leading to loss and ultimately the poor market share.

Reasons and Rationalization

The Reasons and rationalization factors may include the factors for instance; Susan is performing the job task and is honest with her work, she is not doing anything unethical. However, informing the top management about the adverse impact of the medicine on individual is important, that may fulfill the responsibility of the Susan as a responsible individual in an organization.

However on the other side, the factors such as individualism vs collectivism must be addressed as well. Since resisting the new product strategy may put Susan’s job at risk. However, it may offer a greater collective benefit in the market that may pay off in the later periods. In addition, whistle blowing is important since under the ethical terms, the collective benefits is important to be sustained, rather than the individual’s benefit.

What are the most powerful & persuasive responses to reasons/ rationalizations? To whom should the argument be made?  When?  In what context?  What data is needed? What allies? Etc.

These are the following powerful and persuasive responses to rationalizations:

Individualism VS collectivism

Under the given situation, Susan needs to take the collective approach which is thinking about the bigger case. If Susan pursues the proposed product strategy then this will put the entire community’s heath on risk, which is far more valuable and important than the promotion which Susan has attained recently. Such is a strong and powerful rationalization that needs to be considered while making the final decision.

Short-term VS long term

Also, under the persuasive respond, Susan must consider the long-term effect of the medicine in the market. Though, it is eminent, that in the short term, the medicine may cause the additional sales of 50% for the company, however, it may also bring the negative reputation to the company and may cause strong backlash from the customers for using the wrong or misleading packaging for adults, by deceiving the customer into believing that the product to be launched in new whereas it is the same product which is currently available for the infant segment but with the new packaging which can deteriorate the overall brand image of the company if its strategy is exposed to the public and customers.

Argument Made

The arguments should be made to the management. It is due to the fact, that such option may put the organization’s reputation at stake in the long term and may also deteriorate the overall profitability of the company eventually. In addition, the upper management has the decision making authority, and the decision should be made by considering and being aware of the negative after effects of the medicine on the adults’ health. The upper management should take the right decision after considering all the factors related to the execution of the new product strategy.

Timing and Context

The argument should be made immediately, before making the management plunge deeply into the execution of the new strategy. Susan should communicate the results and after effects of the medicine on adults’ health which would eventually damage the company, she should mention the after effects and the negative reputation that may be brought to the organization along with the strong chance of a lawsuit, that may ban the production of the medicine and may also cancel the license of the product, leading to total losses and deterioration of the brand image in the mind of the customer.

Data Needed

The data required to make the argument strong are the past researches that depicts the effects of the medicine on the adults. Such researches will allow the management to understand the negative effects of the medicine and the chances of lawsuit that may destroy the brand value and brand image.

Conclusion

Coming to the conclusion, Susan needs to notify the management about the unethical action if the product is launched for the new adult segment after being acknowledged of the negative side effects of the medicine on the segment’s health. In addition, she should deal with the problem with collective approach and the long term vision, which will allow her to persuade the management and may result in the making of an ethical decision. (Stark, 2000)...........

 

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