Sanlu Group and the Tainted Milk Crisis Harvard Case Solution & Analysis

In the late summer of 2008, tainted milk scandal unfolded in China and shocked the world. Fatally high level of melamine were found in infant formula sold in the market. Sanlu Group Inc (Sanlu), the core company in the scandal was manufactured product containing melamine, which was 5125 times higher than the European Union (EU) security vehicles. The scandal engulfed the Chinese dairy industry and around the world, where Chinese dairy products were recalled and banned. As of December 2008, official reports indicated more than 290,000 babies are ill, 51,900 were hospitalized, and 11 deaths and three suspects confirmed. Two managers and suppliers of raw milk Sanlu were sentenced to death and four executive team Sanlu (including the chief executive officer and chairman) were sentenced to various terms of imprisonment. Analyzing the threshold and the background to the scandal, the global response to the crisis, the Chinese political climate and as a result of social and cultural change, it can be determined that they could - and should - be done to prevent similar incidents of food and product safety in the future? "Hide
by Shi-Fen Chen, Francis Sun Source: Richard Ivey School of Business Foundation 27 pages. Publication Date: 07 October 2009. Prod. #: 909M77-PDF-ENG

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