This case represents the point of view of the Chinese company Zhejiang Tianlong Capsule Ltd (Tianlong), as well as their experiences with the negative impact of industry scandal. April 15, 2012, China Central Television showed that several manufacturers capsules Ru'ao illegally used industrial gelatine for medical capsules. The capsules were found excessive chromium, heavy metals harmful to human health.Tianlong not on the list of those responsible companies, but the scandal threatens to ruin the reputation of all the capsules firms in Ru'ao. Most companies avoid Ru'ao pharmacy immediately after such a national scandal. Tianlong director must decide how to solve customer problems and maintain a good reputation Tianlong from damage due to the current scandal. The director was annoyed requirement of local government to suspend production. Some gelatin material was already melted, the suspension of production can lead to direct financial losses. How he should respond to the inquiry service on supervision in? "Hide
by Lily Dong, Paul W. Beamish Source: Richard Ivey School of Business Foundation 11 pages. Publication Date: November 19, 2012. Prod. #: W12314-PDF-ENG
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