...The organization that I chose to talk about is the recall that Oeuf LLC, of Brooklyn, N.Y. had on their baby beds. This have been some years ago but they did a recall on the baby beds because the side that moves up and down had a defect in it and some of the baby’s was getting caught in them. Oeuf LLC, of Brooklyn, N.Y. did a big recall on the baby bed. They asked the owners to contact them so that they could send them a new one to replace the piece that was defective. The stakeholders in this organization would be those who are investing in this company. It could be a bank or private investors. They are not the only stakeholders in this organization. I myself would be considered one because I purchase their product. This was a serious issue because anyone’s baby could have gotten hurt really badly if not killed. Therefore, they handled this sensitive issue with care. This was a very personal instance for me because I had also purchased a product that was defective. If I were in charge of this recall, I would have handled the situation with same amount of care. It is serious business when you are dealing with a baby’s life. I am not sure the extent of the damages that was caused from this defect but I would try to compensate as much as I could to those who was affected by this. If there were any hospital bills that occurred because of this, I would pay it. I would refund them their money back anyone who purchased the product and have proof that they own it and is still...
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...MEMORANDUM To: From: Subject: Date: Andrew Grove, PhD – President and CEO of Intel Corporation FT50812 Intel Pentium Chip Controversy December 17, 1994 Summary Intel’s reputation as a producer of quality microprocessors is being questioned. Public perception views Intel as insensitive to consumer concerns and overly profit driven. The investments Intel has made in the Pentium chip to secure a competitive advantage will be pointless if consumers lose trust in the Intel brand. Analysis of Issues Intel’s dilemma is whether to recall a product that is defective under certain conditions (p. 2).1 This decision requires consideration of the financial and operational issues, as well as the potential long-term impact to Intel’s competitive advantage in the computer industry and Intel’s relationships with companies that purchase microprocessors. These issues are further described below. Competitive Advantage The new Pentium chip is the embodiment of Intel’s advantage over other companies. Intel has the distinction of being first in the industry to engineer and produce microprocessors (p. 2). In addition, Intel has made significant investments in research and development to design the Pentium, has incurred significant expenditure in promotions, and has secured its investment with a name-based patent (p. 3). 1 All page numbers referenced herein are drawn from the following case study: Narayanan, V.C. (2002). The Intel Pentium Chip Controversy (A). Harvard Business School...
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...1. | |Make |Buy | | | |Silver Star |Alpha Products | |Circuit Board |2.00 | | | |Plastic Case |0.75 | | | |Alarms |0.40 | | | |Labor |3.00 | | | |Overhead |0.50 | | | |Purchase Cost | |11.00 |4.00 | |Relevant Costs |6.65 |11.00 |4.00 | | | | | | |Selling Price |14.50 |14.50 |14.50 | |No. of Units...
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...Case Part A: Toyota Under-the-Radar Recall Responses Introduction Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. This multinational corporation has been the largest automobile manufacturer in 2012 worldwide and makes around 10 million vehicles per year. Through the years, Toyota has recalled their vehicles several times. In 2010, Toyota Motor Corp. has had a series of recalls. Their vehicles have become more and more susceptible for defective parts and engineering flaws. It has been said that this was caused by the fact that Toyota had to choose between either lower costs to overcome the yen or to improve quality to prevent new recalls. Toyota admits that the last couple of years they have been lax and were not bothered to report any problems that occurred. The company is now facing hundreds of lawsuits but still not takes full responsibility for these problems. Due to this, their image has been tarnished, but the company has changed and responds with some reforms to the recent quality recall problems. 1.Develop a diagram that summarizes what Toyota has done in response to its recent quality problems. In the field of management there have been a couple changes. They developed a computer database to track vehicle repairs and fasten the processing of complaints from customers. Next to that, they expanded the company with rapid-response teams not only in US and Japan but also in Europa and China to determine the cause...
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...Zeeshan Shivani Prof. Constable Managerial Accounting April 27th, 2014 General Motors Recall General Motors Company is an American multinational corporation that designs vehicles and it parts. The Company was founded in 1908, it is based in Detroit, Michigan. It produces vehicle in 37 countries under brand name like Chevrolet, Buick, GMC , Cadillac , Alpheon, Jiefang, Baojun, and Wuling . The company also provides safety and security solutions concerning vehicles. It also provides aumotive financing services and lease products through its dealerships. Cars produced by GM motors after 2004 had defective ignition switch due to which they had to call around 7 million cars in the first quater. According to the US securities regulators the company knew about the this manufacturing default, they delayed in recalling the vehicles due to which there have been about 13 deaths. The engineers knew about this problem a decade ago, around 2.6 million cars have faulty ignition switches. The CEO Mary Barra of GM motors the cost of repairing these vehicles is going to be around $1.3 billion. Cost of repair it going to be around $700 million and cost of recall is going to be around $600 million. The cost of recall had a great impact on the company’s first quarter report, they reported about a $108 million of profits. The company still manged to remain focused on its business despite the recalls. Their shares did showed a drop of 17 percent and it profit dropped about 85 percent. The...
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...organisational buying situation and the characteristics associated with it ? What function do attitudes fulfil in consumer behaviour ? Briefly explain any one of the multiattribute models of attitudes and explain how would you use the understanding of this model in your marketing decisions. MS-61 1 P.T.O. Explain the factors that help a marketer to predict what kind of influence reference groups are likely to have over a product or brand choice. Why does reference group influence seem to vary across product classes or across individuals ? What are the factors that result in a high degree of prepurchase, seLrch for information by consumers ? What are the implications of information search behaviour for marketers ? 5. Write short notes on any three of the following : Hypothetical constructs in Howard Sheth model Theories of Personality Consumer Motivation AlO inventories and their use (e) Cognitive theory of learning MS-61 2 SECTION - B Read the case given below and answer the questions given at the end of the case : A PRODUCT FAILURE AT SATURN Saturn has always attempted to create committed customers. Saturn a division of General Motors, advertises around the theme : A different kind of company A different kind of car. Though Saturn cars costs only 10 to 14 thousand USD (Rs. 5 lakhs to Rs. 7...
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...Chapter 10 Product Liability I. Definition of Product Liability Manufacturers and anyone in the chain of product distribution can be legally liable for defective products that cause injury to the purchaser, a user or bystander, or their property. Most states have adopted strict product liability, whereby an injured person may recover damages without showing that the manufacturer was negligent or otherwise at fault without a contractual relationship. II. Theories of Recovery The primary theories on which a product liability claim can be brought are breach of warranty, negligence, and strict liability. A. Breach of Warranty In a warranty action, the question is whether the quality, characteristics, and safety of the product were consistent with the implied or express representations made by the seller. 1. UCC Warranties may be either express or implied for merchantability or fitness for a particular purchase, as set forth in Chapter 8. 2. Privity of Contract Breach-of-warranty is based on contract law. Generally, an injured person to recover for a breach of warranty, he must be in a contractual relationship (privity) with the seller (a consumer or buyer of the product) and prevents recovery from bystanders not in privity with the seller. B. Negligence To prove negligence in a product liability case, plaintiff must show defendant did not use reasonable care in designing or manufacturing its product or in providing adequate warnings...
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... but critics are wondering if the success of the company will continue on now that Jobs is completely out of the picture. Daniel Morgans claims, “Without Jobs, you have to wonder if and when this wave of success peters out." One decision that has cost Apple $40 billion in market value was the release of flawed Maps app. Questions arise as to whether Jobs would have allowed the release of a clearly defective product, but that is one question that cannot be answered. It is rumored that later this month, Apple plans to launch the “iPad mini.” Regardless of the new products or ideas Apple is cooking, it seems that the company should be able to keep up its profitability for years to come. In looking at how the popularity of the iPod has come and gone, one might wonder if the same will happen for the iPad and iPhone in the near future. Those who speculate believe that Apple will have to concoct another crazy, new technology to keep growing at record rates. Toyota's Huge Recall Is Not The Biggest Risk It Faces Toyota Motor is recalling 7.4 million vehicles worldwide to repair power window switches that could...
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....... 5 Late delivery of Christmas product ......................................................................................................... 8 Launch of new range of toys for 9 – 11 age group ............................................................................... 11 Appendix I ............................................................................................................................................ 15 ` 3 Fault in new flying spaceship toy. Problem: Issue at hand is that the new flying spaceship toy which was launched recently has a defective insulation system around the electrical circuitry making it prone to overheating, releasing smoke and catching fire when left to charge for more than two hours. There have been 12 reported incidents so far on overheating and 2 incidents of smoke release. Overheating might lead to injure those handling the toy while a fire break out might lead to injuries to those around including fire breaking out in the nearby vicinity. Defects in the toy industry are not uncommon (e.g. Mattel recall -2007 due to lead paint) we can learn from them on how best to tackle the situation Implications If the issue is unresolved the company may face the following implications; 1. License Revocation by regulatory agency. 2. Loss of reputation and brand value in the market. 3. Major dip in sales/revenue of all company products. 4. Liability for damages caused by defective products (Directive 85/374/EC of the EU and similar...
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...full of human’s supply and demand for most commodities can be very demanding and overwhelming to the produces. With the demand being so high, companies are forced to produce products at a higher rate of speed. Typically, when products are made at a faster speed, minor things are more likely to go wrong with the product. With this being said, there is a large number of recalls on items produces on a daily basis. It is important for consumers to be aware of what is being recalled. It is also important for the manufacturing company to have a system in place to contact the consumers who purchased a product that has been recalled, as well as a way to correct the problem they may be faced with. Our job was to locate a product that has recently been recalled I chose to research the Keurig MINI Brewing System, it was recalled on December 23, 2014, and the Recall number: 15-05. See below for an example of the product code bar and what the consumers who purchased the product were looking for to see of their product was affected by the recall. This picture below was provided by the compnay. * | | 1. 2 of 3 photos 2. Identification number is located on a white sticker on the bottom of the brewers 3. Below is a brief summary of the product and why it was recalled, also known as the Recall Summary? Keurig® MINI Plus Brewing Systems, the hazard occurred when the coffee was being brewed, apparently the water would overheat and spray out the sides and the consumed...
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...consist of and are not limited to things like testing and inspections of products and production equipment, quality audits, laboratory research and field-testing. An example of this being the monthly shutdowns of the production equipment for maintenance, inspection and repair. Also the weekly lab testing both destructive and non destructive. Prevention costs are the costs associated with preventing defects from happening at all, such as training of employees, production workers, and vendors that supply parts and labor. Also planning and administrative costs and other quality control measures. An example would be the new hire training and on going continuing education programs for all employees associated with production. Internal failure costs would be cost associated with failures in the production plant. These failures can be from inferior raw materials, improper production techniques, worn or faulty production equipment or simply human error. An example being last month when the production furnace temptaure was mistakenly set at 850 degrees instead of the normal 500 degrees and the product was melted instead of being tempered. External failures would be those that are discovered after the finished product leaves the plant. External failures can be very costly, with replacing the defective products with new products, dealing with customer complaints, materials and labor to produce the new products and so forth. This can ultimately lead...
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... The following summary will provide details about the Pinto case. Key factors surrounding the Ford Pinto case A key factor surrounding the Ford Pinto case was cost and safety. Ford was aware that the Pinto exploded when rear-ended. Dennis Gioia brought his concern to the committee. Because of the lack of evidence, the committee voted not to recall. Even after evidence was found, the committee again decided not to recall because in the word of Lee Iacocca “safety didn’t sell.” Ford became the topic of corporate social responsibility, unethical behavior and decision-making. At a time when fuel prices were on the rise, Ford decided to compete with foreign manufacturers by producing fuel efficient compact cars. The firm pushed to produce vehicles by breaking its ethical code and manufacturing cars that carried a safety hazard. Ford also failed to regulate its social responsibility to the public and manufactured cars based on efficiency not safety. Ford entered a competitive sub-market dominated by foreign automakers and greed by corporations and cost/benefit analysis putting a price tag on human life. Lee Iacocca pushed a defective vehicle through production and the culture at Ford lacked moral standards,...
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...problems with its seat supply. • Kentucky Framed Seat (KFS), is a single seat supplier for TMM. • KFS is responsible for the material flaws and missing parts as the major encountered defects. • These problems are increasingly occurring with an increase in varieties and demand for the seats. * 4. Problems Faced • Product proliferation problems with defective seats. • Company’s deviation from its normal production plan and lack of a recovery system. • Run ratio dropped from 95% to 85%. • This means 45 less cars were being produced per shift. • This translated in overtime of workers. • Too many cars needed off-line operations of one type or the another before they could go on shipping. * 5. Questions Raised • Will the sales company get cars on time as promised? • What does it mean to implement JIT and Jidoka principles to this situation? • Is TMM handling seat defects correctly on the line? • Is the current routine for handling seat-defect cars really a legitimate exception to TPS, or could it be a dangerous deviation from TPS? • Is there a way to kaizen TMM’s off-line routine? * 6. Analysis * 7. The Problem Rise in number of Camry’s with defective seats, leading to a reduced run ratio at the TMM Georgetown Plant. * 8. On April 27th the run ratio was down from 95% to a damaging 85%. Decrease in per-shift production is close to 50 cars. Producing the missing cars via overtime capacity will cost TMM in excess of $16,000 per shift. This translates to around...
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...chain industry in automating the workflow as well as management of the system. It also helps improve the overall effectiveness of logistics management for transportation, logistics network, information, warehousing, and materials handling and packaging. Elements of Logistics Management for Employees Logistics consists of ten elements. 1. Planning and Maintenance. The process of developing and establishing maintenance, support and repair processes for the life of the system. 2. Supply Support. The process which acquires stores, receives, catalog, dispose of issue, and transfers items in big quantities to meet the needs of their customer customers. 3. Personnel and Manpower. Is the process that helps determine how many employee's it takes to operate, sustain, and maintain the system. 4. Technical Information. Is information collected in order for the company to maintain operating systems and equipment. 5. Facilities. This includes storage facilities whether they be permanent or part time to store their product which can include towers, open fields, building, etc. which is required for a company to run and support the system. 6. Support and Equipment Testing. this system should be done to be able and make shore the operate the system are maintained and running correctly. 7. Material Handling, Transportation, Warehousing, Packaging Ensures that the system, equipment, packaged, and support items...
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...Read the posts of your peers and respond to two The Operations Improvement Plan feedback at hand is two both by Sarah Ndagire. The first feedback is the quality post by Ndagire in which she discuss the strategic issues of quality and ethics in Toyota Motor Corporation in line with the recall crisis at Toyota and its overall impacts to the brand as revealed by (Greto, Schotter & Teargarden, 2010) in their study titled, “Toyota: The Accelerator Crisis.” In her process identification, Ndagire introduces us to the drivers of the Toyota accelerator crisis and in her response, she contends with the fact that nonfamily members who were obsessed with quantity influenced the crisis in quest. In addition, the author says that the reason behind the recall crisis at Toyota was the nonfunctional management structure. Ndagire goes on o mention that failure by the top management to involve the employees in decision making especially concerning the TPS system demoralized the employees hence they could not support the corporate brand while the stakeholders would only do so upon invitation and satisfaction of the model quality. Also to not from the process identification is that Toyota did not manage public relation in U.S in the verge of the accelerator crisis thus need for crisis management. According to Ndagire, for the CEO to restore Toyota‘s reputation, he should change the management structure by ensuring flow of information among different units as well as minimizing on cost...
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