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Jdt2 Task 2

In: Business and Management

Submitted By jociefern181
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Memo
I am bringing to your attention a problem we have encountered with one of the elementary toy collection products. A metal whistle that’s in the collection did not pass testing due to small traces of lead.

We can handle this problem in one of three ways. One of the options is to remake the product and repackage it taking the $100k loss it will take to reproduce and repackage it. Another is to remake and repackage the whistle and give it to the customer at a reduced cost than originally agreed upon. Lastly, to reproduce and package the product, then raise the price to cover at least half of the added cost.
I came upon the three possible solutions by using the model 3 theories in the course of study. First question I asked myself when deciding each alternative was what goals or other results do I want for all three decisions? The answer was to make a responsible and ethical decision, reduce cost and make the customer happy. I then gave thought to my options, which are:
1) Remake the product and repackage it taking the 100k loss
2) Remake the product and repackage it and give it to the customer at a reduced price
3) Remake the product and repackage it and give it to the customer at a higher price

For each decision I thought about the advantages and disadvantages. The advantages of the first decision to remake and repackage the product and taking a $100l loss, demonstrate that we are a company with good business ethics. Regardless of weather the product may have the legal amounts of lead for South America, we would not distribute our product to children because we do not consider it safe here in America. Reproducing the product until it is safe also shows that we are a responsible company you can trust to do the right thing. Taking all the responsibility to reproduce and repackage the product also demonstrates that we are not only thinking about making

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