Thoroughly evaluate the alternatives, their outcomes, and their possible effects

Question

Thoroughly evaluate the alternatives, their outcomes, and their possible effects on all of the parties involved. • For each alternative: what is the effect on each important stakeholder if this course of action is followed? • Are there any effects on stakeholders whom you do not consider “important”? • Do these alternatives satisfy the ethical model (ethical theory) you consider most relevant?

Alternative (Analysis of The New Year's Eve Crisis) They could have taken the time to define the problem clearly, there small problem became a massive one. Real clarity could have expedited this whole potential outbreak problem. 1)When Mike received the call from Fred and was told about the results being falsified he should have immediately terminated his quality insurance manager. 2) The conference call reaching a definite decision about the position of Mike's company. 3) Informing the restaurants about the salmonella and taking the economic risk of losing business but also avoiding lawsuits.

North Anerican Case The New Yen's Eve Crisis Case The New Year's Eve Crisis William Naumes Margaret J. Naumes University of New Hampshire It was Monday morning. New Year's Eve day, 2001. On a day that many people were enjoying at home, Mike Valenti was in his office at Michael's Homestyle Pasta. Since he had acquired the Southern Pasta Company on December 10, he had been learning the business, trying to get his arms around it, as he described it. Distance was a factor: Michael's headquarters and plant were in Connecticut, Southern was located in Horida. Mike would have liked to be in Tampa, working directly with his new employees and trying to integrate the two companies cultures, but his wife was expecting their third child in early January and he needed to stay near home. In the due diligence period leading up to the purchase, it had seemed as though a new problem had developed every week. Finally, 3 weeks after closing, things seemed to be under control. The telephone rang. When Mike answered, he was not surprised to hear Ted Brewer on the other end of theline. Ted, Michael's vice president for administration and operations, spent part of every week at the Florida plant. Ted began, Ihope you're sitting down. He went on to tell Mike that Southern's quality assurance manager, Fred Jones, was in his office, and "You need to hear what he has to say! He put Fred on the phone. Mike listened as Fred told him that the seafood-stuffed pasta shells that South ern had just shipped to its biggest customer were tainted with salmonella. That cant be tue." Mike responded. "We have the lab results that show it's fine!" "I know," replied Fred, "but those results were falsified." In tears, the quality assurance manager explained that he had taken the samples of stuffed pasta that were to be sent to an independent lab for testing and baked them to make sure that any bacteria were killed; then he had frozen them and repackaged them to look like packages just off the production line. Southern's president, Hans Schmidt, had threatened his job if the stuffed shells didnt test clean. The New Years Eve Crisis Cse Narth Anericen Case Research Associatien THE NEW YEAR 'S EVE CRISIS

Explanation / Answer

New Year Eve Crisis:

Problem at Hand: Supply of Salmonella-infected seafood pasta shells to it biggest customer from Southern plant in Florida.

History: Mike the founder of Michael’s homemade style pasta (Based in Connecticut) had acquired its competitor Southern Pasta Company (based in Florida) on December 10, 2001. On December 31, 2001, he got a call from his Vice-president Ted that supplies made to the big customer from the Southern plant were contaminated and the quality assurance report was fudged by Fred the Quality assurance manager as per instructions from Southern’s President Hans Schmidt. The supply was made to the largest customer (A restaurant chain) who accounted for half the revenues of Southern Pasta.

Reason for acquisition: The Southern was made competitor to Michael Homemade style Pasta and acquisition gave him access to a large market not covered by Michael yet.

Alternative 1:

Mike should sack Hans as he is the main culprit and Fred who are responsible for this act of unethical behavior and hiding facts which can harm the organization. Further, since Fred is also the quality assurance manager his behavior is not only concealing facts but also breaking processes established for good quality manufacturing as per FDA norms. Also, The Company should recall the supplies immediately.

The outcome: This action will cause a loss of revenue but result in saving lives of many people. They will appear an ethical company who is ready to take responsibility for its actions. The financial loss would be 50% of revenue invested in last 3 weeks. FDA is ok with recall and destruction of the contaminated food and adverse publicity can be avoided.

Alternative 2:

Mike can sack Hans give a warning to Fred so such action is not repeated. The recall can be avoided and blame put on the restaurant that is required to cook the seafood pasta shells at a temperature more or equal to 160 degrees Fahrenheit recommended by the manufacturer. Further, the lawyer suggested the blame could be put on Southern previous owners as supplies were made before the acquisition.

The Outcome: Many customers would fall sick and some might die. FDA will take the stocks and test it and would cause adverse publicity to Mike and his company. It is also unethical behavior and a blame game which would benefit no one.

To sum it up I would recommend option 1, I would recommend that Mike should explain circumstances of dispatch openly to the restaurant and recall the contaminated stock. This will build a long-term relationship and good bonding with the customer. Further, it will avoid any regulatory problems from FDA as the contaminated product has been withdrawn and destroyed. It would result in a heavy loss to Mike but can be recovered over a period of time but Mike can look at filing a lawsuit against Hanz after sacking him. This will also be as per ethics.

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