Case Study of Snow Band

2482 WordsOct 16, 201010 Pages
Snow Brand Milk Products ‘Crisis or Opportunity?’ - Time for Corporate Revitalization Hong Kong Baptist University 10 June 2010 Contents |1. |Executive Summary |1 | |2. |Problem Identification |2 | |3. |Analysis |2 | |4. |Alternatives |4 | |5. |Recommendation |5 | |6. |Implementation…show more content…
Japan further imposed an indefinite ban on US beef in 2003 after the confirmed appearance of Bovine Spongiform Encephalopathy (BSE) in North America. 3. A new corporate governance structure, under which outside directors play important roles in managerial decisions, was sanctioned by the revised commercial code in April 2003. ← Economic factors 1. Due to the BSE outbreak in Japan in 2001 and the subsequent beef mislabeling issues, consumers became leery of beef products in general and beef consumption declined as a result. 2. Japanese consumers reported significant declines in their perception of domestic beef as safe and healthy. ← Social factors 1. SBM has significantly lost public trust and consumer confidence. 2. Post-war Japan had seen a rise in consumer activism and consumer groups’ prominence. 3. Consumers became more aware of and concerned about food safety issues. 4. Common practices of beef mislabeling had led to a renewed call for ethics and integrity in Japanese businesses as well as a call for business to attend to risk management. Internal Analysis: ← Corporate culture and leadership: 1. Currently, SBM had a traditional Japanese management style of uncertainty avoidance and harmonization, thus losing focus on customers and quality. Staff worked with a presupposition that a firm existed for the sake of its managers and employees, which fostered
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