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JDT2 Task 2

Good Essays

INTEROFFICE MEMORANDUM TO: CEO FROM: ELEMENTARY DIVISION MANAGER SUBJECT: METAL WHISTLE TESTING DATE: OCTOBER 1, 2011 CC: EXECUTIVE TEAM Overview We have a large shipment of our elementary toy collection scheduled ship at the end of this week but have encountered a problem with the production. One of the products in this collection has failed the quality control testing exceeding the legal limits of lead set by the federal government. This shipment will be delivered to South American schools. As of August 14, 2011 the total legal lead content must not exceed 100 parts per million for a product (CPSC 2013). Our levels tested above these limits and require us to take action. To reproduce this product it will cost the company …show more content…

Ethically the company will not have shipped out a known defective product but consumer moral will be lowered due to not receiving everything that they have paid for. The company operated morally but did not give the consumer what they asked for. Recommendation I would personally recommend that we cancel the order and shipment. We should remake this product to specifications before sending the order out to the customer. This will show that the company is acting morally and cares about the end user which in this case is children. I recommend calling the customer and telling them why this order has to be cancelled. Giving them this information will help us keep the trust we currently share with the customer. If we are to continue to prosper as a company we have to act morally and continue to build bonds. Word of mouth between customers will influence overall customer retention and people will like to know how we handled this situation. Option two can be justified due to the fact that it will produce the best overall results. The company image will be maintained utilizing this option. Although the company will be losing money on wasted product and labor, the consumers’ confidence will increase due to the fact that they will be ensured that safety is one of the key factors in our product. I believe stock prices will remain the same or increase once investors see how we reacted fast

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