Case Application Blurred Vision It's unrealistic to think that all products can be guaranteed 100 percent safe at all times in all places for all people. But as consumers we'd like to believe that manufacturers are doing whatever they can to ensure that products are as safe as possible... especially when it comes to prod- ucts used on or in our bodies that have the potential to do serious harm or damage. And more importantly, we'd like to believe that if manufacturers discovered some- thing potentially wrong with one of their products, that they would take immediate action to correct it. Executives at Bausch & Lomb found themselves dealing with such a scenario as problems with one of its most popular and lucrative products-a contact lens cleaner, ReNu With Moisturel orehecame evident
Case Application Blurred Vision It's unrealistic to think that all products can be guaranteed 100 percent safe at all times in all places for all people. But as consumers we'd like to believe that manufacturers are doing whatever they can to ensure that products are as safe as possible... especially when it comes to prod- ucts used on or in our bodies that have the potential to do serious harm or damage. And more importantly, we'd like to believe that if manufacturers discovered some- thing potentially wrong with one of their products, that they would take immediate action to correct it. Executives at Bausch & Lomb found themselves dealing with such a scenario as problems with one of its most popular and lucrative products-a contact lens cleaner, ReNu With Moisturel orehecame evident
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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100%
solve the Disscation Quation:
Transcribed Image Text:590
Part Six Controlling
Case Application
Blurred Vision
It's unrealistic to think that all products can be guaranteed
100 percent safe at all times in all places for all people.
But as consumers we'd like to believe that manufacturers
are doing whatever they can to ensure that products are
as safe as possible... especially when it comes to prod-
ucts used on or in our bodies that have the potential to
do serious harm or damage. And more importantly, we'd
like to believe that if manufacturers discovered some-
thing potentially wrong with one of their products, that
they would take immediate action to correct it.
Executives at Bausch & Lomb found themselves dealing
with such a scenario as problems with one of its most
popular and lucrative products-a contact lens cleaner,
ReNu With MoistureLoc-became more evident.
Doctors in Hong Kong first started noticing cases of
a troubling eye infection Fusarium keratitis in July of
2005, but were not able to make the connection specifi-
cally to Bausch & Lomb's product. Yet, in February of
2006, the company agreed to stop selling that lens
cleaner in Hong Kong and Singapore. By March 2006,
more than 100 people in Hong Kong, Singapore, and
the United States had developed eye infections, "with
some of the worst cases requiring cornea transplants,"
and the connection to the ReNu product was pretty evi-
dent. Health officials in Singapore said "they had estab-
lished a strong statistical connection between Bausch &
Lomb's ReNu With Moistureloc cleaner and Fusarium
eye fungus infections." But it wasn't until April 13, 2006,
after some U.S. retailers independently began removing
the product from shelves, that Bausch & Lomb took its
first public action-a voluntary market withdrawal-
asking retailers to remove the ReNu product from their
shelves temporarily until it could further investigate the
reports of fungal keratitis infections among contact lens
wearers. In open ads in USA Today and regional news-
papers, the company also recommended that consumers
switch to another lens care solution product. Company
CEO Ron Zerrella said, "For more than 150 years, Bausch
& Lomb's mission has been to enhance your vision. We
find ourselves in a position where the safety of one of
our products manufactured at our United States plant is
in question. We've done a series of exhaustive tests on
the product, and a thorough inspection of the plant,
and nothing has yet been found to show that ReNu
With MoisturelLoc contributed to these infections in any
way. However, in the cases of infections reviewed tn
date, the majority of patients reported using ReNu With
Transcribed Image Text:Moistureloc manufactured at our U.S. factory. Bausch &
Lomb's first priority is the health and safety of con-
sumers. If there is a problem with our product, we'll find
it and we'll fix it."
On May 15, 2006, the company explained that it
had "finally, after months of sleuthing, found a link
between the product and a potentially blinding eye
infection." In a release by the U.S. Food and Drug
Administration, Bausch & Lomb proposed that "unique
characteristics of the formulation of the ReNu With
Moistureloc product in certain unusual circumstances
can increase the risk of Fusarium infection. Based on this
scientific data, Bausch & Lomb has decided to perma-
nently remove the ReNu With Moistureloc product
worldwide." Although the company said it moved as
"rapidly as possible to understand and respond to its
product's role in the outbreak," others say it did not
move fast enough to avert a crisis.
DISCUSSION QUESTIONS
4. How might immediate corrective action have been
used in this situation? How about basic corrective
action?
5. What role would information controls play in this sit-
uation? Financial controls? Customer interactions?
6. What, could other organizations learn from this
situation?
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