Taking the Cake HBR Case Study
Applying utilitarianism, Southland should not reinvent its product line. It should concentrate on increasing its market share, driving profit levels to the maximum, and utilizing cheap ingredients to reduce costs. The overall aim is profitability. Should deontology is applied the company can ignore the potential threats of lawsuits. Note that since the establishment of the company, it followed rules to the letter. Indeed, if Southland obeyed food and drug regulations, combating lawsuits is an easy job. A plausible prediction is a lawsuit is filed the lawsuit is readily dismissed for lack of merit (since the company did not violate any rule) a congressional hearing is called there is a possible enactment of new regulations. If virtue ethics is applied, the company should reinvent its product lines, remove defected products in the market, and inform the public of their products potential health hazards. Among the three perspectives, only the third indicates the right thing to do.
Peter should advise the CEO to recast its product lines when public opinion is moving against sweet companies. Recasting the product line at an earlier date may prove costly for the company (especially if public opinion against the company turns out to be weak). Recasting the product lines at a later date can be perceived by the public as a measured rational response on the part of the company. Hence, the company is able to save time ad resources.
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