A Case Presentation On

“The New Year’s Eve Crises”

12th June 2019 Team Members:

Prabhakar Tripathi, Pranjal Gupta, Rashi Gandhi, Riya Santhosh,
Rupam Sinha, Sarvesh Sharma, Shivani Chougule, Shreyansh
Tyagi, Vaibhav Bhandari Yashica Garg
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Executive Summary

▪ Michael’s HomeStyle Pasta aspired to acquire Southern Pasta which specialized in similar
products, for expanding its business.
▪ This would enable Michael’s HomeStyle Pasta to eliminate competition. The consolidated
entity, received a major order from a restaurant with 200+ outlets for New Year’s Eve.
▪ Mike was notified of a serious contamination issue with the pasta, hours before it was to be
served to the customers. This food, if served, may cause serious health issues to people
with weak immunity system. Also, it would lead to reputational and financial crisis to both
Mike's company and the restaurants. The best course of action would be to recall the
contaminated batch while maintaining transparency with the client and bear the consequent
losses.

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⮚ Recall the contaminated food with compensation and maintain transparency with the clients

Action Plan

Recall
Recall communication communication to Roadmap for the transition
Client management
to internal stakeholders Restaurant owners of the culture of Southern
Pasta Company
1. Communicate via 1. Hold relationship building 1. Define the standard
1. Personally call the
conference call, the meeting with the client operating procedure for
restaurant requesting to
decision to recall the covering the employees of
immediately stop the
contaminated batch from 2. Loss amount to be Southern Pasta to help
utilization of the
the client. credited to the client them transit into new
contaminated batch
2. Calculate the envisaged within 7 days of order culture
2. Arrange return of orders
losses to be borne by the return 2. Monitor the transition
efficiently from the client
company implementation through
by leveraging the tracking
3. Arrange calls with the weekly meetings with the
system.
recalled order clients employees

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 Alternatives

Recall with
Ask restaurants to Recall and let the
compensation and
No Action heat the pasta at restaurants know
bear the charges of
160°F about Salmonella
further discounts

Recall by telling the

restaurant that
MHP has to conduct
tests on the batches

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 Criteria for Evaluation

Should the supplied Should there be any

product cause compromise in the Should be a legally Should be an
medical harm to quality of products sound solution. ethical solution.
the end consumer supplied.

Should minimize
the monetary loss
that would be
incurred

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Evaluation Of Options

Criteria → No harm to end Quality assurance of Legally Right Loss incurred Should be
Options ⤵ consumers food ethical
Do nothing X X X Chances of High X
Loss
Ask restaurants to heat at ✔ X X No Loss X
160°F
Recall and let the ✔ ✔ ✔ $0.5 Million ✔
restaurants know about
Salmonella
Recall with compensation ✔ ✔ ✔ $0.5 Million + ✔
and bear the charges of
further discounts
Recall by telling the ✔ ✔ ✔ $0.5 Million X
restaurant that MHP has to
conduct tests on the
batches).

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Thank you