Nutritional Food Case Study

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Bus 350 Small Business Planning & Management Diane Ferguson Case Study: The Case of Nutritional Food The Nutritional Foods corporation has grown into a fifty-million-dollar manufacture of healthy foods that is rapidly growing. They have two facilities for processing and canning or bottling all their food. They also have company-owned refrigerated trucks to ensure freshness of their product. Nutritional Foods has implemented necessary production and shipping procedures to ensure freshness quality excellence for their consumers. They are rapidly becoming a household name for natural or non-pasteurized foods in the Western United States. (Hanson, 1998) The years of hard work have come together for the company, they are profitable…show more content…
What happens when products go wrong? Corporations have regulations and ethic codes that are written for management and employees to follow. Their Mission Statement is another guideline of the corporation reason for existence, its core purpose is to assist all to understand what the company’s values are and where they stand. Thus, employees understand what is expected of them in protecting the company and consumers. Now, with so much at stake John Healy, Vice President for production, needs to be positive that the product they manufacture was not contaminated. The repercussions of admitting that the company was in the wrong could be devastating to the business. The Food and Drug Administration is responsible for the regulation and safety standards for food supply in the United States. Typically, recalls are voluntary and initiated by the manufacturers and distributors. If FDA or FSIS requests that a product is recalled, the responsibility to act falls on the company which manufactures the product. (White-Cason, 2013) Because recalls are voluntary, it gives a company time to research the incident and product before…show more content…
Corporations carry many types of insurances, one being liability insurance which cover incidences such as this. They have lawyers that facilitate legal actions to protect the company again wrongful or harmful actions. A legal case against the farmer who supplied the contaminated food may be in their future. Healy dealt with the issues ethically towards the company and the consumers in a timely manner. By taking action, hopefully he is reinstating the company’s good name and by showing compassion towards the customer, the business should continue to
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