In recent years, there have been several cases of widespread illness associated with food contamination. There is growing concern about the quality of our food supplies and how these are processed. Monitoring of food processing facilities is limited. The present article suggests that audits themselves are tainted because the companies being audited pay for the service. This makes audit firms less likely to point out serious problems.

QUESTIONS:

M1. Look at the definitions for ethics and ethical behavior. Why are laws not sufficient to ensure ethical behavior?

M2. Explain why the situation described in the article is an ethical dilemma from the standpoint of each of the following: food manufacturers, food suppliers, and audit firms.

M3. Consider the practice of third-party audits. A food manufacturing company purchasing products from a supplier requires an audit, but the audit expense is paid by the supplier who also selects the auditor. Pretend you the owner of a food manufacturing company and you are about to follow this practice. What level of moral development are you displaying? Why? In terms of food safety, what level should you display?

M4. What are some ways that the food industry could continue to police itself and maintain high ethical standards?

SOURCE: E. Weise, “Food Safety Auditors Are Often Paid By the Firms They Audit,” USA Today (Retrievable online at http://www.usatoday.com/money/industries/food/2010-10-01-foodaudits01_ST_N.htm)

Earlier this month, Japan arrested a Chinese fishing boat captain after his boat slammed into a Japanese coast guard vessel in the East China Sea. The arrest led to a standoff in which China made a number of threats and demands. Japan eventually acquiesced and is now making overtures to the United States.

QUESTIONS:

M1. To westerners, China and Japan might seem very similar. Yet there is little evidence of effective communication between the two countries. Beyond the dispute over control of waters, what factor likely explains the difficulty?

M2. Identify the styles used by both countries to handle the conflict. Describe characteristics that help you identify each.

M3. While the current dispute has been resolved with the release of the fishing boat captain, it is symptomatic of wider tensions between the two countries. Given this, why might Japan be looking to the United States? Is it simply about strengthening trade? Consider United States’ role in the Fujita Corp. affair.

SOURCE: R. Blumenstein, G. Fairclough, & Y. Hayashi, “Japan Caves In On China; Looks to U.S.,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748703384204575511033698480628.html)

Related video clip available at:

When customers Twitter about their experiences, businesses are “listening.” At least restaurants are beginning to pay more attention. Some owners are strategically interacting with customers that Tweet about their restaurants.

QUESTIONS:

M1. Think about Tweets like the one made by Mr. Bosco. Is it data or information? How much does it really matter to a restaurant such as Wow Bao (after all, Mr. Bosco was still going to dinner there)? If you argue that these Tweets are useful, identify the criteria they satisfy.

M2. Discuss how technologies like Twitter and Facebook are changing the way organizations do business. What barrier is being broken?

M3. Not all social information is processed the same, as evidenced by Graham Elliott’s responses. How do openness to problem solving and thinking styles influence the way a restaurant owner might deal with a wide variety of Tweets?

SOURCE: S. Dai, “Restaurants Turning to Twitter to Fix Customer Complaints,” USA Today (Retrievable online at http://www.usatoday.com/money/industries/food/2010-09-25-restaurants-using-twitter_N.htm)

The slow economy forced many businesses to trim staff to bare-bones levels. Remaining employees wanted their usual end-of-summer vacation time and this left companies shorthanded. Two companies – Quality Buildings in Norman, Oklahoma, and David’s Soundview Catering in Stamford, Connecticut – handled the shortages through job shifting and overtime. The strategy worked but was not very effective. Many companies are turning to temporary agencies for help covering employee vacations.

QUESTIONS:

M1. Could small companies, like the ones profiled in the article, suspend vacation while staffing is reduced? What about the practice of bringing in temporary workers to cover for vacationing employees? What are the relevant legal issues?

M2. If you were advising these companies, what is one way to help a lean staff be better prepared for short staffing associated with vacations?

M3. Consider what you read about vacation and work coverage at companies with lean staffing. What are the implications for work-life balance? Are there options with respect to work schedule flexibility that might help companies get the work done while allowing employees some time off?

SOURCE: J. Walker, “Summer Vacations Bring Strain to Trimmed Staffs,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704540904575452283152989038.html)

Johnson & Johnson CEO William Weldon would like to retire next year. Yet a series of recent product quality problems has him concerned. Insiders say Mr. Weldon is very competitive and would not leave the company with lingering problems. So Weldon is working on plans to take corrective action. Johnson & Johnson’s board of directors might ask him to stay a little longer and see these plans through. The company’s customer relationships are good and its financial performance has not taken much of a hit because of the recalls. However, there are now questions about the successor to Weldon. One thing is certain – the focus, for now, is more on manufacturing than who will run the company in the near future.

QUESTIONS:

M1. CEO William Weldon recently presented plans to Johnson & Johnson employees for dealing with manufacturing problems. Of the key benefits associated with planning, which do you believe Mr. Weldon hopes to realize? Why? Can you make an argument for all three?

M2. Is the planning needed to respond to these manufacturing problems short- or long-range? Strategic/tactical or operational? State your reasons for both choices.

M3. Johnson & Johnson is obviously very concerned about quality and the shadow that recalls casts on its image. Put yourself in the shoes of CEO Weldon. Using the example in Figure 7.2 develop a hierarchy of objectives to guide implementation of plans to correct manufacturing problems.

SOURCE: J. S. Lublin & J. D. Rockoff, “J&J Chief Tends Corporate Wounds,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748703418004575456202687961136.html)

Volkwagen recently revealed an aggressive strategy to become the top automobile manufacturer in the world. Currently, the company is third behind Toyota and General Motors. Volkswagen executives believe they can sell 1 million vehicles per year by 2018, but industry analysts see the company selling considerably less even under the best projections. The company’s strategy hinges on widespread acceptance of a vehicle it is not currently producing, dramatically increased sales of a crossover vehicle that is being outsold 8-1 by two other models, and reintroduction of a luxury vehicle that previously failed in the United States.

QUESTIONS:

M1. In what ways does Volkwagen’s strategy reflect multi-dimensional thinking? What role should strategic opportunism play?
M2. In what type of decision environment is Volkswagen operating? Given widely different interpretations about the company’s capabilities, what should VW executives do to improve their decision making?
M3. What decision-making error might explain why Volkswagen has an optimistic view of the chances to become #1 while industry analysts are less confident? The decision to reintroduce the Phaeton could reflect what decision-making trap? [Read the final section of the article for a hint.]

IB1. Consider the characteristics associated with globalization in the introductory section of Chapter 9. Why is the United States important to a company like Volkswagen? Is Volkwagen’s strategy, as outlined in the article, multi-domestic or true globalization?
IB2. What are some of the factors you believe to be driving Volkswagen’s “ramped up” strategy?
IB3. What type of competitive strategy is Volkswagen pursuing?

SOURCE: J. Healey, “VW Plans to Be No. 1 Car Seller in the World By 2018,” USA Today (Retrievable online at http://www.usatoday.com/money/autos/2010-09-03-vw03_CV_N.htm)