Subject category:
Strategy and General Management
Published in:
1992
Length: 4 pages
Data source: Published sources
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https://casecent.re/p/23392
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Abstract
This is the first of a two part case series (392-056-1 and 392-057-1). The Beech-Nut Nutrition cases describe how the 2nd largest US baby food manufacturer attempted to save costs by acquiring adulterated apple juice concentrate, essentially sugar water, and passing it off as pure apple juice for babies. The company was being pressured to produce profits by its owner, the Swiss food manufacturer, Nestle. Beech-Nut''s top two executives were eventually jailed for fraud. The Beech-Nut (A) case purposely conceals the full extent of the culpability of the senior executives in the procurement of fake juice. This allows discussion of a wide range of strategic and ethical issues. The (B) case reveals the extent of senior management''s participation, and describes their brazen attempts to thwart the investigation of the scandal by the Food and Drug Administration (FDA).
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Abstract
This is the first of a two part case series (392-056-1 and 392-057-1). The Beech-Nut Nutrition cases describe how the 2nd largest US baby food manufacturer attempted to save costs by acquiring adulterated apple juice concentrate, essentially sugar water, and passing it off as pure apple juice for babies. The company was being pressured to produce profits by its owner, the Swiss food manufacturer, Nestle. Beech-Nut''s top two executives were eventually jailed for fraud. The Beech-Nut (A) case purposely conceals the full extent of the culpability of the senior executives in the procurement of fake juice. This allows discussion of a wide range of strategic and ethical issues. The (B) case reveals the extent of senior management''s participation, and describes their brazen attempts to thwart the investigation of the scandal by the Food and Drug Administration (FDA).
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