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Compact case
Case
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Reference no. 408-023-1
Authors: Sher Singh Bhakar (Prestige Institute of Management, Gwalior); Shilpa Bhakar (Prestige Institute of Management, Gwalior); Tarika Singh Sikarwar (Prestige Institute of Management, Gwalior); Nitin Chaudhary (Prestige Institute of Management, Gwalior); Nidhi Sharma (Prestige Institute of Management, Gwalior)
Published in: 2008
Length: 5 pages
Data source: Field research

Abstract

The case is a critical instance case in which a specific incident and its ramifications are depicted. The case is based on a real-life incident faced by the 70-year-old Indian subsidiary of a multinational confectionery and beverages giant which operates in 78 nations. The case deals with a quality problem in the Parrie brand of biscuits, which had a 52% market share in India, in the branded category. For the first time a lack of sensitivity to the variation in quality practices and in turn, community practices, shown by the executives involved, lead to the erosion in organisational goodwill. The executives have had exemplary performance in the past. The quality manager had informed the manufacturing manager about the quality problem in the main ingredient, ''arrarote'' used to produce biscuits, but the advice was not taken seriously and not only were the biscuits produced, but also distributed in the marketplace, leaving Mr Sanjay Gupta (Managing Director) to take a decision regarding calling back the product worth Rs 4 crores from the market and taking disciplinary action against the executives involved.
Location:
Industry:
Other setting(s):
December 2006

About

Abstract

The case is a critical instance case in which a specific incident and its ramifications are depicted. The case is based on a real-life incident faced by the 70-year-old Indian subsidiary of a multinational confectionery and beverages giant which operates in 78 nations. The case deals with a quality problem in the Parrie brand of biscuits, which had a 52% market share in India, in the branded category. For the first time a lack of sensitivity to the variation in quality practices and in turn, community practices, shown by the executives involved, lead to the erosion in organisational goodwill. The executives have had exemplary performance in the past. The quality manager had informed the manufacturing manager about the quality problem in the main ingredient, ''arrarote'' used to produce biscuits, but the advice was not taken seriously and not only were the biscuits produced, but also distributed in the marketplace, leaving Mr Sanjay Gupta (Managing Director) to take a decision regarding calling back the product worth Rs 4 crores from the market and taking disciplinary action against the executives involved.

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Location:
Industry:
Other setting(s):
December 2006

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