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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.