Manager in a Big Corporation - Essay Example

?Identify a Corporate Situation that could disturb you as a Manager. Evaluate the Situation and use Marketing Research Methodologies to Find Solutions to the Problems Faced by You Executive Summary Product recall is considered to be unfavourable for any company operating in the market. It is usually a process where products manufactures and send to the market for sale to the final customers but are brought back for investigation and further modification due to certain safety concerns or defects in the product. Furthermore, it has also been viewed that the occurrence of such corporate situation sometimes incurs loss of huge monetary value and also affects the reputation of the firm amidst its customers and reduces competitiveness. The main objective of this paper is to evaluate the situation of product recall and finding solutions of the problems arising out of the corporate situation. The paper intends to provide a causal research that contains a broad study off the different aspect that may result in product recalling along with solution that can be applied by a manager to mitigate issues arising out of such corporate situation. The introduction part of the study contains an overview of the company i.e. Nestle, the research methodology part of the study contains an explanation of the various research design that are usually accepted while conducting research studies along with limitation of the selected research design and approach. The data collection part of the study contains procedures on how both primary and secondary data have been collected for the research study. Furthermore, the research finding contains a detailed study of the various aspects that has been identified as the core reason behind implementing the policy of product recall by the organization along with recommendation to mitigate the problems arising out of product recall. Table of Contents Executive Summary 2 Introduction and Problem Definition 4 Research Methodology and Limitation 6 Sample 9 Research Finding 10 Conclusion and Recommendation 14 References 16 Bibliography 18 Appendices 20 Introduction and Problem Definition Nestle S.A. is a Swiss multinational food and beverages company headquartered in the town of Vevey in Switzerland. Established in the year 1866 the company is today considered to be the prime food company in the world when measured by revenue (Nestle, 2013; DuBois, 2011). The product of Nestle mostly contains baby food, packed water, cereals, coffee confectionary, dairy products and snacks. It is considered that the company has 28 brands under its umbrella that includes well-known brands like Nescafe, Kit Kat, Smarties, Nesquik, and Maggi among others (Kowitt, 2010). It has also been viewed that the company nearby has 450 manufacturing plants that operates in more than 86 countries globally providing employment opportunities to more than 328,000 people. Nestle holds around 24.5% share of L’Oreal Group which is considered to be the world’s largest cosmetic group (Mulier, 2011). It is worth mentioning that Google have announced that it would name the next android after the ever popular chocolate wafer of nestle i.e. Kit Kat. However, over the year the company has been under varies controversies that have affected the brand image to a great extent (Kelion, 2013). Problem Definition Despite Nestle’s best effort to design, manufacture and sell safe and reliable products there stills remains probabilities that the product manufactured may contain dangerous and defective aspect and that may reach the consumer or the final customer. Correspondingly, there have been several instances when the company has to recall its products causing financial loss and hampering the goodwill of the company. Notably, a product recall is a situation or recall made by a company to return a batch or an entire production made of a particular product range usually resulting from the discovery of safety issues or a product defect (Foerster & et al., 2011). Product recall is usually a way of decreasing the liability resulting from corporate negligence and also to improve or avoid damages that may affect the life of the general public. Though product recall may sometimes be considered as a costly affair however it helps in establishing a co-ordinated relation with its customers and that helps in boosting its sales in the near future (Catlin Group Limited, 2012). With reference to the selected company i.e. Nestle it has been viewed that since 2007 the company has recalled it range of products either from the risk of contamination or from lack of proper quality (Marsh Inc., 2013). Evidently, in the month of February 19, 2013 it was reported that traces of horse DNA was found in its meat based products. The company also recalled two of its chilled pasta products viz. Buitoni Beef Ravioli and Beef Tortellini that were being sold in Italy and Spain, additionally a news release on the company’s website stated that it would also recall its lasagna product that were specially sold to French catering businesses. On further investigation, it was viewed that unauthorised horse meat was found in variety of product of the company that were categorised as beef by Spanghero the company that was responsible for labelling all product of Nestle. Considering the allegation made Spanghero employees also stated that Nestle has never ordered horse meat and Spanghero also confirmed that the company do not sell horse meat knowingly (CNN, 2013). Again in the month of March in 2013, it was viewed that Nestle recalled some of its variants of its well-known Chunky Kit Kat after seven consumer found pieces of plastics in its bar. Additionally, “Peanut butter, hazelnut, choc fudge and caramel weighing 48g are being recalled along with Kit Kat Chunky Collection”. The company also confirmed that the product was being recollected as a safety measure and that no other variations of Kit Kat products were affected. Nestle stated that the safety of their customers and quality of their product are non-negotiable and the company would always take initiative to mitigate such issues if arise in the near future (BBC, 2013). It has always been viewed that product recall sometimes affect customer retention rate an also contribute negatively in decreasing the goodwill of the company. Research Objective After analysing the above two scenarios and knowing the effects of product recalling on an organizations goodwill and brand image, it can be understood that product recalling can be considered as an corporate situation that can disturb a manager (Catlin Group Limited, 2012). The main objective of this paper is to provide a detailed analysis of the product recall situation using market research methodologies and to find solution to the problem that can be faced by manager due to product recall. Research Methodology and Limitation The aim of this research is to evaluate the market situation to find solution to the problem that may be faced by a manager while implementing the practised of product recall. Correspondingly, the methodology would postulate the various methods that were applied in order to adequately address the research question framed for the purpose of the study, i.e. to evaluate the situation of product recall and use marketing research methodologies to find solutions to the problems faced by a manager in the stated below. Research Design There are essentially three forms of research design which can be applied in order to undertake a study including exploratory, descriptive and causal research designs. Each research design is used for fulfilling a defined purpose. Exploratory research design is basically used for illustrating ideas and understanding the research subject. Descriptive research and causal research are basically applied for instituting ‘basis and influence relationship’ in between different variables. Considering the aspect of product recall, causal research design has been selected as the research design. The vital reason behind selecting causal research design is that the paper aims to study the situation of product recall and find solution to the problem that can be faced by a manager arising out of such corporate situation (The Pennsylvania State University, 2006). Research Approach There are mainly three key research approaches comprising qualitative, quantitative and mixed research approaches. Qualitative researches mainly concentrate on gaining complex understanding regarding the experience and behavior of people. It is basically adapted while conducting research to study in-depth meaning and significance of human behavior and experience. On the other hand quantitative research design is based on collecting and converting information into numeric form. It is basically used for making statistical analysis of the research subject selected (Marshall & Rossman, 2011). The combination of the qualitative and qualitative research approach also called mixed approach is lately developed research approach. Thus, the mixed research approach has been implemented in this research study (The Pennsylvania State University, 2006). Data Collection Method Data collection method is considered as to be one of the most important sequences in any research study as the reliability and validity of research inferences largely relies on the accuracy of data collected. It is mandatory that relevant information is collected for any research as it would result in providing the most appropriate solution to an identified problem. There mainly exist two forms of data collection methods viz. primary and secondary data. Considering the corporate situation i.e. product recalls both primary and secondary data have been used. The vital reason behind selecting both the data collection methods is that, it enhances the validity of any research conducted and also helps in obtaining reliable information in relation to the subject matter (Brown & Suter, 2012; Kumar, 2010). The different methods through which primary and secondary data has been collected for the research study are stated here under: Primary Data Primary data constitute of those information collected by researcher directly from the respondents. There are basically three methods that are usually adapted for collecting primary data viz. survey, observation and interview among the most popular technique of data collection. Considering the aspect of product recall online survey method of collecting primary data has been selected for this research study With respect to the identified corporate situation i.e. product recall, the main objective of the paper was to provide suggestion to mitigate the problem that may arise while recalling products by a manager. It is worth mentioning that there exist certain factors that need to be considered while selecting a technique for selecting primary data such as cost incurred, targeted audience, questionnaires and accuracy of the respondent knowledge regarding the research topic. Since the main objective of this research is to evaluate the situation of product recall and to provide solution to the problem a manager can faced in such scenario the survey method for collecting primary data would be the most appropriate (Brown & Suter, 2012; Kumar, 2010). Correspondingly, a set of questionnaire was been framed (Refer to appendices) and was disseminated to the managers of Nestle in different locations of the United Kingdom (Brown & Suter, 2012; Kumar, 2010). Secondary Data Secondary data are usually information’s which has already been utilized by some individual or organizations for evaluating or studying a research topic. With respect to the identified corporate situation i.e. product recall information has been gathered from recent news articles that helped in identifying the rudimental problems faced by the manager in such situation. Additionally, academic articles, books and journals has been reviewed to understand the various approaches that can be adapted or implemented by a manager to find solution to the problems arising out of product recall. Additionally the company’s annual report has also been analyzed to study the strategies that have been implemented by Nestle when similar situations aroused in the past. Analyzing the annual report has also helped in understanding the strength and weakness that can be implemented to overcome any issues (Brown & Suter, 2012; Kumar, 2010). Sample The finding obtained through questionnaires comprises of 20 sales manager of Nestle as respondents who were primarily had to undertake numerous tasks associated with of recalling product from the market. The questionnaires designed mainly includes close ended questions, organizations policy, job related aspects and open ended questions. The main objective of the questionnaires was to gather information about the customers thinking on why is the practise of product recall being frequently adapted by the company. The questionnaires also would provide a deep analysis of the customers view on the company range of product (DuBrin, 2012). Limitation Several certain limitations relating to causal research design. One of the major limitations of this form of research design is that it should always be interpreted with extreme caution. Any negligence while interpreting the data to find solution may lead in biased decision making. Furthermore, the time required for collecting data and cost of conducting research adapting causal research design are considerably high in comparison to other form of research design. Thus, implementation of this research design requires prudent generalization of the information obtained from the various sources in order to ensure reliable and valid inferences (California State University, n.d.). Similarly, the major disadvantage of mixed research approach is that it is time consuming and quite complex. Additionally, it is very difficult to segregate quantitative and qualitative data. Furthermore, application this research approach demands for higher proficiency and competency for drawing concrete conclusion (Creswell, n.d.). Research Finding The first three questions were designed to gain knowledge about the demographic characteristics of the respondents who were being considered while conducting online survey. From the first question, it was viewed that relatively large number of respondent i.e. 15 sales managers involved in the research study were between the age group of 20 to 50. Figure 1: Showing the Age Group of the Respondent Focusing on the aspect on education the 9 respondents had successfully completed the secondary level while 6 respondents were found to have graduation degree. At the same time 5 respondents were ascertained to have post graduate degree. Figure 2: Showing the Qualification of the Sales Managers The fourth question dealt with identifying the major reasons behind product recall. Accordingly, 13 respondents stated that negligence while packing the final product and not abiding by the rule set by the organization has resulted for the emergence of such issue. Again while considering the fifth question, it was found that the considerable number of respondents mainly focused on suggesting the company to establish certain code of conduct. Responding to sixth question, it was observed that around 15 of the total respondents emphasize on assigning personnel for examining packing process in order to ensure defect free product distribution. Furthermore, it was observed from the online questionnaire survey that considerable number of respondent believe lack of proper training and negligence while recruiting personnel for the task contributes towards such negligence. Responding to the eighth question it has been found that assigning the task to other packaging industry would help in mitigating the issue of product recall. Furthermore, it was viewed that 14 of the total respondent agreed on the above stated statement. Figure 3: Chart Showing the Number of Managers That Agreed With the Question Addressing the ninth it was found the 17 respondents were convinced with implementing new and reliable technological aspect for effectively resolving such issues while 2 respondents were unsure regarding implication such adoption. On the contrary, 1 respondent revealed disagreement on this subject. Figure 4: Chart Representing the Number of Sales Manager Who Think Adaption of New Technological Aspect Would Help In Mitigating the Issue Responding to the tenth question, it was observed that 11 of the total respondent suggested that asking feedback from consumer would not only help in mitigating the issues but would also help in improving the quality of the products, which would directly help in maintaining an increased customer retention level. Figure 5: Chart Showing the Number of Sales Manager Who Suggested That Asking Suggestion Would Be a Positive Aspect Responding to the last question that was designed to measure the effect of product recall on the goodwill of the company it was viewed that 13 respondents claimed that it would not affect the goodwill of the firm as it was done considering the safety issues of their consumers while six respondents moderately agreed that product recall does influence the good will of the company. Nonetheless, one respondent was has been identified to neutral. Figure 6: No Of Sales Manager Who Thinks That Product Recall Would Affect or Not Affect the Good Will Of the Firm Conclusion and Recommendation Conclusion Unique liability challenges co-exist for every organization despite of conducting business in sales, manufacturing or distribution of products to the final customers. It is vital for every organization to provide the best quality product to their customers. In certain cases, it has been viewed that lack of proper operational aspects results in certain activities which sometimes affects the organizations brand image. Among all product recall is considered to one such corporate situation that could disturb a manager. The major reason behind product recall is considered to be resulting from lack of proper guidance and poor working condition. Additionally, it is believed that good knowledge of the standard packaging measures also leads in product recall by a company. In this aspect, the managers are generally faced with great disturbance as they are required to take decisions in such untoward circumstances. In today’s corporate world Product recall is considered to be more prevalent that it was decades ago and has therefore become an inevitable part of business. In this competitive business world the issue of product recall plays a vital role as it not only helps in maintaining the leading position amid its customers but also helps in understanding the role and responsibility of an organization towards the society (Carow, 2013). With reference to the above stated discussion and research findings, it can be observed that the issue of product recall in Nestle has been frequently viewed. On close analysis based on responses collected from 20 sales managers of Nestle, it was viewed that the main reason behind the frequent occurrence of the corporate situation primarily result from lack of proper organizational principles (Stone & et. al., 1971 ). Additionally it was also viewed that most of the respondent i.e. the 20 sales managers suggested that implementation of modern equipment’s and establishing new rules while recruiting personnel for such important aspect would help in mitigating such issues. Furthermore, if the product packed would be analyzed and test scientifically before being send to the final customers the issue would not affect the brand image of the organization (United States General Accounting Office, n.d.). With reference to the above discussion and finding obtained from the research conducted, it can be stated that adaption of modern technological aspects would serve as an effective way of mitigating the issues contributing towards the product defects and thereby reducing the challenges of product recall. Furthermore, setting standards for suppliers regarding the quality of materials required for producing the product would also result in eliminating product related issues and will eventually curtail the challenges of product recall. At the same time continuous supervising the various productions and packaging process shall also help the managers to overcome the problem of product recall. References BBC, 2013. Nestle Recalls Kit Kat Chunky Bars after Plastic Found. United Kingdom. [Online] Available at: http://www.bbc.co.uk/news/uk-21913847 [Accessed November 11, 2013]. Brown, T. J., & Suter, T. A., 2012. MR. Cengage Learning. Carow, E., 2013. Understanding and Mitigating the Negative Impacts of Product Recalls in the Global Supply Chain. The Honors Program, pp. 1-52. Creswell, No Date. Controversies in Mixed Methods Research. SAGE Publications, pp. 269-283. California State University, No Date. Causal-Comparative Research. Limitation. [Online] Available at: http://imet.csus.edu/classic/research/mod_3_quant_research/causal_comparative_research.ppt [Accessed November 11, 2013]. CNN, 2013. Food giant Nestle Recalls Products after Horse Meat Discovery. Expert: Horse meat scandal a 'social problem.'[Online] Available at: http://edition.cnn.com/2013/02/18/world/europe/nestle-horse-meat-discovery/ [Accessed November 11, 2013]. Catlin Group Limited, 2012. Product Recall. The Developing Story, pp. 1-21. DuBrin, A. J., 2012. Leadership: Research Findings, Practice, and Skills, 7th ed.: Research Findings, Practice, and Skills. Cengage Learning. DuBois, S., 2011. Nestle's Brabeck: We Have a "Huge Advantage" Over Big Pharma in Creating Medical Foods. Cable News Network. [Online] Available at: http://money.cnn.com/2011/04/01/news/companies/nestle_brabeck_medical_foods.fortune/index.htm [Accessed November 11, 2013]. Foerster, T., & et al., 2011. Handbook of Product Liability / Recall / Insurance in Germany. Tredition. Kelion, L., 2013. Android KitKat Unveiled in Google Surprise Move. BBC. [Online] Available at: http://www.bbc.co.uk/news/technology-23926938 [Accessed November 11, 2013]. Kumar, R., 2010. Research Methodology: A Step-by-Step Guide for Beginners. SAGE. Kowitt, B., 2010. Nestle: Tailoring Products to Local Niches. Cable News Network. [Online] Available at: http://money.cnn.com/2010/07/02/news/companies/nestle_refreshes_brand.fortune/index.htm [Accessed November 11, 2013]. Marsh Inc., 2013. Product Liability & Recall. Overview. [Online] Available at: http://usa.marsh.com/RiskIssues/ProductLiabilityRecall.aspx [Accessed November 11, 2013]. Marshall, C., & Rossman, G. B., 2011. Designing Qualitative Research. SAGE. Mulier, T., 2011. Nestle to Decide on L’Oreal in 2014, Chairman Brabeck Says. Bloomberg L.P. [Online] Available at: http://www.bloomberg.com/news/2011-04-14/nestle-to-decide-on-l-oreal-stake-in-2014-chairman-brabeck-says.html [Accessed November 11, 2013]. Nestle, 2013. History. About Us. [Online] Available at: http://www.nestle.com/aboutus/history [Accessed November 11, 2013]. Stone, B., & et. al., 1971. Product recall and Consequential Damages: Effects of the National Traffic and Motor Vehicle Safety Act. Bureau of Business Research, University of Michigan. The Pennsylvania State University, 2006. Using Surveys for Data Collection in Continuous Improvement. Innovation Insight, pp. 1-7. United States General Accounting Office, No Date. Food Safety: Actions Needed by USDA and FDA to Ensure that Companies Promptly Carry out Recalls: Report to Congressional Requesters. DIANE Publishing. Bibliography Bell, J., 2005. Doing Your Research Project: A Guide for First-time Researchers in Education, Health and Social Science. McGraw-Hill International. Monsen, E. R., & Horn, L. V., 2008. Research: Successful Approaches. American Dietetic Association. Appendices Questionnaires for Respondents 1. I am a Male Female 2. Please Specify your Age: Below 20 20 to 30 30 to 50 Above 50 3. Please Select your Education Level: Primary School Some Secondary Level Under Graduate Post Graduate University 4. According to you what can be the major issue within the organization that have resulted in arising such issues? ___________________________________________________________________________ 5. What steps strategy/step the organizations adapt to mitigate such vital issues? ___________________________________________________________________________ 6. Do you think that the organization should assign personnel to examine the various aspects that are usually adapted while packaging or producing the final product help in mitigating such issues in the future? If you do have other suggestions please specify. Yes/No ___________________________________________________________________________ 7. Do you believe that lack of proper training and negligence in the recruitment process within the organization are giving rise to such problems? Yes/No __________________________________________________________________________ Please select the aspect you think most appropriate according to you: Totally agree Agree I am not Sure Disagree Strongly Disagree 8. Would assigning the task to other packaging industry help in mitigating the problem 9. Would adaption of new technologies help in mitigating such issue in the future 10. Should the organization ask feedback on a regular basis from customers about the quality of the product 11. Do you think that the corporate situation of product recalling would affect the good will of the company? ___________________________________________________________________________ 12. On the basis of the current situation do you have any suggestion that would help in improving the service of the organization? If yes please suggest. _________________________________________________________________________ Thank You Read More