Recall and replace the units would likely exceed tens

Assignment Help Management Theories

Reference no: EM133677284

Question: Imagine the following fictitious scenario... Fred Savage Products Inc. (FSP) markets and sells a specialty line of small sandwich grills in the United States. These grills are sold largely through television commercials and at a few niche retailers as "As Seen on TV" products. Fred Savage, a child TV star, is featured in the commercials and is a well-liked personality. He invested in the specialty grills using his TV earnings and has enjoyed much success. John Busher is a quality engineer at FSP. As part of a routine audit, John receives a laboratory report indicating the current plastic being used for electronics housing lacks any kind of fire retardant. He has made the unfortunate discovery that Shunghuan Enterprises, the contract manufacturer for the grills, has switched plastics without FSP's approval. This is a serious issue because FSP's standards require the plastic housing to be fire retardant as an added safety measure to prevent fires in the consumer's home. The grills are also listed with an Underwriter's Laboratory (UL) safety certification. If the electronics fail catastrophically, the housing helps contain the source of ignition. However, the cost to recall and replace the units would likely exceed tens of millions of dollars,

Reference no: EM133677284

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