Reference no: EM132408061

Eldrich Inc. is the third largest crib manufacturer if infant cribs worldwide and the leading manufacturer of cribs in the United States. Eldrich ONLY makes cribs. In recent weeks, Eldrich had had dozen of consumer complaints regarding their cribs. The complaints relate to an apparent manufacturing defect which can cause, under a very narrow range of conditions, the side if the crib to collapse. Media has begun airing reports regarding the incidents and the Consumer Product Safety Commission has issued a mandatory recall of the product. Eldrich has halted production of the cribs and conducted preliminary tests to discover that a faulty latch on the cribs produced in the last 11 months is the cause of the crib failures and injuries. The supplies who fabricates the latch is denying any responsibility for the accidents. They have served Eldrich with legal notice to sue if Eldrich claims the injuries are due to the latch. As a result of the negative publicity and the injuries sustained in the crib accidents, Eldrich's workers are suffering from very low morale and are questioning if they will job in the future.

What are some detailed recommendations that Eldrich Inc. should do to keep their earnings in the green, their customers, their employees, and their reputation?