Responding to Unforeseen Threats

Case Study #2: Responding to Unforeseen Threats

Case Overview

** NOTE: THIS IS A FICTICIOUS INCIDENT CREATED FOR THIS CASE STUDY.

A recent food poisoning incident related to contaminated canned peaches from Japan has caused the death of 13 people in the US, and 87 more people have been hospitalized. US senators, congressmen, public interest groups, labor unions, and editorials have called for increased scrutiny of imported food products. The US FDA has instituted a 30-day ban on the import of canned fruit from Japan which will give the US government time to analyze the situation in greater detail. The ban will be effective immediately. Any of the banned products that arrive in US seaports in the next seven days will be admitted but will be held in bonded warehouses and will not be processed by US Customs until after the ban is over. The importer of those products will need to pay for those storage fees in advance. The US Customs Department will not permit the unloading of any Japanese canned fruit that arrive at a US port-of-entry after the seven-day grace period. The Japanese government has issued a statement stating that Japanese food products are safe and that they are investigating the contamination incident to determine what happened and who is at fault.

You are the Vice President of Fam-Mart, a national supermarket chain in America that specializes in the sale of canned food from Asia. The CEO relies on you to handle all marketing and operations management, while he deals with investors.

Two people have died from eating Japanese canned peaches purchased at your store, and 23 people have been hospitalized with an undisclosed form of food poisoning linked directly to cans sold from your store.

Last month your company ordered $270,000 worth of canned fruit from a Japanese supplier,