MBA674 Career Institute of Florida Operations & Supply Chain Management Essay

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Question Description

As a business analyst skilled in the area of operational excellence, you are hired by a company to compile a detailed case study analysis of a quality control product failure that resulted in a significant public relations disaster for a company. For this assignment, choose a company that had a catastrophic product failure that resulted in a public relations nightmare for the company due to product failure seriousness, poor response, and insufficient communication. You will analyze what went wrong with the product, the success, and failures of the company’s response, and then you will suggest a detailed plan to ensure limit future breaches in quality, as well as suggest a plan to address any future quality issues in a positive way.

Your audience for this presentation will be the board of directors, which includes, for purposes of this assignment, those responsible for investigating, launching, and managing product recalls. Your presentation should include the following:

  • A List of key, relevant issues related to the product recall, including, near-term and long-term negative impact.
  • Discussion of findings related to current or past service/ recall practices leading to the current situation.
  • The company’s response to the product failure (e.g., delayed recall, insufficient response, lack of communication).
  • Recommendation for leveraging Information Technology personnel and resources to improve the recall process.
  • Recommendations for improving operations and supply chain management independent of IT operations using a quality management system, such as Six Sigma or another system. Be sure to introduce the system to the board and explain how it might prevent future issues.
  • Timeline for completing the next steps toward an improved recall process.

Length:

10-15 pages (excluding the cover sheet, title page, and references) giving a complete analysis of the issue, failures, and how to incorporate quality systems to ensure recalls becoming less necessary. Ensure you cover what to do should a quality issue get into the market.

References:

Include a minimum of 10 scholarly resources within the last 5 years on quality management, past recall failures and successes, recall planning. The majority should be from peer-reviewed journals.

Tutor Answer

ProfHenryM
School: Carnegie Mellon University

Hello buddy, your assignment is complete. I will be around to help with
the edits. Otherwise, goodbye and remember to invite me for future
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Running Head: NEW COKE PRODUCT FAILURE

New Coke Product Failure
Student’s Name:
Career Institute of Florida

1

NEW COKE PRODUCT FAILURE

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New Coke Product Failure
Introduction
Every year, successful corporations launch new products as part of their sustainability
goals. In essence, the launch of new products serves to diversify the product portfolio of big
companies. Still, the successful launch of new products facilitates the aggressive dominance in
the consumer market, thus strengthening the competitive position of the respective brand. In
recent years, large companies such as Apple and Subaru have launched new products, including
iPad and Subaru Ascent. The success of a product launch is dependent on several internal and
external factors that affect the company and the new product. In essence, managers must conduct
widespread research to understand the specific needs of the market before deploying a new
product. While some product launches may seem to be seamlessly efficient, other product
launches result in catastrophic failure. Bernon et al. (2018) assert that most new products have a
rough ride with as many as 70% failing in the market.
The launch of new coke by Coca Cola in 1985 is considered as one of the biggest product
fails in history. The launching of the product was informed by a need to fight off increased
competition from the giant beverage manufacturer, Pepsi. In response to the growing market
share of Pepsi, Coca-Cola launched the new coke product with a taste that almost resembled that
of Pepsi. The company had assumed that consumers considered Pepsi to be a better-tasting
beverage, thus leading to the shift in the product. The introduction of the new product eventually
put an end to the 99 years use of the coke formula. Despite massive ad campaigns and taste tests
across the US, the new coke reported significantly few sales compared to the traditional Coke

NEW COKE PRODUCT FAILURE

3

(McGregor, Symonds & Foust, 2016). The new coke was only sold for a few weeks before the
company returned to its original coke formula, albeit under the Coca-Cola Classic tag.
Relevant Issues in the Product Recall
The resulting failure in the launch of the new coke product can be attributed to a change
in the quality of the product. The company had considered adding sweetness to the coke and
abolishing the traditional product. Despite spending more than $4 million in research, the
company did not get the study right. The number of resources used in researching the market
needs of the beverage consumers did not reveal the connection and passion that millions of
people had to the original coca-cola product. The company had relied on research and failed to
understand the emotional attachment that the consumers had placed on the original Coca-Cola.
The nature of the study did not consider the special attachment and feelings of the millions of
coke users in the country (Bragger et al., 2015). While the results of the research were accurate
in stating that Pepsi and the New Coke had a sweeter and more likable taste, it did not consider
the emotional attachment of the consumers to the original coke.
The sweetening of the new coke did not contribute to a product with higher a quality than
the original coke. Even with the sweetness, the new coke struggled to match the quality of the
original coke that was a darling of millions of Americans. Instead, the new coke achieved its
sweetness through incorporation of corn syrup that was less sweet and of low quality. In fact, the
launch of the new coke was characterized by increased rebellion from the consumers leading to
massive boycotts of the product. Consumers across the country complained of the poor quality of
the new coke drink as compared to the original coke. Bragger et al. (2016) report that the

NEW COKE PRODUCT FAILURE

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company received more than 1600 calls from angry consumers every day. The constant calls in
demand of the original coke pointed to a dip in the quality of the new coke.
Following the product failure of the new coke, Coca Cola initiated a recall process aimed
at clearing the stock from the market. The numerous taste tests had indicated a high preference
for the new coke compared to the original coke. However, the tests only focused on the taste,
thereby missing out on an essential aspect of consumer preference. The American customers
went as far as ordering the original coke from overseas where the new coke ad not been
introduced yet. Even though the new coke was sweet...

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