advantages and disadvantages of product recall

If the people are not given the right to recall their representatives, they are apt to act arbitrarily and the people will have no control whatsoever over their elected representatives. (3) Independence of the officers is curtailed: Because of the fear of charges and counter-charges, sometimes intelligent able and honest persons hesitate to accept high positions. It is also involved with the acquisition and retention of information. Total Recall Paper They were assigned to 2 groups, experimental and control group. Many small companies have declared bankruptcy as a result of defective merchandise as was the case of Peanut Corporation of America—more on that below. Larger corporations with more flexibility must work quickly to maintain customer loyalty and, most importantly, shareholder confidence. There at ReKall Inc., they have a machine that will replace memories.

(1) There is possibility of a wrong judgment: In the system of recall there is a possibility of a big leader indulging in creating a misunderstanding among the minds of the people against any official, with whom the leader is not on good terms.

FDA currently has authority to order a recall of a dangerous medical device, but the agency lacks authority to order a food recall. Ishida’s X-ray inspection technology can detect both metal and non-metallic fragments; bone, shell, glass, high density plastic, stone, rubber and more. Even with proper vetting, it can be difficult to predict human behavior. "Regulatory Procedures Manual," Pages 9-11. Whenever people become ill due to contaminated food, the agencies can only request, not order, a recall(Hunter,2002).

You can avoid such a nightmare by including the extensive product recall clause in your civil liability policy. For multi-billion-dollar companies, an expensive short-term loss can be easily overcome, but when shareholders and customers lose confidence, there may be greater long-term effects such as plummeting stock prices.

Consumer Product Safety Commission is a U.S. agency that protects the American public from products that may create a potential hazard to safety. Drug manufacturer Merck (MRK) recalled its arthritis medication Vioxx, because of the increased risk it posed of heart attacks. The drug cost Merck $4.85 billion in settled claims and lawsuits..

On February 8, 2011 the National Highway Traffic Safety Administration (NHTSA) in participation with NASA performed an investigation on the throttle system of the Toyota vehicles. Reputation is a key factor in brand success, and the reputation of food brands is built on the pillars of quality, trust, customer satisfaction and food safety. Recalls can affect a company's stock performance as well as its bottom line. Business Writing Ethics Paper

Side effect is a negative or undesirable symptom or condition caused by taking a drug or undergoing a therapy. The results of the experiment are discussed in this research. Pichert and Anderson (1997) conducted an experiment to see if people would remember more schema related items than non-related items.

The methods of learning employed in the experiment fall under Verbal Learning.

Mostly the people are not aware of the diplomatic tactics of the political leaders and sometimes wrong decisions are given against …

Recalls can tarnish a company's reputation and can lead to multi-billion dollars in losses. When a company issues a recall, the company or manufacturer absorbs the cost of replacing and fixing defective products, and for reimbursing affected consumers when necessary.

To cut costs and remain competitive, modern merchandise incorporates manufactured parts from around the world, sometimes at the cost of reliability. The effects of a product recall may be detrimental in the short run, but there is no evidence to support long-lasting decreases in sales or stock prices.

If they take any such decisions, they face a severe criticism and adverse propaganda. This article aims to explore some of the advantages and disadvantages of branding. These product endorsement advantages and disadvantages show that a well-maintained relationship with a celebrity or important figure can boost attention, sales, and loyalty.


Information is a valuable resource in supply chain logistics management. Google Maps Integration and Route Planning, Parent-Child Relationships and New Toolbox Controls, corporate blogs and public social media channels. Meagan leads the strategic planning and integrated communications channels for the company. Contamination insurance, on the other hand, does ensure cover for these diseases. Damage to a brand is hard to put a number on, but upset consumers voicing their opinion through social media channels can have a devastating effect on a brand, as can more serious news of someone choking or injuring themselves hitting the headlines. So the hypothesis was given only partial support, as there was clear evidence to show that those with the burglar schema remembered related items, however the same cannot be said for the house buyer schema who also remembered more burglar related items. As opposed to sharing recall information on credible news channels or official business websites, social media postings will sit side-by-side with user-generated content.

A product recall insurance will provide cover for all the costs of such a recall. Thus, the officers sometimes try to flatter the political leaders.

Customer advocates believe companies need to reevaluate Facebook, Twitter and the like for consumer data delivery due to the popularity of new media and the potential for easy dialogue. Demand is good for any business and if you want to keep up, but you need to forecasting change if expansion is the solution. Food is an important resource for the human race.

"Testing & Certification."

U.S. Food and Drug Administration.

Consumer Product Safety Commission.

A bad public perception of a company can be fatal. This report is based on the same experiment using the hypothesis that those who have the burglar schema are more likely to remember items from the burglar list and same for the house buyer schema.

The financial investment in detection technology compared with the financial impact of a product recall is fractional. 10th... ...Food Recalls: How Effective Are They?

Lemon laws are a form of consumer protection; they provide legal ways to address grievances when faulty products or services are sold.

Brand Reputation and Product Recall Anne Meike Eilert University of South Carolina Follow this and additional works at: Part of theBusiness Administration, Management, and Operations Commons This Open Access Dissertation is brought to you by Scholar Commons. Below are five advantages and disadvantages of problem-based learning to …

Just last month, a UK supermarket had to issue a recall after pieces of plastic were found in its baby food range.

Class I - A Class I recall involves a health hazard situation in which there is a reasonable probability that eating the food will cause health problems or death. Social media is proven as an effective channel for providing consumers with timely information. Rapidly collecting and sharing data internally promotes productivity and decreases mistakes caused by miscommunication or ignorance.

All business should have a thorough business plan if they want to be successful, and Toyota has a very thorough business plan. One of these risks is the recall—something that usually happens after a product or service has reached the market.

Reputation is a key factor in brand success, and the reputation of food brands is built on the pillars of quality, trust, customer satisfaction and food safety. The types of food we eat can determine how healthy we become and how our bodies function. In six states of America both the judges and the officials can be recalled and in ten states only officials can be recalled. Princeton University. Thu, May 26, 2016.

You can find information about recalls from many different sources. The Value of Social Media. In February of 2014 alone, the Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA) have reported twelve companies with food product recalls (Food, n.d.) What is a food recall? For instance, Apple (AAPL) iPhones are rarely produced in just one part of the world.

This doesn't mean that large companies are immune to product recalls.

Consumer protection laws require manufacturers and suppliers to bear the costs of all product recalls and any associated costs. Though insurance may cover a minimal amount to replace defective products, many product recalls result in lawsuits. Between lost sales, replacement costs, government sanctions, and lawsuits, a significant recall can become a multi-billion dollar ordeal. Coffee machine manufacturer Keurig recalled 7.2 million single-service brewing machines due to claims of overheating. Regardless of the industry in which the recall occurs, it is evident that large companies are able to withstand both financial and reputation costs. Recently in the news there have been recalls on, Hot Pockets and Uncle Ben’s Rice.

In early 2016, an international confectionery giant sparked a global recall affecting 55 countries, which was estimated to have cost the company tens of millions of dollars, after plastic was found in one of its major brand bars.

Advantages of Interview: A structured interview method is possible to reach a large number of people at the same time.

You can also find recall information from local and national media. Pros And Cons Of Food Recall Authority There are reasons why giving FDA recall powers may not have a positive impact on food safety.

"Press Release–Wednesday, November 04, 2009."

Who Was Most To Blame For The Death Of Eva Smith.

If you take out a separate Contamination insurance, the civil liability rules (error, damage and causal link) are no longer applicable for receiving cover.

A unique aspect of this cover is that it can also be extended to include your branches abroad. These product endorsement advantages and disadvantages show that a well-maintained relationship with a celebrity or important figure can boost attention, sales, and loyalty.


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