A firm's product perceived as being relatively substandard is an indicator of stratigic problem because it not only deteriorates the company's brand image but also hurts the public. In addition, it is very likely that a company with substandard products would have many legal suits pending which would make the company out of business.
Substandard products may occur as a result of negligence, human error, insufficient human and financial resources or counterfeiting. A substandard product is one that does not meet the specifications claimed for it and it can be both unintentional or intentional. An unintentional substandard product is one due to incompetence or human error. An intentional one, a counterfeit product, is due to criminal activity.
Recently, China has suspended the import of tainted meat products from seven U.S. companies, including Tyson Foods Inc, the world's largest meat processor. The products that included the main ingredients of some Chinese delicacies such as pig ears and chicken feet contained salmonella, feed additives and veterinary drugs, says the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) website (www.aqsiq.gov.cn). The other U.S. companies on the ban list are Sanderson Farms Inc, Intervision Foods, AJC International Inc, Cargill Meat Solutions Corp, Van Luin Foods USA Inc and "Thumph Foods", which most likely is Missouri-based Triumph Foods. The last three firms have been given 45 days to get their products in order. But the suspension period for the other companies has not been specified. The AQSIQ also had found excessive amounts of selenium in protein powder imported from U.S.-based Jarrow Formulas Inc. The products have been sent back. Excessive amounts of selenium could lead to gastrointestinal disorders, hair loss, neurological damage, cirrhosis of the liver and even death!
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5 comments:
Hi, Haiqun:
I like your analysis and the example that you've given. Those substandard product can really harm the individuals and the society in a long run. It is very unethical for those company which produces the substandard products. I know another toy company in Australia has the same problem. They exported a lot of the crystal ball puzzles to China, US, Canada, and other countries. They targeted to the kids who are 3 years and older. These crystal balls have some chemicals that could cause serious sickness. So the company should be really careful of the products that they produced.
Haiqun,
This was an interesting posting and example regarding companies that get affected by people's perception that their products are substandard. In your particular case, it was not a perceived risk but a reality. If this food was ingested by the public, they could have experienced serious health issues as you well described.
My posting also focuses on substandard and dangerous toys made in China for companies such Mattel, Fisher Price and others. Last year, Mattel had three massive recalls of toys that either contained excessive levels of lead and/or magnets that could be ingested by young children. What do you think that it should be done to prevent tainted products from being exported to other countries?
Interesting facts on the ingredients of the meats exported by China and how it can affect me. I find some of the past stories on exports from China, and find it very unethical, but I do not believe in the death penalty. However, China does, and they've prosecuted and killed some officials that have been found guilty for the immoral crimes.
Substandard products are a main indicator of inefficient quality control procedures in a firm. To recover from recalls a firm must execute damage control. Mattel is efficiently handling its recalls by informing the public about the recall, the CEO has publicly apologized and the website displays instructions how to return the substandard product. What is Tyson Food Inc. doing to deal with their substandard products?
I think that just by reading this article i will never ever by anymore Tyson. Even if they fix the products for China, that means they are still using all kinds of crap everywhere they have not been caught yet.
Do I have to say how much I agree with how deteriorating of the image it is to have bad products, especially with health problems.
Busted.
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