In a short essay, list and discuss the four sequential decisions that are made by managers within a firm when implementing an effective product recall.

Question

What will be an ideal response?

Answer 1

1. Policy and planning—It is in the policy and planning stage that management sets the tone for
the recall. Before the recall takes place, management needs to stress the importance of being
ready if a recall is needed. Once a recall has occurred, management needs to establish a response team to determine the scale and scope of the recall. After a recall has been implemented, a
strategy is needed for the reintroduction of the product, if viable.
2. Product development—Before a recall takes place, the firm should have in place safeguards to
ensure a recall is not needed. This would include using total quality management techniques and
evaluating current products to verify they meet the quality and safety standards established by
the firm.
3. Communications—Before the recall starts, the firm must identify who the critical stakeholders
are who would be impacted by a recall. During the recall, the firm must quickly communicate
what the problems are and what the firm is doing to correct them.
4. Logistics and information systems—Before the recall takes place, the firm must establish a
traceability system for the product as well as provide quick notification of product defects.
During the recall, the firm must trace the product and develop a recall-management information
and logistics system. After the recall, management must continue to maintain recall logistics
after the recall deadline and record the recall notification procedures.