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Ob All the Wrong Moves

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Case study- 6

All the Wrong Moves

Outline of the case

A. Introduction

Nutrorim was established in 1986 by an organic farmer and his wife. Don Rifkin had taken the charge of CEO in 1989. Its products were gaining national attention. The sales of organic performance enhancing supplement powder ChargeUp, was increasing enormously. It was the best selling product among the category. ChargeUp has undergone an upgrade with the additive Lipitrene. The new ChargeUp has just been released on a limited basis to local area retailers. Company’s expectation with this upgraded product was high. With the end of first quarter, the sales had been increased by 20% in the test market. Don has a way of trying to avoid conflict. When ChargeUp was in the marketing phase, the marketing manager asked the opinion of the entrepreneur Nora. Nora was not keen on the product with the new ingredient. This caused friction between her and the R&D manager Steve. That time Don had tried to restore the peace.
But before the state wide launch, an investigator from a state department of health had informed Don that he was investigating 11 individuals from Syd’s Gym who took ChargeUp, who now had gastrointestinal distress. He advised him to recall the product from the market. Don called an emergency meeting with heads of PR, Sales, R&D, and Legal to decide whether to recall the product. CEO Rifkin had always tried to provide an open and democratic environment for company’s decision making process. But this had proved problematic during the time of conflicts in meetings. All the members were having different opinion about the issue. PR director, June Rotenberg and The general Counsel, Jerry Garber were in the favour of recall. They were trying to see things from public perspective and were issuing a public press release for that matter. Ned Horst, Head of…...

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