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Group3 Spacemaker Plus
Group3 Spacemaker Plus
Group3 Spacemaker Plus
Group 3
Given they do follow such a path of recall, the goal served by them would be that
their much lauded brand name would be safeguarded from any further damage
as discussed in the preceding paragraphs.
2. How should the recall be organized to realize this goal?
A product recall is a very sensitive issue for a brand. They cannot be very public
about it, and at the same time they cannot run such a process without large
scale attention. As a probable defect has been identified and is at a somewhat
nascent stage, it is best to initiate the recall as more of an upgrade than a
product defect. This is similar to what automotive companies do with cars. The
advantage of this is that there wont be too much discussion over an upgrade
and if anything is can be seen from a positive standpoint from the customers.
Although the problem here was that, it is cumbersome to estimate how many
units were sold off to consumers over this period. There were some warranty
claims from the units distributed through chains such as Sears, Pennys, Best
Products and smaller local appliance and departmental stores. A lot many were
given as presents for the festival seasons; although the major concern was in
regards to the versions which had the option of an overnight timer, leading to
risks when left unattended.
Although the recall would cost Black & Decker substantial losses, it would be
more advantageous to go ahead with the recall to prevent more intangible losses
to the brand and future sales.
3. Could HPG have avoided the need for a recall? What might have HPG
have done differently?
HPG could have been more cautious during the testing phase of the product. Due
to the fact that this was a new product they might have been lax during that
phase and thus a probable defect has gone unnoticed. They also have a strict
policy of not selling a product which did not either meet or exceed Underwriters
Laboratory. They went ahead with two temperature cut-offs (TCOs) instead of one
to reduce the risk of a fire hazard but they might not have done a thorough
research, as in spite of take an extra precaution such a problem occurred.
4. What were the recall success factors?
Some of the success factors of a successful recall are:
1. Speed
In the event of a customer complaint, product recall, or a competitive
situation, retrieving products as quickly as possible is imperative. Delayed
responses have the potential to expose manufacturers and retailers to
possible legal action, brand damage and regulatory scrutiny. Hence in this
case it is critical that Black & Decker initiate the recall early, before there
are more incidents of fire or any such hazards.
2. Accuracy
With a companys image and reputation on the line, accurately retrieving
all affected products is vital for the integrity of the brand. If products
remain on shelves, in the warehouse or in homes, a companys liability
increases along with the increased risk of litigation and brand
damage. Hence, Black & Decker will have to put in the extra effort and
cost, to ensure that all the defective pieces are successfully taken off from
the market and off retail shelves.
Group 3
3. Scalability
During a retrieval, the number of units that need to be retrieved from
anywhere in the world and along the supply chain can vary from one
extreme to the next. Companies can experience events that require them
to pick up just one product at a customers home or alternatively millions
from retailers and distributors globally. As mentioned earlier, the
distribution of the products is a key issue for Black & Decker, but this is a
common problem for all product recalls and has to be taken seriously.
4. Quality
In any product retrieval situation a brands reputation is already at risk. To
protect the integrity of the brand, manufacturers and retailers must
ensure that representatives picking up product act as an extension of
their team. In a nutshell proper conduct at the customers location is very
important for Black & Decker.