WAC 1

Feedback on Assignment 1
Section B
July 24, 2012
Letter of Transmittal
“I consider it a good rule for letter-writing to leave
unmentioned what the recipient already knows, and instead
tell him something new.”
-Sigmund Freud
Letter of Transmittal

Heading: Not required

Date: To correspond with date of crisis in case (e.g.

December 31, 2012)

Block format: To be adhered to strictly

Recommendation: To be included in LoT

Letter of Transmittal (contd.)
Subject line: Should be clear and concise

Decision on the current salmonella contamination situation

Report on the decision to be taken to deal with the

Salmonella contaminated seafood-stuffed pasta shells
sent to a chain of restaurants on New Year’s Eve

Impact of the Food Recall the Salmonella Contamination

Issue
Executive Summary
“The most valuable of all talents is that of never using two
words when one will do.”
- Thomas Jefferson
Executive Summary

Should contain six out of the nine parts of the

report
Reader orientation and tone
Clarity
Consistent with report
Logical flow
Reader Orientation and Tone
Mike Valenti is considering whether he should inform
a restaurant chain that the recent shipment of
seafood sent to them is contaminated with
salmonella.

Mike has to act judiciously at this eleventh hour since

the reputation and future prospects of his company
will rest on his actions.
Clarity

Falsifying safety inspections due to coercive action of

Southern’s President led to a crisis where salmonella
contaminated seafood-stuffed pasta was shipped to their
biggest customer.
Southern Pasta, a company recently acquired by Mike’s
has delivered pasta shells contaminated with Salmonella
to its largest customer.
Additional criterion

Options have been evaluated based on –

preventing the spread of contagion, objective of
acquiring Southern Pasta*, mitigating losses, setting
the corporate culture and image, and preventing
loss of clients.

* Not used in evaluation

Option - recommendation mismatch

The options considered were either informing the

restaurants or not informing the restaurants, also
considering its consequences. It is recommended to
recall the pasta shells and pay adequate
compensation to the restaurants.
Option - recommendation mismatch

Feasible options of relying upon the restaurants or

maintaining the status quo were considered. Decision
recommended is to call back supplies before they
reach the end consumers.
Lack of linkage between points

The company recently acquired Southern Pasta, to

have a market monopoly in pastas. It is learnt that
safety values were compromised at Southern from
quite some time. Salmonella poisoning of the
product delivered from Southern Pasta has occurred.
Legal, ethical and financial ramifications are
possible.
Lack of linkage between points

Michael’s Homestyle Pasta has grown over the past

10 years with an increase in the sales by almost 5
times, and has just acquired Southern Pasta 3 weeks
back. The main concern is the contaminated stuffed
pasta which will be served at various restaurants
today, being the New Year Eve
Situation Analysis
“Get your facts first, then you can distort them as you
please.”
- Mark Twain
Situation Analysis
Should incorporate all relevant points

Should draw inferences from facts

Can create background for problem statement,
criteria and evaluation
Need not actually spell out options and criteria or
explain evaluation
Break into paragraphs
Problem Statement
“A problem clearly stated is a problem half solved.”
- Dorothea Brande
Problem Statement

Needs to be identified correctly (current state

vs desired state)
Crisp and precise
Need not include criteria
Unclear Problem Statement

Since Southern has become a part of Michael’s

Homestyle Pasta, Mike has to decide between the
options available to him keeping in mind the short term
as well as the results achievable in the long run by his
decision. His decision would forge the way for his
company’s future.
Including Criteria

How to tackle the issue of the shipped seafood

stuffed pasta that is tainted with salmonella while
making sure that the objective of acquiring Southern
Pasta Company is not compromised.
Including Criteria

What decision should Mr Michael Valenti take so as

to avoid the outbreak of disease and keep his

company’s reputation intact?

Unclear and Including Criteria

What is the best course of action in the current

situation which would safeguard the reputation and
financial status of Southern Pasta Company?
Only criteria

How should MHP retain SPC’s biggest client and

follow FDA regulations?

Precise

What should MHP do to address the problem of

salmonella contamination in the product shipped to
its customers?
Options
In this world one is seldom reduced to make a selection
between two alternatives. There are as many varieties of
conduct and opinion as there are turns of feature between
an aquiline nose and a flat one.”
- Johann Wolfgang von Goethe
Options

Should be mutually exclusive

Should be definitive

Need not spell out consequences

Need not include further action

Expressed in paragraph form – not diagram alone

Not Mutually Exclusive

Do not inform the Restaurant Chain about the contamination of

products and hope that they cook properly.

Inform the Restaurant Chain about the salmonella contamination

and ask them to cook thoroughly.
Not Mutually Exclusive

Recall the complete consignment.

Instruct the restaurants to strictly follow cooking standards.

Legally binding the restaurants to follow cooking standards.

Not definitive

To call the restaurant chain owner and discuss on

what can be done immediately regarding the

situation.
Giving consequences

To inform the restaurant chain owner and recall all

the contaminated products bearing all the loss.

Overlap with AP and CP

Take responsibility if the restaurant's customers get sick

(contingency)
Shift the blame to Southern Pasta Company's previous
owner (part of action plan)
Contact the restaurant chain and ask it to notify all its
restaurants (part of action plan)
Opt for a recall and sue Schmidt (part of action plan)
Criteria
“Decide what you want, decide what you are willing to
exchange for it. Establish your priorities and go to work.”
- H. L. Hunt
Criteria

Need to give appropriate headings

Consistency in writing

Need to use clear and specific terms

Not to be confused with SA facts

Consequences need not be included in criteria

Unclear- no heading

The decision should be taken with ‘Categorical Imperative’ approach.

Although the monetary losses could be higher but even a single life
can led to the dilution of the company’s image. Thus, safety of
consumers is the top priority. (Ethical consideration or safety)

A bad image of the product can decrease the consumption or may

even lead to the extinction of the food product from the market. Thus,
the goodwill of consumers should be considered while taking a
decision. (Reputation or business prospects)
Lack of clarity

Setting values and standards for the company

Business losses in terms of sales

Risk of being caught by FDA and lawsuits filed

Mismatch between heading and
explanation

Ethical Issues: Extreme case: What happens if a

pregnant lady after consuming the food gives birth
to still born? What if people die? Guilt will stay
forever.
Unnecessarily verbose

The customers (restaurants) are the next priority. They

depend on the consumers. Thus, decisions should be
made while taking interests of customers into
consideration.

The southern was acquired to increase the profit. A

decision should still serve the purpose. The decrease in
the customers would adversely affect total profit.
Though in long term, losses can be make-up, it’s difficult
to field these customers again.
Not well worded

Deteriorating consumer health that might lead to

death

Financial implications: Short term and long term

implications on the revenue stream (Is revenue the
only aspect of financial considerations?)
SA facts as criteria

Statutory requirement on the part of the restaurants

to preheat the pasta shells above 160 degree
Fahrenheit.

New Year’s Eve resulting in huge rush at the

restaurants.
Consequences included in criteria
Financial Losses: Informing about the Contamination
could lead to the loss of largest consumer nullifying half
of its revenue stream.

Market Share and Brand Reputation: Apart from the

loss of Market Share, the recall of the product for the
second time can lead to huge damage to the brand
Reputation
Combining unrelated criteria

Financial implications and regulatory norms to Michael

home-style Pasta Company

Loss of business i.e. Chain of restaurants and trust and

faith among people

Adherence to FDA regulations and avoiding bad

publicity.
Well explained

Ethics: Good customer services, interactive

relationship with employees shows Mike’s belief in
good corporate ethics. Mike should give this criteria
highest priority for welfare for his stakeholders.

Not valid unless these points mentioned in SA

Evaluation of Options
“Decide which is the line of conduct that presents the
fewest drawbacks and then follow it out as being the best
one, because one never finds anything perfectly pure and
unmixed, or exempt from danger.”
- Niccolo Machiavelli
Evaluation of options

Need to use all criteria to evaluate all the options

Can use table/matrix as a supplement, not substitute

for analysis

Action plan steps not to be included

Recommendation
“It's not hard to make decisions when you know what your
values are.”
- Roy Disney
Recommendation

Crisp and precise

Directions for action, not suggestions

Need not discuss consequences or benefits

Concrete, not vague

Should not overlap with Action Plan

Crisp and Precise

It is recommended that Mike’s should recall the

contaminated lots.
Consequences and Benefits

Based on the above analysis the best possible decision is a

discussion with the restaurant owner. The decision taken would
make sure that none of the patrons are infected and that you
incur the minimum possible loss. In addition to this, you will also
maintain a firm relation with your biggest customer.
Overlap with Action Plan

Based on the analysis of the options, it is recommended

that the restaurants are informed and the product recalled
with immediate effect.

The FDA should also be informed and Mike Valenti should

release a press statement informing the public about the
contamination.
Action Plan
“The truth of the matter is that you always know the right
thing to do. The hard part is doing it.”
- Robert H Schuller
Action Plan

Should be concrete steps to implement

recommendation

Should be feasible/practical in light of the SA

Not the same as recommendation

Not concrete

Take necessary measures to ensure that the production

unit standards are restructured to adhere to the
safety standards.

Sanitize the factory.

Make sure quality processes are followed.

Not feasible

Ask them to send the contaminated Lots back to the

company.

Send them Proper Seafood stuffed shells if they ask

for it.
Same as recommendation

Inform the restaurants of the contamination and

recall the pasta lots.

Recall the inventory from the chain of restaurants.

Inform the Restaurant Chain about the Salmonella

contamination.
Sample Action Plan
Contact the restaurant chain’s management immediately and fully
reveal the situation.
Highlight this initiative as a legal act of full disclosure, insist on full
recall of the contaminated shipment or its destruction on the spot,
and assure the Chain of a full refund and the reimbursement of any
associated costs (such as return shipping).
Volunteer its manpower for the delivery of the recall warning to
individual restaurants.
Contingency Plan
"It is a mistake always to contemplate the good and ignore the
evil, because by making people neglectful it lets in disaster.
There is a dangerous optimism of ignorance and indifference."
-Helen Keller
Contingency Plan

Can never be one of the rejected options

Spell out contingency, then give plan to address it

Need not include benefits in detail

Use of rejected option

Rejected option: Contact chain and go for recall

CP: If restaurant chain refuses to follow the

proposed plan, Mike should move to the option of

recall.
Contingency unclear

Inform the local distributors to convey the recall to

restaurants

A contingency plan in reference to the above

proposed action plan, is to make a press release,
explaining the situation with an apology.
Benefits included

If the customer refuses to accept this option then the only

other option left for the company is to request them to

destroy the stock. This will help the company to showcase

itself as a reliable supplier. Even if it is a loss in the short

term the company can still win them back if it can ensure a

strict quality control at Southern Pasta.

Well written

It is possible that the restaurant chain decides to pull

this item out of its menu resulting in loss of a major
chunk of revenue. In such a scenario brand value of
his original company can be used to try and convince
the client by offering a contract with Michael’s
Homestyle Pasta.
References

Not called bibliography

Use information published before case date (e.g.

2001 for this case)

Follow APA 6th Edition for in-text and list of

references
Exhibits

Only provide data before case date (e.g. 2001

in this case)

No number to be given to a single exhibit

Proper title to be given to each exhibit

Maintain consistency across exhibits

Lack of consistency

EXHIBITS

Exhibit 1: Worst Case

Financial Cost
Future Cost Loss of Future Revenue $ 3.5 million
Recall Cost $ 0.5 million
Immediate Cost
Cost due to material loss $ 8 million × (2/12) = $ 1.34 million

Exhibit 2: Best Case

Financial Cost
Recall Cost $ 0.5 million
Immediate Cost
Cost due to material loss $ 8 million × (2/12) = $ 1.34 million
Total Cost $ 1.84 million
Unity and Coherence
“Amid chaos of images, we value coherence…and we
believe in clarity.”
- William Shawn
SA and PS

PS: To decide whether the necessary stakeholders

should be informed about the contamination or not. If
yes, then whether to go for recall or other alternative
options.
(Stakeholders not mentioned in SA)
Option and Recommendation
Options:

Do not inform the restaurants.

Inform the restaurants regarding the contamination
issue.
Recommendation:
It is recommended that Mr Michael Valenti informs the
restaurants and request them to refrain from using the
pasta in preparation of cuisines for the evening.
Grammar
“I notice that you use plain, simple language, short words
and brief sentences. That is the way to write English - it is
the modern way and the best way.”
- Mark Twain
Grammar
Verbs and Tenses

Active vs. passive voice

Singular vs plural: criterion vs criteria

Capitalization: Pasta, southern

Punctuation

Although…but
Common errors
Although the restaurant knows about the
contamination of food, but the problem still arises.
Writing
“If you write to impress it will always be bad, but if you
write to express it will be good.”
-Thornton Wilder
Writing
Shorter sentences for clarity
Combining very short sentences for conciseness
6 – six
% - per cent
Company name: Michael, Michael’s, MHP, MHSP
Spellings – loose
Recall back
Thank you