The underlying root of this problem, after having been further investigated, was the poor governance of the

international subsidiary company by the parent company in Illinois. Moreover, the problem needed to be addressed
aside from the main issue is the ineffectiveness of the vertical organizational structure (decentralization) which caused
this to occur in the first place.

David McDonald, the President and Chief Operating Officer of OSI Group, announced at a press briefing that OSI would
be undertaking measures to improve their operations in China. For one, the company was to revamp its management
structure, such that their Chinese arm would no longer function as an autonomous entity, and would instead be
integrated with the greater OSI International group under the name OSI International China. Several senior management
personnel were to be reassigned from their current posts to the China Management Team. Brent Afman, a senior vice
president and managing director of OSI’s Asia Pacific, Middle East and Africa divisions, also pledged that experts would
be brought in to run a quality control centre in Shanghai, to ensure “full compliance with the OSI Group’s standards for
quality” across OSI’s plants in China. Moreover, current audit processes would be improved by conducting employee
interviews and constant visual surveillance. In addition, plans have been laid for a US$1.62 million investment in a food
education programme in Shanghai. Finally, a “Worker Redundancy Plan” was announced on 22 September 2014 to lay
off 340 workers from Shanghai Husi who will be provided with career development assistance and a compensation
package. Only a small group of employees was retained to assist in ongoing investigations. With these measures, OSI
hoped to strengthen its internal governance and become a respectable and trusted global meat supplier once again.
However, even after the implemented measures, the OSI group reported on its China website that in the four months up
to 30 January 2015, it had lost hundreds of millions of dollars of revenue due to the food safety scandal.