DECISION CASE STUDY

E. coli Presents Multiple Control Challenges

Control Chapter 13 B

Since 1990, there have been at least 20 outbreaks of the potentially deadly E. coli bacteria that
have threatened the public health of U.S. citizens. One of the earliest such incidents occurred in
1992, when affected hamburger meat served in the Hack in the Box fast-food chain killed three
children and made more than 700 people ill. Other retail restaurant chains that also have faced
serious E. coli problems have included Wendy’s, Chi Chi’s, Taco John’s, and Taco Bell.

But restaurants are not the only part of the entire food chain system to have encountered episodes
with the elusive and difficult to eradicate bacteria. Consumers buying food products directly
from grocery stores have been affected too: in 2006, the Food and Drug Administration (FDA)
recommended that people not purchase or eat bagged fresh spinach for a period of time because
of a recent E. coli outbreak. In short, the threat of a serious E. coli outbreak presents multiple and
difficult control challenges for the entire food production and distribution network: from
growers, to packers, to distributors, to grocery stores, to restaurants, to the ultimate consumers,
and (in the United States) state and federal regulators.

Investigations into occurrences of E. coli outbreaks from infected hamburger meat showed that a
significant reduction in this as a cause of illness could be achieved by cooking the meat to at
least 160 degrees Fahrenheit, which kills the bacteria. However, the E. coli problem with fresh
produce is not nearly so easily solved. The reason is that both at home and in restaurants, most
salad greens are eaten raw. Said one expert, “Produce is the Achilles’ heel of the restaurant
industry. People eat it raw and the produce industry does not have a sure-fire treatment that kills
harmful bacteria.” Furthermore, at the present time there is no good way to trace the precise
origin of the bacteria (for example, the specific fields where the produce is grown) of raw salad
vegetables. Therefore, when there is an outbreak that is attributed to this type of source, it is
virtually impossible to find out where the unwanted bacteria entered the system.

The field where produce originates, or the home or restaurant where it is consumed, is not the
only entry point for contamination. In 2007, the county of Los Angeles filed criminal charges
against one of the city’s largest produce markets, the 7th street Market. This wholesale market
supplies fruit and vegetables to caterers and restaurants throughout the southern California area.
A newspaper account reported that “the charges paint a grim picture of the market, where rodents
were permitted to breed and live unchecked.” By undertaking a hidden camera investigation, a
local TV station similarly found that “workers dumped trash near produce, stored produce next
to garbage dumpsters, and at times urinated near produce.” A spokesman for the market,
however, indicated that it has the problems under control, and that “new protocols have been put
in place…to ensure a safe supply of food.”

The potential for continuing E. coli outbreaks and other contaminants entering the food supply
system has prompted the FDA to consider implementing new controls, such as requiring more
precise labeling of the source of fresh produce, such as spinach, Likewise, in California,
producers are expected to approve new labeling that will identify those farms that adhere to

1
stricter standards for growing salad greens. They also are working to set up a new and
compulsory food safety inspection process that would be enforced by a state agency.

At least some restaurants are not sitting back and waiting for the federal or state governments to
enact stronger regulations and controls. These restaurants are taking the initiative to tighten their
own control policies and procedures. For example, Jack in the Box requires its growers to fence
their fields to prevent produce from being contaminated by animal waste and to provide adequate
bathroom facilities for field workers near the location where produce is harvested. Also, bins that
contain vegetables are now sanitized after each different use. Taco Bell no longer has its
restaurant kitchen personnel slice tomatoes or cook raw meat. Instead, this step is assigned to
vendors who do the task and then ship the processed food from a central distribution point to
individual restaurants. In this way, those responsible for the preparation, the vendors—can be
identified and held accountable.

Controls for a very large-scale and complex food distribution system can never be foolproof, but
they can be improved. If this is done, maybe E. coli can become a less frequent scourge. The
challenge is how to do this in a cost-effective manner.

Part 1: Questions from the case study

1. Using the basic control process describe how you would establish a set of controls to
guard against an E. coli outbreak due to food served in your restaurant. What issues
would be most important in each step of the process?
2. If the government is to impose stricter standards on each major component of the system
(e.g., growers, distributors, restaurants), could this result in unreasonable or unacceptable
costs associated with over control? What would be an example?
3. What is your evaluation of Taco Bell’s approach of shifting certain tasks and
responsibilities from their restaurants to their vendors? Are any new control issues raised
by this change? Is Taco Bell willing to completely trust that their vendors are maintaining
appropriate controls?

Part 2: Week 7-Week 13 General questions

1. How are content theories and process theories of motivation different?

2. What are six common organization structures and their descriptions?
3. Difference between position power and personal power.
4. Describe three things you can do to improve your capability to manage greater diversity in
the workforce?
5. What are the four elements of the control process?
6. What is JIT, and what are its principal benefits?
7. What is referent power, and how can it be developed? How is it related to charisma?