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All the Wrong moves Group Case study Team : Vinaya Kumar Golla Lilian Rice Karishma Kadivar

Li Chang Section -001

Date: 26th October 2011

Case Study Abstract Nutrorim's products have a nationwide attention and particularly the sales of ChargeUP, which is an organic, performance-enhancing sports supplement powder have gone through the roof. The improved version called ChargeUp with Lipitrene, has recently hit the market, and expectations are high. CEO Don Rifkin has tried hard to build an inclusive, democratic culture at this successful company. But the organization's open decision-making process has proved problematic, especially during times of conflict and crisis. Several months after ChargeUp with Lipitrene is initially released, an investigator from the Minnesota state department of health calls Rifkin to report "11 cases of gastrointestinal distress" among those using the supplement. Nutrorim's top executives must now decide whether to recall the product. The head of R&D, Steve Ford, insists there is nothing wrong with the new ChargeUp, citing elaborate toxicity studies in animals and humans. Meanwhile, the heads of PR and legal want to stem any negative publicity by recalling the product and issuing a press release to that effect. The company decides to recall the supplement - but, two weeks later, the health department investigator calls back with good news: The people who had become ill, it turns out, had actually picked up a bug from their gym's smoothie bar. In other words, Nutrorim is exonerated. But the close call prompts Nutrorim to bring in a consultant to review the company's methods for making decisions. Among the many questions he's asking is, whats the right decision-making process for Nutrorim? Our recommendations Don Rifkin acts inconsistently, thus undermining his own leadership capacity in times of crisis. Don is also doing too little to further the abilities of his staff and use them in his and the company's best interest. Don has to be aware that a leaders role includes engaging, mediating and solving conflicts As Nora points out in the article, Don needs to be more dictatorial in his decision-making style. The decision to recall ChargeUp was made under conditions of risk and uncertainty. The company knew the consequences of recalling or leaving the product on the shelves. There are too many people giving their input and many took the accusations personally which limits objective, productive discussions on what is the best action for the company to take. The company needs to name a person or a small group of people that are able to take charge in times of crisis in order to manage discussions better and make the ultimate decision. This leadership role should be able to question or conduct research of cases surrounding their dilemma.