You are the CEO of Lazboy, Neosho, Missouri. You manufacture both wood and upholstery products and have yearly sales in excess of $100 million. When you apply conventional finish to the wood, you use traditional lacquers. The California Division of Lazboy has changed from conventional lacquers to a waterborne finish "called magnalox" due to pending EPA legislation and the go "green movement." You decide to change your finish to a "waterborne" to be proactive. Within 3 months of this change you notice your customer complaints are up 12% (directly related to the finish). You are concerned. Lazboy's reputation is on the line. Provide 4 immediate corrective actions you will take to maintain the credibility of Lazboy's reputation? Briefly discuss.
(1) I would arrange for an emergency meeting with my public relations staff.
This is the most integral step due to what has happened. Customer complaints are up a significant amount. I would have the Public Relations manager draft a letter explaining to customers that we realize a problem has been identified, and that we are currently working with the manufacturer and investigating other alternatives to the current finish. I would thank them for their loyalty and for bringing this matter to our attention. I would also include something for their inconvenience and to build customer loyalty, such as a 15 percent discount on their ...
This solution provides a detailed discussion of how to handle changes in product quality at Lazboy, Neosho, Missouri, from using a product of poor quality in their manufacturing processes.