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Proactive and Reactive Thinking for Line of Affordable Computers

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Details: For several years, MV has carried a line of reasonably priced, moderate quality computers from Value Computers. These computers are a great value for MV customers, and sales have been impressive. As you arrive at work one morning, you are notified by the Customer Service Department and selected store managers about some returns of Value Computers products with consumer complaints about the AC adapters (power cords) becoming excessively hot when in use and, in a few cases, resulting in small fires or electrical shocks. You call the Value Computers representative to discuss this matter, and you are informed that the company has received similar but limited complaints from other retailers, so they have initiated an investigation. However, it has not been determined yet if a product recall will be announced, and the Consumer Product Safety Commission (CPSC) and other appropriate agencies apparently have not been notified yet.

There is currently no definitive information about the AC adapter issue. It is back-to-school time, which is a peak period for sales of computers and accessories. Removing all Value Computers products from MV's stores and halting orders would be inconsistent with your financial goals as a category leader and could create some customer concern about the products. At the same time, you feel compelled to protect customers and MV's image. You meet on the Discussion Board with your superiors, your team, and the compliance officer to determine the most effective approach to this situation. Do the following in your posting:

Consider the implications of proactive and reactive thinking with respect to this concern.
Define how to approach the decision-making process.
Highlight the critical considerations (ethical, legal, and otherwise) in making the right decision.
Describe a creative solution to the issue with appropriate justification and recognition of the organizational impact.

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Solution Summary

Reactive Thinking is discussed very comprehensively in this explanation..

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Details: For several years, MV has carried a line of reasonably priced, moderate quality computers from Value Computers. These computers are a great value for MV customers, and sales have been impressive. As you arrive at work one morning, you are notified by the Customer Service Department and selected store managers about some returns of Value Computers products with consumer complaints about the AC adapters (power cords) becoming excessively hot when in use and, in a few cases, resulting in small fires or electrical shocks. You call the Value Computers representative to discuss this matter, and you are informed that the company has received similar but limited complaints from other retailers, so they have initiated an investigation. However, it has not been determined yet if a product recall will be announced, and the Consumer Product Safety Commission (CPSC) and other appropriate agencies apparently have not been notified yet.

There is currently no definitive information about the AC adapter issue. It is back-to-school time, which is a peak period for sales of computers and accessories. Removing all Value Computers products from MV's stores and halting orders would be inconsistent with your financial goals as a category leader and could create some customer concern about the products. At the same time, you feel compelled to protect customers and MV's image. You meet on the Discussion Board with your superiors, your team, and the compliance officer to determine the most effective approach to this situation. Do the following in your posting:

Consider the implications of proactive and reactive thinking with respect to this concern.

There are serious implications for proactive and reactive thinking with respect to this concern. If MV is reactive with respect to AC adaptors from Value Computers the results could be disastrous. There can be fires, even big ones, serious electric shocks from the AC adaptors leading to serious injury or even death.

On the other hand if a proactive approach is taken by MV the results can be improved. The immediate withdrawal of Value Computers products by MV is warranted. If the products of Value Computers are withdrawn immediately by MV products it protects itself from several ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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