Got Milk It's Good for You-- Unless It's Contaminated - Case Study Example

This in turn resulted in losses and reduced profits for them. It also brought about health complications among their customers who developed diseases linked to the kidneys. Eventually the businesspersons involved in the fraud had to face very stiff charges that were imposed on them by the authorities. The liability of such an issue should lie on the management along with the members of staff responsible for testing the milk’s quality at their manufacturing plant. This is because the carrying out of these tests will enable the organization to avoid the damages that will come up after their products consumption by their customers. 2. A Customer relations management system would have greatly helped in communicating issues in the milk production supply chain.

This is because they would have learnt earlier about the contamination since the customers encountering them would have raised complains. The management would then have responded to the complaints earlier on and helped resolve the crisis that followed later on (Lieberthal, 2011). For example, the competition in the Chinese market for daily products increased tremendously with the different manufacturing plants offering high prices to get the products from the farmers (Baltzan and Phillips, 2010). . A company can use a CRM system to perform damage control after finding out about by contaminated milk within their supply chains by collecting information and disbursing it.

The system could be important in monitoring the recovery of the affected customers and checking whether there are other complications, which are developing. It could also be vital in distributing information to the teams on the ground on any suspicious products being sold to their customers. This could be through the work of unscrupulous intermediaries as in the case of the Chinese organizations. 3. I do agree with the sentences awarded to the two men for their roles in the milk scandal. The intermediaries were awarded the most appropriate sentence for directly adding harmful substances to the milk (Baltzan and Phillips, 2010).

The boss on the other hand was rightfully awarded the life imprisonment term for his ignorance in first testing the milk before it got to their customers (Lieberthal, 2011). The case study clearly indicates that it was the unscrupulous intermediaries who put additives into the milk in an effort of having them pass the test of fitness and quality. The competition that existed in the business caused the standards of their products to fall drastically. The actions of the two men led to the death of many Chinese children along with the hospitalization of thousands more.

Some customers also developed kidney ailments that would have had adverse effects on their health conditions. The United States government should also implement similar legislations to protect the consumers of various products against the adverse effects of unethical corporate behaviors. This pieces of legislation will help in