All the Wrong Moves
IDENTIFICATION OF THE MAIN PROBLEM
The Nutrorim’s decision-making process has proved problematic during the crisis period when the top executives must decide whether to recall their product ChargeUp. Nutrorim’s product, ChargeUp, has undergone an upgrade with the additive Lipitrene. The new ChargeUp has just been released on a limited basis to local area retailers. Already, sales are up 20 %, but soon an investigator from a state department of health calls Nutrorim. The investigator advises them that he is investigating 11 individuals who took ChargeUp and now have gastrointestinal distress. Nutrorim decides to recall ChargeUp only to discover that the individuals with gastrointestinal distress became ill from a bug they got from their gym’s smoothie bar.
The problem is not whether or not Nutrorim made the right decision, but if there were other possible way to handle the decision process.
MAIN ISSUES BEHIND THE STUDY
I.The decision making problem is mainly because Nutrorim faces a lack of true leadership. Don Rifkin’s leadership style is inconsistent. Sometimes he displays objectivity and listens closely, but at other times he shows poor judgment and a lack of objectivity.
II.Rifkin did not attempt to facilitate a constructive conversation reflecting divergent viewpoints between Steve – R&D manager and Nora – a former entrepreneur whose company had been acquired by Nutrorim. Instead, Rifkin simply tries to quickly gain consensus by asking the individuals to take their disagreement "offline." But the problem remains, it's just put aside for now.
III.At Nutrorim there is no clear procedure regarding the mode how strategic decisions are taken and who should be involved in the process. This is also clear when we read about how the process went when Nutrorim decided to buy stock in Dipensit. In this case we have a very convincing CFO and a subcommittee which did not find...