OSCM6120 Sanlu Milk Crises #1 Background On 12 September 2008‚ Sanlu Group‚ the biggest producer of milk powder in China‚ rocked the country when it admitted that its infant formula had been contaminated with the toxic chemical melamine. China’s national inspection agency extended its investigation to other dairy manufacturers across the nation. Shockingly‚ products of 21 other dairies‚ including some famous Chinese brands‚ also tested positive for melamine. Due to consumption of melamine-laced
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An Analysis of Sanlu Milk Powder Scandal in China in 2008 Written by: Lou Yuxi Supervised by: Chee Soo Lian PSB Academy June 2013 Abstract This research aimed at analyzing the causes and negative effects of Sanlu milk scandal in China in 2008.Many children suffered the diseases named urinary tract stone because of drinking the milk products which contain melamine. The main reason the companies do that is they want to increase the content of protein at less cost by adding melamine when
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Business? Research Target: Sanlu Group Student Name: Lin Li Student Number: 3266036 Date: 18/4/2011 Executive Summary Sanlu Group was one of the oldest and most popular brands of dairy product company in China‚ August 2008‚ the outbreak of melamine contaminated infant milk powder‚ a sharp decline in corporate reputation occurred. December 2008‚ Sanlu Group declared bankrupt by the court. Although the shocked "Sanlu milk powder “incident has been settled‚ the milk powder incident has hazed to
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Conclusion Role of Institutional Environment In China 10 Regain Trust and Support 11 Effect on China’s Image 12 Western Perception Toward Asian Countries 12 Lesson Learn From Scandal 13 Bibliography INTRODUCTION The case discusses the tainted milk scandal that was unearthed in China in 2008. The milk scandal became public in August 2008‚ after it was disclosed that the baby formula produced by the Chinese dairy products company‚ Sanlu Group was contaminated with melamine‚ which caused
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213015672 Review of the Main Features of the Case In late summer of 2008‚ a tainted milk scandal unfolded in China and shocked the world. Sanlu Group Inc. (Sunlu)‚ was a state-owned Chinese dairy products company in China which offered milk powder‚ including baby formulas and nutritional supplements. In September 2008‚ Sanlu came to international attention due to product concerns regarding its infant milk formula‚ which was discovered to have been contaminated with melamine that was 5125 times
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to Ease Milk Crisis The article in consideration deals with the decrease of the price of milk in Belgium‚ Germany and France. The prices have decreased due to the overproduction of milk. Overproduction caused the prices to drop radically‚ and it poses the threat of driving the farmers out of business‚ as they are forced to sell the milk at a price which is lower than the cost of production. They organized many across the European Union. They want the governments to lower the quotas on milk. A quota
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Sanlu Group was created in 1996 after several acquisitions in prior years. It was one of the oldest and most popular brands of infant formula in China. Tian Wenhua‚ the CEO and Chairwoman of Sanlu led the Chinese powder market for 13 consecutive years in terms of sales. Tian was considered one of the most successful entrepreneurs in China for her role in building the company. In December 2005‚ a joint venture agreement was signed which involved New Zeeland dairy cooperative Fonterra taking a 43%
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SANLU’ S MELAMINE-TAINTED MILK CRISIS Case Facts: • Incidence of finding high levels of melamine in milk and milk products for infants produced by a famous dairy processing company of China known as Sanlu. • Death of 3 babies and 6200 diagnosed with kidney problems and cases of kidney failure due to consumption of tainted milk. • The news of discovery of tainted milk was hidden from the central government by the local offices and the Company itself. • Whistle blowers/critiques
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Recently‚ China had to recall dairy products. The products had been laced with melamine‚ a toxic chemical used in making plastic. Many became ill from the laced milk‚ and some infants died. It turns out that lacing milk in China was a common practice known by many people. However‚ the farmers say they did not know what was in it was toxic. Farmers began using “protein powder” in their products to fool quality checks. Some of the dairy cows were under nourished so the milk was not of high enough
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PROBLEM ANALYSIS Starting with just 32 cows and 170 milk goats pooled by 18 farmers in Shijiazhuang‚ the Sanlu Group began its journey as a small dairy producer. The CEO of the company‚ Tian Wenhua steered the company through milk shortages and tough economic times. To meet rising demands for milk‚ she implemented a system that allowed villagers to supply Sanlu with the bulk of their raw milk supply. The demand grew at such a rapid pace that Sanlu could barely keep up and so began sacrificing quality
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