Instructions

Analyse the following caselet and answer the questions that follow:

Recently a private food testing agency reported the presence of a harmful chemical in Crunchy Chips, a product of a fast moving consumer goods giant. The report sparked a nationwide Outcry.

Question 39

Rajan Shekhawat, the CEO of the company, feared this incident might affect the company’s image among consumers. Rajan had the following options:
1. Apologizing publicly for this inconvenience and immediately withdrawing the products from all stores.
2. Communicate ‘the correct findings’ to the public.
3. Hire a reputed independent testing agency to verify the claims of the report.
4. Establish internal mechanisms to prevent repetition of such incidences in future.
5. Give higher incentives to distributors and retailers for selling the company brands.

Which of the following would be the MOST APPROPRIATE ORDER of options for Rajan, starting from the immediate?

Solution

Statement 1 would mean the acceptance of the allegation which will tarnish the company's image.
Statement 5 would neither be effective in increasing sales nor be able to sway allegations.

The authenticity and accuracy of the report is not known. Hence, the statements 3,2, and 4 are the correct way to approach the crisis at hand.
Hence, option B is the correct answer.

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