XtremityPlus is known for its outlandish extreme- sports products, and the Loone
ID: 359136 • Letter: X
Question
XtremityPlus is known for its outlandish extreme- sports products, and the Looney Launch is no exception. Fulfilling the dream of every childhood daredevil, the Looney Launch is an aluminum and fiberglass contraption that quickly unfolds to create the ultimate bicycle jump. The product has been selling as fast as you can make it, even though it comes plastered with warning labels proclaiming that its use is inherently dangerous. As Xtremity Plus’s CEO, you were nervous about introducing this product, and your fears were just confirmed: You’ve been notified of the first lawsuit by a parent whose child broke several bones after crash-landing off a Looney Launch.
Your task: Write a post for your internal blog, explaining that the Looney Launch is being removed from the market immediately. Tell your employees to expect some negative reactions from enthusiastic customers and retailers but explain that (a) the company can’t afford the risk of additional lawsuits and (b) even for XtremityPlus, the Looney Launch pushes the envelope a bit too far. The product is simply too dangerous to sell in good conscience.
Tips: Although this message will be distributed internally, it will still be important to avoid including any comments you would not want the public to see. The primary goals are to prepare employees for the negative reaction that will follow removing the Looney Launch from production, and to help them understand the reasons behind your decision.
Explanation / Answer
Dear Employees,
This has been a great year for Xtremity Plus till now. Our sales has been rising with the launch of our exciting Looney Launch, and our profitability has been at its highest now than ever before. All the due credit goes to the hardwork and dedication showed by you all and delivering excellence in trying conditions.
Our company is today what it is, not just for our products which are cutting edge but our customer relationships which we have built and treasured over the years. Its been our goodwill that we keep customers ahead of our business which has made our brand what it is now. its always Customners first which is the path we follow. And to be honest it has given us dividends all throughout our journey. We have always ensured that our product be enjoyable and entertaining but not as a cost as a menace to the society at large. For us profits are important, but not at the cost of reputation. Because money can be earned, but reputation if lost is very difficult to earn back.
Now even we are enjoying the success of Looney Launch, we are at crossroads in making a decision as do we follow profitability or do we follow our conscience. We all know this new product is a hit, but along with that we also know that it has got implications if not handled properly and may lead to serious accidents to children using it. As we were aware, we also made sure that it carried WARNING signs, and with them in place, we can be rest assured that even a legal case is filed, we may scrape through as its the customers own interest with which he or she is buying the product, and his or her duty to ensure that the usage is in compliance with the safety standards mentioned.
But I pondered, that Will our conscience allow this. Knowing that the product may cause accidents and may harm children, will it be right in continuing this product even though its a cash cow for us. After giving somr thought on it, we have decided to discontinue the production of Looney. To be honest, I am saying this with a heavy heart as it was very close to all of us, but at the end of it, We always keep our Customers and their priorities first. I know this will impact our sales in the short term, but we will come out of it in a much stronger way. And for all of us, we need to say this together as our vision of Customer first has made us take this decsion and nothing else.
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