Sanlu Milk Crises - 1878 Words

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. Chinas 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 milk products, more than 56,000 infants and young children had become sick and four babies had died from kidney failure by the end of September. The melamine scare also resulted in many countries recalling and banning goods using milk products†¦show more content†¦The worse is neither Sanlu nor local government inspect/ supervise these milk collection stations, not to mention some of the station were found operating without valid licenses. The outsourcing which aims cost control only with no control of quality leads to crisis is not a surprise. Response from Sanlu There were some shockingly basic steps ignored along the way. As of 3rd Aug 2008, for instance, when the formula recall was in full swing, there was nothing on Sanlu’s website to suggest anything odd was going on. No announcement. No recall information. No advisory to customers. Not hotline. No news since 14th Aug. As well as the government officials in Shijiazhuang city had failed to report the contamination to provincial and state authorities (until 9 September) in violation of rules on reporting major incidents involving food safety. According to the Peoples Daily, Sanlu wrote a letter to Shijiazhuang city government on 2 August 2008, asking for help to increase control and coordination of the media, to create a good environment for the recall of the companys problem products....to avoid whipping up the issue and creating a negative influence in society.Show MoreRelatedCase Analysis : Sanlu Group2729 Words   |  11 Pagesthis Case Study Analysis was SanLu Group. They were one of many milk companies in China, but what set them apart from the rest was their high demands and their control of the market. SanLu was always known as a loyal company, therefore there was never any doubt that their products could be tainted. Little did consumers know, SanLu took advantage of their stakeholders and s howed improper use of crisis communication. Their stakeholders being Fonterra, infants and general milk consumers. AccountabilityRead MorePublic Relations : The s Mission, Purpose, Strategic Plans, Structure, Policies And Current Relation Issues Essay2098 Words   |  9 Pagesbecause they are the people who wwell knows about the milk pproducts. Industry group Small scale industries are attached with Fonterra WtThe small scale industry they can increase their branches and it will automatically makes publicity to the organisation. Community They provide free milk to schools children and have tie up with new Zealand government Fonterra wants to become the perfect leading company in producing 100% perfect milk without any defaults. 3Q: What are the strategic public