Fisher-Price Case and Corporate Public Apology

Subject: Case Studies
Pages: 2
Words: 557
Reading time:
3 min
Study level: Bachelor

Product recalls are an unfortunate but natural consequence of mistakes in manufacturing or managerial processes. According to Downey (2020), “a product recall is the process of retrieving defective and/or potentially unsafe goods from consumers while providing those consumers with compensation” (para. 1). For example, a Michigan apple company recalled more than 2,000 crates of its products in 2019 “due to potential listeria contamination,” which is dangerous under certain medical conditions (Associated Press, 2019, para. 1). Tesla had to recall about 135,000 of its cars due to touchscreen malfunction earlier this year (Bursztynsky & Kolodny, 2021). Fisher-Price also recalled their product this month; their case will be further analyzed in this paper (Reuters, 2021). As one can see, the primary and most common causes of companies recalling their products are safety concerns and damage done to customers. Product recalls undermine consumer confidence, and companies are challenged to develop an appropriate response to bring back the customer base. This work aims to analyze the Fisher-Price case and develop a corporate public apology message.

Fisher-Price Case Analysis

Recently this month, Fisher-Price has recalled two models of their baby rockers. The reason was “four infant deaths” due to the design fault (Reuters, 2021, para. 1). The U.S. Consumer Product Safety Commission (CPSC) conducted an investigation and found that two specific types of cradles made infants roll over on their stomachs while sleeping, causing suffocation (Reuters, 2021). The company offered refunds for the two models in response to the incident (Reuters, 2021). However, Fisher-Price should have made a corporate public apology on its website and social media as a design flaw in the cradles resulted in several infant deaths.

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Fisher-Price Public Apologetic Statement

Since the CPSC has proven Fischer-Price’s guilt, there is no other option for the company other than making a public apologetic statement. The company should express its understanding of the situation to the affected and concerned families. They must clearly state that they accept responsibility for the infant deaths and explain why this happened. The apologetic statement should also include a refund announcement, as Fisher-Price has already done. A public apology should be posted on the front page of the company’s official website. Print and digital copies of it should be distributed to all their clients. The video of Fisher-Price’s CEO, Ynon Kreiz, apologizing is also essential to regain consumer confidence in this case. Fisher-Price.com contains links to the company’s accounts on the largest social networks, namely Facebook, Twitter, Instagram, Pinterest, and YouTube. Spreading a public apology in text and video formats on these social media would help restore the company’s image.

Company Apologetic Statement Benefits

As noted above, a widespread public apology provides an opportunity for companies to restore their image in the eyes of consumers. It demonstrates that employers and employees in the firm are “conscientious, responsive, ethical and transparent” (Durant, n.d., para. 2). It is also worth noting that making a public apologetic statement gives companies “client retention, salvaged relationships and even additional business gained from publicity generated by the apology” (Durant, n.d., para. 4). A public apology provides an opportunity for concerned customers to get back the money they spent on defective products. The apologetic statement made by the company’s CEO also shows consumers that the company cares about them and willing to cooperate. Moreover, it enables affected and concerned customers to hold companies accountable.

References

Associated Press. (2019). Michigan apples recalled for potential listeria contamination. CNBC. Web.

Bursztynsky, J., & Kolodny, L. (2021). Tesla to recall more than 130,000 cars following regulators’ pressure. CNBC. Web.

Downey, L. (2020). Product recall. Investopedia. Web.

Durant, K. (n.d.). Advantages & disadvantages of an apology in business writing. Chron. Web.

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Reuters. (2021). Mattel recalls some Fisher-Price baby rockers after reports of infant deaths. CNBC. Web.