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Path Goal Theory

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Abstract In this paper, I will define the product harm crisis and identify the factors that contribute to a product harm crisis. I will compare and contrast the findings of the various studies on the product harm crisis. I conclude by synthesizing my analysis of the research to develop and support a recommendation for an organization handling a product harm crisis.

Product-Harm Defined
Product-harm crisis can be defined as an occasion when a product or brand is faulty, substandard, contaminated or dangerous to the general public. The crisis could have an effect on the whole product category or a subset of the group. In most instances, this crisis prompts a product recall on a voluntary basis by the organization or forced by external regulators. In today's market, product-harm crises are often global events. The short-term consequences of a product harm crises are lost revenues and the expenses associated with product recalls. The long-term effect of these crises is damaged reputation to the affected brand and organization. The key challenge for organizations confronted with a product harm crisis is to restore consumer confidence.
Examples of Product-Harm
An example of this product harm crisis involved Kraft Foods Australia‘s peanut butter division. Kraft was notified of a possible link between its peanut butter and salmonella poison outbreak. This brand of peanut butter was recalled and removed from stores. Business Reviews Weekly in 1996 stated that Kraft’s Foods share sank from 67% to 0% in less than two weeks (Helsen, Zhao & Zhao, 2011).
Another example of product harm is the China's 2008 milk scandal. Sanlu, the leading infant formula brand injected the chemical melamine into their milk to artificially improve its protein level. This resulted in at least six deaths and kidney damage to babies who were fed this

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