JOT LTD – CONSULTANCY REPORT
Highly Confidential
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Contents
Fault in new flying spaceship toy. ........................................................................................................... 3
Near shoring proposal in Voldania:......................................................................................................... 5
Late delivery of Christmas product ......................................................................................................... 8
Launch of new range of toys for 9 – 11 age group ............................................................................... 11
Appendix I ............................................................................................................................................ 15
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Fault in new flying spaceship toy.
Problem:
Issue at hand is that the new flying spaceship toy which was launched recently has a defective insulation system around the electrical circuitry making it prone to overheating, releasing smoke and catching fire when left to charge for more than two hours. There have been 12 reported incidents so far on overheating and 2 incidents of smoke release.
Overheating might lead to injure those handling the toy while a fire break out might lead to injuries to those around including fire breaking out in the nearby vicinity.
Defects in the toy industry are not uncommon (e.g. Mattel recall -2007 due to lead paint) we can learn from them on how best to tackle the situation
Implications
If the issue is unresolved the company may face the following implications;
1. License Revocation by regulatory agency.
2. Loss of reputation and brand value in the market.
3. Major dip in sales/revenue of all company products.
4. Liability for damages caused by defective products (Directive 85/374/EC of the EU and similar laws in other countries).
Potential Solutions