This Case is aboutÂ STRATEGY
PUBLICATION DATE: November 19, 2012 PRODUCT #: W12314-HCB-ENGTianlong Company and the Toxic Capsule Scandal Case Solution
On the April 15th, 2012, China Central Television disclosed that numerous capsule manufacturers in Ru’ao had used industrial grade gelatin to make medical capsules. Tianlong was not on the record of businesses that are guilty, but the scandal threatened to destroy the reputation of all capsule businesses situated in Ru’ao. Most drugstore businesses instantly prevented Ru’ao after this kind of national scandal. The manager of Tianlong must determine the best way to address customers’ concerns and keep the great standing of Tianlong from being damaged as an outcome of the present scandal. The manager was also annoyed by the condition to freeze creation of the neighborhood government. Some gelatin substance had been melted; freezing generation would create a direct financial loss. How should he react to the order of the oversight bureau?