The Pineapple Company.doc

THE PINEAPPLE COMPANY You are the General Manager of XYZ Co., a manufacturing company that produces pineapple juice for the Philippine market and for export. For the year 2018 your company had revenues of P700 Million. XYZ Co., has been in the business for more than 40 years and is owned by the Carale family. This morning your Quality Assurance Manager came to see you and told you that the whole pineapple juice production yesterday consisting of 28,000 cases with a market value of approximately P16,000.000.00 did not pass the standards for the GGG enzyme. According to accepted international quality standards, as well as XYZ Co.’s own standards, any product with an GGG enzyme level of 3.5% or more should be destroyed. Yesterday’s production had GGG enzyme level of 3.51%. Products with GGG enzyme levels from 3.5% up to 4.7% are still fit for human consumption. Your Sales Manager wants to sell the whole 28,000 cases to the market as is, arguing that the deviation from the standard is miniscule. Your QA Manager wants all 28,000 cases destroyed. Your Logistics Manager thinks the products should be sold unbranded and without label in Divisoria or Arranque. He estimates that the 28,000 cases can be sold for at most P3,500,000.00. In this way you would be able to recover majority of your production costs. Your HR Manager suggests you just donate the juice to public schools and orphanages and get media mileage out of it. The President of the Union wants you to just give the 28,000 cases to your workers arguing that “Charity begins at home.” What will you do?