Beech-Nut Case Study
Professor Finnerty
13 October 2015
Beech Nut Discussion Questions
1. In my opinion, LiCari did not overreact. I believe this because it is a felony to falsely label a product, which Beech Nut did with advertise on their products. This product was given to babies, it was second leading provider of baby products, which means mothers trusted this product for their small children. When I have my own children I want nothing but the best for them and Beech Nut advertising real fruit would make me think that it is a great product for my child. Finding out that it was not made with real apples would make me upset. LiCari was reacting like how a consumer would react.
2. LiCari did follow the lines of authority in his findings that Beech Nut was using adulterated juice. He brought his findings to the vice president of operations. The vice president, John Lavery, did not seem interested LiCari’s findings because it was cheaper than the old supplier’s juice. After, LiCari showed his findings to the company’s purchasing officer, Charles Jones, …show more content…
Beech Nut was in huge debt. They had to keep their costs down and increase their production at the same time while increasing their market shares.
4. Beech Nut did not think about the stakeholders in the case. They did not think about who was consuming their products they were only caring about themselves and getting caught. They were not thinking about their shareholders as well, they eventually sold 97% of the company’s stocks knowing that the company was going to fall into huge debt after the FDA went public with their findings. They also did not show CSR by this as well. They did not care about their communities and who was consuming this product in their community.
5. I believed LiCari had to leave Beech Nut because he did not want to work for a company that was constantly covering up its tracks and lying to mothers in the world. I believe he was upset that his voice was not being