Snow Brand’s Unethical Practices at Japan
Details
BECG039
19
2004
YES
0
Snow Brand Milk Products Co. Ltd
Food & Beverage
Japan
Accountability,Leadership & Values, Restructuring
Abstract
Snow Brand Milk Products Co. Ltd. was the largest dairy products manufacturer in Japan while its subsidiary Snow Brand Food Co. was one of the largest meat processing and food products manufacturers. In the year 2000, for the first time since its establishment, Snow brand Milk Products Co. Ltd. posted group losses and had to close some of its dairy factories due to a massive decline in sales of milk products following a food poisoning incident. In 2002, Snow Brand Milk Products Co. Ltd. liquidated its subsidiary, Snow Brand Food Co. Ltd. due to irreparable damage caused by the unethical practices at Snow Brand Food Co. Ltd. The case examines the events that led to the decline of the company, and the consequences of unethical practices and lack of social responsibility. The case also explores the restructuring/rehabilitation initiatives taken up by Snow Brand after the scandals came to light.
Learning Objectives
The case is structured to achieve the following Learning Objectives:
- Loss of customer trust
- and Importance of crisis management.
Keywords
Snow Brand Milk Products Co. Ltd, dairy products, Japan, largest, meat processing, food products manufacturers, 2000, losses, decline, sales, food poisoning, liquidated, social responsibility, restructuring, rehabilitation