Crisis Management: Dealing with a Product Crisis |
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Caselet 2: Bausch & Lomb's Moistureloc Crisis"They (B&L) couldn't have done a worse job. It's almost as if they looked at the handbook on crisis management and threw it out the window."15 - Paul Argenti, Professor of Corporate Communications, Dartmouth College's Tuck School of Business16 , in April 2006. "If there was something we could go back and change that would be it [recall ReNu with MoistureLoc when links between the lens cleaner and the fungus was first suggested]. There isn't a handbook you can go to that tells you exactly what to do here." 17 - Meg Graham, Spokesperson, Bausch & Lomb, Inc.18, in May 2006.
It was found that a disproportionate number of people who had contacted the eye infection had been using MoistureLoc. On April 10, 2006, following an FDA alert on the product, B&L temporarily suspended the US shipments of MoistureLoc. Four days later, the company asked retailers to stop selling MoistureLoc, but not before the retailers themselves had pulled the brand off the shelves, which resulted in bad publicity for B&L... ExhibitsExhibit IV: B&L's Share Price Movement over a One
Year Period Caselet 3: Mattel's Voluntary Safety Recall - Next Page>>
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15] "Bausch & Lomb Withdraws Lens Cleaner from
U.S. Market (Update2)," www.bloomberg.com, April 13, 2006. |
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