Action steps for African Business Schools
2011-05-24 13:56:36 UTC
Case Study: PICK 'N PAY EXTORTION CRISIS: PRODUCT TAMPERER CONFRONTS CONSUMER FRIEND (PART B)
Title
PICK 'N PAY EXTORTION CRISIS: PRODUCT TAMPERER CONFRONTS CONSUMER FRIEND (PART B)
Author
Stockport, G ; Gordon-Brown, C
Pages
2 pp
Product Type
Reference #
304-588-1
Teaching Note
Institute
Setting
Year
Keywords
Crisis management ; Extortion management ; South African FMCG (fast moving consumer goods) retail industry
Summary/
Abstract
Abstract
This is the second of a two-case series (304-587-1 and 304-588-1). Part (A) is set on the morning of 13 May 2003, when Sean Summers, Chief Executive Officer (CEO) of Pick 'n Pay, one of South Africa's largest supermarket chains, received a registered parcel containing three items of food and a letter. The letter said that these items had been poisoned and that, unless Pick 'n Pay co-operated and paid over a sum of money, the author would put poisoned food items on Pick 'n Pay shelves. The extortionist warned Pick 'n Pay against informing the police or the press, saying that he would put contaminated food into Pick 'n Pay stores if this happened. Summers had been with the group for 32 years and this kind of thing had not happened to Pick 'n Pay before. What should he do? Part (B) is set seven weeks subsequent to the first threat, after it appeared that the extortionist had actually put contaminated food in one of Pick 'n Pay's stores. Pick 'n Pay had contacted the police for advice, but had kept the matter from the press, confident that the extortionist would not harm its customers. Now it appeared that his strategy had changed. What should Summers do now?
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"The impact of AABS Video" was filmed at the Gordon Institute of Business Science, Johannesburg and at the University of Cape Town Graduate School of Business, Cape Town during the AABS Members Meeting and Conference 2011.
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Reports on the AABS Members Meeting 2011 and Responsible Management in Africa Conference 2011
