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Product-recalls have become increasingly commonplace in American media reports. Everything from food products to toys and cars have been recalled with increasing frequency in recent years. Some researchers predict the numbers will continue to rise as regulatory agencies and consumers alike become more vigilant about health and safety (Gunther 2010; Berman 1999).
A product-harm crisis, which often necessitates a product-recall, can have tremendous human and financial costs. For ex, a 2010 case of salmonella-infected peanuts involved a massive recall effort involving 70 companies, 3,900 products, and approximately $1 billion in financial losses. It also made hundreds of people sick and caused 9 deaths (Gunther, 2010). No industry or brand-no matter how large or well known-is immune to the impact of such a crisis, as proven by Toyota's over $2 billion loss stemming from a 2009 gas pedal recall (Isadore, 2010).
Given recent trends and the high-stakes consequences, businesses are interested in knowing what to expect in case of a product-harm crisis in terms of consumer and stock market reaction. Researchers continue to study what factors influence those reactions and hope to use their findings to build a viable product-harm crisis response strategy.
To prepare: Review this week's Learning Resources, including those on effective paraphrasing available at the Walden Writing Center. You must use proper paraphrasing techniques when completing your analysis. You may use the articles in the Learning Resources and additional scholarly resources to develop your analysis. Avoid using direct quotes by paraphrasing as appropriate, include proper APA citations, and submit your Assignment.
By Day 7 of Week 3, submit your first draft of your 3- to 5-page scholarly document for review and feedback. Your paper must do the following:
Define a product-harm crisis.
Identify the factors that contribute to a product-harm crisis.
Compare and contrast the findings of the various studies on product-harm crisis.
Synthesize your analysis of the research to develop and support a recommendation for a company handling a product-harm crisis
Submit this draft Assignment by Day 7 of Week 3.
Note: Your final submission incorporating Instructor feedback is due on Day 3 of Week 5 (Module 3 Assignment 3)

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