Complete Short Mini Case (7)
TEAM SWEET SUCCESS is one of five (5) teams working at the ACME LABS in Hershey, PA, an affiliate of the HERMEY COMPANY. TEAM SWEET SUCCESS was working on a formula that will be used in chocolate intended to allow the flavor of chocolate to remain several hours after eating. One evening while working in the lab, one of the team members realized he unintentionally made an error which changed the effect of the formula. The formula now made it possible for chocolate to melt fat in the body relatively quickly.
After three (3) months of intensive research, the team felt they were ready to take it a step further and present it to management for trial testing approval. Junior Lab Technician Sydney Doright, a member of Team Sweet Success, exercised his misgivings and objections by pointing out that although the end product made it possible to lose weight, the chemical element that caused the weight loss also had possible side effects. However, due to pressure from the other team members, he reluctantly went along with their decision. During the board meeting, the board unanimously approved for the product to go directly to the consumer without trials and approval from the FDA and named the product CHOC-ZERO. The rationale was HERMEY would become the first confectioner to provide a product of this magnitude and since everyone likes chocolate, they knew they had a goldmine.
Within ten (10) months, their stocks moved from $171 per share to $300 per share. The group received the keys to the city and there was even talk of a Nobel Peace Prize. In less than twelve (12) months, people who consumed CHOC-ZERO started to experience extreme health issues with weight gain, pre-diabetes, hypertension, and heart palpitations. Stocks plummeted and in a wave of potential lawsuits, the HERMEY COMPANY pulled the product from its shelves.
Answer the following questions in full sentence format. Remember to use cited key terms, definitions, and theories from your textbook in each answer. In paragraph citations (with page numbers) and a formal reference are always expected.
1. Discuss the decision making error which was used in this case. Explain the three (3) symptoms which played a role in Sydney’s decision.
2. The board members thought they had a goldmine and decided to launch the product without trials and approval from the FDA. What kind of bias can be inferred by the board members; confidence in their decision? Explain the bias chosen.
3. Provide two (2) suggestions for how the above mentioned scenario could have been avoided.
