Smooth Is a Bar Soap for Women That Is Produced

question 7

Multiple Choice

Smooth is a bar soap for women that is produced by Beautymax Products. Smooth has recently been reformulated because previous product ingredients had become quite expensive. However, the reformulation has caused some major problems, as some 12 percent of the recent consumers have reported developing a rash accompanied by itching and peeling skin. The CEO of Beautymax Products is horrified by the negative publicity and wants immediate crisis management performed by the public relations department. The public relations department provides a list of strategic options for the CEO to deal with the bad publicity. Which of the following statements, if true, would not be a strategic option for the CEO?

• A) Beautymax can accept blame for the rashes and assure the public they will correct the problem immediately.
• B) Beautymax can ignore the problem and just wait for it to go away.
• C) Beautymax can offer an apology for the rashes it caused and offer to recall the product.
• D) Beautymax can deny that Smooth caused any of the rashes but pull it from the market anyway.
• E) Beautymax can monitor the Internet for any negative publicity and intervene on a case-by-case basis as soon as anything negative shows up.

---

Definitions:

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial period, determined by adding the initial inventory to acquisitions and subtracting the cost of goods sold.

Production Planning

The process of outlining the steps necessary for the efficient production of goods, including scheduling, materials procurement, and capacity planning.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production targets and schedules.

Budgeted Unit Sales

The number of units that a company plans or expects to sell over a specific period according to its budget.