Question

Draw influence chart for the following: A major pharmaceutical manufacturer is facing a difficult decision concerning one of its hearing-enhancement products. The product has been on the market less than two years, and reports have recently begun to come in that the product may cause serious hearing loss in certain users. The number and severity of these reports are not sufficiently high to warrant a recall order from the FDA, but if the reports continue this could eventually happen. In the meantime, management is considering issuing a voluntary recall to limit the potential damages. However, any such recall will probably destroy the future market for this product, which may be entirely safe, and it will also hurt sales of all other products sold by this company and depress its stock price.

Answer 1