Bartok Manufacturing produces a line of infant toys under the Bright Baby brand label. The Consumer Product Safety Commission (CPSC) recently issued a recall order for the Bright Baby car seat gym, a very popular product.

According to the CPSC, the gym contains small parts that present a choking hazard. The CEO of Bartok Manufacturing, Bill Bartok, called an executive meeting to determine the firm’s strategy in response to the recall.

Mike Henderson, Bartok’s CFO, stated that the recall could cost as much as $1 million in lost revenue from the Bright Baby line. Noting that there had been no deaths or injuries from the product, just the potential for injury, Henderson proposed that the remaining inventory of car seat gyms be sold in regions where the CPSC’s rules do not apply. Sue Tyler, the marketing director for Bartok, recommended that the product be repackaged and sold under a different brand name so that the Bright Baby name would not be associated with the product. Bartok, though a bit leery of the plan, agreed to go along with it to avoid the monetary losses.

What would you have recommended to the CEO?