National Farm and Garden, Inc. (NFG) was incorporated in Nebraska in 1935 and has been a leading supplier of farming equipment for more than 60 years. Over the last five years, however, demand for NFG' s flagship product, the Ultra Tiller, has been declining. To make matters worse, NFG's market lead was overtaken by the competition for the first time two years ago.

Last year, NFG expanded its product line with the "Turbo Tiller," a highly advertised and much anticipated upgrade to the Ultra Tiller. The product launch was timed to coincide with last year's fall tilling season. Due to the timing of the release, the research and development process was shortened, and the manufacturing department was pressed to produce large quantities to meet anticipated demand. All responsible divisions approved the product launch and schedule. In order to release the product as scheduled, however, the manufacturing department was forced to employ the safety shield design from the Ultra Tiller. When attached, the shield protects the user from the tilling blades; however, it is necessary to remove the shield in order to clean the product. Because of differences between the Ultra and Turbo models, the Turbo's shield is very difficult to reattach after cleaning and the process requires specialized tools. Owners can have the supplier make modifications on-site or at the sales location, or leave the shielding off and continue operation. All product documentation warns against operating the tiller without the shielding, and the product itself has three distinct warning labels on it. Modifications are now available that allow for the shield to be removed and replaced quite easily, and these modifications are covered by the factory warranty. However, most owners have elected to operate the Turbo Tiller without the safety shielding after its first cleaning.

Over the last year, a number of farm animals (chickens, cats, a dog, and two goats) have been killed by Turbo Tillers being operated without the guard. Two weeks ago, a seven-year-old Nebraska boy riding on the back of an unshielded tiller fell off when the tiller caught the sleeve of his shirt; his arm was permanently mangled, requiring amputation. One of the child's parents owns the local newspaper, which ran a story about the accident on the front page the next day. NFG's CEO has called an emergency meeting with the company's divisional vice president, director of product development, director of manufacturing, director of sales, and vice president of public relations to discuss the situation and develop a plan of action.

V.P. of Public Relations

- You are the director of sales and have been with NFG for more than ten years. You were recruited from a competing firm and have more than 25 years of sales experience in the industry. Because of sagging sales, you face extreme pressure from above to meet your numbers. However, you feel that sales forecasts have been set unrealistically. Furthermore, these aggressive forecasts create churning within your department as your sales staff consistently complain that their quotas are unrealistic. Although you are adamant that declining sales are industry and product-offering issues, you are reluctant to raise these concerns to the CEO because of his history of ripping the heads off the bearers of bad news. You have witnessed this phenomenon firsthand as the CEO literally screamed at a coworker who brought a problem to his attention. On the other hand, the CEO has promised you a new BMW if your department reaches its numbers this year. Of course, you enthusiastically promised to achieve these results and quickly ran from the room.

The Turbo Tiller has been a much-anticipated addition to your stagnant product portfolio, but you were concerned that it would be delayed due to red tape and wrote daily e-mails to the R&D manager about getting it to market in a timely manner. You have received a memo from the R&D manager about some legal concerns over the Turbo Tiller; however, you feel that these concerns are manufacturing's, and not your department's, problem. Furthermore, because the director of manufacturing received a carbon copy of the memo, you are sure that the concerns will be addressed appropriately.

You have organized training on this product for your sales staff that included proper operating procedures and the dangers of standing within five feet of the tilling blades. Independent of these training sessions, you arranged a separate class on how to address and downplay these concerns with customers.

The CEO has called an all-hands emergency meeting at 7:00 a.m. tomorrow. You are expected to bring all knowledge of this situation with you for discussion and creation of a comprehensive action plan.

Provide a key issue as well as a high-level summary containing short and long-term solutions.