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Please do questions 1-4. Read this case, then use it to do questions. Thank you :) CASE 9.1 Maple Leaf Foods-A Test of Leadership In
Please do questions 1-4. Read this case, then use it to do questions. Thank you :)
CASE 9.1 Maple Leaf Foods-A Test of Leadership In August 2005, Maple Leaf Foods would face the biggest crisis in its over-100-year history. The Canadian Food Inspection Agency (CHIA) began investigating Maple Leaf's Toronto process- ing plant as the suspected source of Listeria bacteria contamination that had caused numerous illnesses and even death. Dealing with one of the worst outbreaks in Canadian history, CEO Michael Mccain faced the toughest challenge of his life: ensure public safety regain public trust, and salvage Maple Leaf's reputation. Text MAPLE LEAF HISTORY OF MAPLE LEAF Although its origins can be traced back over 170 years to Grantham Mills, built in 1836 in St. Catharines, Ontario, Maple Leaf Foods was created in 1961 through the amalgamation of the Maple Leaf Milling Company Limited, Toronto Elevators Limited, and Purity Flour Mills Limited. Since being bought by the Mccain family in the mid-1990s, Maple Leaf Foods has transformed into Canada's leading food processor and exporter, with approximately 19.500 employees and sales of $4.89 billion in 201 1.CASE 9.1 MAPLE LEAF FOODS-ATEST OF LEADERSHIP 309 MICHAEL MCCAIN Born in Florenceville, New Brunswick. Michael Mccain grew up with business in his blood, Son of Wallace Mccain, one of the team of brothers who founded Canada's largest french fry producers-Mccain Foods-Michael worked in the company in progressively senior positions until succession issues between his father and uncle set off a legal battle that ultimately ousted Wallace's family from Mccain Foods Lid. After a worldwide search for another company for Michael to run, in 1995, Mccain took over meat processing giant Maple Leaf Foods Inc. THE CRISIS Despite his reputation for being smart, bough, and brash, or perhaps because of it, Mccain quickly turned antiquated Maple Leaf around, upgrading the company's approach to leader- ship and management, and expanding operations and product lines, McCain and Maple Leaf were ready to face any challenges. In 2008, Mccain was put to the test. The CELA informed Maple Leaf that it had con- firmed the presence of Listeria monocytogenes in three products from its Toronto meat plant. Mccain suddenly faced the daunting task of leading a company that was making its customers seriously sick. Nothing had prepared him for a crisis of this magnitude. THE BUCK STOPS HERE When he became president. driven by hisown vision and values of leadership, Mccain created 21 core corporate values to provide a foundation for the daily working life of ull Maple Leaf cmployces. Mccain exemplified the first value, "Do What's Right". when he immediately put himself al the centre of the crisis and took complete ownership over what was happening. Looking grim-faced and worn-down, Mccain made heartfelt apologies at press confer. ences and in television commercials, taking full responsibility for the Listeria outbreak. "This is not about the lawyers and the accountants. It's about public health and our consumers and people, that's where we're spending our time and attention," he told reporters, adding: "The buck stops here" Mccain quickly closed the plant and called in the purifiers, Although only three products were contaminated, he immediately recalled more than 200 Maple Leaf products at a cost of more than $20 million. He took out ads in national newspapers, television, and radio, openly showing his distress at the situation and communicating step by step how Maple Leaf was dealing with the situation and reassuring the public that he, and all Maple Leaf workers, would remain resolutely committed to producing safe products. Under his leadership, Maple Leaf remained completely transparent in its rapid and sweep- ing reaction to the crisis. From the initial announcement, to the shutdown of the Toronto plant and voluntary recall of all products processed on the suspect pro-duction lines, Maple Leaf made its actions and its contrition well known. The media were invited to cover sanita- tion efforts, the corporate website featured full information on the recall and on the Listeria bacterium, and a consumer hotline was set up to field customer concerns and questions. By the end of the crisis, the outbreak had caused 12 deaths, while about 5,000 other Cana- dians became ill. It quickly settled a $27-million class action law suit to provide for the victims of the contamination and implemented more than 200 new standard operating procedures to control the risk of something like this happening again. CEO Michael Mccain openly accepted the blame for the deaths and spoke clearly about what happened and the difficulties of moving forward. His genuine compassion, personal pain,CASE 9.1: Maple Leaf Foods-A Test of Leadership (Continued) and expression of guilt served to rebuild the reputation of Maple Leaf Foods and cemented his reputation as a leader with character and compassion. EPILOGUE A review by the Canadian government found that the Maple Leaf plant actually went beyond policy requirements by having an additional extensive environmental testing program. When there was a presence of Listeria, the production line was cleaned. What was missing was the big picture, staff treated these occurrences as isolated incidents. As the positive results were never looked at holistically, no one identified the recurring pattern. "Both Maple Leaf Foods and the Canadian Food Inspection Agency (CFIA) have since acknowledged that, if the company had conducted meaningful trend analyses of its test results and shared these findings with the CFIA inspectors, the source of the contamination could have been identified sooner and the sale of unsafe foods may have been prevented" QUESTIONS 1. Drawing from the leadership muckels in the chapter and using examples from the case, describe which model or mindels you feel fit Michael McCain's leadership at Maple Leaf Foods. 2. How did Mccain's leadership approach to the situation help Maple Leaf Foods regain customer confidence? 3. What leadership traits do you think best describe McCain as a leader? Why? 4. FURTHER RESEARCH-Compare and contrast Maple Leaf's response to the Listeria contamination with BP's response to the 2010 oil spill in the Gulf of Mexico or Toyota's recall of the Corolla and Re:4 in 2010, Which company handled the situation best and why? Which was the worstStep by Step Solution
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