On May 21, 2015, food inspectors in the North Indian state of Uttar Pradesh tested Maggi instant noodles that had been manufactured by Nestlé India Limited. Their results led them to declare that the samples contained higher-than-permissible levels of monosodium glutamate and lead — substances that could, at those levels, potentially cause harm to consumers. The well-known brand accounted for 26 per cent of Nestlé India Limited’s annual revenue, and the subsequent recall was a source of controversy. The recall was one of the biggest business stories of the year in India and was estimated to have cost Nestlé India Limited US$50 million. The company’s response to the problem ranged from inaction and denial to attempts at rectification and redemption. The overall actions of the company were characterized by confusion regarding product safety and contradictory statements about the accusations that had been made against it. Given the material losses and the damage to both the Maggi and Nestlé India brands, the company wanted to know how the situation could be corrected — and avoided — in the future. Was the Food Safety and Standards Authority of India correct to recall Maggi noodles? Once the crisis was in motion, how could Nestlé India Limited have handled the situation to appease customers, regulators, and stakeholders?
After a series of strikes in its Manesar manufacturing plant in 2011, Maruti Suzuki India Limited is beginning to recover from the after-effects of the strike. Amid this tense atmosphere, a minor brawl breaks out between supervisors and workers, then escalates into full-scale violence and arson, which results in the death of the plant’s general manager of human resources. The company locks down the plant, and law enforcement agencies initiate criminal proceedings against the workers. The incident raises serious questions about industrial relations at the plant and, in particular, the suitability of the Japanese management style in the Indian context.<br><br>See A case 9B13C009.
In 2011, Maruti Suzuki India Limited (MSIL), India’s largest car manufacturer, had three strikes in its new plant in Manesar, India. Although workers wanted recognition of a new union along with improved working conditions, MSIL insisted that workers be represented through the existing union that operated at a nearby plant. Tensions escalated to the point of violence and the matter caught the attention of national media, political parties, national trade unions, and central and state governments. Due to these strikes, MSIL struggled in terms of reputation and market share, and its component suppliers stockpiled inventory. After a series of hectic parleys and stressful episodes, the two parties reached an agreement. However, there were serious doubts as to its longevity and whether Suzuki’s Japanese management style was suitable in an Indian context.<br><br>See B case 9B14C048.