PFMP · Question #681
Assume your food additive company performed a capacity analysis and found some resources had not maintained their skill sets and basically were not as productive as others in the company. Rather…
The correct answer is B. Component B--to add staff to work with the FDA trained in quality management. The question describes multiple organizational challenges simultaneously: low morale from layoffs, a new FDA regulatory requirement, a potential acquisition, and aging infrastructure. The key here is prioritizing based on urgency and compliance obligation. The new government…
Question
Assume your food additive company performed a capacity analysis and found some resources had not maintained their skill sets and basically were not as productive as others in the company. Rather than have a massive reorganization, instead the executives decided to eliminate the jobs of these staff members, many of whom had been in the company for more than 20 years. Morale among the existing staff is low as people fear there will be more layoffs. Plus the government issued a new regulation that requires an additional Food and Drug Administration quality check before a new additive can be submitted for regulatory approval. One member of the executive team wants to acquire another company to enhance market share, and the existing plants in the Asia Pacific region require infrastructure upgrades. Given resource shortages, only one component can be selected to be added to the portfolio. The Board should select:
Options
- AComponent A--to enhance employee morale
- BComponent B--to add staff to work with the FDA trained in quality management
- CComponent C--to acquire the competitor to increase market share
- DComponent D--to upgrade the AP's plant infrastructure
How the community answered
(34 responses)- A3% (1)
- B79% (27)
- C12% (4)
- D6% (2)
Explanation
The question describes multiple organizational challenges simultaneously: low morale from layoffs, a new FDA regulatory requirement, a potential acquisition, and aging infrastructure. The key here is prioritizing based on urgency and compliance obligation. The new government regulation mandating an additional FDA quality check is a mandatory legal/compliance requirement-not discretionary. Failing to comply would prevent the company from submitting any new additives for regulatory approval, directly threatening its core business. While low morale (A), market share growth (C), and infrastructure upgrades (D) are all legitimate concerns, none are legally mandated. Regulatory compliance is non-negotiable and takes precedence in portfolio prioritization. Component B-adding FDA-trained quality management staff-directly addresses this compliance risk and must be acted upon first.
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