Crisis Management Assignment: Peloton Brad Saving Strategy
Task: Write a reflective journal on computer architecture assignment analysing the theoretical concepts captured from the weekly material.
1. The Crisis faced by Peloton Interactive Inc.
This Crisis Management assignmentanalyses Peloton collaboration with the U.S. Consumer Product Safety Commission, is withdrawing the Tread because the Tread's touchscreen console could be detached and fall off, creating a risk of consumer harm (Robson, 2021). Around 125,000 Tread+ machines, as well as about 1050 Tread goods, were strongly affected by the recall in the United States. The recall would have cost Peloton about $ 165 million in losses in revenue in the first quarter alone and about $ 16 million in losses in total profits.The use of this machine led to 72 reports of injuries, cuts, fractures, and most importantly the death of a six-year-old child (HODGE et al., 2021). Consumer Product Safety Commission shared a disturbing video showing a baby sucking on the bottom of a Trade + with a ball in hand. At the end of the video clip, it is seen that the child is trying to move away from the equipment in an attempt to be free.
2. Crisis Management assignmentSummary of the company response to the crisis: The Company admits its fault and agrees about the statement that, the recall should have been done earlier, so maybe there would not have been so many problems (Reese, Ellis & Cunningham, 2021). Although they also said that it was clearly shown in the treadmill's advertisement that children and pets should be kept away from it, people had no idea about its effect. They also said that future improvements to the treadmill will add several features that will not cause any damage, and will not be re-marketed unless it is considered completely safe. The use of ground clearance and high motor may make this treadmill sometimes dangerous. There should be a digital PIN system and a physical safety key for emergencies, said Jason, who is an analyst("Peloton tumbles on treadmill recall, sales halt on safety", 2022). Research performed during this Crisis Management assignmentreveals that Peloton said they are working hard to improve these Tread and Tread+ models. They said that the passcode system will be introduced in the treadmill through a software update, which will not cause any harm to mankind, children and pets (Nast, 2022). They also said that refunds for each consumer will start from November 2022.
3. Evaluation of the Company Response to the Crisis: Jack Welch is the CEO of General Electric, as well as a prominent planner. Warren Edward Buffett is one of the greatest investors in the world, and he is also a well-known philanthropist. He is the eighth richest person in the world. Through their discussions, they have given some advice from which some ideas are clear of the peloton interactive Inc. company. Warren Buffett offers some advice for overcoming the crisis that the company is facing. Whether it is a government crisis or an SEC crisis or atoning crisis, morale should not be broken, he said (Youtu.be., 2022). He added that crises need to be addressed quickly, decisions need to be made quickly, solutions need to be found quickly, and remedies need to be used quickly. Talking about the role of the press, he said that the press quickly finds the problem. In some cases, people do not understand how to get out of the crisis, in which case it is better to work with a cool brain. The problem is, the crisis will come in life and when the time comes it will go away but what should be done is the implication of the right tip or opinion (Bishop, 2022). They both agree with this statement because they have both experienced it. Jack said time should not be wasted on anything irrelevant. The removal process is very effective in this regard. He never gave priority to things that are not profitable for his company. It is worthwhile to waste your time in a process that cannot help you out of the crisis. The focus should be on those people and resources that can help the company in the right way in bad times. Peloton Interactive Inc. has followed their advice.
4. A strategic overview of internal email: Through the following memo, I have tried to present the Crisis Management assignmentpolicy, methodology, and brief report of Peloton Interactive Inc. to my team members focusing on the issue of Crisis Management of the company. I have prepared the memo for all the domestic employees of the company. Through the email I tried to spread the message to a group of viewers, guessing one-to-all perspectives. The purpose of this memo sent by me is to make me aware of all the crises faced by the organization but also to include the elements of persuasion or call to action.
The company has suffered significant losses in the past few months because of 72 reports of injury for the technical errors of the Tread + product that led the company to recall the products due to customer dissatisfaction. Through this Crisis Management assignment, I have also given a brief description of the nature of the crisis of the company, about the company and my response and what should be done by the team members.
TO: All domestic employees of Peloton Interactive Inc. (Sales Department)
DATE: 7th February 2022
RE: Crisis Management assignment: Peloton Interactive Inc.
Nature of the Crisis Management assignment: The crisis that The Peloton Interactive Inc. company faced was a technological crisis. The crisis that is seen as the side effect of the use of science and technology by humans is called the technological crisis. When the use of technology makes a big mistake in the system as a whole, the technology becomes relatively complex and connected, and this inevitably leads to various accidents. Technological crises usually result in a human breakdown. It means that the crisis which results in loss of human life due to technical error is called a technological crisis. In this Crisis Management assignmentresearch we have found 72 cases where people have suffered bodily harm, someone has broken an arm, someone has broken a leg, someone has been seriously injured, and lastly, a 6-year-old baby has died. In my view, this is a technical problem.
These have been noticed as a result of underdeveloped or faulty technology.
As the Crisis Management assignmentteam leader, I have to tell my team members that responding to such crises is not at all easy for me and my company. The company's share fell 15% in six months due to a technical error in the product. In this situation, I have advised some customers to use Tread + in a separate place where children or pets are not allowed to enter. According to the company, all refunds for Tread + will be given by November 2022. Also to avoid this kind of error my company is developing software that will only allow the machine to start with a password. The company is working on a program for repairing as well as fixing hardware to solve the problem of cheaper model loose screens.
During the companies Crisis Management assignment research, all team members must work together. Team members should engage effectively with customers so that they do not have to face any accidents. Company members should be committed to working with the Consumer Product Safety Commission to set up new safety standards for the industry for treadmills. In a crisis, every member and leader of the company must act quickly in managing the infringement while strengthening the customer base that is of the greatest concern to them. The team members must be empowered in expressing their dissatisfaction, engaging them in a continuous dialogue and, finally, partnering with them in the process of crisis management. Lastly this Crisis Management assignmentemphasizes o the important of remembering that customers will not wait for accountability but will focus on solving problems.
Bishop, A. (2022). How Would Warren Buffett and Jack Welch Launch Your New Brand. Blog.hellostepchange.com. Retrieved 7 February 2022, from https://blog.hellostepchange.com/blog/how-would-warren-buffett-and-jack-welch-launch-your-new-brand.
HODGE, N., ACKERMAN, D., KNUTSON, A., & BRILL, A. (2021). Getting Smart About Artificial Intelligence• 20. CIRCULATION,Crisis Management assignment, 212, 655-5917.https://www.proquest.com/openview/9c82c1742e889fab622376f6c1497131/1pq-origsite=gscholar&cbl=47271
Nast, C. (2022). Peloton Recalls Treadmills After Injuries and a Child Death. Wired. Retrieved 7 February 2022, from https://www.wired.com/story/peloton-treadmill-recall/.
Peloton tumbles on treadmill recall, sales halt on safety. The Indian Express. (2022). Retrieved 7 February 2022, from https://indianexpress.com/article/technology/tech-news-technology/peloton-tumbles-on-treadmill-recall-sales-halt-on-safety-7304498/.
Reese, E., Ellis, L. M., & Cunningham, A. B. (2021). Key Lessons From Peloton's Tread Recall. Risk Management, 68(8), 4-7.https://www.proquest.com/openview/6361ad2e99686aa763d899413b6a111c/1pq-origsite=gscholar&cbl=47271 Robson, K. (2021). Peloton's Safety Issues. SAGE Publications: SAGE Business Cases Originals. https://sk.sagepub.com/cases/pelotons-safety-issues
Youtu.be. (2022). Retrieved 7 February 2022, from https://youtu.be/jHwPea5rUHw. Zhang, J. (2021). Mitigate Negative Effects in Spillover Crises (Doctoral dissertation, Syracuse University).Crisis Management assignment. https://www.proquest.com/openview/046863dac37eed733f29624356fa6ef3/1pq-origsite=gscholar&cbl=18750&diss=y