GOLDEN GATE UNIVERSITY

SAN FRANCISCO

MASTER’S IN BUSINESS ADMINISTRATION

PROJECT: Individual Submission - The Case of the Contagious Cook

(Module: Context of Business)

by Trang Phung Thuy Quynh

June 11 , 2024
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Summary Executive:
A young professional working at a Fortune 100 company known for its safety and local
influence is enjoying a profitable year with expectations of generous annual bonuses.
However, they are facing a crisis at a critical time as the hotel's profits peak, accounting
for 40% of its annual earnings from holiday season. The main reason was the news that
one of their chefs was diagnosed with hepatitis. The situation became less positive when
local newspapers just loved to stick a thumb in the eye of the company when something
bad happened, which led to a potential media threat.
The company held a meeting to review the situation between executives, including the
chief medical officer, but there were too many disagreements, showing a divide in
opinion as some wanted to downplay the issue when arguing that hepatitis is a common
disease while others remained cautious about its seriousness in terms of its potential
spread in the restaurant industry. At the same time, the legal team also noted that the
medical staff's avoidance of the issue and failure to take a decisive stance could cause
damage and put the company in a dangerous situation.

Question 1: What advice would you share in the meeting? Justify your response using
the concepts you have learned thus far in the course. (Hint - Use the Hartman Model.)
Answer: Accordingly, the Hartman Model is structured around three dimensions of
value: Systemic Value, Extrinsic Value and Intrinsic Value. Based on the context of this
article, we go to deeply analysis in:
- Systemic Value: involves assessing the understanding of systems and structures,
such as rules, roles, and concepts.
+ First of all, the core principle of the business is "safety," which is evidenced by
the commitment the business made when it started operating as an explosives
manufacturer. The incident related to the current health problem of the restaurant
segment is a test and a reminder of the original core principles before the
management makes any decisions or solutions to ensure the "safety" of the parties
involved.
+ Second, as a firm dominates the local culture, crisis management will reflect the
company's image and can affect the company's position in the community.
+ Third, Fortune's operating system is a company diversifying industries, in which
hotels and restaurants are just a supporting service segment, not the core business
of the company. To solve the emerging health crisis as well as maintain high-
 quality services for this non-specialized segment, the decision to outsource the
whole function could be considered the right decision.
+ Finally, hierarchy and tasks are clearly mentioned through emergency meetings
when a crisis occurs. Meeting participants include the chief medical officer, senior
executives from the hotel or restaurant, and higher-ups from public affairs and
legal. This shows that the structure values individual input, as evidenced by its
willingness to solicit the opinions of different levels of management during
meetings to ensure that decisions are made in accordance with the values of the
company.
- Extrinsic Value: involves examining the tangible, measurable aspects of the
situation that have a direct impact on the company's performance and
profitability.
+ The external value that directly impacts the company is its financial situation
when the annual profit from holiday visitors, which accounts for 40% of the total
profit of the business. Breaking news that an employee has been diagnosed with
liver disease could lead to health concerns among visitors and cause a significant
decrease in this revenue stream.
+ The second external value can refer to the strategy of potentially outsourcing
the whole functions by delegating hotel operations to a specialized firm, and then
the company can focus its resources and efforts on their core areas where it has a
competitive advantage.
+ The final external value is the business's media relationship with the local
newspaper, which plays a powerful role in shaping public opinion. A positive
media relationship can help disseminate accurate information and minimize panic
while helping businesses gain a competitive advantage.
- Intrinsic Value: involves evaluating the inherent worth and ethical considerations
of the situation described, beyond financial metrics.
+ The first intrinsic value mentioned in the article is that the health of guests and
employees, especially for older folks or others with compromised immune
systems, will be seriously affected if they unluckily get hepatitis. A company's
response in this situation will reflect its ethical responsibility and commitment to
the health of customers and employees.
+ The second intrinsic value is the company's prestige and reputation, which
dominate the local culture. The way a business handles this situation will have a
 direct impact on the prestige and reputation of the business, either strengthening
the trust and position of the business or losing the trust and reputation they have
built over a long period of time. In addition, the company's relationship with the
local community, which can provide community support in difficult times and
goodwill, can be a buffer against negative public opinion or local opposition. It
could contribute to the success and resilience of the company.
To contribute to helping the company navigate this crisis, I would give recommendations
based on the analysis of the Hartman Model above in detail:
- Adopting a comprehensive approach that addresses all three dimensions of value,
following the Hartman model. Specifically, acknowledging the problem that arose
with the liver hospital at the facility to recommit to complying with the company's
core value principles of "safety."
- Considering the outsourcing of restaurant and hotel operations, professionals can
come up with appropriate strategies to handle this issue, and the company can also
focus on implementing strategies to protect its financial situation against the
threat of financial loss from the restaurant and hotel segments.

Question 2: How should the company respond to this situation? Take some time to chew
over these facts and prepare your best approach to this urgent problem
In responding to this situation, here are some actions that company should consider:
1. First of all, the company needs to carefully reassess the risk level of potential
impacts that could affect the company's financial situation as well as its
reputation. Consider temporarily closing or outsourcing all functions as rumored
to temporarily prevent any risk of spread, as well as having a plan for the worst-
case scenario when the hepatitis case is announced.This is consistent with the
company's core value of safety.
2. Consult with external medical experts specializing in hepatitis to understand the
risks and necessary precautions. At the same time, there are visitation, support,
and quarantine policies for chefs diagnosed with the disease and employees who
may be affected.
3. It is necessary to be honest and transparent about the situation regarding disease
information, accompanied by clear explanations, to avoid causing public
confusion and minimizing possible damage from the local press. At the same
time, develop a plan to maintain and strengthen relationships in the community,
 emphasizing the company's commitment to community health and safety.
4. Last but not least, the company needs to consider any legal obligations and
prepare for potential claims or regulatory scrutiny that may arise from this
incident. At the same time, there is a plan for periodic health checks as well as the
dissemination of safety regulations to all employees to minimize similar cases in
the future.
The best approach to this urgent problem would be a combination of all the steps, which
is essential because each step complements the remaining steps, allowing the company to
come up with a comprehensive solution to address immediate concerns such as risk
assessment, health policy, and contingency planning to maintain stakeholder trust and
prevent misinformation, which is critical to stabilizing financial health, reassuring the
concerns and doubts of customers and the community, as well as maintaining the
company's reputation.