Assignment:
Agritechno geneticist Dr. Lev Andropov is working in his laboratory with his colleague, geneticist Dr. Tamika Brown, and two lab assistants, Andre and Bonita. As the four are conducting their work, Donna Holbrook from marketing, Stefan Girard from accounting, and Jaylen Castillo from product development enter the lab with some discouraging news. They have been getting early reports from growers in the South that some of the caterpillar-resistant transgenic corn developed by Agritechno and planted this year is failing in areas that are having higher than normal rainfall. The group must decide what and how, if at all, they should report the information to growers and investors. Andropov led the team that developed the caterpillar-resistant transgenic corn, in addition to having come up with numerous other strains of insect- and disease-resistant hybrids and varieties of the plant. Brown has worked alongside Andropov for many years, and is hoping to be promoted to heading up her own lab for the development of transgenic fruits. The success of the caterpillar-resistant corn would be essential to her being promoted this year. Andropov and Brown are disappointed to hear of the crop failures and would like to investigate the cause. They do not want to commit to time lines or solutions without proper scientific inquiry. Girard is focused on shareholder value, and the potential damage to stock prices if these problems leak out to investors. He wants to send a letter to shareholders immediately, stating that the few incidents of crop failure are flukes. At the same time, Holbrook insists on sending a letter to the growers, alerting them to an overwatering problem. Girard, Holbrook, and Castillo all agree that the letters have to be sent right away because heavy rains are expected in Nebraska, where 40 percent of the seeds have been sold. Andropov is frustrated and nearing anger at these suggestions. He asks, "How can we do this? We don't even know that our product is flawed. We cannot send out conflicting messages." Also, he asked what they should tell people who are both growers and investors. Brown adds that they do not know that the problem is in the seeds, and they cannot say with certainty when an analysis will be completed and a solution found. She does not want to promise what the company cannot deliver. Castillo is more anxious about getting a letter out to investors immediately. She suggests telling them that Agritechno's scientists have figured out the problem and found a solution. The scientists bristle at the suggestion. Holbrook then attempts to find a satisfactory approach for all participants by reframing the situation to focus on yields for the coming year. Andropov is not satisfied with this option, noting that Agritechno won't know how many bushels of the transgenic corn have been produced for another four or five months, and they won't be able to fully identify the problem until then. He suggests sending out a letter stating that a few crops have failed and Agritechno is investigating. Girard grumbles that he hates to report problems to investors because it scares them away.
Case Study Analysis
1. Why are Andropov and Brown frustrated and angry about the suggestions from Holbrook, Girard, and Castillo?
2. What are the arguments for and against notifying Agritechno's investors? What is the basis for each argument?
3. What are the arguments for and against notifying Agritechno's growers? What is the basis for each argument?
4. What method of communication, if any, would you recommend for investors? Growers?
5. What should Agritechno tell its investors and growers, if anything, about the crop failures and solutions?