Missy Stuewe

1

• Missy Stuewe
• Janie Kruse
• Michael Wasson
• Jacob Zeka

2
How the Company Began

• Opened for business in 1989 after an acquisition
  of assets from a bankruptcy
• Designed new name and logo to signify the
  extremist
• Strategy being the firstest with the mostest

3
Industry Involvement

• Retailing, wholesaling, and manufacturing
• Alpinism, backcountry, and rock climbing

4
Black Prophet

• Designed specifically for ice climbing
• Innovative ergonomic shape to reduce arm fatigue
• Rubber-bounded shaft construction for gripability
  and weight reduction
• Interchangeable modular components

5
Prophet Problems

• Failed to live up to quality standards, causing a
  possible fatal accident
• Concentrated more on pleasing the customer than
  the actual quality

6
Prophet Problems continued

• No specific design or time allowed for a learning
  curve
• Over marketing increased customer demand, with
  inefficient means to supply

7
Short Term Solutions for the Axe Crisis

• 1. Recalling the Black Prophets
  currently on the market
• Result High shipping, testing, and
  opportunity costs

8

• 2. Ignore the incident, assuming the
  accident was a one-time freak, and continue to
  sell the axes while refuting any rumors
• Result Possible lawsuits ranging from
  500,000 to several million dollars. This could
  easily lead to bankruptcy

9

• 3. Continue sales of Prophet while
  including a cautionary label
• Result Reduced customer confidence in
  the product
• 4. Sell axes already in retail outlets,
  but undertake critical review of axes still in
  production
• Result If axes initially sold are a
  flop, then the critical review is costly and
  worthless

10
Long Term Solutions

• 1. Expand the quality assurance
  department making it a more constructive resource
  
• 2. Implement a total quality management
  approach
• 3. Use a business process reengineering
  approach for new-product development and ongoing
  operations

11
Our Solution

• Recall the product but recall it in a manner
  that makes customers think that it is to be
  updated and improved.
• Tell the customers that the product is going to
  be even better and will be on the market soon.
• Fix immediate problem with the Black Prophet and
  return it to the public ASAP.
• Revamp the production process to prevent further
  problems such as this one.
• Make pamphlets and broachers to help insure a
  position in the market and to educate customers
  of the product.

12
Path of the future

• If Black Diamond makes the right decision in
  solving this issue and continues to aim for the
  path of excellence, they will be the top dog in
  providing extreme sporting gear.