Case Study Valley's Ice Cream

Valley’s Ice Cream
Susie Tejeda
San Joaquin Valley College
June 29, 2017

Valley’s Ice Cream is in Riverbank, California. Valley’s Ice Cream has been open since 1997. Valley’s Ice Cream is small family owned business. Recently Valley’s Ice Cream was visited by health code inspector from Department of Health and Human Services. According to the health inspector Valley’s Ice Cream is in violation of a few health codes that can cost up to $4000.00.
There are many guidelines and health code that needs to be follow by small business owners. Department of Health and Human services has strict criteria for a small business owners to keep their food safety. The Department of Health and Human Services criteria is to have a nutrition information sheet for food products that are being sold, proper process when handling food to avoid
any contaminated food. The inspector advised Valley’s Ice Cream owner that he can overlook these violations if Valley’s Ice Cream agree to host a free ice cream party for his daughter’s softball team.
Since the violation given is not effecting the quality of the ice cream product.
The owner decided to not host the party for the inspector’s daughter softball team. The owner of Valley’s Ice Cream thought about all the legal implication, customer relations, safety risks of customers and employees and the financial implication. As a business owner, they must factor these opinions before you make a rational decision that will end up costing the business owner more in the long run. For example, if the owner decided to agree with the inspector and host the ice cream party and the inspector overlooks the violation this time. What if another inspector comes the next following months and gives the business owner another violation. The owner will be in the same boat, not only will he lose out on the free ice cream products that he used to host the ice cream party he will also lose the $4000.00 for the violation plus whatever it cost him for the overhead cost for the product. For the business owner to make up for the expense he will either have to increase the price for the ice cream or reduce their staff to make up for the loss of
expenses.
Valley’s Ice Cream owners thought about all the practical options they had and the consequence that came along with each choice. As a business owner, the best choice is to correct the violation correctly the first time to prevent any further cost later down the road. The expense maybe $4000.00 to correct the violation, but at least the owner knows that by getting the violation corrected properly the first time they will only have to pay the fine once and there are no additional expenses out of their pocket. The owners will have less issues in the event another inspector comes and does an inspection. Valley Ice Cream will pass their inspection because they corrected it the first time they were notified. This option that the business choice is the best one not only does it explain the legal implication of a business but it also reflects how public relation and consumer and employees can be impacted. Most of all it saves the business owner from any financial implications in the long run.
To maintain a successful business a business owner must make the right choices when it is dealing with any violation. The best resolution is to deal with the situation when it occurs and not try to resolve it with the easy option. Picking a wrong option can cost a business owner their financial stability because they are in bind with someone who could be black mailing them. The inspector in this case is asking for Valley’s Ice Cream to host a free party for his daughter softball team, if the owner selects this option this time because of the $4000.00 violation that he is trying to quickly fix this time. What if next time the inspector askes for more then again, the owner is put in the same situation.