Case Problem 2-A JUST, Inc. Wants to Revolutionize the Egg Industry Joshun Tetrick, the founder and CEO of JUST, Inc. In June 2017 the company faced another challenge launched his company in 2011 when it was named Actor Jaden Smith, the son of actor and former rapper Hampton Creek. The purpose of the San Francisco Will Smith, filed suit against Just and Joshua Tetrick, based company was to create healthier, affordable Jaden Smith is the co-founder of the sustainable water food with less of a negative impact on the environment bottle company. Just Water Smith lawsuit alleged that than foods such as natural eggs, chicken, and beef Tetrick copied his company name and violated a 2014 Early products included plant-based Just Mayo and trademark agreement between his company and the Just Cookie Dough, with ingredients such as Canadian mayonnaise brand that specified the conditions under yellow pen and sorglum which were designed to be which the word "Just could be used. sustainable less expensive alternatives to go In 2019. JUST, Inc. was seeking more than $200 Just Mayo is an egg.free mayonnaise substitute million in new funding while simultaneously trying JUST, Inc. has varied its product mix several times, to downplay any past mistakes, notably not exercising and today concentrates on spreads, dressings, cookie careful quality control over Ingredients or giving the dough, and its key product Just Egg (described below). Impression of inflating sales figures at the retail level. Ballionaire Investors Jumped in on this trendy food Idea While the company was seeking new funding demand shortly after Hampton Creek was founded was strong for the key product, Just F. The product During its early years. Hampton Creek was mired is an ea substitute, or veganes that contains the int scandal and legal battles. The company was accused same amount of protein is a chicken or with zero of having employees purchase Just Mayo from retail cholesterol.JUST Fisclaimed to look cook, and taste stores in order to inflate sales. Employees were in just like scrambled eggs. Although JUST Ege performs structed to poses doubtful or noncommittal con best as an egg substitute. It can also be used for French sumers, and to buy large quantities of their own toast.fried rice, quiches, and omelets. mayonnaise. At the same time. Hampton Creek con The egg substitute is a successful product, for sale tractors were instructed to telephone store managers in over 5,000 stores in the United States. The grocery und inquire about Just Mayo while pretending to be chain Kroger selle JUST F in the egg department. Interested customers. Tetrick told news reporters that rather than being shelved in the alternative protein the purchases were simply an unorthodox method section. In 2019. Tetrick said. "Richt nhw the company of testing the quality of the product. The CEO later JUST Egg and JUST Fag is the company, Informed employees about a subsequent investigation About 77 percent of the consumers who buy JUST by the Justice Department and the Securities and are not vegans or vegetarians. About 15 percent Exchange Commission of people who purchase JUST Egg are purchasing it The US Food and Drug Administration Issued instead of plant-based proteins such as veggie burgers an official warning in 2015 demanding that Hampton or beef chicken, and pork. Tetrick pointed that that Creek modify its label over Inaccurate health and many college-educnted women like JUST E, saying nutrition claims. Many anonymous Hampton Creek that they are trying to eat food. clean protein products employees accused the company of overlooking the that are free of antibiotici, and sustainable science related to its products, and misrepresenting the research It cited. The FDA complaint was resolved Case Questions later in 2015 when the company agreed to change its 1 What, if any, ethical violations do you think JUST, Inc. labeling while keeping the "Just Mayobranding intact. committed? In 2017. Target removed the brand from its shelves, pointing to food safety concerns about the Just prod. what way is JUST, Ino, showing good corporate cs. One of the allegationis was that Hampton Creek In what ways is JUST Inc. showing poor corporate products were being mistabeled as non-genetically social responsibility? modified organisms (GMO) 4 What would you recommend to JUST, Inc. management so that the company stays out of future legal trouble and embarrassments? "Just: Inc. CE Company, Monica Watre News (www. Startup Scan and Katie Ber Inquiry," www Source: Original case based on information in the following sources: lan Agar, "Just Inc. Raising $200M Amid Controversial Past, Pitch Book (www.pitch.com), February 20, 2019. pp. 1-3; Elaine Watson Case Problem 2-B Urban Financial Feels the Squeeze Troy is the CEO of Urban Financial, a payday lender with 25 locations. The core business at Urban is to lend consumers advances of between $100 and $500 to stay in to set up welcome