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Syringe in Pepsi Can

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1- Discuss the implications of Pepsi's strategy, specifically.
Putting Public First
By putting public first, it show to the public that they care about this crisis seriously and they will treat this matter accordingly and their image become better when they get the consultation from the FDA, because they know that the FDA's credibility is high and people will believe what ever that FDA recommend them to do. In the meantime Pepsi also know that this problem is not come from their side but it just they want to gain back public trust and
Taking full responsibility for solving the problem.
By taking full responsibility, Pepsi has shown to their public that they listen to the their customer complain although they know that this complain is the absurd. They know that the problem are not come from their side. But as the result from their strategy, it will satisfied their customer dissatisfaction about the Pepsi product. Furthermore with this action, it show to the public that the quality and the safety of their product is the priority of the company
Using the media to present the case. They know that there are no other option that they can use to change their customer perception unless they use the persuasion power. So the best way to use persuasion power is to use media power because it can disseminate information throughout country in the short period of time. By using media also, people will get the real picture what is really happen and this will make the customer perception to change easily like when they use Video News Release (VNR) to disseminate information about their production method and this is the turning point for this

2- Evaluate Pepsi decision not to order the product recall . What are the plusses and the minusses of such a decision. Pepsi decision not to order the product recall because they know that this problem is not affect the safety and health for their customer. Pepsi also confident that the all the syringe that has been found in the can are in the can that has been open. From the beginning that they know that the best way to do is not the defensive strategy in dealing with the crisis but the offensive way. So they have concentrate to find a way to tell their public that this allegation is not true. So from this they truly confidence that that is not their part for causing the syringe to be in the can. They also made this decision after the series of detail investigation in all plant and all line of their machine that has a connection with their product. And their decision is in line with the FDA statement that this crisis is not from the Pepsi side. They want to reassure that this crisis is not the manufacturing crisis. The minusses of this action not to recall the product is the cost will be increasing and it show that Pepsi do not have a confidence in their product and believe the allegation. But the plusses of recalling the product is people will view Pepsi as a company the really put the customer safety first and it will show to the public that if the allegation is not proven, but the company willing to carry a cost as long as the customer safety is reassure.

3- on June 10, 1993 other option that peps have is to pay the compensation to the first person who make the claim and ask the person not to report the story to the press. Another option that Pepsi can take is to ignore the claim and act as it never happen. I think this company has choose the correct action because if the company pay the person who make the claim, there will be hundred of person who also want to make the claim and this will affect Pepsi in the long run. But if the choose to ignore the claim and act if it is never happen, it will show that Pepsi doesn't care about their customer. But from the action that has been choose by Pepsi it really give the good effect by Pepsi because through this action that Pepsi can show that the crisis is not a manufacturing crisis and it can restore Pepsi image in the eyes of their customer. Other choices that could company take is to set up a free commission to investigate the allegation without having any Pepsi representative. So that the commission can do in-depth investigation about the allegation. Because Pepsi confident that this is not a manufacturing crisis so this action will not have an effect to Pepsi and this action also will show that Pepsi is confident to their customer about their claim that this is not a manufacturing crisis.

4- This crisis could not be avoided because it is the allegation make by people who want to make a quick fortune in expense of the big company. And there is no action that can prevent this from happen and this is the type of crisis that most feared by many corporation, it is like a natural disaster where the source of the crisis is uncontrollable. We as a person also cannot avoid if other person want to make allegation toward us. But this crisis can be shortened because in this case, it to a long time for Pepsi to come out with the VNR about their production process. If they (Pepsi) really sure that this crisis is not at their fault, they should explain in the best way possible about their production processes. 5- the turning point of this case is when Pepsi produce and aired the VNR about their production process with the surveillance camera that show a women want to stick a syringe in a Pepsi can while a cashier was not looking. after the VNR was released many who made the allegation withdraw their claim even, the first reporter who cover this story also lose her jobs. Many who made this claim was located and being arrested.

6- For company like Pepsi want to create perception by actively involve with the public and always be transparent of what they do. Because if the fact say that your company is a good company but the thing is your public think otherwise, it is bad for you. In this case Pepsi has succeed in change the perspective of the customer, customer really stunned on how Pepsi handle the situation. In this cases, the FDA intervention and the VNR really help Pepsi to redeem their image to their customer, Pepsi really confident with themselves, they know that they are in the right end, so they sure nothing that they have nothing to worried about.

Case Study 2 1- the stakeholder in this case is the employees and the owner or management. because this case mainly about the story about employees stealing to good and product of the company. There is no part that mention other stakeholder that involve in this case. 2- the issue that effect the owner or management is the tolerant issue where the management is to tolerant to the employees. They give their employee a lot of opportunity and they also are to linear to their worker. But from the employee side the issue for them is the tolerant abused issue where they misused the opportunity that has been give to them. They did not follow the simple rule that has been given to them. It seems like they want something more. 3-The problem of this case is when the employee take their opportunity of linear approach by their management to the next level by stealing the goods and product of their company and the other problem is the management is to scare to take action because they dont want lose their experiences employee and having to trained the new employees. 4- for me the best solution of this case is to make the management become more strict to their employee. They must take the law action to their employee and make sure that the involve employee receive the punishment that they deserve. The strength of this solution is it can prevent the same thing from happen again and and it will put the fear factor to their employee to commit the same action. And this will give a long term benefit to the company in the long run. But the weakness of this solution will be the hardness of the management to find and train the new worker that they are going to hire to replace the old worker who involve in the thievery act. And as we all know that to train and to hired a good employee is take a lot of effort and a lot of money and also time. 5- because of the lawyer recommend that law enforcement action is appropriate, I think the best way to do is to take a law enforcement action to the involve employees without setting up the adversary situation. I will make sure all the personnel involve will get the punishment that they deserve. This is because the management has given a lot of tolerant to their employees and each employee cost something to the management especially money so there is no reason why the employee should escape from this problem without a punishment. The recommendation from the lawyer and personnel manager is the best solution because in dealing with the problem that involve discipline and ethics.

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