...makers of Pepsi-Cola and Diet Pepsi, was a target of a scam that created a crisis for the company. PepsiCo was blamed, in multiple claims, for selling cans of Diet Pepsi with foreign objects inside. The issue first arose as only a local problem but soon escalated into a widespread, national news story and became a crisis in the “point of no return” stage for Pepsi. The first case of a foreign object found in an unopened can of Diet Pepsi was reported on June 9, 1993 in Tacoma, Washington. Washington residents reported finding a used syringe in a half-empty Diet Pepsi can (325). Only one local television station reported on this story. The following day, another claim was made in Washington, and in the course of one week, more than 50 incidents of foreign objects, including sewing needles, screws and a bullet, being found in Diet Pepsi cans were reported in 24 states. The issue was now on the national level, and news media all over the country were reporting on the widespread claims. Adding to this obstacle was the pattern of claims, some of which were fatal, regarding product tampering. Pepsi could not see any rational reason for the reported incidents and decided against recalling the product. By insisting that its high-tech production lines produce cans of soda too fast to allow for the entrance of a foreign object, that the objects being described were not those commonly found in a factory, and that the canning factories of the reportedly damaged cans were not...
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...PEPSI COLA CRISIS Yeşim Ekici, M.Sc Bahçeşehir University CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments References CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments Brief History of PEPSI 1891- 1935: faced bankruptcy twice 1898: becomes known as Pepsi Cola, formulated Pepsi-Cola 1941: First signs of success Listed on New York Stock Exchange 1964: formulated Diet Pepsi 1965: PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lays Named one of the world’s top beverage companies CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments CONTENTS Brief History of Pepsi Crisis Timeline of Crisis Crisis Management Analysis and Comments CRISIS PepsiCo was entering peak sales season (Memorial Day to Labor Day) June 9, 1993: Syringe found in Diet Pepsi can (Tacoma, Washington) Hypodermic syringes in cans which cause HIV/AIDS When the crisis hit, days later on: more than 50 new reports in more than 20 states with objects including: Syringes, a wood screw, a bullet, a crack cocaine vial and a broken sew needle TIMELINE OF CRISIS *2 more complaints reported 1 from Los Angeles; 1 from Pennyslvania *First complaint reported in Tacoma , Washington JUNE 9 JUNE 10 *FDA (US Food and Drug Administration) issues 5 states alert advising consumers to inspect their sodas by pouring JUNE 13 JUNE 14 *Multiple complaints reported from...
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...product companies in the world and it is also one of the most famous soft drink companies. Currently PepsiCo owns more than 21% share of soft drink market world wide and has over 30% share in United states alone. Pepsi has many brands in soft drinks alone namely mountain dew, diet pepsi, mirinda etc. Also pepsi has expanded its reach to other products like quaker oats, Tropicana fruit juice, lays potato chips, cheetos, Gatorade etc. One of the Pepsi’s popular product was its ‘ Diet Pepsi’. It was introduced in 1964. Its main highlight was that it was a sugar free drink making it available to all larger section people. It had zero calories and also very less sugar content it and was an instant hit among the youth. PepsiCo is a leading company in soft drinks, snacks and foods and beverages. It has a revenue of more than 39 billion dollars and has employee strength of more than 1,85,000 people. PepsiCo company consist of mainly 3 companies. PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (PI). PepsiCo’s products are one of the most recognized products in today’s world. PepsiCo’s increase in success is mainly due to high standard of performance, commitment, determination and hard work of each and every member of the PepsiCo family. Pepsi also follows one of the best marketing strategies and business practices. PepsiCo has faced many challenges in its history. It has had its toughest competition from its rival Coca-Cola. It also faced other challenges...
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...I. Background Information Pepsi-Cola’s handling of its 1993 crisis demonstrated remarkable public relations consistency. An issue that pervasively raised is as well attended quickly and resulted positively. A retired meat salesman Tex Triplett, 82, of Tacoma, Washington, and his wife, Mary, 78, reported that while looking into a Diet Pepsi can for a prize-winning word to complete the phrase "Be young, have fun, drink Pepsi," they instead found a syringe. They turned the materials over to their attorney, who then contacted the Pierce County Health Department. A television station went with the story on Thursday, June 10th. KIRO anchorman Gary Justice said that the story merited attention because of a local Sudafed tampering in 1991 that killed two residents, and that needles evoked the fear of AIDS. The Seattle Times reported the story Friday morning, adding that Mary Triplett said that neither she nor her husband had shown signs of being sick. Another Pepsi-needle claim was made in Washington State on Friday. That weekend, The FDA issued a five-state alert advising consumers to inspect their Diet Pepsi. FDA chief Donald Kessler told the public to empty the contents of the can into a glass or cup before drinking. On Sunday night came a similar claim from a woman in the Cleveland area. By 9:30 AM Monday, June 14th, there was another claim. And by the time the day was over, 8 more had been made. At PepsiCo headquarters in Somers, NY the Pepsi public affairs crisis team huddled...
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...Pepsi Case Study In the summer of 1993, the Pepsi scare was one of the most widespread news stories in the entire country. This happened to be negative publicity for the Pepsi Company. There were cases being filed against Pepsi that there was syringes, needles, pins, screws, a crack cocaine vial, and even a bullet have been found in Diet Pepsi cans. The media would start to increase on this story as more reports would come in. “In one week’s time, more than 50 incidents had been reported to the police, the FDA or the media”. Pepsi was not sure of why these incidents were being reported. Pepsi had to research on why these claims were being made against their company. Pepsi was going to defend their company and not recall any of their products. Pepsi wanted to show the country that there was no possible way that these objects could end up in their products at the different factories. In this study there will be many different techniques the PepsiCo uses to explain to the country that this is impossible and these include: identifying the different publics, impact of communication on the public, the different PR communication tools and techniques, benefits and risks using these tools, how new technology would impact this case, and what is the companies status today in reference to this incident. Identifying the Different Publics In this study there are internal and external publics. Internal Publics are people that are involved in the company in any way. In this study the...
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...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...
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...Literature Review of CSR. Presented by:- Corporate social responsibility is not a new concept. However, what is new is the shift in focus from making profits to meeting societal challenges. Giving a universal definition of corporate social responsibility is bit difficult as there is no common definition as such. However, there are few common threads that connect all the perspectives of CSR with each other; the dedication to serve the society being most important of them. Most ideal definition of corporate social responsibility (CSR) has been given by world business council for Sustained Development which says, “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” .Thus, the meaning of CSR is twofold. On one hand, it exhibits the ethical behavior that an organization exhibits towards its internal and external stakeholders (customers as well as employees). On the other hand, it denotes the responsibility of an organization towards the environment and society in which it operates. CSR is also referred to as: • ‘corporate’ or ‘business responsibility’ • ‘corporate’ or ‘business citizenship’ • ‘community relations’ • ‘social responsibility’. History of CSR “The phrase Corporate Social Responsibility was coined in 1953 with the publication...
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... Any issues or changes that happen in one of these environments can directly cause change to the other. Since both of these are so closely related and to a great importance for a firm to run successfully, they have put more focus on managing both aspects of the company. The interrelationship between the market and nonmarket environment is heavily based on the role of management. Since a firm will operate in both the market and nonmarket environments, managers are there to measure the impact one has on the other. The issues found in the nonmarket environment are directly related to the market environment of the firm. The nonmarket environment is a little more difficult to control than the market environment, but each firm is aware of the importance of running sufficiently in both aspects in order to be successful. As shown in figure 1-1 (Baron p. 3), the relationship that the nonmarket and market environment has. Market environment determines the significance of nonmarket issues to the firm. Nonmarket environment shapes business opportunities in the market place. Analysis of the Nonmarket Environment When analyzing the nonmarket environment of an organization the main focus is the four I’s that characterize the organization. The four I’s consists of Issues, Interests, Institutions and Information. The issues aspect is the main part of the nonmarket analysis, issues of a firm can be very vast, and they can be anything from safety, taxes, antitrust, human rights to issues...
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...the problem to understand. For modern huBaylor College of Medicine mans, behavioral preferences for food and beverages 1 Baylor Plaza are potentially modulated by an enormous number of Houston, Texas 77030 sensory variables, hedonic states, expectations, semantic priming, and social context. This assertion can be illustrated with a quote from Anderson and Sobel (2003) Summary profiling the work of Small et al. (2003) on taste intensity and pleasantness processing: Coca-Cola (Coke) and Pepsi are nearly identical in chemical composition, yet humans routinely display “A salad of perfectly grilled woodsy-flavored calastrong subjective preferences for one or the other. mari paired with subtly bitter pale green leaves of curly endive and succulent petals of tomato flesh in This simple observation raises the important question a deep, rich balsamic dressing. Delicate slices of of how cultural messages combine with content to pan-roasted duck breast saturated with an assertive, shape our perceptions; even to the point of modifying tart-sweet tamarind-infused marinade.” behavioral preferences for a primary reward like a sugared drink. We delivered Coke and Pepsi to human The text goes on further, but note that the sheer lushsubjects in...
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...Faculty of Economics Seminar paper on the subject: English 4 Crisis management June, 2012 Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980. Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time. Venette argues that "crisis is a process of transformation where the old system can no longer be maintained." Therefore the fourth defining quality is the need for change. If change is not needed, the event could more accurately be described as a failure or incident. In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred. That is, crisis management is proactive, not merely reactive. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start. Introduction Crisis management consists of: * Methods used to respond...
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...Men and Animals Chapter One: Date: Saturday, September 29th, 2019 Place: Bee’s Apartment Time: 7:35 p.m Maybe I am a little like Sekai-ichi’s main character, Takano Masumune. Everyone I dated made me a little cold in the heart. The more they got serious about me, the more I became cold to them. Also, we both like cats. We both are near-sighted. We both love to read. (But I’m not an editor-in-chief like he is.) And we both are still in love with someone after high school. Okay. Maybe I am a lot like Takano. But just not only in personality. I lay on the couch with my cat lying on my stomach and was purring away. I was petting her gently as possible while I was reading the Sekai-ichi Hatuskoi manga. This volume was back on Ritsu’s point of view. The last one was on Takano’s. He was explaining everything that happens between him and Ritsu. He was really mean to Ritsu then, but I like it how he slowly began to fall for Ritsu’s loving smile. Or was it just him in general? I closed the book and remember the page I was on. It’s been so long since I read the series. I took off my glasses and pinch the bridge of my nose then rubbing my eyes. I have been working my ass off since I graduated from the Early College High School to become an E4 in the Air Force. I was seventeen years old when I enlisted, but I really couldn’t do anything while I was still in high school working on college courses. But I did work on getting at least a 4.0 in my GPA or whatever it was I...
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...capsules. Fortunately, argues Norman Augustine, almost every crisis contains within itself the seeds of success as well as the roots of failure. Finding, cultivating, and harvesting that potential success is the essence of crisis management. And the essence of crisis mismanagement is the propensity to take a bad situation and make it worse. Augustine has distinguished six stages of crisis management and makes recommendations for dealing with each: avoiding the crisis, preparing to manage the crisis, recognizing the crisis, containing the crisis, resolving the crisis, and profiting from the crisis. Augustine concedes that only the truly brave or the truly foolish would make the claim that one person, sitting atop a corporate hierarchy, can successfully guide the daily actions of thousands of employees. But, he argues, the one aspect of business in...
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...Contemporary Developments in Business and Management Kenneth Fee The University of Sunderland © 2013 The University of Sunderland First published September 2013 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without permission of the copyright owner. While every effort has been made to ensure that references to websites are correct at time of going to press, the world wide web is a constantly changing environment and the University of Sunderland cannot accept any responsibility for any changes to addresses. The University of Sunderland acknowledges product, service and company names referred to in this publication, many of which are trade names, service marks, trademarks or registered trademarks. All materials internally quality assessed by the University of Sunderland and reviewed by academics external to the University. Instructional design and publishing project management by Wordhouse Ltd, Reading, UK. Contents Introduction vii Unit 1 The contemporary world of business and management Introduction 1.1 1.2 The global business environment The importance of developments in the global environment Case Study 1.3 Organisational decision making and performance vii 1 3 10 14 17 19 19 20 Self-assessment questions Feedback on self-assessment questions Summary Unit 2 Globalisation Introduction 2...
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...C H A P T E R The External Environment 4 The Environmental Domain Task Environment • General Environment • International Context Environmental Uncertainty Simple-Complex Dimension • Stable-Unstable Dimension • Framework Adapting to Environmental Uncertainty Positions and Departments • Buffering and Boundary Spanning • Differentiation and Integration • Organic Versus Mechanistic Management Processes • Planning and Forecasting Resource Dependence Controlling Environmental Resources Establishing Interorganizational Linkages • Controlling the Environmental Domain • Organization-Environment Integrative Framework Chapter Four The External Environment 53 M any companies are surprised by changes in the external environment. Perhaps the greatest tumult for today’s organizations has been created by the rapid expansion of e-commerce. For example, Amazon.com was ringing up on-line book sales for more than a year before managers at Barnes & Noble even began thinking about a Web site. Barnes & Noble was highly successful with its book superstore concept, but its early efforts in e-commerce were marked by costly mistakes and missed opportunities. Even though the company burned through $100 million in an effort to “crush Amazon,” Barnesandnoble.com was still selling only 15 percent of books bought online compared to Amazon’s 75 percent.1 Firms in every industry, from auto manufacturing to telecommlunications, face similar uncertainty. Many factors in the external environment...
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...Manager/Photo: Deanna Ettinger Permission Aquistion Manager/Text: Mardell Glinski Schultz © 2010, 2007 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Library of Congress Control Number: 2008939395 ISBN 13: 978-0-324-59360-0 ISBN 10: 0-324-59360-0 South-Western Cengage Learning 5191 Natorp Boulevard Mason, OH 45040...
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