Analysis the case for give discussion questions The case study from textbook CAS

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Analysis the case for give discussion questions The case study from textbook
CASE 1-1 Odwalla, Inc. (A) Stephes Williamson's worst nightmares were bacteria may be completely destroyed, however about to come true. As chief executive officer by heat or radiation. If meats are cooked to of Odwalla, Incorporated, he was at the helm temperature of 160 degrees Fahrenheit, or if of a company worth nearly $400 million juices and other potable liquids are pasteurized whose products in the premium juice market the danger poserl by such organisms is dramati- were widely regarded by customers and com cally reduced or eliminated completely. For petitors alike for quality and freshness. The example, consumers car company's reputation was solid throughout concentrate" juices are free from bacteria the Pacific Northwest, but the press release on because their preparation requires heating to his desk was filled with nothing but bad news. 170 degrees Williamson had just met with h Odwalla's juice products. however corporate communication director, reviewed were not pasteurized. E. coli and other harm- the crisis communication plan, and was now ful bacteria were kept at bay with a multistep applying the last few corrections to a press production process that selected only the release before faxing it to PR Newswire. The finest fresh fruit, washed each piece twice date was October 30, 1996, and less than an and then refrigerated the squeezings to slow hour ago, the Seattle-King County the growth of microorganisms. Deliveries Department of Public Health and the were made to retailers each day in refriger- Washington State Department of Health had ated trucks, and products were displayed and reported an outbreak of E. coli (0157-H7) sold from special Odwalla coolers. The infections that were "epidemiologically process was repeated each business day. with associated with drinking Odwalla apple juices the previous day's unsold products gathered and mixes. More specifically, the public up by Odwalla's drivers and returned to the health physicians had uncovered a direct link plant for disposal. Thus, the produc between people who had the infection and tomers bought from Odwalla retailers each those who had consumed Odwalla's product. day was guaranteed to be fresh-squeezed that Some 66 people had become sick from drink- very day-a feature that loyal customers ing Odwalla juices in recent weeks willingly paid premium prices to obtain. The question remained: How could the lethal strain of E. coli bacteria get into Odwalla juice? How could the careful, meticulous pro- E. coli Bacteria Escherichia coli is a species of microscopic duction process have failed? Over the past bacteria named for the German biologist who 16 years, Williamson and the discovered it during the early 1900s. Virtually founder, Greg Steltenpohl, and the Odwalla all large animals, including humans, benignly team had worked hard to establish a stellar host some form of the bacterium in their large utation for the company intestinal tracts. But a particularly virulent trendy products. Yet, all of their hard work w form of the organism, known specifically as at this moment on the line. The future of their 0157-H7, immune systems may be compromised. pany rep- can sicken and kill those whose growing company would depend on how Williamson and his senior team reacted to coli 0157-H7 can grow quickly in events over the next few hours. Gathering the uncooked food products, including meat, papers on his desk, he took a deep breath and cheeses, fruit, dairy products, and juices. The began dialing fax numbers.

Explanation / Answer

1. What are the key communication issues for Odwalla?
Answer:-

The key issue for Odwalla is to figure out the means by which it will let the consumers that they are still a quality conscious and safe company that offers the best Fresh and Natural juice. The principal issue that the organization is tied in associated with retention of its valued customers. Odwalla has had a strong reputation and a sustainable business model for a very long time.So, the company needs to develop means to commuincate that the bacterial infection is something which would not a cause for concern for a consumer who uses a quality product such as Odwalla.

2. How can the communication strategy focus on retaining consumer confidence?

Answer:- An elaborate campaign must be designed to address consumer apprehension regarding the bacterial infestation. Also, the company should showcase in the form of a video the way the juice is manufactured in its facilities with utmost care, this would help to instil a sense of confidence in the product.Apart from that, the company should ensure that the people who have been affected by the bacteria are provided due medical care and attention.

3. Does Odwalla appear to have an effective crisis management system in place?

Answer:-As per the facts of the case the company did not have an effective crisis management in place and was doing firefighting after the crisis. They do not have a defined framework for redressal of the crisis and were taking decisions after the crisis.

4. How should a company such as Odwalla go about developing guidelines before a crisis occurs?

Answer:- Odwalla must set up an internal quality control and auditing department who would be responsible for ensuring the quality of the outgoing product. Apart from that, it must have an on the ground team to ensure that the products being sold to the end consumer are not expired or counterfeit of some other company. Also, there must be a crisis management team who would develop responses to various extraneous scenarios that might happen it the future to ensure that the company is ready to handle such issues effectively in the future and caught off guard.

Answered the first four parts as per guidelines.

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