The paper "Strategic Decision Making" is a wonderful example of a report on management. Jonathan (2010) defines a crisis as whichever state of affairs that is frightening or that possibly will threaten to cause injury to people or tear down the property, critically interfere with business activities, harm reputation or have a negative influence on a company’ s share value. A crisis entails a momentous distraction that arouses widespread media reporting whereby the consequential public scrutiny will have an effect on an organization’ s everyday businesses. Besides, it may well engender political, ethical, legal, and financial as well as government impact on the organization.
Also, crises can emanate from natural disasters, human error, malicious intent, and negligence, among other causes. In light of this, no company can wish away any impending occurrence of a crisis; the sole weapon is to effectively set up a plan should it happen and suitably follow a line of investigation as soon as it is hit with a crisis. For the most part, a crisis occurs mainly out of the blue. A crisis can take an organization by surprise; occur when an organization has deficient information; occur rapidly; or arise from an unexpected deep inspection and is typically arrived at owing to there not being a control and reaction coordination.
However, with an effectual crisis management arrangement, a company can turn over a crisis into an upbeat and valuable marketing stratagem. Each one crisis occurrence is distinctive and, for that reason, calls for a custom-made rejoinder. This paper presents an analysis of a crisis that PepsiCo faced in 1993 in the United States market and that might have greatly hampered the future of the globally leading beverage company along with its product Diet-Pepsi. Pepsi Cola’ s Syringe Crisis On the 10th of June 1993, the media reported shocking news about a man in Tacoma, Washington who claimed that in the previous night he had consumed half a can of Diet Pepsi, on waking up, he found out that the can had a hypodermic syringe and plunger akin to the one used by diabetics inside the can.
The company, through CEO Craig Weatherup, regarded this as a usual product tampering. For end-user product companies, claims of their products having been interfered with on average do not develop into a crisis that pressurizes their integrity, reputation as well as continued existence.
However, like a bush fire, the syringe story broke out all over the United States, and by the 13th of June, there were mounting parallel claims from men and women from all corners of the country such as finding screws, needles, bullets, and narcotics, among other paraphernalia in Pepsi cans. PepsiCo's apparent usual news of messing about with their products issue had developed into a full-scale crisis.
This culminated in a call for all Pepsi products to be recalled, a move that would have had a momentous financial impact on the beverage company. Response Strategy The administration of Pepsi-Cola was aware that strange items were being inserted by individuals out of the company’ s production line thus interfering with the beverage product. This marked a major crisis for Pepsi-cola. Under the leadership of the company’ s CEO, PepsiCo clogged up the surprise to mitigate it on hearing the news. To fulfill this, he early on fit into place PepsiCo’ s crisis management team to handle the growing crisis.
The team was given the power to craft immediate assessments and circumvent the usual company set of rules.
Jonathan, B.L. 2010. The 10 Steps of Crisis Communications - Part 1. Retrieved November 14, 2013, < http://managementhelp.org/blogs/crisis-management>
Center, A.H., and Patrick, J. 2003. Public Relations Practices: Managerial Case Studies and Problems, 6th edn. Prentice-Hall, Inc. Pearson Education Company.
Dennis, W. 2006. Public Relations: Strategies and Tactics. Boston, MA. 8th edn. 262-263.