Pepsi-Cola Products Philippines Inc.

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CASE NO. 11:- Pepsi-Cola Products Philippines Inc.

1. Stakeholders

1.1. The five-year girl and the injured: - as because of this incident a five year girl lost her life and nothing is more precious that life.

1.2. Customers: - because people were resting their futures in the hands of this number fever promotion campaign.

1.3. Victoria Angelo, her family and families like hers: - these people who didn't have enough money to eat were buying Pepsi in the hope of changing their whole life. The rich company Pepsi was making money by making these people believe that they might win a lot of money. Instead of using their scarce resources for something more real, these people spent it on Pepsi building up dreams of getting rich and leading a good life.

1.4. Pepsi-Cola Products Philippines Inc.:- as the campaign was launched by Pepsi-cola, it is responsible for the outcomes like deaths, lawsuits, injured etc.

1.5. Pepsi-Cola International: - as Pepsi-Cola Products Philippines Inc. is a part of the multinational firm with branches all over the world, this incident might negatively effect the sales in other countries.

1.6. PepsiCo Inc.:- as it owns 19% of the company.

1.7. Insurance companies: - The insurance companies are affected by this incident as a lot of the Pepsi-cola cars, trucks and wagons were destroyed by the angry public and these companies might have to pay for it.

1.8. Competitors especially Coca-Cola:- as a result of this incident coca-cola might be able to snatch away a huge chunk of the market from Pepsi.

1.9. Government: - It has to make sure that companies follow the laws and they have to protect the innocent consumers. The government has to make sure illegal and unethical activities do not happen. It has to make sure that the laws are implemented without any exceptions.

1.10. Judicial system in Philippines: - as it is responsible for making sure that no violations of laws and regulations happen and people who do it are dealt with in the proper manner.

1.11. Company Employees: - they might lose their jobs as a result of the riots and losses that Pepsi had to face.

1.12. People who ran the computer or made the computer program:- as they have a significant role to play in the misprinting of the numbers.

1.13. Banks and financial institutions: - although not very clear from the case Pepsi-cola might haven taken loans form other banks.

1.14. Share and Stockholders: - although not very clear from the case, the value of the shares and stock of Pepsi-cola Company might have fallen.

2. Ethical Issues

2.1. Trust: - A climate of trust provides improved communication, greater predictability, dependability and confidence among the customer's, employees and the company. The people trusted Pepsi to pay them the money if they would win. But Pepsi dining do that hence breaking customer trust, something once broken is very difficult to regain.

2.2. Egoism: - the company was just thinking about its own interests when it launched the campaign. It didn't consider the poor people who might be lured by this number fever and spend the little money they had on Pepsi-cola instead of saving it and using for food, medicines, education etc, hence harming the innocent customers.

2.3. Deception: - With the winning numbers pre-selected by computer and only ten 1-million-peso prizes available, the chance of anyone becoming a peso millionaire was one in 28.8 million. But Pepsi drinkers didn't know that. The few winners got saturation media coverage, and entire families spent inordinate time and effort collecting bottle caps.

2.4. Theft: - these people who didn't have enough money to eat were buying Pepsi in the hope of changing their whole life. The rich company Pepsi was making money by making these people believe that they might win a lot of money. Instead of using their scarce resources for something more real, these people spent it on Pepsi building up dreams of getting rich and leading...
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