Coke’s European Scare
Nishtha Vyas (80)
Question 1. What are the management issues in this case?
Answer- The major issue faced by coke was wrong and late anticipation of a problem that led to disastrous consequences. Also, the company’s hard earned goodwill was at stake due to poor communication and a lax approach in dealing with an issue of high priority. Coke faced serious issues inside the organization which was the lapse in quality control that contaminated the CO2 content. Coke’s myopic outlook towards the issue made it lackadaisical in dealing with it.
Question 2. What did coke do and what could have been done differently? What did it do
| What could have been done
* Initially treated the incident as isolated and benign. * General approach towards the customers by apologizing. * Communicated to the Europeans in a haphazard manner, with no consensus among the management of Coke. * Testing was confined only to plants. * No action taken against the quality control department. * Importance of Public Relations ignored.
| * Promptness in reacting towards the problem and treating it as important * The approach by Coke should have been more specific. * The management should have discussed the issue and arrive at a common solution, then would have issued an explanation to the public. * Testing should have been done in the areas of shipment and transportation as well to ensure safety and quality of product from the plant to the hands of the customer. * Strict action should have been taken against the people responsible for the lapse in quality control in order to set the internal process right. * Public relations is the panacea to many disasters. A systematic public relations program should have been chalked out to communicate and convince the Europeans .
Question 3. What were the key factors that were or should have been considered by the Management? Answer- The key factors that should have been considered by the...
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