In most cases it seems that when crisis occurs, it takes the organization by surprise and the worst case scenario is usually reached due to a lack of any or an effective control and response system. It is apparent in the case study “There’s a syringe in my Pepsi can! ” certain crisis could have been averted what is not apparent is how early warning systems can be designed evaluated and put into an effective practical use. Effective communication is the key to Pepsi’s management crisis.
In this case study a consumer claimed to have found a hypodermic syringe in a can of Diet Pepsi and this was quickly followed by similar reports around the country. Pepsi immediately produced and disseminated information showing that it was impossible for a foreign substance to make its way into the canning process. The president and other top managers made themselves available to the media where they explained the company’s safety measures in the canning process. Public fears were dealt with and the crisis diffused.
This is an example of good crisis management where the company went all out to get back on track at the earliest. This shows that Pepsi has an effective crisis management teams who did their job and most important was the fact that they earned the respect of there clients and employees. A crisis is an “episode or series of events usually unexpected that creates a very real potential for adverse or even catastrophic consequences” (Centers Allen H, PR Practices Pg 322). Pepsi was able to communicate with its public effectively because of its PR campaign.
Vice President of Public Affairs Becky Madeira was able to address the news media, customers, consumers, and employees as well as local Pepsi-Cola bottle with its “One Clear Voice” approach, which informed the public of proper facts and any new updates as it arise. Pepsi’s PR campaign involved four principles, putting the public safety first, establishing and fixing the crisis, communicating with the internal and external public on a regular basis, and taking responsibility for fixing the crisis.
The company’s strategy was to “reassure the public that this was not a manufacturing crisis, what was happening was not occurring inside our plant” (Center Allen H. PR Practices Pg. 329). The PR team used specific PR communication tools to accomplish these principles. The PR coordinator Madeira, used specific techniques to inform, influence, and motivates the public such as video news releases (VNR), press releases, charts, audio tapes, diagrams of the production process and photos for external and internal distribution.
“A crisis is one of the most public test of a corporate reputation, but by its very nature it’s also one of the most difficult to prepare for” (Ong Ts Colin). The VNR, proved to be the most effective approach to communicating with the public. Some other approaches to consider would be guiding the company through a series of worst case scenarios such as flash flood or even a terrorist attack, the company can offer checklist and field proven action tests for a quick result.
The PR department should instruct all manager and corporate executives on how best to prepare their teams for a crisis and how to deal with customers, employees, and the media in the aftermath. Pepsi’s public relations teams established a successful strategy using effective communication between the organization and public. Madeira, managed to build an effective and comprehensive blueprint to actually avoiding potential disaster situations. This concept should be adopted by other organization to guide a company through the aftermath of a disaster.
In reading this article, I’ve come to the conclusion that sometimes the best management policies are only possible when managers realize and consider the threats or potential disaster and identify them rather than allowing them to flare up into a serious problem. There is serious need to actively engage in crisis prevention where the first step is the prognosis of when, why, and where conflict will erupt. These techniques do more than secure the structure of a business.
They show managers and leaders how to rebuild the spirit of their employees, so that the business can be restored quickly and maybe even result in an organization that would be stronger than before.
References Centers, Allen H. Public Relations Practices: Managing Case Studies and Problems, Sixth Edition. Prentice-Hall, 2003. Ong Ts, Colin. Crisis Management Planning For Business, http://www. sideroad. com/management/crisis-management-planning. html. Blue Boulder Internet Publishing St. Ontario, Canada, NOE 1PO. Retrieved 3/13/2005.