odwalla crisis management revised
DESCRIPTION
MBA Crisis Management PresentationTRANSCRIPT
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CRISIS MANAGEMENT Lessons in brand resilience
taken from Odwalla Inc.
Shaer AhmedTaki DaLlisAdam WardMark HendersonSTAM CONSULTING
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ACT FIX
TALKCREATE
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who?Organic juice company30% Annual growth
Projected sales of $90 million
Expanding distribution
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OCTOBER 16, 1996 : Anna Gimmstead, a 16 month year old child, was rushed to the emergency room
…She died 23 days later
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TIMELINE Oct 30 : Odwalla is alerted to E-Coli link Company issues recall of all apple juice products
Oct 31 : Odwalla hires PR Firm FDA launches 14 month investigation
Nov 1 : Odwalla expands recall to include carrot juice & pledges to pay medical bills of injured Launches website (1st)
OF THE CRISIS
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ACT
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ACTTwo websites created in span of 4 days
Completed a full recall in 48 Hrs
Three task teams formed to respond
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TIMELINE Nov 2 : Recall is completed (less than 48 hrs) Odwalla issues a press realease
Nov 3 : Odwalla launches a another website (2nd) Defends sanitation process in the media
Nov 4 : FDA confirms E-Coli link to Odwalla’s Dinuba plant Odwalla responds with press conference
OF THE CRISIS
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TALK
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TALKCore management team met every 15 MinDaily Conference calls were held with CEO
INTERNAL
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TALKCommunication with the press was
ConstantHotlines were created to answer questions
Coolers were updated with public notes
EXTERNAL
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FIX
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FIXAccepted blame and apologized
Customers were reimbursed
Investigated flash pasteurization process
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TIMELINE Nov 5 : Odwalla announces potential new heat pasteurization process
Nov 8 : Anna Gimmstead Dies. Odwalla finds no E-Coli at Dinuba plant
Nov 19 : FDA finds no E-Coli at Dinuba plant
OF THE CRISIS
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CREATE
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CREATEDeveloped a flash pasteurization process
Organized a crisis management plan
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COSTOF THE CRISIS
One death and 60 sick
Sales plummeted by 90% and stock price fell by 34%
More than 20 personal lawsuits filed
$1.5 Million in fines paid
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RecoveryFROM THE CRISIS
Voted best San Francisco business 1 year later
Retained 80% of customer base 1 year out
Became nations #1 fresh fruit distributor
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“ Odwalla didn’t survive by accident.”- Stephen
Williamson CEO, Odwalla Inc.
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ACT FIX
TALKCREATE
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Q & A
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TIMELINE Oct 30 : Odwalla is alerted to E-Coli link Company issues recall of all apple juice products
Oct 31 : Odwalla hires PR Firm FDA launches 14 month investigation
Nov 1 : Odwalla expands recall to include carrot juice Pledges to pay for medical bills of injured Launches website (1st)
Nov 2 : Recall is completed (less than 48 hrs) Odwalla issues a press realease
Nov 3 : Odwalla launches a another website (2nd) & Defends sanitation process in the media
Nov 4 : FDA confirms E-Coli link to Odwalla’s Dinuba plant Odwalla hosts a press conference in response
Nov 5 : Odwalla announces potential new heat pasteurization process
Nov 8 : Anna Gimmstead Dies. Odwalla finds no E-Coli at Dinuba plant
Nov 19 : FDA finds no E-Coli at Dinuba plant
OF THE CRISIS
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Works Cited Layne, A. (2007, December). How to Make Your Company More Resilient. Fast Company. Retrieved from http://www.fastcompany.com/articles/2001/03/odwalla.html
Sellnow, Timothy L., Ulmer, Robert R., Seeger, Matthew W., Littlefield, Robert. Effective Risk Communication: A Message Centered Approach. 1st edition. New York: Springer, 2009. Print.