Crisis Management

The Syringe Crisis of 1993crisis20management

It is important for every company to have a successfully crisis management staff. When these issues occur it is crucial to know how to resolve them before they spiral out of control. In June, 1993 PepsiCo learned first hand what a pr crisis looks like. A surprised Washington man found a medical syringe in his can of Pepsi-cola. Soon after the report, 50 more people claimed they found syringes in their beverages. But Pepsi effectively resolved the crisis in only eight days. The FDA declared Pepsi safe to drink and footage was released that showed a person tampering with the can during purchase. The scare was only a hoax.

There are a couple of reasons why this crisis was resolved so well. First,PepsiCo did not deny any of the allegations until they had researched and confirmed that the crisis was a scam. Also the company already had a crisis plan that was designed to deal with such problems as tampering or contamination. After all evidence was gathered and proved, the company released several video news releases that explained to customers why tampering could not have occurred in the bottling facilities and assured them everything was safe. PepsiCo employees were also seen on NBC dateline and Larry King reassuring the public with evidents and facts and also answering questions. The PepsiCo crisis team quickly and efficiently dealt with the crisis and today is applauded for its effective crisis plan.

Info from: Bnet

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PepsiCo’s Awards and Honors

PepsiCo’s Awards and Honors

2008 Awards

  •  2008 Energy Star Partner of the Year Award
  • DiversityInc’s List of Top 50 Companies for Diversity
  • Top 10 companies for LGBT (Lesbian, Gay, Bisexual and Transgender)    Employees by Diversity Inc.
  • Top 10 Companies List for People with Disabilities

2007 Awards

  • Indra Nooyi Named Among Fortune’s 25 Most Powerful
  • PepsiCo’s Indra Nooyi Named Among The Wall Street Journal 50 Women to Watch 2007
  • Latina STYLE’s company of the year. 
  • Best Green Companies for America’s Children List in Working Mother Magazine.
  • Indra Nooyi Tops FORTUNE’s List of the 50 Most Powerful Women in Business.
  • Seven PepsiCo Products on Women’s Health Magazine’s ‘100 Best Packaged Foods for Women’ List.
  • Pepsi “Pinball” commercial nominated for an Emmy

  • The Lay’s “100% Pure Joy” commercial won the Public Relations Society of America’s Silver Anvil Award
  • Fortune Magazine ranks PepsiCo once again to the Top 10 of America’s Most Admired Companies in the World
  • and many more…

I wouldn’t say that PepsiCo uses their awards and honors as promotions only to reiterate the efforts the company is making to benfit the environment, individual communities, and their commitment to diversity. Either way it reflects positively on the company when they are awarded so many honors.

Info from http://www.pepsico.com/PEP_Company/Honors/index.cfm 

Challenges Facing PepsiCo

Like all companies at this time, PepsiCo has to deal with the financial issues plaguing our economy. In times of financial trouble luxuries are the first thing to go. This includes settling for value brands instead of the preferred loyalty brands. People are going to try and save pennies where ever they can and this includes trips to the grocery store. The challenge of all companies is to keep customers and push advertising efforts. But as of October 2008 PepsiCo’s current financial state is stable and productive. 
By sciondriver (flickr)  By sciondriver (flickr)

Another issue prevalent in our society is the state of our environment. PepsiCo has already made efforts to do its part including incorporating reverse osmosis to conserve water in Pepsi-cola bottling plants and Frito-Lay’s Sun Chips new solar powered facility. But it is an ongoing challenge to do more and save more. Pepsi-Co implemented an environmental policy in 2006 and is still discovering new ways to reduce and reuse waste.

 A growing concern in our nation is health. Every where you look companies are adding low-fat or low-calorie options. Since PepsiCo is a beverage and snack food provider it is important for them to offer health options or their customers might choose a different brand that has fewer calories. They have made a good start with all the diet drinks they offer and sun chips are many peoples favorite alternative to greasy potato chips.

The PepsiCo Company and a Short History Lesson

PepsiCo is a world renowned company that is comprised of PepsiCo International (PI),PepsiCo Americas Foods (PAF), and PepsiCo Americas Beverages (PAB). These divisions own and operate well known brands Frito-Lay, Tropicana, Gatorade, Pepsi-cola and Quaker Oats. Most Americans have at least one of these brands sitting on their pantry shelves and this is why PepsiCo is so successful. They make products that people want and need. The company also sells international products in the United Kingdom, Latin America, Europe, the Middle East, Asia, and Africa. They have a strong code of ethics which includes an excellent environmental policy. PepsiCo is also strong financially with an annual revenue of $39 billion and employs over 185,000 people. 

delitefulimage(Flickr)

Photo by: delitefulimage(Flickr)

Overview

 

 

 Info from: PepsiCo Overview

 History  

 PepsiCo was created in 1965 with the merger of two large well known companies: Frito-Lay and Pepsi-cola, but this is not when the story begins. In the late 1980’s a young pharmacist named Caleb Bradham created the Pepsi formula in the back of his store. He soon realized that people enjoyed the refreshing new beverage and offered it in his soda shop. Later in 1902 Bradham patented and bottle the drink so people far and wide could enjoy it.

 After the 1965 merger PepsiCo acquires Mt. Dew and introduces many new marketing campaigns, but their most successful one will not be introduced for another ten years. In 1975 Pepsi’s most famous campaign launches in Texas, The Pepsi Challenge, to compete with the Coca-Cola Company. Throughout the next twenty years PepsiCo acquires Taco Bell, KFC, Pizza Hut, Mug Root Beer, and introduces diet and caffeine free Pepsi. Although the company decided to divide from the fast food industry in 1996, they gained Tropicana in 1998 and Quaker/ Gatorade in 2001.

 One thing Pepsi-cola has continued to do over time is employ legendary spokespeople. This long list includes: Joanie Sommers, Britney Spears, Jeff Gordon, Ray Charles, Mariah Carey, Beyonce, and many others. Their successful advertising campaigns and positive image has distinguished PepsiCo and its affiliates from other snack and beverage companies. It should be interesting to see what emerges in 2009.

 Info from: PepsiCo History