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Case Study: Coca-Cola PR Crisis Management
by William Comcowich | Aug 25, 2015 | Crisis Management | 0 comments
Coca-Cola CEO Muhtar Kent. Photo credit: Coca-Cola
Communications experts praise Coca-Cola’s recent response to criticisms as an example of first-class corporate crisis management. Specifically, they point to The Wall Street Journal op-ed by Coca-Cola CEO Muhtar Kent.
The company came under a storm of criticism after The New York Times charged that Coca-Cola was funding obesity research that attempted to disprove the link between obesity and diet and shift the problem to lack of exercise. The article says Coca-Cola, desperate to halt sliding sales, financed the new nonprofit Global Energy Balance Network. Critics call it a front group created to espouse misinformation and deflect the role of soft drinks in the spread of obesity and Type 2 diabetes
Corporations under fire can look to Kent’s op-ed for guidance when responding to attacks and considering apologies.
Kent outlines the company’s response and admits the company’s misstep while not exactly apologizing in his op-ed, Coca-Cola: We’ll Do Better. In a matter-of-fact tone, Kent takes the accusations head on, acknowledging the accusations that it has deceived the public about its support for scientific research. He defends the company by saying it is attempting to tackle the global obesity epidemic and has always had good intentions.
A New Strategy
Kent also admits the company’s strategy “is not working.” “I am disappointed that some actions we have taken to fund scientific research and health and well-being programs have served only to create more confusion and mistrust,” he writes.
He explains how the company will act going forward. First, he says it will act with even more transparency. The company will publish a list of health and well-being partnerships and research activities it has funded in the past five years on its website and will update the list every six months.
The company will continue its efforts to provide healthy options, he says, such as waters, lower-calorie and lower-sugar drinks, diet soda and zero-calorie drinks. At the same time, he inserts a sales plug by referring to Coca-Cola’s wide range of beverage options.
The op-ed stresses the company’s commitment to fighting obesity. “We want to get focused on real change, and we have a great opportunity ahead of us,” he says. “We are determined to get this right.”
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The Three O’s
Mark Braykovich , vice president at Atlanta-based The Wilbert Group, says Kent successfully filled the three O’s of crisis management:
Own up to it . Assuming responsibility at some level usually helps the corporate reputation over the long run.
Get the CEO Out front . The CEO is the best spokesperson for the corporation. Most PR disasters happen when companies shield the CEO, or the CEO appears to have little interest in the problem.
Make an Outsized response. Overaction is preferable to small measures or ignoring the critics. Kent directs the president of Coca-Cola North America to create an oversight committee of independent experts to provide governance on company investments in academic research, and engage experts to explore opportunities for research and health initiatives.
Braykovich says he gives Kent an A for using the three O’s.
Bottom Line : Coca-Cola’s response to accusations that it financed a front group to protect its interests at the expense of public health is a case study in PR crisis management. The op-ed by Coca-Cola CEO Muhtar Kent epitomizes a corporate response that contains the essential elements of effective corporate PR crisis management.
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William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring , media measurement and analytics solutions across all types of traditional and social media.
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June 30, 1999 How Coke Stumbled in Handling European Contamination Scare By CONSTANCE L. HAYS with ALAN COWELL and CRAIG R. WHITNEY s Coca-Cola Co. tries to regain its footing in Europe after a contamination scare that caused the biggest product recall in the company's 113-year history, executives have made a rare admission: that mistakes were made in manufacturing. Such humility is far from routine for the soft-drink giant, renowned as it is for superb marketing and a corporate structure that is well-oiled from top to bottom. But the crisis in Europe, in which hundreds of people said they felt sick after drinking Cokes, has revealed a different Coca-Cola, one that stumbled repeatedly, making an unfortunate situation even worse. When the outbreak began, Coke executives took several days to make the matter a high priority. An apology to consumers came more than a week after the first public reports that people had fallen ill. It was not until June 18 -- 10 days after the first schoolboy became dizzy and nauseated after drinking a Coke -- that top company officials arrived in Belgium. And when Coke did begin to respond, it attempted to minimize the reports of illness. "I am genuinely amazed that they have reacted like this, and I don't know what has gone on inside the company to make them react like this," said David Arnold, a Harvard Business School marketing professor who has studied Coke for years. The cardinal rule of consumer-products marketing is that the customers' perceptions -- often divorced from the facts -- are what count, he said, adding that a company like Coke, which has built an $18.8 billion business out of sugar water, should know that better than anyone. "They should have said yes, there appears to be a problem, instead of arguing the facts," he said. It will be weeks before the damage to Coca-Cola can be fully assessed. Analysts have already knocked a few pennies per share off earnings estimates for the current quarter for both Coca-Cola and Coca-Cola Enterprises, Coke's bottler in Belgium. Beyond that, it is clear that in Europe, which accounts for about 26 percent of Coca-Cola's profits, Coke must take aggressive steps to restore its image. Philippe L'Enfant, a senior executive with Coca-Cola Enterprises, told a Belgian television station on Sunday that the company "perhaps lost control of the situation to a certain extent." While the firm had a crisis management strategy, he said, "The crisis was bigger than any worst-case scenario we could have imagined." Coca-Cola's muted initial approach to its problems appears to have backfired. In a news conference in Brussels last week, company chairman M. Douglas Ivester said he had chosen to "take a lower profile on this," at the request of Belgian Health Minister Luc van den Brossche, and other officials of Belgium's government. Yet Coke had taken a low profile well before any ministers took charge. A bar owner outside Antwerp reported May 12 that four people felt sick after drinking bottles of Coke that smelled strange. That incident did not lead to public safety warnings, although samples were tested, and no mention was made of it after other incidents were reported, beginning June 8, because, a Coca-Cola spokesman said, it was unclear whether they were connected. Government officials in Belgium and France complained repeatedly about Coca-Cola's apparent inability to tell them, in timely fashion, what it knew. "You can say that since the beginning, Coca-Cola has presented real contradictions," said one French official involved in the investigation. Some of those contradictions were evident within Coke itself. One spokesman said this week that the May 12 incident was widely known, since it had been "extensively covered in the Belgian press." Another spokesman said minutes earlier that he had never heard of it. When the first reports of illness were made June 8, local executives of Coca-Cola Enterprises were called in. That day, a Tuesday, schoolchildren in Bornem who had been sold Coke in 200-centiliter glass bottles by their schools experienced dizziness, nausea and other symptoms that ended with 42 of them being hospitalized over the next 24 hours. Odilon Hermans, the director of the St. Mary school in Bornem, a well-to-do suburb of Brussels, contacted the Coca-Cola Enterprises bottling plant in Antwerp that day. He said several managers visited the school and the hospital before nightfall. While a Belgian health official said the bottler had recalled several batches of suspect Coke on June 8, it was not until June 10 that remaining unopened bottles at the school were taken away, Hermans said. "It was after we had to push them a little bit in the beginning," he said. The government decided to get deeply involved on June 10, after eight children from Bruges, outside Brussels, had to be hospitalized, said Susan Grognard, an assistant to van den Brossche, the Belgian Health Minister. They said they felt sick after drinking cans of Coca-Cola and Fanta, a fruit-flavored brand owned by Coke. "From that moment, we began following it very closely," said the health official. Coke executives were summoned to van den Brossche's offices for a meeting the following day. The meeting took place at noon. About four hours later, the ministry learned that 13 more children had been hospitalized in Harelbeke, showing the same symptoms as the children in Bruges and Bornem. The news came at a sensitive time. Belgian elections were only two days away. Two ministers had already lost their jobs as a result of an earlier, unrelated scare in which animal feed contaminated with dioxin, a substance that can cause cancer, was found across Belgium. That evening, the Belgian government informed the European Commission and French officials of the steps it had taken. The Belgians also set up a call center to field questions about Coke. It received more than 200 calls by Monday, June 14. That day, 42 children were taken to the hospital in Lochristi. Eight more were hospitalized in Korttrijk the next day. As more reports of illness were made, the government ordered Coke to remove its products from schools. The removal was not a perfect process. "There was a situation where there was a vending machine in a school and the building was locked, and we couldn't get to it over the weekend," said Randy Donaldson, a Coca-Cola spokesman. On Sunday, voters removed the prime minister from office, and on Monday, the Belgian government ordered all Coke products off the market. Luxembourg enacted its own ban the next day. The government of the Netherlands banned Coke products shipped through Belgium. And health authorities in France asked Coca-Cola to shut down its plant in Dunkirk, near the Belgian border, after Coke said that a substance found on some cans shipped from Dunkirk was not normally used by the company. Coca-Cola executives said that flawed carbon dioxide, the gas that produces the bubbles in a carbonated soft drink, probably caused the smell some of the Belgian children reported. And the substance on the cans, para-chloro-meta-cresol, was traced to wooden pallets used to transport them from the Dunkirk plant. The pallets, ordered from a Dutch company, used the solvent although it did not meet Coke's specifications, said Robert Pagani, senior vice president for operations at Coca-Cola Enterprises. As the bans spread in Europe, Coca-Cola resolutely insisted that its products were not bad for anyone. "It may make you feel sick, but it is not harmful," said Rob Baskin, a spokesman at company headquarters in Atlanta. On June 16, in a statement issued at 10:30 p.m. Brussels time, Ivester issued a terse apology from Atlanta. "We deeply regret any problems experienced by our European consumers," he said. That day, German officials removed Coke products that had been bottled in France or Belgium. Consumer groups in Germany and elsewhere said the company had been less than direct and was unreassuring in its public explanations, including assertions that the drinks were safe even though people had gotten sick after consuming them. In responding, Coca-Cola executives displayed a curious indifference to the political and social concerns in Europe, which ranged from fears of dioxin to trade squabbles over bananas, surrounding the events involving their own products. In such an atmosphere, "this would be quite scary to a consumer, because you would assume that Coca-Cola, which is a totally artificial, manufactured product, would not have any problems," Arnold said. "Meat or fruit might be a risk. But not something like Coca-Cola." Ivester arrived in Brussels for the first time June 18. At one point that day he telephoned James Burke, the chairman of Johnson & Johnson during the Tylenol tampering crisis in the 1980s, and talked "at great length," according to Burke's assistant. As he did so, regional health authorities in Spain were recalling thousands of cases of Coke products, and Germany warned consumers to be sure their Cokes were made in Germany, to be safe. There were no reports of illness from Germany or Spain, and none from Luxembourg or the Netherlands. As the bans on Coke products continued into Monday, June 21, Ivester issued a memo to all of his company's 28,000 employees. The subject was the "Belgian Issue," and it said, among other things, that the company's "quality control processes in Belgium faltered." Suggesting there was no cause for alarm, he added: "I have personally tasted the products and held the packages involved with no adverse reaction." Full-page newspaper advertisements appeared that day in French newspapers, asserting the safety of Coke products and listing a toll-free number for people to call with any safety questions. At the same time, Coke circulated a toxicologist's report it had commissioned, which concluded that substances found in the products in question -- such as hydrogen sulfide and the phenol compound -- were present in amounts too small to have caused the symptoms people reported. It fanned rumors, reported in European newspapers, that people who said they got sick were actually experiencing "psychosomatic" illnesses. Coke ran ads in Belgian newspapers June 22 that consisted of a more contrite apology, topped by a photograph of a smiling Ivester. "I should have spoken to you earlier, and I apologize for that," the ad read. "Over the past several days in Belgium, we allowed two breakdowns to occur in fulfilling the promise of Coca-Cola." The next day, June 23, Belgium lifted the ban on Coke's bottled and canned soft drinks. Van den Brossche said Coke had agreed to conditions, including more quality control, set by him. By Friday, all other countries had followed suit, and complaints of illness had, for the moment at least, ceased. An investigation continues in France, focused on the Dunkirk plant. Vending machines remain shut down in Belgium until the authorities check all 11,000 of them. Tuesday the company announced a recall in Poland, this time of its Bonaqua bottled water. Mold was found growing at the bottom of 1,500 bottles, according to Coke officials, who said it was not dangerous, although Polish health officials said it could cause digestive problems.
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Shaking Things Up at Coca-Cola
- An Interview with Muhtar Kent by Adi Ignatius
Listen to an excerpt of the interview.Download this podcast Since Muhtar Kent took the helm of Coca-Cola, in July 2008, he has set a course for ambitious, long-term growth—even in a supposedly mature U.S. market—with the goal of doubling revenue by 2020. Kent has tried to rejuvenate an inward-looking, “arrogant” corporate culture and has reinvested […]
Reprint: R1110F
When Muhtar Kent took the helm at Coke, in 2008, he had two top priorities: to establish a long-term vision and to restore growth in North America. The vision called for doubling Coke’s business in 10 years—something “not for the fainthearted,” Kent says, “but clearly doable.” In this edited interview he talks about the role of social media (Coke has 33 million Facebook fans), which today get 20% of the company’s total media spend; the importance of creating sustainable communities to preserve the future of the business; and Coke’s commitment to water neutrality by 2020—which means giving back a liter of water for every one the company uses. As the CEO of a company with 140,000 employees, Kent says, “you can only influence.” He takes a low-key approach, treasures the team, and loves to visit supermarkets and observe customers.
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Under the spotlight: "It's always Cola-Cola"
The case documents The Coca Cola company’s troubles over the period from 1999 to 2000 and how the company handled each issue. First the racial discrimination suit filed in the US, then Coke’s antitrust troubles in Europe and elsewhere and finally the Belgian crisis when schoolchildren fell ill after drinking contaminated Coke.
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Crisis management in Belgium: The case of Coca-Cola
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Crisis management International business, Leadership, Management, Marketing, Case studies
Belgium was still reeling from fears over mad cow disease and from the news that the carcinogen, dioxin, had been introduced inadvertently into animal feed, when yet another health crisis rocked it. This new crisis was precipitated by consumer complaints about an irregular taste and smell in bottled soft drinks and by reports that more than 100 consumers had become ill after noticing an odour on the outside of canned soft drinks. As a result, The Coca-Cola Company, under instructions from the Belgian Health Ministry, withdrew its trade-marked products from the Belgian market. The effects of this crisis were felt not only within Europe, but also in countries as far away as Japan and India. Subsequently, the company identified specific production and distribution problems which could have contributed to the health crisis. Pursuant to the Ministry's order, the company took immediate steps to remedy those problems, and the Ministry's ban was lifted. In addition, an aggressive marketing campaign was launched in an effort to regain consumer trust, confidence, and market share. Nevertheless, this incident resulted in substantial financial costs to The Coca-Cola Company and in considerable damage to its global image and reputation.
Introduction
First it was mad cow disease, then it was tainted animal feed. As Belgians were reeling from the crisis over cancer-causing dioxin in animal feed leading to the withdrawal of certain meats, eggs and dairy products from supermarkets, yet another health crisis rocked the nation. The effects were to be felt throughout Europe with rumblings heard as far away as Japan and India. This time it was a soft drink that was the cause for concern. On 14 June 1999, in a move that was to cost more than $200 million in expense and lost profits and cause damage to the brand image of the trade-marked products of The Coca-Cola Company (CCC), the Belgian Health Ministry ordered that Coca-Cola trademarked products be withdrawn from the Belgian market and warned Belgians not to drink any Coca-Cola trade-marked products they had in their homes. Later, France, Luxembourg and The Netherlands also banned or restricted the sale of Coca-Cola products.
The production and distribution of Coca-Cola
The CCC, with...
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Teaching and learning
Coca Cola Change Management Case Study
Change is an inevitable part of running a successful business, and companies must adapt to remain competitive. However, managing change can be a daunting task, especially for large organizations.
One company that successfully navigated the challenges of change management is Coca Cola. Over the years, Coca Cola has undergone several significant changes, ranging from product diversification to restructuring its organizational structure.
In this blog post, we will take a closer look at Coca Cola’s change management journey, exploring the strategies the company used to overcome challenges, and the successful outcomes that resulted from these efforts.
The blog post aims to provide valuable insights for businesses looking to implement change management strategies, exploring the importance of effective communication, strong leadership, planning, and implementation, and the role of employees in the change management process.
Background and History of Coca Cola
Coca Cola is one of the world’s most recognizable brands, known for its signature soft drink, which was first introduced in 1886 by a pharmacist named John Pemberton.
The original formula for Coca Cola included coca leaves and kola nuts, which gave the drink its name. The company quickly gained popularity, and by the early 1900s, Coca Cola was being sold in every state in the United States.
Over the years, Coca Cola has expanded its product line to include a variety of beverages, including Sprite, Fanta, and Dasani. Today, the company operates in more than 200 countries and has over 500 brands under its umbrella.
Coca Cola has also undergone several significant changes in its organizational structure, including the creation of a global business unit system in 2007, which aimed to streamline operations and improve efficiency.
Despite its success, Coca Cola has faced several challenges over the years, including changing consumer preferences, increased competition, and shifting market trends. To remain competitive, the company has had to adapt and implement change management strategies to navigate these challenges effectively.
Coca Cola’s need for change
As a large and established company, Coca Cola has faced numerous challenges that have necessitated change. One of the most significant challenges the company has faced is the changing consumer preferences, particularly in the area of health and wellness.
Many consumers are seeking healthier alternatives to sugary drinks, which has led to a decline in sales of Coca Cola’s traditional soft drinks.
To remain competitive, Coca Cola has had to diversify its product line, introducing low and no-sugar options, such as Diet Coke and Coca Cola Zero, and expanding its portfolio to include juices, teas, and water. This diversification has required a significant shift in the company’s product development and marketing strategies, as well as changes to its supply chain and distribution networks.
In addition to changing consumer preferences, Coca Cola has also faced increasing competition from other beverage companies, including PepsiCo and Nestle. These companies have developed their own product lines and marketing strategies, posing a significant threat to Coca Cola’s market share.
To remain competitive and meet the changing demands of its consumers, Coca Cola has had to implement change management strategies to navigate these challenges effectively. These strategies have included restructuring its organizational structure, investing in research and development, and leveraging technology to improve efficiency and streamline operations.
Change Initiatives the Coca Cola successfully implemented in the past
Coca Cola has implemented several successful change initiatives over the years to remain competitive and adapt to changing market trends. Some of these initiatives include:
- Diversification of product line: Coca Cola has expanded its product line to include a variety of beverages, including low and no-sugar options, juices, teas, and water, to meet changing consumer preferences and compete with other beverage companies.
- Restructuring of organizational structure: In 2007, Coca Cola implemented a global business unit system, which aimed to streamline operations and improve efficiency. This restructuring allowed the company to respond more quickly to market changes and better meet the needs of its customers.
- Leveraging technology : Coca Cola has leveraged technology to improve efficiency and streamline operations, including the use of automation in manufacturing processes, the implementation of digital marketing strategies, and the use of data analytics to inform decision-making.
- Investment in research and development: Coca Cola has invested heavily in research and development to create new products, improve existing ones, and remain competitive in the market. This investment has included the development of new sweeteners, packaging innovations, and sustainability initiatives.
Change Management Strategies of Coca Cola
Implementing successful change initiatives requires effective change management strategies. Coca Cola has implemented several strategies to manage these changes, including:
- Clear communication: Effective communication is essential in managing change. Coca Cola has made a concerted effort to communicate changes clearly to its employees, customers, and stakeholders. This communication has included regular updates on the progress of change initiatives, explanations of why changes are necessary, and the benefits of the changes.
- Strong leadership: Strong leadership is critical to the success of change initiatives. Coca Cola has emphasized the importance of leadership in driving change, providing training and development opportunities for leaders, and setting clear goals and expectations.
- Planning: Effective planning is essential in managing change. Coca Cola has developed comprehensive plans for implementing change initiatives, including timelines, budgets, and milestones. These plans have been regularly reviewed and adjusted as necessary to ensure that they remain on track.
- Employee involvement: Engaging employees in the change process is crucial for success. Coca Cola has encouraged employee involvement in change initiatives, seeking input and feedback on proposed changes and involving employees in the planning and implementation process.
- Continuous monitoring and evaluation: Monitoring and evaluating the progress of change initiatives is essential in ensuring their success. Coca Cola has established monitoring and evaluation mechanisms to track the progress of change initiatives and adjust them as necessary to ensure that they remain on track and achieve the desired outcomes.
Challenges in implementing change initiatives
Coca Cola has faced several challenges in implementing change initiatives. Some of the most significant challenges include:
A. Resistance from employees: Change initiatives can be met with resistance from employees who may be hesitant to change established work processes or fear that the changes may affect job security. Coca Cola has addressed this challenge by emphasizing the benefits of change to employees, providing training and development opportunities to equip employees with the necessary skills and knowledge, and involving employees in the planning and implementation process.
B. Difficulty in changing company culture: Company culture can be difficult to change, particularly in large and established organizations like Coca Cola. The company has addressed this challenge by implementing change initiatives gradually, ensuring that the changes align with the company’s values and vision, and involving employees in the process to create a sense of ownership and accountability.
C. Technological challenges: Implementing new technologies can be challenging, particularly in an industry as complex as the beverage industry. Coca Cola has addressed this challenge by investing in research and development to identify and implement new technologies, partnering with technology companies to develop and implement new systems, and providing training and development opportunities to employees to ensure that they are equipped to use new technologies effectively.
D. Addressing these challenges: To address these challenges, Coca Cola has developed strategies to manage change effectively, including clear communication, strong leadership, effective planning, employee involvement, and continuous monitoring and evaluation. By implementing these strategies, Coca Cola has been able to navigate these challenges and successfully implement change initiatives to remain competitive in the beverage industry.
Final Words
The importance of change management in large companies cannot be overstated. Change is a necessary component of growth and competitiveness, particularly in today’s rapidly changing business environment. Effective change management strategies are essential to ensure that change initiatives are successfully implemented, and the desired outcomes are achieved.
Coca Cola’s change management journey is an excellent example of how large organizations can navigate change successfully. The company’s commitment to effective change management strategies has enabled it to remain competitive in the beverage industry, adapt to changing market trends, and continue to grow and innovate. Overall, Coca Cola’s journey underscores the importance of effective change management in achieving long-term success in today’s business environment.
About The Author
Tahir Abbas
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Corporate Communications: An International Journal
ISSN : 1356-3289
Article publication date: 1 March 2003
Belgium was still reeling from fears over mad cow disease and from the news that the carcinogen, dioxin, had been introduced inadvertently into animal feed, when yet another health crisis rocked it. This new crisis was precipitated by consumer complaints about an irregular taste and smell in bottled soft drinks and by reports that more than 100 consumers had become ill after noticing an odour on the outside of canned soft drinks. As a result, The Coca‐Cola Company, under instructions from the Belgian Health Ministry, withdrew its trade‐marked products from the Belgian market. The effects of this crisis were felt not only within Europe, but also in countries as far away as Japan and India. Subsequently, the company identified specific production and distribution problems which could have contributed to the health crisis. Pursuant to the Ministry’s order, the company took immediate steps to remedy those problems, and the Ministry’s ban was lifted. In addition, an aggressive marketing campaign was launched in an effort to regain consumer trust, confidence, and market share. Nevertheless, this incident resulted in substantial financial costs to The Coca‐Cola Company and in considerable damage to its global image and reputation.
- Crisis management
- International business
- Case studies
Johnson, V. and Peppas, S.C. (2003), "Crisis management in Belgium: the case of Coca‐Cola", Corporate Communications: An International Journal , Vol. 8 No. 1, pp. 18-22. https://doi.org/10.1108/13563280310458885
Copyright © 2003, MCB UP Limited
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- DOI: 10.1108/13563280310458885
- Corpus ID: 153634173
Crisis management in Belgium: the case of Coca‐Cola
- V. E. Johnson , Spero C. Peppas
- Published 1 March 2003
- Environmental Science, Business, Medicine
- Corporate Communications: An International Journal
37 Citations
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- Phone: +414 483 59 111
- Email: [email protected]
- Address: Coca-Cola HBC AG Turmstrasse 26 Zug 6300 Switzerland Zug 6300 Switzerland
- Phone: +374 105 41 028
- Address: Coca-Cola HBC Armenia, Tbilisyan Highway Lane, 8/3 Building Yerevan, 0052, Armenia
- Phone: +431 610 60 0
- Address: Coca-Cola HBC Austria, Clemens-Holzmeister-Straße 6, Vienna, 1100, Austria
- Phone: +375 172 10 0210
- Address: Coca-Cola Beverages Belorussiya FE, Kolyadichi, Minsk District, 223010, Belarus
Bosnia and Herzegovina
- Phone: +387 332 84 100
- Address: Coca-Cola HBC B-H Sarajevo, Mostarsko raskrsce bb, Hadzici, 71240, Bosnia-Herzegovina
- Phone: +359 2 92 14 600
- Address: Coca-Cola HBC Bulgaria, Coca-Cola Business Center, 8 Racho Petkov Kazandzhiyata Str., Sofia, 1766, Bulgaria
- Phone: +385 124 80 222
- Address: Coca-Cola HBC Croatia, Milana Sachsa 1, Zagreb, 1000, Croatia
- Phone: +357 228 85 000
- Address: Coca-Cola HBC Cyprus, 66 Kyriacos Matsis Ave., Nicosia, 2409 Engomi, Cyprus
Czech Republic and Slovakia
- Phone: +420 283 01 5111
- Address: Coca-Cola HBC Czech Republic, Ceskobrodska 132 9, Praha, 198 21, Czech Republic
- Phone: +0224047111
- Address: 6th District, industrial zone, Nasr city, Cairo, Egypt
- Phone: +372 650 31 00
- Address: Coca-Cola HBC Estonia, A.H. Tammsaare tee 92, Tallinn 13423, Estonia
- Phone: +302 106 38 1700
- Address: Coca-Cola HBC Greece, 60 Kifissias ave, Athens, 151 25 Maroussi, Greece
- Phone: +36 24 500 500
- Address: Coca-Cola HBC Hungary, Nemedi ut 104, Dunaharaszti, H-2330, Hungary
Ireland and Northern Ireland
- Phone: +353 188 07 100
- Address: Coca-Cola HBC Ireland, Huntstown Business Park, Cappagh Road, Ballycoolin, Dublin 11, Ireland
- Phone: +390 227 07 71
- Address: Coca-Cola HBC Italia, Piazza Indro Montanelli, 30, Sesto San Giovanni Milano, 20099, Italy
- Phone: +383 38 540 690
- Address: Km 5 ,rr. Prishtine- Shkup, Prishtine, 10000, Kosovo
- Phone: +371 671 09 999
- Address: Coca-Cola HBC Latvia, Ulbrokas str. 40, Riga, 1021 Latvia
- Phone: +370 5219 9104
- Address: Coca-Cola HBC Lithuania, Spaudos str. 6-1, Vilnius, LT- 05132, Lithuania
- Phone: +234 127 06 670
- Address: Nigerian Bottling Company, Leventis Building, 3rd floor, Iddo House, Iddo PO Box 159, Lagos Nigeria
North Macedonia
- Phone: +389 226 11 314
- Address: Pivara Skopje, Str. 808, No. 12, Skopje, 1000, Republic of North Macedonia
- Phone: +482 251 95 100 / 101
- Address: Coca Cola HBC Poland, ul. Żwirki i Wigury 16, Warsaw 02-092, Poland
- Phone: +402 120 21 400
- Address: Coca-Cola HBC Romania, Global City Business Park, Building 2, 10, Bucuresti Nord Str., Voluntari, Ilfov, 077190 Romania
Multon Partners
- Phone: +8 800 700-77-77
- Address: Coca-Cola HBC Eurasia, Novoorlovskaya str. 7, Moscow, 119 633
Serbia and Montenegro
- Phone: +381 11 30 73 100
- Address: Coca-Cola HBC Serbia, 14-16, Batajnicki Drum str., Zemun, 11080, Serbia
- Phone: +386 158 90 400
- Address: Coca-Cola HBC Slovenia, Motnica 9, Trzin, 1236, Slovenia
Switzerland
- Phone: +41 (0) 44 835 91 11
- Address: Coca-Cola HBC Switzerland, Thurgauerstrasse 134, 8152 Opfikon, Switzerland
Ukraine and Moldova
- Phone: +380 444 90 0707
- Address: Coca-Cola Beverages Ukraine, 51st km of St. Petersburg, Highway Velyka Dymerka, Kyiv, 07 400, Ukraine
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Market sites
Incident management and crisis resolution, incident management and crisis resolution (imcr).
At Coca-Cola HBC we understand the importance of having a robust crisis management programme.
While we work hard to prevent them, we know that incidents will happen from time to time. However, they do not have to become a crisis. That often depends on how we respond to the incident. The Coca-Cola System has developed the Incident Management and Crisis Resolution (IMCR) programme to support our management of incidents.
The IMCR programme helps us to be consistent in the way we manage incidents, preventing further escalation and resolving them fully to protect the health and safety of our people and the public, our assets and our reputation.
The four key elements of our programme are:
1 - Development of IMCR Plans
To ensure a consistent capability across the Group, local IMCR plans are developed using the approach, style and format provided by the Group Business Resilience function. This strategy is aligned to the The Coca-Cola Company IMCR framework and methodologies.
2 - IMCR Training and Validation
All Business Unit IMCR teams receive training and simulation testing every two years . Refresher training is also provided to the ELT, senior leaders and operation teams as required.
An online IMCR training tool and a computer crisis simulator have been developed to support the programme and aim to enhance overall business awareness of incidents and our response.
3 - IMCR Activation and Reporting
Business Units in collaboration with their TCCC counterparts implement local processes and procedures to ensure that potential IMCR events are identified and escalated in a timely manner to the local IMCR Initial Assessment Team (IAT) for evaluation.
Early warning and identification is critical, and if the IAT forms the view that the event will be managed under the process, the incident is logged on the IMCR Reporting tool and classified accordingly.
Where incidents could affect more than one Business Unit or impact the reputation of our business system and brands, incidents can be escalated to the Group IMCR Team. This team is then responsible for ensuring appropriate resources and expertise are provided to prevent the incident from becoming a crisis and ensuring the Executive Leadership Team and the Board are engaged as appropriate.
4 - Lessons Learned
It is critical that as a system we learn from each incident that we manage. To enable this, we require that a lessons learned session be held for all incident response activations.
Our ultimate aim
Our ultimate aim is the protection of our most valuable assets: our people, our relationships and our reputation.
All Business Unit IMCR teams receive training and simulation testing every two years. Refresher training is also provided to the ELT, senior leaders and operation teams as required.
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COMMENTS
The Coca Cola crisis management case study serves as a reminder that crisis management is not just about resolving immediate issues but also about building trust, maintaining open communication, and continuously improving processes. By incorporating these lessons, organizations can transform crises into opportunities for growth and demonstrate ...
By 2004 Neville Isdell, former chairman and CEO of Coca-Cola Beverages Plc in Great Britain, was called out of retirement to improve Coca-Cola's reputation; however, the com- pany continued to face ethical crises. These problems aside, Coca-Cola's overall perfor- mance seemed to improve under Isdell's tenure.
Bottom Line: Coca-Cola's response to accusations that it financed a front group to protect its interests at the expense of public health is a case study in PR crisis management. The op-ed by Coca-Cola CEO Muhtar Kent epitomizes a corporate response that contains the essential elements of effective corporate PR crisis management.
How Coca-Cola came to terms with its own water crisis. Analysis by Barie Carmichael. and. Brian Moriarty. May 31, 2018 at 5:12 p.m. EDT. Criticism of Coca-Cola became a flashpoint both locally in ...
This exhaustive case study delves deep into the New Coke debacle of 1985, an iconic moment in marketing history when Coca-Cola attempted to introduce a new formula to compete with Pepsi, only to ...
While the firm had a crisis management strategy, he said, "The crisis was bigger than any worst-case scenario we could have imagined." Coca-Cola's muted initial approach to its problems appears to have backfired. In a news conference in Brussels last week, company chairman M. Douglas Ivester said he had chosen to "take a lower profile on this ...
Summary. When Muhtar Kent took the helm at Coke, in 2008, he had two top priorities: to establish a long-term vision and to restore growth in North America. The vision called for doubling Coke's ...
The case documents The Coca Cola company's troubles over the period from 1999 to 2000 and how the company handled each issue. First the racial discrimination suit filed in the US, then Coke's antitrust troubles in Europe and elsewhere and finally the Belgian crisis when schoolchildren fell ill after drinking contaminated Coke.
Crisis management International business, Leadership, Management, Marketing, Case studies. Abstract. Belgium was still reeling from fears over mad cow disease and from the news that the carcinogen, dioxin, had been introduced inadvertently into animal feed, when yet another health crisis rocked it. This new crisis was precipitated by consumer ...
The case describes the crisis in detail and discusses how Coca-Cola managed it. The way Coca-Cola handled the Belgian crisis was a classic example of one of the worst public relations fiascos in the corporate history. The case also highlights the need and importance of a crisis management plan to prevent such fiascos in future.
available research utilising Coca-Cola as a case study. ... 2012) and crisis management (Johnson & Peppas 2003; Taylor 2000) has bee n looking into the . case of Coca-Cola.
Coca Cola Change Management Case Study. Tahir Abbas February 26, 2023. Change is an inevitable part of running a successful business, and companies must adapt to remain competitive. However, managing change can be a daunting task, especially for large organizations. One company that successfully navigated the challenges of change management is ...
This new crisis was precipitated by consumer complaints about an irregular taste and smell in bottled soft drinks and by reports that more than 100 consumers had become ill after noticing an odour on the outside of canned soft drinks. As a result, The Coca‐Cola Company, under instructions from the Belgian Health Ministry, withdrew its trade ...
Barkay Greenhalgh, 2019 Crisis management in Belgium: the case of Coca-Cola. ... To that end, a qualitative case study of The Coca-Cola Company was used as the basis for this research. The ...
Crisis management in Belgium: the case of Coca‐Cola. This crisis was precipitated by consumer complaints about an irregular taste and smell in bottled soft drinks and by reports that more than 100 consumers had become ill after noticing an odour on the outside of canned soft drinks. Expand.
The Coca-Cola System has developed the Incident Management and Crisis Resolution (IMCR) programme to support our management of incidents. The IMCR programme helps us to be consistent in the way we manage incidents, preventing further escalation and resolving them fully to protect the health and safety of our people and the public, our assets ...
The case discusses the crisis faced by Coca-Cola in Europe, particularly Belgium, in which people mostly school children fell ill after consuming its products in mid-1999. Coca-Cola had to recall about 30 million cans and bottles, the largest ever product recall in its 113-year history. For the first time, the entire inventory of Coca-Cola's products in Belgium was banned from sale.
Coca-Cola has steadily executed well during its lengthy business period also it has gained valued brand names on the planet. From 1999 to 2013 Coca cola has faced various ethical issues to achieve ...
Coca-Cola is the world's largest beverage company that operates the largest distribution system in the world. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five top-selling soft drinks to earn sales such as Coke, Diet Coke, Fanta, and Sprite. This process builds ...
CASE STUDY 4: Coca Cola contamination containment MGT4202: Project Risk Management The following is a classic case in crisis management. For the purpose of this assignment you will assume the role of the corporate risk manager completing a lessons-learned analysis on how the Coca-Cola company managed the risks that triggered in the summer of 1999 in Belgium and France.
The Coca-Cola crisis management case study serves as a reminder that crisis management is not just about resolving immediate issues but also about building trust, maintaining open communication, and continuously improving processes. By incorporating these lessons, ...
This document discusses issues faced by Coca-Cola and PepsiCo in India related to stakeholder management, crisis management, business ethics, and issue management. Testing found high levels of pesticides in Coke and Pepsi drinks. Local communities near Coke plants experienced water shortages. Both companies violated environmental ethics in India by drawing water from stressed areas. To protect ...
Coca-Cola was the sixth most valuable brand in the world according to Interbrand's "best global brand" analysis of 2020. (Insights from Coca Cola Crisis Management Case Study, 2023) The company expanded into foreign markets as it gained popularity, opening its first international bottling
American Express and Coca-Cola do business around the world. We made the commitment in Japan 5 years ago (5 large Japanese trading companies) that was compelling.