Company's Option On Consumer Protection

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Section 4. Company’s options in consumer protection: What options were available to Odwalla as of October 30, 1996? Identify three options and evaluate these options using the following criteria: financial cost to the company; corporate image and public relations; and corporate values. (24 marks) Recalling back the products from the market – Recalling the odwalla products from the market based on which slot of the products may have contained the e-coli bacteria would be the right step. By minimizing the presence of any odwalla products in the market from the first news of the e-coli outbreak it was a intelligent decision to stop any further chances of any more outbreaks which could have further decapitated the company image. Before doing the re-call of the products the options with the company was to order a stop to any sales of the odwalla products at the distribution points and at the same time communicate about “a health risk” due to possible contamination. Informing the public on the authenticity of the situation and taking full measures to minimize any repercussive reactions through adequate public relations on the measures taken by the company to address the problem – At the same level to adequately inform the public on the possible contamination, through a effective communication strategy which can minimize wild hoaxes would be the next step. An effective communication strategy where the public is aware round the clock about the steps the organization is taking not only to zero in on the problem but at the same time standing up for those affected and informing the public through advocacy puts the brand image of the company as a company which cares for its products, its consumers and its ethical responsibilities. Though in the time-span of the problem period the sales and the financial figures may be affected but these crucial steps would take the

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