Business Crisis Management Report: PepsiCo's Challenges and Strategies

This report provides a comprehensive analysis of PepsiCo's business crisis management, focusing on the challenges faced due to false rumors and the diet coke crisis. The report begins with an executive summary and an introduction to the company, including its background and turning points. The main body delves into the company's history, the function of the Business Continuity Plan (CBP), and the pivotal crises encountered, such as the syringe incident in 1993. It explores the impact of these events on PepsiCo's reputation and offers recommendations for rebuilding customer trust and preventing future crises. The report emphasizes the importance of adapting to changes in consumer behavior, utilizing digital platforms for customer interaction, and innovating to maintain a strong brand presence. It concludes with a summary of findings and recommendations, supported by references, to ensure business continuity and effective crisis prevention.

BUSINESS CRISIS MANAGEMENT
REPORT

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................................................3
1INTRODUCTION........................................................................................................................................................4
2MAIN BODY................................................................................................................................................................4
1Background of Pepsi co............................................................................................................................................4
2Turning point of Pepsi. Co........................................................................................................................................5
Pivotal crises:..............................................................................................................................................................7
RECOMMENDATION..................................................................................................................................................9
CONCLUSION ..............................................................................................................................................................9
3REFERENCES............................................................................................................................................................11

EXECUTIVE SUMMARY
This report is based upon the Pepsi co which is carried to be the second largest food and
beverages next to nestle. As they carry the renowned brand name in market due to providing the
quality services at reasonable prices. As they are famous in respect of fulfilling the customer
needs and demands at larger level. This report undertakes the crises relating to facing false
rumours which is spread by the customer in respect of getting syringe in diet cans. As this
statement is presented false by the Pepsi co in respect of getting false reputation of the company
and also, they are diverting the mind of the customer towards such products. Thus, in such
aspects the crises re undertaken and also the new proposal is designed to attract the customer
towards the services for longer time period. The main reason of carrying the new business
proposal is that they had to sustain the position in market through rebuilding the interest of the
customer towards such products for longer time period. Thus, the reason of conducting their
report is that Pepsi co is famous in giving quality services with reasonable prices as compared to
its competitors. Thus, it resulting in identifying its factors which resulting in gathering many
information regarding the company working techniques.

1 INTRODUCTION
In respect of undertaking the matter related to business crises, it is examined through not
adapting the strategies in better way. Through these aspects the results arise in respect of facing
losses in company and also the management is also dissolved in respect of not retaining the
employees and customer for longer time period (Young, Rao and Rosamilia, 2016). Thus, in
such manner the report is prepared for the Pepsi. co which was founded in 1898 by Caleb
Bradham. They are engaged with around 2,63,000 employees carrying the business at large
scale. They undertake the procedure and also merged with the Pepsi cola company. The report
will undertake the matter related to preparing the report related to situation analysis, in which the
situation is undertaken in respect of facing crises relating to dealing with the customer or
promoting the products at global level.
2 MAIN BODY
1 Background of Pepsi co
Pepsi co is mainly engaged in dealing the products related to drinks or food and also deal
in many countries. As after undertaking the procedure of the merger, they are exporting the
products to around 200 countries. As due to carrying the renowned brand name in market, they
are dealing the business globally and also earning high amount of profits through their products
or services. After the products of nestle, Pepsi co is considered to be the second larger chain in
context of food and beverages in world. Thus, they carry the renowned brand image in the
sectors of the beverages (Khalid, Batool and Khaver, 2018). The main objectives to which they
sustain the business in work is that they maintain the balances between the company
performances and also the rates so that it is easily available to all the class of the people. In
respect of seeking the competitors in market, they had to grab the strategies which is used by the
competitors such as in respect of coca cola, they are serving much cheaper prices to the
customers. Through this procedure they are attracting and building the large base of customer.
Function and purpose of using the CBP (Continuity of business plan)
Under this procedure, it is initiated in respect of using such procedure which can resoled
the issue regarding any threats raised in dealing in any such products. As in respect of Pepsi. Co
the threats is raised in many aspects in respect of competitors regarding promoting the same
products in market or in context of facing serious health issues after availing such products.
Thus, in such manner the business continuity plan is implemented in context of dealing in such

matter which can reduce the integrity of the business threats in market through attracting the
large number of customers.
In respect of describing the crises which is faced by Pepsi. Co is that in 1993 the matter
related to diet coke crises as many customer complaints regarding finding syringe in Pepsi co
and due to these aspects, most of the customer allows make the false complaint regarding taking
high compensation from the company. But in few cases the statement is true as they proved that
the Pepsi is using such aspects which results in harming the person in high aspects (Antonelli and
Ruini, 2015). As through this procedure, they are filling complaint against the Pepsi co and its
supplies which are providing such services to the customer. In respect of building the trust
among the customer, they are mainly attracted in respect of getting the fair services and the
products which they are availing is resulting in providing the best quality. Thus, in such the issue
which is raised in 1993 relating to syringe found in coke cans resulting to affecting the reputation
and goodwill of the company.
Thus, in such aspects, the threats which is to be resolved is undertaken in respect of using
different procedure to attract the customer needs. As due to changes in time, most of the
customer are using the online platform to gather more information regarding the company
working. Thus, in such manner by adapting the procedure relating to interacting with customer
personally, Pepsi. Co can use the digital platform to interact with them (Kim and Lee, 2018). The
function of the CBP is that in respect of using the digital platform is that customer is satisfied if
they watch the live preparation of the foods. Thus, in such manner it is undertaken to share the
videos regarding the preparation of the drinks so that they can rebuild the interest of customer in
better way. The purpose of the CBP is that they can reduce the threat in business and also
manage the overall activity in better way.
2 Turning point of Pepsi. Co
In context of determining the turning point of the Pepsi. Co, it is examined that after
having continuous success and deal with four most of the earning brand which is relating to
Tropicana, Pepsi cola, Quaker and Frito. Through undertaking such beverages, it results in
increasing the sales in company which resulting in spreading around 200 countries. In context of
undertaking the matter related to examining the turning point, it results in focusing more on
health factors instead of giving the products which is already in market. As through these
aspects, the customer is mainly preferring the products which is eco-friendly and also prepared

from organic substances (Syed and Tariq, 2018). Thus, in such aspects they blindly prefer to
purchase such products. As before that no such concept is executed in market or also no
companies deal in manufacturing such organic concepts.
Thus, in such manner the situation analysis is undertaken in respect of producing such
products which is not only useful for the youth or senior age person but also benefits for kids. As
in recent time, kids mainly prefer such beverages at large scale so as such it is designed in
respect of not causing harm to any person but also the facts and calories are also controllable
(Levallois, Smidts and Wouters, 2019). The main reason of attaining the success in business is
that company is satisfied that they carry the three main things which retaining their business
position in market.
● The first major aspects are relating to the carrying the strong brand name as they carry the
second largest brand after the name of the nestle. Thus, in respect of promoting the
products through organic items, then they can easily attract the customer towards the
products.
● The second aspects are relating to innovation and differentiation from the existing
products. Thus, in these aspects the innovation is done in respect of designing such
products or promoting them to large number of customers (Nosova, 2015). As promotion
is done through using the television mode but now days social media marketing is useful.
Thus, in respect of promoting the organic soft drinks resulting in attracting the large
customer and also, they promote the products through mouth to mouth conversation.
● The third main points are relating to using such technique to build the strong base of
customers. As this is undertaken by focusing more on the youth and traveller by
providing the chilled cold drinks. As this is some type of references which the youth is
finding and if they are dealing in organic, it results in attracting the customer interest
easily.
Thus, this is considered to be one of the most turning point for the company in respect of
fulling the interest of customer and also the objectives which they set is also achieved. The
objectives which is relating to providing the valuable services to customer with best quality is to
be stipulated and also the set target is undertaken to the employees to work hard and also fulfil
the goal which is assigned to them (Ali, 2018). The significances which is undertaken to

organisation is that they earned more revenue in company through selling the products which
resulting in around US $43.2 billion profits. Thus, through this perspective, it resulting in
bringing major advantages in respect of dealing the business through digital marketing. As
through these aspects they can also take feedback from the customer after availing the particular
products. By this procedure, they can gather more relevant information and also make the
strategies by adapting such changes which is allotted by customer. The implication which is
drawn in these aspects is that it is necessary to use such strategies which not exploit the interest
of the customer and also, they had to undertakes such polices which satisfy the needs of the
employees working under the premises in better way.
Pivotal crises:
In respect of undertaking the matter related to pivotal crises, it is related to the game
changer as due to these aspects it results in facing heavy losses to the company. In context of the
claims which is raised by the customer regarding finding any harmful substance in the diet can
affects the right and interest of the customer towards the products. In relation to the matter which
is undertaken in 1993 relation to negative response from customer or also rumours are raised
regarding not attaining or conducting the proper care while manufacturing the products. As the
negative reviews regarding the renowned brand name in market, affects the right of the parties
(Handsley and Reeve, 2018). This also resulting in giving rise to any new crises which affects
the company working in better way. The new crises which is arises is resulting to reaching to
customer through promoting the healthier drinks in market. As every body temperature had
different measures regarding undertaking the particular ingredients and also its situation is also
different to give the reaction. Thus, it is not necessary that such products suit the body or also
results in giving positive signs. Thus, in such manner the issue is raised regarding not getting
positive response from the new products which is launched by the Pepsi co company.
In relation to undertaking the matters related to pivotal crises it carries various stages
which helps Pepsi co to chose the right methods o resolve from such crises. It carries the
following stages such as:
 Foundation of the crises: In these aspects the task is to be promoted in market to
determined its stability to attain the customer in better way. Thus, in such aspects
appropriate training is undertaken so that they can resolve the issue is better way. In

respect of dealing the business online, accurate knowledge is gathered to resolve the issue
which is enhanced at work place and also to resolve in right manner.
 Identity: In context of facing any issue, appropriate mode is selected to resolve such issue
in better way (Rothlin and Mccann, 2016). As in these factors quick action is undertaken
so that matters can be resolved easily. As in these aspects the workers are trained in
respect of guiding them in right manner. So that they can itself identify the matters and
resolve it in better way.
 Morality: In these aspects the values, culture and norms are to be maintained by taking
care of the internal and external stakeholders. In respective of these matters, the actions
are to be undertaken within the stipulated time, so that they can resolve the issues in
better way.
 Impending any types of crises: In such manner, communication plan is undertaken in
respect of rebuilding the trust of the customer again (Blood, 2018). As through their
interest, company is sustaining their position in market and reach to large global level
through their innovative techniques and ideas.
Thus, in respective of these four stages, Pepsi co company find themselves under
managing the morality in business. As they are dealing with every caste and culture of the people
and thus, they are making appropriate strategies to fulfil their needs in better way (Maiorescu and
Wrigley, 2016). As through maintaining the customer interest for longer time period resulting in
gaining major benefits in market. They had to also rebuild the customer interest in respect of
innovating new products in market.
In respect of continuity if the business proposal, it is determining as to bring the naked
juices products in foreign market of the Australia. As this is one of the most demanding products
and also its internal stability is undertaken to gather its performance (Knežević and Pavlović,
2019). Its SWOT analysis is conducted to gather the information which resulting in determine
the overall integrity of the Pepsi co. As these juices is designed with using the organic
ingredients thus it is necessary to attract the large number of customers by fulfilling their demand
in better way. Thus, this is considered to be the new business continuity proposal in respect of
overcoming from the issue which they faced in respect of recovering from the false rumours
which is spread by the customers. Customer are the main source of the income of the company

and also their basic objective is to satisfy them by providing the quality services with reasonable
prices.
RECOMMENDATION
Thus, in respect of undertaking the reviews which is raised in this report and also the
consequences which is faced by the Pepsi co regarding reaching to large customer can be
fulfilled through following aspects such as:
1. Providing accurate training to staff regarding facing the issue itself and also can be
prepared with their cation plan which they had to undertake in respect of reducing risk.
As most of the issue are raised through not guiding the employees in right manner. Thus,
in such aspects they cannot resolve the issue itself.
2. Proper use of social media platform is undertaken in respect of innovative any such
products which fulfil the customer demand and needs in right manner. As if the customer
had come across any negative review from customer, they can personally resolve such
issue by taking proper feedback once they avail the services of the company. In these
aspects it resulting in undertaking the accurate use of the digital platform to interact with
customer personally and then reach to such gaol in better way.
3. Another aspect through which the critical issue and crises can be reviled is relating to
enchasing the communication skills at work place. As most of the issue is undertaken in
respect of not having free communication between the department and this resulting in
not interacting or taking approval before implementing any such matters (Grigore and
Molesworth, 2018). Thus, they cannot reach to customer personally and resolve such
barriers which is raised by them. Thus, in such aspect it is useful in choosing the
communication for getting better results.
CONCLUSION
From the above study, it is concluded that Pepsi. Co is considered to be one of the second
largest company dealing in products related to food and beverages. As they are renowned in
respect of innovating the products as per the customer needs. They also take the reviews from the
customer in respect of reaching to them personally or also promoting their products through
mount to mouth interaction. As it is examined that they are offering the products lower than the
prices from coke. In this study, the company faces various crises as also different complains are
raised from the customer regarding finding harmful substances in the cans. Thus, in respect of

examining the matter continuity of business plan is undertaken to resolve the crises which to be
undertaken in near future.

3 REFERENCES
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