Coke and Pepsi Issues

A crisis can be defined as a turning point, our habitual strengths and coping mechanisms have been surpassed and a new approach has to be developed. According to Barnes (1984:115) “crisis intervention focuses on the reduction of anxiety in the client alongside the mobilisation of hope and the restoration of a sense of autonomy and control over the situation.

Crisis is a term defined as a disruption in an individual(s) or family's normal routine of functioning (DSHS, 2013). The main cause of a crisis can be very stressful and traumatic. Crisis for one individual may not be a crisis for another individual. According to DSHS, there are three elements that make up a crisis: a stressful situation, difficulty in coping, and the timing of the intervention (2013). Crisis can range from a minor event such as failing a class needed for graduation, to major life changes such as a death in the family or getting a divorce. Crisis intervention is a way to identify when an individual(s) is not coping properly. Everstine and Everstine describes crisis intervention as the “form of psychological help, that is focused on therapeutic contact, concentrated on the problem, that caused the crisis, limited in time, when the person is confronted with the crisis and has to solve it. That kind of help let us reduce the crisis response and minimize functional impairment” (2006).

Crisis intervention involves three components: 1) the crisis, the perception of an unmanageable situation; 2) the individual or group in crisis; and 3) the helper, or mental health worker who provides aid. Crisis intervention requires that the person experiencing crisis receive timely and skillful support to help cope with his/her situation before future physical or emotional deterioration occurs.

The word “crisis” can be defined as any of the following definitions; “an emotionally significant event or radical change of status in a person's life; the decisive moment during an event; or an unstable or crucial time or state of affairs in which a decisive change is impending, especially: one with the distinct possibility of a highly undesirable outcome.” (Crisis).

Identify which stage of disaster management is described in the case study above and support your response with a rationale.

Medically speaking, crisis refers not to a situation but the reaction a person has toward a traumatic event. In a certain situation, one might have an intense reaction while another may

“A crisis occurs when a stressful life event overwhelms an individual’s ability to cope effectively in the face of a perceived challenge or threat” (Arnold & Boggs, 2011, pg. 415). When people are in a crisis situation they tend to forget their normal coping measures. When people train on crisis situations, they tend to perform better during a crisis event. “A favorable outcome depends on the person’s interpretation of the crisis, perception of coping ability, resources, and level of social support” (Arnold & Boggs, 2011, pg. 416).

The first stage is Precondition which is when the smaller events happen that lead up to the major crisis. An example of this is Flint Michigan Water crisis this issue began in 2014 when the city officials switched Flint Michigan drinking water which leads to the death of their residents.

Although not everyone that comes across a stressor in life will experience a crisis, some are unable to cope with the stressor in a healthy manner and eventually succumb to a crisis. If this person does not receive the adequate crisis intervention during this state, he or she is likely to be unable to function at the level he or she had been functioning before the crisis. This will inevitably lead to additional crisis scenarios for every stressor they must face in life. “This pattern can go on for many years until the person’s ego is completely drained of its capacity to deal with reality; often such people commit suicide, kill someone, or have a psychotic breakdown.” (Kanel, K. 2007).

Coca-cola boasts of being the world’s largest beverage company serving approximately one billion customers daily. The most dominant products distributed by Coca-cola are Coke, Fanta, Sprite and Diet Coke. This strategy is aimed at ensuring that every customer gets satisfied whenever they use a Coca-cola brand. Coca-cola has large distributions across the globe making it the largest distributor in the world. The late Roberto Goizueta termed Coca-cola to be an American company with large international business and a sizeable American business (Ferrell, 2008). This has helped a lot with brand selling as it is the most recognized brand in the whole world. “Coca-Cola has the most valuable brand name in the world and, as one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance” (Ferrell, Fraedrich, & Ferrell, 2008). Coca-cola, however, has not been smoothly running over the decades in operation. It has on numerous occasions been criticized for overlooking some ethical standards that it should have rather upheld. This essay aims at looking into some of the issues facing Coca-cola, the most significant of them, how they were resolved and how Coca-cola should have solved them.

One major key in order to succeed the communication during the crisis is "to listen to the customer". Coke is forced to listen to the customer because they have spoken with their wallets. That was a mistake. The company should inform them correctly about the facts and not because the sales were decreasing dramatically. One of the most important things that the company should remind continuously to their costumers is the Loyalty that they should have in the biggest brand name, that of Coca Cola 's.

According to Lillibridge and Klukken (1978), crisis is an event or situation that cause " 地n upset in equilibrium at the failure of one's traditional problem-solving approach which results in disorganization, hopelessness, sadness, confusion, and panic" (62). In the face of crisis, there is an urgent need to swing to action and communication is the only vehicle that can convey this message to everyone concerned. When crisis occur, communication challenges becomes worsened because the

Despite being a billion dollar 125 year company that is a household name around the world, Coca-Cola has had to cope with unexpected situations and variation of positioning based upon the main competitions movements, Pepsi. According to Trout and Reis, (2001, p. 10) “Truth is irrelevant. What matters are the perceptions that exist in the mind.” This is a thinking process called outside-in

Also, Coca-Cola has very strong rivalries. The main one is of course PepsiCo, which is very famous all over the world and has a great variety of products. Thus, Coca-cola can’t afford its image to be damaged because if that happens PepsiCo will become the leader of the industry very fast. Right now Coca-Cola needs a new Strategic Communication Plan to try to overcome the issues.

Coca-Cola is a big recognized brand that produces many products than just soda drinks. With all the money and brand recognition the company possesses, there are possibilities for the company to past the scandals and keep up in the business market, like we have discovered the company has invested money to cover illicit activities. However, it is very important for the company to act ethically and respond to the scandals that the company has been accused. If Coca-Cola responds morally correct, it will shows the customers that the company cares about social responsibility, but if the company does not act fast and ethically, it exists the possibilities that the company’s sales keep declining.