Pepsi Syringe Case Study Analysis

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That, combined with the fact that neither Pepsi nor F. Steve Mefford, the Branson police chief, said his department notified the Federal Bureau of Investigation and Pepsi officials, although the F. Charles, Mo., and two others in New Orleans -- after the first three on Sunday.

In the Iowa case, Chief Burt Walters of the Monticello Police Department said his office was called after 10 P. Monday by Kevin Luna, a 32-year-old resident of Delhi, Iowa, who said he had bought a 12-pack of Pepsi and found a needle when he poured the contents on one can into a glass. Louis, said he found a syringe in a can of Diet Pepsi he bought at a gas station.

Questions 1) In your Judgment did Pepsi Co have a moral obligation to divest itself of all its Burmese assets? Which approach to ethics – utilitarian, rights, justice, caring or virtue- is more appropriate for analyzing the case events in this case? By doing business in Burma they were actually supporting the military rule to strengthen their dominance through taxes and other means. Their brand image was getting deteriorated which was not acceptable for a big company like Pepsi Co. Though they were making profits in Burma, they were losing their share and support from the stakeholders.

Answer: In our Judgment, Pepsi Co did not have a moral obligation to divest itself of all its Burmese assets. They was losing the support and trust of their stakeholders due to their business operations in Burma. As a result they were supporting more illegal practices in Burma which was ruining the country. Pepsi Co being involved in counter trade was promoting forced labor throughout the agriculture sector. Being morally right in their conduct they could not do their business at the sacrifice of human rights and getting opposition from their stake holders.. They could not overlook their responsibility towards their stakeholders.

The crisis that Pepsi Co had to handle in 1993 was a very difficult one because it implied both reality and perception as communication consultant Steven Fink stated. Consequently, Pepsi Co had to remove both the real crisis by identifying the ones committing such fraudulent acts and the negative perception that began to have a clearer shape in the consumers' minds.

corporation received a blow in its image as a health and safety promoter because of the various and dangerous objects that consumers reported to have found in Diet Pepsi cans, and, on the other hand, it had to tackle the factors causing the hoax for stopping the complaints' chain.

The six new reports brought to at least 16 the number of incidents reported in 11 states in six days, and the authorities were trying to determine whether the materials were put in the cans during production or later, or whether some reports were hoaxes. In addition, investigators said yesterday that they were looking into other reports of similar objects in soft-drink cans. In the absence of any reported injury, a company spokesman in Somers, N. concurs."Pepsico stock dropped 63 cents yesterday, closing at .63, after a 25-cent drop on Monday.

Y., said the company planned no product recalls."Right now, we're just trying to sort through the facts, sifting out truthful claims from hyperbole," said the spokesman, Andrew Giangola. Although the company said it had received no reports of injuries, Lenny Schouest, a shipyard worker in New Orleans, where three incidents have been reported, said his lip was cut by a bent needle in a can of Pepsi he bought on Sunday.

The company sells up to 30 million cans of soft drinks a day. Kessler said on "Nightline" that he concurred with the company's decision, adding, "Calm is what is in order in this case."Including the cases reported yesterday, accounts of compromised cans have come from California, Iowa, Louisiana, Ohio, Washington State and Wyoming, in addition to a second report in Missouri. was monitoring the cases and would get involved only if it appeared that a crime had been committed, if a consumer had been injured or if the pattern of incidents suggested a scheme of extortion or ransom.

In Los Angeles, the police said a woman's claim that she found a needle in a can of Diet Coke was a hoax. Dennis, a spokesman for the Justice Department in Washington, said the F. In Glen Ellyn, police said that a 31-year-old woman bought a can of Caffeine Free Diet Pepsi yesterday morning from a vending machine at the Chevrolet dealership where she works.


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