Johnson and Johnson and Coca-Cola Crisis - 3300 Words

Johnson and Johnson and Coca-Cola Crisis (Research Paper Sample) Content: The crisis management of (Johnson Johnson's 1982) and (Coca-Cola 1999) crisisStudent Name:Course:Instructor:Institution:Date: AbstractOn 30th September 1982, the Johnson Johnson CEO received news that seven people had died from consumption of cyanide laced capsules of Tylenol in Chicago. The news spread vast through the media causing national wide panic. The company launched investigations to find out the causes of the deaths and ascertain the association of their product to the deaths. The outcome proved that someone had maliciously replace the Tylenol extra-strength capsules with cyanide extra strength in their packages and sold them to the consumer to fault the Johnson Johns. The company had a hard time trying to explain itself to the public and convince the m to continue trusting their products. The strategy worked but lost many revenues. Even with such a scenario the company did not prepare for the eventuality of another such attack. In 1986, a similar attack took place: the company was more prepared and was able to deal with the problem. This redefined the rules of crisis management and scholars have strengthened their thesis on this fact. A different scenario in Europe put Coca-Cola in the same spot making it lose market control and its products and rights being banned from markets. Unlike the Johnson and Johnson, they had poor public relations, which would cost more to re-enter the market. The scenarios in these two companies have given crisis control scholars two different points of view and allowed them to analyze the approaches in a manner that determines which method is most appropriate in what kind of scenario. Every company must have crisis management embedded in their managerial strategy. They must learn to study the market and determine the threats, as they occur in order to do away with them as soon as they pop up to avoid losing business and maintain the brand name (Smits 2007).IntroductionFollowing the large-scale industri al and environmental problems that arose in the 1980s, crisis management was introduced. The aim was to assess damages that occur in case of a disaster and create mechanisms to deal with them while maintaining the company financial status as it were or as close as possible to its former position. During this period, an industrial crisis hit the Johnson Johnson Company, which dealt in pharmaceuticals. The first crisis had repurcations on how it was handled but a similar crisis in 1986 redefined the companys position and crisis management. On the other end in 1999, coca-cola was hit by the same kind of crisis but the slowness in response deteriorated their position leading to major losses in the European region. This paper will focus on these two crises to bring out the key points that determine the effectiveness of a response to a crisis and the failures associated with poor handling of the scenarios.Critical AnalysisCase 1: Johnson JohnsonBy 1982, the company commanded about 35% of U.S counters analgesic market. This translated to about 15% of the total national revenues in over the counter drugs. By far it had the controlling power and thus acted as the price giver. The results of cyanide incorporation in the Tylenol were catastrophic. Seven people died in the U.S resulting in a market wide panic and reduction in consumption of their products.As can be imagined, the information turned the population against the drug. For a large period, their drugs lost value, the company shares too went down almost to a recess. The events must have taught the company a major lesson. Following the end of this crisis that was somewhat poorly managed, another similar crisis faced the company in 1986. The company was not ready to lose any more value in stock. They made a quick response to the crisis, recalling their products both in the home market and in the international. This move was consumer friendly and would go a long way in its future. Though the company had to spend over one billion dollars in correcting this mistake, they were awarded the most consumer responsive company. This achievement swayed the population to trust their products. The consumer base was assured that the company was readily responding to their call in case of a crisis. Most consumers of painkillers shifted their loyalty from other brands like Perrier to Johnson Johnson. This move by Johnson was a calculated one. The risks were too high, Face criminal sue that would have cost more billions and still lose the client base or loss the product and maintain the market for future production. The move reduced their liability. This is because any more deaths would have resulted in the companys products being burnt from many of the markets. This crisis would not have been controlled at that level. The quick response created trust between the manufacturer and the consumer. By observing the consumer characteristic of wanting to consume nothing but the best, the firm understood that the consumer would shift to another product unless there was a compensating factor. The recall was smart as the consumer felt cared for and thus convinced to remain loyal (Curtin, 2004). The companys management forewent he short term goals for the long ter. By losing the billion dollars in recalls, the restructured the company strategy. Their ability to achieve the long-term goals at that moment entirely depended on how they would handle the situation. By managing o silence the problem, of Corse at a cost, assured the customers to continue enjoying their products. Since these were the same target consumers for their longer goals, they secured their returns in the long run (Ferrell, 2010) The analytical point of view is that the move was a game changer. It had not been tried before and thus it was problematic since any backfiring would have cost the company more resources. The outcome was unpredictable and open to market forces. For the crisis manager to undertake this method, he must h ave studied his market to know which move to play.Case two: coca-cola 1999 crisis Coca-cola is a globalised company with its financial assets estimated at 160 billion dollars. It controls most of the world soft drink market. In Europe allow its market share is about 60%. This means it has the majority market share and thus a price setter. Given that Europe acts as one trade block in most of its economic decisions, any crisis that hits a single nation could be translated into the entire 15 nation in the union. A company like coca-cola must thus be careful in its response to crisis so as to ensure it remains at the same controlling position and retain its profits constant (Childs, Childs, 2008).Unfortunately this was not the case in 1999. While it tried to respond to the issue of drink contamination in its own approach, the company was unable to convince the nations that it had everything under control. The managers were faced by a contamination in imported drinks. Countries like Ge rman were unhappy with the situation and asked the company to be responsive. The company sent crisis managers to curb the spread of the disaster as well as return the company to its former position. Unlike Johnson Johnson, they did not recall the products instead they pushed to oversee that the product were sold sitting that the drinks were not contaminated and thus could not affect the health of the consumers. Due to this, some of the loyal consumers remained loyal to the brand but the nations and consumer protection groups pushed for the withdrawal of the products from the market. The result was some nations banning the use of the products in some countries, for instance, Belgium manufactured products were banned from German markets. Spain and Italy followed suit. The situation was so escalated that the vice president of Coca-Cola was forced to leave his office in Atlanta for Brussels to join hands in curbing the market degradation (Johnson 2007)ImplicationLoss of market control- Coca-Cola lost market as his products were banned from these major markets. Considering that it controls 60% of the European soft drinks market, the company lost billions in dollars, the consumers lost their trust in their products.Investment loss- while the products were not recalled, the company was unable to sell the products. This means they lost both the short-term invest meant, the long term as the products remained in stall, production slowed, and the future of sales was uncertain.Product recall- The Company was finally recalled from the market following the push by the Belgian Health Ministry. This was a result of two unrelated matters, one consumer complained of irregular taste and odor in their products and bottles and secondly, one hundred people became ill following consumption of the drinks. The estimated recalled bottles and cans amounted to fifteen million.Decrease in consumer loyalty- Coca-Cola had existed for over one hundred and thirteen before this event. They ha d gained massive consumer loyalty. Most consumers regarded their products to have the highest quality in soft drink manufacturing. Following this, the consumer behavior changed. From June 1999, the European market for Coca-Cola product reduced by almost half. This had to force the company to diversify and look for new market n order to maintain their profits. This added increased cost in market venture and advertisement.MethodologyFollowing the identification of the crisis and an overview of the course of action the two study groups took, this paper will make a chronological review of the management of the crisis, the outcomes both in short and long-term periods in an attempt to see the effect of their approaches. The paper will also define a working plan that will compare the approaches to studied theories of crisis management ...

The Concept of the American Dream - 1331 Words

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Test Anxiety Is A Fear Of Failing An Exam - 1203 Words

Test anxiety is a fear of failing an exam. This fear can typically occur either before or during an exam, which can result from the student unable to do their best. Though it is normal for everyone to feel nervous for an exam. However, when the fear for the exam starts to become excessive, it can then be difficult to concentrate and to recall the information. The severity of test anxiety varies from person to person. One may experience butterflies in their stomach while someone else may experience their heartbeat starting to race. Test anxiety is caused by two main factors, such as a biological and mental status. The biological cause is based on the hormone known as adrenaline. Adrenaline is a hormone that helps prepare the body for what is about to happen. However, the mental aspect to test anxiety is based on the students thought process. The symptoms for people that have test anxiety can vary from mild to severe. 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Manage People Performance Policies on Employee Performance

Question: Discuss about theManage People Performancefor Policies on Employee Performance. Answer: Introduction This report is divided into two parts. In task one, the report is basically on the operational plan including task and resource requirement and performance management policies and procedures of a company. For the analysis, the company named Coles group is taken. The report is focused on the performance management policy which includes job specification, resource requirement, time management, supervision and training etc. after that, second task is based on the case study related to discipline and termination of an employee. This part is mainly focused on the risk analysis. Coming on the first task, Coles group is the famous and largest supermarket in the Australia. The company is supplementary of Wesfarmers. This company was found in the year 1914 in Melbourne. In present time the company has around 770 outlets across the Australia and there are around 1, 00,000 employees in the company. The company is also doing its operations by online marketing to acquire more and more customers. Company has a good customer service also. Company offers attracting products by lowering the price such as weekly shopping basket and delivers better shopping experience to the customers. The strategy of the company is to build deeper and long term relationship with bits suppliers and business partners. Coles is well known company among the customers because off wonderful customer service and quality of products. The report will be focused on the operational plan of Coles Group including time management, supervision and training etc (Coles, 2016). Performance Management Policy and Procedures Performance management refers to the process which includes the effective management of individual and team to achieve the high level of performance. The performance management focuses on establishing the culture and environment in which individual or group of employees take responsibility of the business operations and improves the skills and behavior. Effective performance management includes set the targets, observe and review the performance and repeat the cycle to achieve the organizational and individual goals and objectives (Tasmania Prison Service, 2014). Performance management policy of Coles Group includes some points: Job Specification: Roles of responsibilities should be clear in the job. The post holder should review the job specification and role profile. Change in the roles in sometimes can be difficult for the employees to perform. Along with this, job specification should be reviewed by the managers and employees on yearly basis to see the change that may be happening in the role. Resource requirement: The focus of the performance management should be identifying the resources required to improve the performance of individual or group. The managers and higher authority should support the employees to utilize the available resources in the organization for improving the performance. Time management: The aim of performance management is manage the time for achieving goals and objectives. It is very important to set the targets and timescales for improvement in the performance. Time management is the key of success. Policy Introduction: To improve employee performance, company should address appropriate and effective HR policies such as capability policy and disciplinary policy. These policies are necessary for the improvement of individual as well as company also. This is the responsibility of managers to introduce his employees about the policy documents and the relevant procedures and policies. Performance management system: Performance management system is an important part for the improvement of the performance of individual or team by developing effectiveness of employees. It should include performance policies, and performance appraisal, system. The Performance management systems should be based on the managing individual performance and maintaining communication between employees and manager. Performance review objectives: Managers should review and appraise the performance of employees periodically. Performance review should be held time to time to help the employees to improve their performance. Managers should note the date of observations. Information regarding performance review should be confidential to avoid the conflicts. Performance Review roles and responsibilities: There are the responsibilities of manager and supervisor to review the performance of the employees. After observation, the role of the manager should be to complete the performance and appraisal form. Manager should give rating to those employees who have better performance. Employees should take actions to improve the performance according to the given ratings. Performance rating should be checked and approved by the higher authority. Supervision and training: After the rating, the employees who are low in their performance need training and supervision. The result of training is that employees will be aware about the performance management system by the training. Managers should conduct training sessions and learning modules for employees regarding work and profile to achieve the goals and objectives. Head of the company should ensure that training and development is necessary for the employees. Performance review guidelines: There are guidelines for performance review which help the managers to conduct an effective performance review. Performance review of employees should be done yearly by the managers during the performance rating time. The supervisor of the employees must conduct the performance review as the part of his job expectations. The performance review form of companys employees must be used to evaluate the employees performance. Any other evaluation form must not be used. Evaluation of job performance must be fair, objective and reliable during the process. The reviewing part must include performance factor, behavior, and job profile of the employees. In the performance review form, there must be performance expectations and goals for the performance goals. Managers should give the chance to employees to review their own performance. For this purpose, one of blank performance review form must be use by the employees. Employees must be encouraged to join training regarding performance review provided by the Human Resource Team. Application of award: There should be awards and recognition system in the company for those employees who are performing well. Managers must have knowledge when they have to held awards and recognition programs. To motivate the employees for improving performance, award system is most important part of performance management system. Other process: There must be process related to other management processes such as salary reviews, availability of resources in the company, relevant and required documents for the performance review, the date on that review was conducted. The information of performance review must be confidential in the documents. Policy Template: Policy Name: Performance management Plan Policy Number: Contact Officer: Date Approved: Date for next review: Overview: The policy helps and encourages the employees of Coles Group to achieve the goals and objectives and maintain the work standards. Aims and Objectives: The policy provides the framework to improve the performance of the employees in the Coles Group. Unit Team: The managers of Coles Group must form a team to manage and review the performance of the employees. Responsibility for performance management and Training: The policy helps to identify the current performance of the employees in the Coles group to achieve the goals. Policy Implementation: Implementation of policy must be in four parts i.e. Planning, managing, reviewing and recognition and rewarding performance. Managers responsibility: Responsibility of managers in Coles Group must be reviewing and giving ratings according to the performance of employees. Employees Responsibility: Employee must fill the review form by self reviewing. By self review they will be able to know their strengths and weaknesses. Performance management framework: In the phase of framework, goals and objectives are to be set for the employees of the Coles Group to increase their motivation. Equity: All the employees should be treating equal and they must get equal chance to utilize the available resources in the Coles Group. Performance management KPIs: Performance of the employees in the Coles Group must be reviewed on the basis of performance factor, behavior, and job profile of the employees. Funding: Company must have sufficient funds for the training and development programs of the employees. Performance Management Procedure Performance management procedure refers to the process adopted by the managers for planning, reviewing, and improving the performance of the individual or team in the Coles Group. The procedures in the Coles group are taken: Performance review Procedure: In this procedure, every employee in Coles Group must take part in the two reviews each year. The reviews will the yearly review and interim review. Reviews will be conducted in every 6 months. The procedure will be on the basis of development of the employees. Coaching Procedure: In this procedure, supervisor must communicate with the employees about job profile, roles and responsibilities. It will help the employees of Coles Group to developing their performance by regular performance feedback. Disciplinary Procedure: This process will help the employees to tell that what improvement is needed and give the chance to employees to put their difficulties in front of managers. With the help of this procedure, employees of the Coles Group would be able to raise the issue before their managers. Grievance Procedures: This procedure can be used by the Coles Group to solve the conflicts within the company. The process would be helpful for the company to sort out the conflicts raised because of any reason. Performance Procedure: Procedure: Task description: Department: SOP: Approved By: Date: Procedure: Action Number Action Description Standard Required Who 1. Stage 1 HR manager send to review form to the each employee HR to Employee 2. Stage 2 Employees do self review process. Employees 3. Stage 3 Review Form sent to the managers of the employees and managers give ratings Employees to managers 4. Stage 4 Manager send those forms to HR team Managers to HR 5 Stage 5 HR team send those rating from to higher Authority HR to higher authority 6 Stage 6 Higher authority check and approve that performance management procedure Higher authority (CEO or Directors) Task 2 By using the Sams case, it can be said that there are many conditions of misconduct in the work place i.e. using bad language, aggressive behavior, fraud with the company, dishonesty with the work, lateness on the workplace, illegal work on the work place, misuse of resources, misuse of policies and rules, unethical behavior with other employees etc. these can be some misconduct be serious misconduct which can be happen on the workplace. The legislation applied in similar to Sams case can be criminal code in s 245. According to this law, if a person strike to other person directly or indirectly, is said to the assault that other person and the act are called an assault. This law may be applied by the company in the case of Sam. Organization can implement the policies i.e. to establish the code of conduct for rules and regulations and to replace or change who procedure in this regard. Company can give a written warning to the employee who is doing misconduct and take disciplinary actions against misconduct to consider the termination fair. The documents that company would have to develop to evidence that it has implemented a process to support non-performing employees can be performance management review form. This is the form collected by the managers after rating the performance of the employees within the company. Conclusion To sum up, the report basically has been based on the performance management plan and procedure in two different cases. The analysis of both the cases has been done individually. In the first task, the report has been focused on the performance management policy of Coles Group which includes job specification, resource requirement, time management, supervision and training etc. The report includes performance management policy which includes job specification, resource requirement, time management, supervision and training of the employees of Coles Group. The templates of performance management policies and procedures for the company are also given in the report. Further, the second task is based on the case study related to discipline and termination of an employee. The report is also based on the misconduct by the employee. It has been focused on the legislation against the misconduct. The criminal code in s 245 against assault can be applied by the other person against misconduct. References Coles, (2016), Coles Looking after your health and safety, retrieved on 28th September 2016 from https://contractor.colesgroup.com.au/documents/documents/OHS_Inj_Mgmnt_poster_SupplyChainnew.pdf Tasmania Prison Service, (2014), Performance Management Policy and Framework, retrieved on 28th September 2016 from https://www.justice.tas.gov.au/__data/assets/pdf_file/0017/300815/TPS_Performance_Management_Framework.pdf