Module 7 Corporate Communication in Times of Crisis

1

CORPORATE COMMUNICATION IN TIMES OF CRISIS

Module7: Corporate Communication in Times of Crisis

Key Problems

The revelationsof the Center for Science and Environment (CSE) outlined the presenceof pesticides in Coca-Cola`s products causing a reduction in customerconfidence as well as in the sales of the firm. One of Gupta`sprimary focuses in the short-term should be to assure the safety oftheir consumers. The press release and tests would not be enough forthe firm to regain its successful operations. Argenti (2015)explicates that the public did not respond to the statements made byPepsi and Coca-Cola thus, presenting the need to have externalaudits and testing of the company`s products should be a key longterm objective.

Recommendations

Since thebusiness largely depends on its public image, it is imperative forGupta to work towards restoring the illustrious brand name of theCoca-Cola Company. There is also a possibility of the crisis spillingto other countries, which will affect the global sales of the firm(Argenti, 2015). It is, thus, prudent for Gupta to address the dropin sales, in India, which primarily arises from a loss of confidencein the company from the public.

KeyConstituents

A company`scommunication strategy during a crisis will largely determine how itwill navigate the problems it faces. Coca-Cola should ensure it has acentralized communication channel that enables them to convey thesame message (Argenti, 2015). Furthermore, such a centralized channelwill show the importance that the companies attach to the problem.The company should also find better modes of communicating to theirconstituents as a way of ensuring their message reaches each keystakeholder in the firm`s products. The key constituents, in thiscase, include their consumers, government and environment authoritiesas well as their employees. It would have been difficult forCoca-Cola to avert this crisis since their tests did not reveal thepresence of any pesticides. However, proper communication would playa significant role in avoiding huge damages to the company.

Reference

Argenti, P. (2015). Corporate Communication. McGraw-HillHigher Education.