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Disaster Management Group 7. Coca-Cola. Originated on March 27, 1944 Also known as Coke Found over 200 countries worldwide 2 billion beverage servings per day Most valuable brand in the world. Companies Approach to Disaster Management. Step-by-step Strategy
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Disaster Management Group 7
Coca-Cola • Originated on March 27, 1944 • Also known as Coke • Found over 200 countries worldwide • 2 billion beverage servings per day • Most valuable brand in the world
Companies Approach to Disaster Management • Step-by-step Strategy • Deal with problems on everyday basis • Clean channel of communication • Two-Way communication • Pay attention to public • Have legitimate research about problem
Local Disasters • Hurricane Katrina, 2005 • Evacuees converged to Baton Rouge/LSU • LSU gained national reputation as leader • Alumni donated $25 million to LSU • Wanted more disaster research, business leasers, and emergency responders with crisis response experience • Stephenson Disaster Management Institute (SDMI) was created
SDMI • Having everyone on the same page • Creates and manages certain plans within and without the company • Coca-Cola needs SDMI to communicate within company better • SDMI main sector is incident command center • Provides more communicative model • Enables Coke to maximize resources avaliable to them
SDMI (cont.) • Helps Coke make the best possible decision • Help efforts in disaters by organizing and identifying the problem • Betters the situation • SDMI serves Coke through source of knowledge, training and guidance in disaster recovery practices • Help expand their disaster management processes
Crisis Commander • A Crisis Management framework • Two Core Components: • Incident Management System • Crisis Management System • Flows from Incident → Crisis
Incident Management System • Life of an Incident (A Coca-Cola Example) • Bottling Plant Mishap • Report Creation • Report Routing and Response • Bio-contaminant Cleanup • Internal Investigators • Report Resolution and Filing • Results
Crisis Management SystemWhat happens when an incident escalates? • Incident Escalation (A Coca Cola Example) • Distribution Contaminants Reported • Investigation of Contaminant Source • Official Statement Release • Recall of Batch • Dealing with consumer complaints, legal repercussions, etc. • Results
Other Systems • Mission Mode • Rapid Responder • Incident 1 Revisited: • Mishap occurs • Emergency Responders contacted through R.R. • Report Created • …
Companies Approach to Disaster Management • Step-by-step Strategy • Deal with problems on everyday basis • Clean channel of communication • Two-Way communication • Pay attention to public • Have legitimate research about problem
1999 - Belgium • Children were diagnosed with Mad Cow Disease after allegedly drinking Coke • Coke clearly communicated with the public about the issue • Sent researchers to find the origin on the problem • Loss of sales but gained respect
2008 - Twitter • Negative comment Twitter • No social media crisis management plan • Adam Brown
Natural Disaster • Earthquake and Tsunami • Largest disaster in Japan • Special Coke machines • Coke donated $33 million to the cause
Natural Disasters • 2011 – United States flooding • $600,000 • beverages • Physical aid
Natural Disasters • 2004 – tsunami in Indonesia • 2008 – earthquake in China • 2010 – earthquake in Haiti • $2 Million • 1 Million Liters of Water
Crisis Teams • Paired with the Thai Red Cross Society to prepare for disaster response • Adam Brown as Head of Social Media • Teams that responded to health concerns
Companies Approach to Disaster Management • Step-by-step Strategy • Deal with problems on everyday basis • Clean channel of communication • Two-Way communication • Pay attention to public • Have legitimate research about problem
NetSuite • Philippines 2011 • Information System with Coca-Cola • Provide Real-Time Data • Cost Saving • Provides Clean Water for 60 communities