Odwalla Strategy Memo
Discussion Odwalla’s most significant resources are its’ strong customer loyalty and brand recognition for providing “all natural” juice products. Since the company’s main ability focuses on the all-natural production procedure and the idea of “nourishing the body whole”, it is look at as a high quality product. So, the assumption that Odwalla is producing juice products with E. Coli bacteria and placing them into the marketplace could cause a major problem with its consumers which will lead to a negative impact on the brand.
The current situation is whole heartedly linked to the great rate in which Odwalla has grown over the years. The goal of quality has been swapped with an importance on quantity, leaving the production process in a possible dangerous state. E. COLI BACTERIA OUTBREAK: ODWALLA, INC. November 4, 1996 Page 2 of 2 Recommendations 1. Hold a meeting to talk over the follow-up. Talk about the reimbursement for the 66 victims, dealing with the inventory and returned items from customers. 2. Broadcast a press release and apologize to everybody.
This letter contains the regret to the victims and all people and compensation for the victims. 3. Hold a meeting to review the produce process. E-Coli exists in juices means that some parts of the produce process are wrong. We need to find a way to keep from E-Coli. Considering pasteurizing or chlorine-based rinsing 4. Examine all juices after changing the producing process. This is to make sure the new producing process is safety and will not have other harmful materials. 5. Hold a press conference to all with a new image. This is a way to show our determination for changing. We put customers’ safety at the first place.