Odwalla Incorporation

Odwalla Incorporation

123 Lakeside Rd.

Virginia Beach, VA 23464

DATE: October 3, 2013

TO: Stephen Williamson, President and Chief Operating Officer

FROM: Darla Ward, External Management Consultant

SUBJECT: Strategy Memo: Escherichia Coli Contamination

Background

Odwalla shipped contaminated Escherichia coli juices. The juices were purchased and consumed by the public causing 66 illnesses. On October 30 1996, the Washington State Department of Health informed Odwalla about the outbreak of Escherichia Coli, caused by unpasteurized apple juices and mixes. Our executives need to make a decision on what the next step will be. It is important that the public knows we are aware of this situation, and we will be work to fix this situation.

Discussion

Odwalla's resource is our customer loyalty and the brand of all natural juice products. Distributing contaminated juices and mixes on the market could cause consumer's stress as well as have a negative impact on the company. We were setting ourselves as leaders for selling all natural juice products. We should make sure the promotion of customer loyalty and encourage them to be confident that we manufacture our products.

A recall of all Odwalla's fresh juices and mixes needs to be implemented to prevent consumers from worrying about future purchases of our products. This recall should cover all retail outlets in all states. This will benefit the company by showing customers of Odwalla we are doing all we can to prevent any future problems.

This company lacks a quality and safety system to help guarantee that Odwalla products meet applicable requirements and specifications. We will regulate our products to benefit the public by using good judgment and the quality and safety system. Doing this, we will reduce the potential for waste and abuse. Odwalla's accountability can increase and become be cost-effective.

Recommendations

Communication with our customers helps to provide the quality and freshness of products. Odwalla must retain its leading consumers to keep the business going. We have been a very successful company for years. Our communication strategy focuses on consumer confidence, and we need to get involved with all the medias. We should contact the people who have been affected and support them with their illnesses. By speaking with other company managers, we could have avoided this contamination.

Thinking of our employees would have been a great consideration since they are the primary stakeholders. The employees are the people that make this business operate. In this situation, our company

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