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POM Assignment term 1 EPDGM, Assignments of Principles of Marketing

Alliance University Principles of Marketing

POM assignment term 1. With Maggi ban case study

Typology: Assignments

2020/2021

Uploaded on 10/19/2021

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Subject: MGT_401 Principles of Management

Name: Apoorva Nehru

Ref no: EPG43/AUGUST21/1083.

Date:18-Oct-2021

Alliance University of Bangalore – Alliance School of Business 43rd Batch EPGDM’21

1

CAS E STUDY - T HE MA GGIE BAN

The problem for Maggi ban started with: a claim by UP food inspector stating presence of lead

in increased quantity than preference or prescribed by food authority.

Maggi claimed No added MSG (monosodium glutamate)', printed in their packets.

The biggest revenue generator for Nestlé– Maggi accounted for roughly a quarter of the

company’s $1.6 billion in revenue from the country (Fry, 2016) – stumbled into a Public

Relations debacle.- Quoted from resources online.

1.Explain with reasons was it external environmental change that

caused the problems for Maggi or was there some internal

environmental issues?

External environment are forces and events outside a company that have the

potential to influence or affect it. Internal environment consists of trends and

events within an organisation that affects management employee and

organisation. According to punctuated equilibrium theory companies go through

long periods of stability during which incremental changes occur followed by

short complex period of dynamic change with return to stability.

There are External, Internal as well actors which boosted up the problems for

Maggi noodles. The internal environmental issues include the lack of hygiene and

un-favourable ingredients that exploit the taste of Maggie.

While considering the external environmental facts, the Maggie ban was due to

the lack of skilled people who could understand the issue, work on crisis

management. (Resource Scarcity)

FSSAI discovered excessive levels of lead and monosodium glutamate in Nestlé

India Limited’s flagship brand Maggi. People all over social media started the

hash tag #ban Maggie. (Product Boycott). But they got auto tweets and retweets

by Maggie as response which agitated them.

Research on past crisis by the organisation or other groups could have helped.

Partial preview of the text

Download POM Assignment term 1 EPDGM and more Assignments Principles of Marketing in PDF only on Docsity!

Name: Apoorva Nehru Ref no: EPG43/AUGUST21/1083. Date:18-Oct- 2021 Alliance University of Bangalore – Alliance School of Business 43 rd^ Batch EPGDM’ 1 CASE STUDY- THE MAGGIE BAN The problem for Maggi ban started with: a claim by UP food inspector stating presence of lead in increased quantity than preference or prescribed by food authority. Maggi claimed No added MSG (monosodium glutamate)', printed in their packets. The biggest revenue generator for Nestlé– Maggi accounted for roughly a quarter of the company’s $1.6 billion in revenue from the country (Fry, 2016) – stumbled into a Public Relations debacle.- Quoted from resources online.

1.Explain with reasons was it external environmental change that

caused the problems for Maggi or was there some internal

environmental issues?

External environment are forces and events outside a company that have the

potential to influence or affect it. Internal environment consists of trends and

events within an organisation that affects management employee and

organisation. According to punctuated equilibrium theory companies go through

long periods of stability during which incremental changes occur followed by

short complex period of dynamic change with return to stability.

There are External, Internal as well actors which boosted up the problems for

Maggi noodles. The internal environmental issues include the lack of hygiene and

un-favourable ingredients that exploit the taste of Maggie.

While considering the external environmental facts, the Maggie ban was due to

the lack of skilled people who could understand the issue, work on crisis

management. (Resource Scarcity)

FSSAI discovered excessive levels of lead and monosodium glutamate in Nestlé

India Limited’s flagship brand Maggi. People all over social media started the

hash tag #ban Maggie. (Product Boycott). But they got auto tweets and retweets

by Maggie as response which agitated them.

Research on past crisis by the organisation or other groups could have helped.

Name: Apoorva Nehru Ref no: EPG43/AUGUST21/1083. Date:18-Oct- 2021 Alliance University of Bangalore – Alliance School of Business 43 rd^ Batch EPGDM’ 2

2.Explain whether adequate plans beforehand could have helped Maggi

to anticipate the problem. Justify your answer.

They could have stayed up to date in the market about crisis faced and

resolution made by other companies understanding about case studies

of other organisations and a proper media management team who could

keep daily interaction with the customers could have been an

advantage.

On the day when the issue was raised there could have been a tweet by

the company pointing the same as it is better when the company opens

up first to the public than the news breaking.

Daily update on the issue status to the customers could have been

posted on social media to keep customers engaged and this would have

retained the trust.

They could have temporarily stopped the production until the lab results

which could have increased customer trust.

Though when it was proved the presence of lead was high. There could

been an official statement apologising and owning their mistake.

Promises to avoid those in the future.

Nestle could have made a statement saying they will bear the expense

of medical treatment to people who have side effects after consuming

their products.

As there could be less side effects or no side effects that can be proved

correctly this could have made people feel Nestle cares for the

customer.

Name: Apoorva Nehru Ref no: EPG43/AUGUST21/1083. Date:18-Oct- 2021 Alliance University of Bangalore – Alliance School of Business 43 rd^ Batch EPGDM’ 4

POM Assignment term 1 EPDGM, Assignments of Principles of Marketing

Related documents

Partial preview of the text

Download POM Assignment term 1 EPDGM and more Assignments Principles of Marketing in PDF only on Docsity!

1.Explain with reasons was it external environmental change that

caused the problems for Maggi or was there some internal

environmental issues?

External environment are forces and events outside a company that have the

potential to influence or affect it. Internal environment consists of trends and

events within an organisation that affects management employee and

organisation. According to punctuated equilibrium theory companies go through

long periods of stability during which incremental changes occur followed by

short complex period of dynamic change with return to stability.

There are External, Internal as well actors which boosted up the problems for

Maggi noodles. The internal environmental issues include the lack of hygiene and

un-favourable ingredients that exploit the taste of Maggie.

While considering the external environmental facts, the Maggie ban was due to

the lack of skilled people who could understand the issue, work on crisis

management. (Resource Scarcity)

FSSAI discovered excessive levels of lead and monosodium glutamate in Nestlé

India Limited’s flagship brand Maggi. People all over social media started the

hash tag #ban Maggie. (Product Boycott). But they got auto tweets and retweets

by Maggie as response which agitated them.

Research on past crisis by the organisation or other groups could have helped.

2.Explain whether adequate plans beforehand could have helped Maggi

to anticipate the problem. Justify your answer.

They could have stayed up to date in the market about crisis faced and

resolution made by other companies understanding about case studies

of other organisations and a proper media management team who could

keep daily interaction with the customers could have been an

advantage.

On the day when the issue was raised there could have been a tweet by

the company pointing the same as it is better when the company opens

up first to the public than the news breaking.

Daily update on the issue status to the customers could have been

posted on social media to keep customers engaged and this would have

retained the trust.

They could have temporarily stopped the production until the lab results

which could have increased customer trust.

Though when it was proved the presence of lead was high. There could

been an official statement apologising and owning their mistake.

Promises to avoid those in the future.

Nestle could have made a statement saying they will bear the expense

of medical treatment to people who have side effects after consuming

their products.

As there could be less side effects or no side effects that can be proved

correctly this could have made people feel Nestle cares for the

customer.

Stand up, take it on the chin : Supriyo Gupta.

4.Give your idea regarding what management principle(s) Maggi can

use to avoid such issues in the future.

There was lack of leader and appropriate managers or people who could

speak up for the brand and lack of communication.

I think Fayol’s Fourteen Principles should help in the future.

Few of which that could have helped are:

Division of Work: PR team should take initiative to understand and

work on media work. Marketing team should work with management

and PR to help giving proper content.

Authority: Rights to give proper order should be communicated

Discipline: Clear rules and procedures in place during crisis.

Unity of direction: One motto

Centralization: There can be a balance in centralization based on

circumstances.

Order: No overlapping responsibilities

Initiative: Management can open ideas from employee to solve the

issue.

Esprit de corps: There should be strong sense of morale implunged on

the employee.

Documentation of error and rectification methods could be helpful.