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In: Economics

Please write a short summary of any article of how the STATE GOVERNMENT responded to Crisis...

Please write a short summary of any article of how the STATE GOVERNMENT responded to Crisis that affected a Business or Industry in a NEGATIVE way. In your own words please, don't copy and paste.

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Expert Solution

Pepsi corporation faced a crisis in 1993 when syringes were found in the cans of diet coke.The pepsi company worked with FDA(food and drug administration of state government )when the crisis took place.As a result of this public communication was made possible during the crisis period.When the investigation was going on , Pepsi requested all the stores not to take out the products from the shelves . Arrests were made which was made public by Pepsi. The company released a video in due course where the process of production was displayed in order to show that such tempering was not possible in the factories.In a second video it was showed that the man was arrested.A third video showed that a woman was found inserting a syringe in a can. The involvement with the state government made public communication possible during the crisis period.The corporation designed campaigns to show their gratitude to the public for supporting the corporation along with coupons as compensation , when the crisis was solved. In India ,the American soft drink giant pepsi and coca-cola suffered loss of image and loss in sales due to the pesticide controversy.The government considered waiving of the entry level condition in order to make pepsi gain its hold in India again.Pepsi has announced investment in India again.


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