Question

Research a specific company that has dealt with public criticism from various stakeholders, and include all weblinks where you find your information. Share the name of the company, mission of the company, and type of business that it provides. Identify the stakeholders involved in the criticism, what the specific criticisms were, and the business’ response to the criticisms. Your essay should be a minimum of 500 words in length.

Answer 1

Nestle manufactured Maggi Noodles is one company which has faced severe criticism from the various stakeholders. Nestle company has been into the manufacturing of many food products like Ketchup, Noodles, Masalas etc, baby care products like Formula Milk, food supplements , Cerelac etc being launched in the market. Its main flagship product Maggi Noodles has been running successfully in the Indian market for almost 100 years. The mission of Nestle company is :

'Good Food Good Life'.

In the year 2015, the company was asked to ban its Maggi Noodle in the market because of high level of content of lead in its product. The company had to withdraw the entire stock of Maggi Noodles close to 35000 tons of the product from the retailer's shelf. It had cost some $30 million to the company to withdraw the content.

The company was criticised by all the stakeholders, customers criticise as the product was not meeting the standards and the company was playing with the life of the customers.

Employees criticise as it puts a black mark on the work done by them , Shareholders criticise as the company's profits and market share slashed down drastically from 75% market share to 0% and the suppliers criticise because the company stop taking the supply from the suppliers and it puts a black mark on the suppliers as well being harmful for the customers. On the top, the public was criticising the company as they have been playing with the lives of the people for so long.

As a result of such high level of criticism , company faced huge loss. The market share of 75% in the noodles market came down to 0% straightaway. The revenue generation and the profits of the company not only in Noodles category but overall food products like Ketchup , Masale got affected badly and brought a huge loss to the company.

References

PR Crisis Management Lessons from the Nestlé Maggi Noodle Controversy Available at : https://glean.info/pr-crisis-management-lessons-from-the-nestle-maggi-noodle-controversy/