ODWALLA INC CASE ANALYSIS:

SITUATION ANALYSIS:
A press release on October 30,1996 stating that the Seattle-king
county department of public health and the Washington state
department of health and reported a outbreak of ecoli infections
that were epidemiologically associated with drinking Odwalla
apple juices and mixes.
The public physicians have uncovered a direct link between
people who had infection and those who had consumed
Odwallas product. Some 66 people have become sick from
drinking Odwalla juices in recent week.
E coli 0157-h7 can grow quickly in uncooked food products
including meat, cheese, fruit, dairy products and juices.
Greg steltenpohl, his wife Bonnie basset and a fried name Gerry
Percy founded Odwalla in 1980 used a 200$ hand juicer and one
box of oranges to make freshly squeezed orange juice to start
their business.
They distributed the juice to local restaurant and finally made
fruit juice empire
Over the yeas company has grown to become leading fruit juices
and smoothies with over 20 varieties.
Their Sales skyrocketed from 9$million in 1991 to 59million $
in 1996 with an annual growth of 40% during those five years.
The vision of odwalla encompasses the idea of nourishing the
whole body, they have continued the tradition of superior fresh
fruit juices preserving the environment and fostering community
relationships.
The product line is distributed throughout California, Oregon,
Colorado, Washington, new Mexico and Nevada
The fruity flavours, outrageous name and all natural
indegridents have allowed the company to achieve tremendous
 success based on the health benefits derived from the
consumption of products.
The majority of their fruit is grown in the state of Washington;
the seasonal nature of the fruit industry however necessitates a
switch at some point in the season to less expensive California
fruit.
Though 98% of the nation fruit juice went through
pasteurization process, Odwalla products were unpasteurised.
Absolute freshness is a key component of Odwallas product
offering.
In early 1996, odwalla hired two managers from the Florida
juice industry they recommended previous method.
Now they have to release a press release mending their situation.

PROBLEM ANALYSIS:
Odwalla has been accused of containing ecoli bacteria in their
apple juices
The reason being they dont pasteurize their juices and it has
lead to food poisoning of 60 people.
CEO of odwalla Stephen Williamson has to mend this situation
right and also have take preventive measures to lessen the harm
caused to the company by this news release.

DECISION ANALYSIS AND PLAN OF ACTION:

Very first decision the company has to retreat back their
apple juices from the market.
They have to get their juices tested whether they are the
causes of food poisoning or not.
They have to issue press release related to that. If they found
to be guilty they have to mend their ways
 They have to pay for the medical insurance as well as
treatment of the people suffering because of their apple
juices.
They also have to add pasteurization process in their
manufacturing so that they dont have such issues in future.
They also have to release press release to address their
customers which might be losing their trust in odwalla

The press release to be made by Stephen Williamson is as

follows:
PRESS RELEASE

Odwalla was notified today by Washington's Environmental Health

Services that there have been several confirmed cases of the E-Coli
0157 bacteria in the state of Washington.
"Our first concern is for the health and safety of those affected. We
are working in full cooperation with the FDA and the Seattle/King
County Department of Public Health." We have retrieved the
possibilities for causing this outbreak and have made steps for future
prevention. In the mean time, we have pulled all of our products from
our retailers to prevent more outbreaks of E. coli. We have created a
website for all of our valued customers to report any problem that
they have had with our products. We are prepared to pay for all
medical bills that pertain to the E. coli outbreak.
Here at Odwalla Incorporated we strive for great natural products and
are greatly distressed at the accusation by the State Department of
Health. We apologize for any inconvenience or fear instilled by this
claim and we are acting fast to try and get our products back out to the
public. Thank you for your patience and loyalty. Odwalla will
continue to issue media updates as information becomes available.
Unless otherwise indicated, those updates will be communicated via
wire services and by direct request for faxed copies
Stephen A. Williams ,Vice President of Odwalla Incorporated