MAGGI

CRISIS
MANAGEMENT
Group 2:
Jay Dharmameher
Kritika Kapoor
Krupal Patel
Rushit Mehta
Crisis Management
Crisis: An intense, unexpected and unstable state
that disrupts normal operations, has undesirable
outcomes and requires out-of-the-ordinary
measures to restore order and normality.
Crisis management is the management at
a strategic level of the medium and long-
term consequences of the incident.
Its priorities
maintenance of business continuity
restoration of customer, shareholder and public
confidence.
What are Crisis?
Aggressive crowd, Hostages taking, Riot,
etc.
Crisis - Risks
How do you know your risks?
Risk assessment
Identify risks
Analyse risk
Risk management
Plan risks control
Monitor and Control risks
Decision maker under stress
Experience conflict with others
Perceive selectively
Have poor judgment
Less tolerant of ambiguity
Decrease ability to handle tasks and think
Tendency toward aggression and escape
Crisis handling model
Step 1: Size up the situation.
What is happening?
Who is involve?
What are the stakes?
Step 2: Identify contingencies
Murphys Laws:
Nothing is as easy as it looks.
Everything takes longer than you think it will.
If any thing can go wrong, it will.
Step 3: Determine objectives
Objectives are:
Measurable targets.
Used to monitor progress and establish priorities
Based on size-up and contingencies.
Step 4: Identify needed resources.
What resources are needed?
People, information (data), things
Where will I get them?
How long will it take?
What can others offer?
Are there any special requirements?
Step 5: Build a plan
Your plan should state:
Who
Will do what..(and with whom)
By when.
Where.
How.
Plans need to be communicated to all parties
involved.

Step 6: Take action and evaluate results

 1. Size up
situation

6. Act and 2. Identify

evaluate contingency

5. Build a 3. Determine
plan objective

4. Identify
resources
Maggi A quick look

According to the World Instant Noodles Association,

India consumed 5,340 million cups or bags of instant
noodles through 2014.
One of the fastest growing markets in the world for
the snack, having almost doubled in size since 2010
when it accounted for 2,940 million units.
A 70 per cent share of the market, and contributes
nearly 30 per cent to Nestle's Rs 9000 crore annual
turnover.
Widely consumed by students and young
professionals
Available even in the most inaccessible parts of the
country - Leh-Kargil highway for instance.
Crisis Timeline
May 21, 2015: Amid concerns over "dangerous
levels" of lead and MSG in Maggi, the Uttar
Pradesh food safety body says Nestle asked to recall
the batch collected for testing from Barabanki
June 3, 2015: With consumers wary, Maggi noodles
taken off shelves from retail chains like Big Bazaar.
June 3, 2015: Government files complaint against
Nestle India with the National Consumer Disputes
Redressal Commission on Maggi
June 4, 2015: Central government seeks reports
from the states on the Maggi controversy
June 4, 2015: Nestle India releases on its
website lab test results of Maggi samples showing
that the lead quantity is below FSSAI-prescribed
levels
June 5, 2015: FSSAI orders Nestle to "withdraw
and recall" all nine Maggi noodle variants, halt their
production and also stop exports, saying samples
 July 1, 2015: Britain's Food Standards Authority
says Maggi noodles manufactured in India and
exported to Britain, were safe to consume and
contained lead well within permissible levels
August 13, 2015:Bombay HighCourt lifts ban
on Maggi noodles. Orders fresh tests on samples
October 16, 2015 : Test results from all three
laboratories mandated by the Bombay High Court
showMagginoodles to be safe, with lead
content well within the permissible limits.
November 4, 2015 : All three NABL (National
Accreditation Board for Testing and Calibration
Laboratories) accredited laboratories -
mandated by the Bombay High Court find
samples of the newly manufactured
Magginoodles to be safe for consumption,
with lead content well within permissible limits.
November 9, 2015 : Now that the orders of the
Bombay High Court have been complied
 Crisis Management by Maggi

The leadership responses taken

Recalled millions of Maggi packets

Usedvarious Social media
channels to take care of its image
Facebook
Twitter
Website
Advertisement
In Website
Crisis management by
Maggi
Extensive testing revealed no excess
lead in Maggi noodles
Used its Twitter and Facebook accounts
to answer customers questions about
MSG and lead found in their noodles.
Destroyed more than $50million worth
of Maggi Noodles in India after they
were deemed unsafe by regulators
They recorded and shared with news
channels and papers
Results achieved
Previously the media used for promotions but
later it is for maintaining their image.
Answer for every tweet
A pre-prepared statement explaining that lead
occurs naturally in soil and water
Explained the science behind the reason for the
ban in simple terms so customers could
understand.
Through smart use of social media during the
crisis, the brand limited further damage by
reassuring and informing customers to encourage
them to continue buying the noodles in the
future.
POST-CRISIS ACTIONS
What went wrong-What couldve been done
better
Denial of the allegation could have
accepted the initial allegation
Slow reaction to the crisis could have
reacted immediately
Reactive reaction rather than proactive
one could have reacted before being
forced to
Absence of trained spokesperson a
senior person could have made direct
communication
Lack of empathy for customers could
have communicated with empathy
initially

 CONCLUSION

No
crisis management plan
Poor Execution of instant plans

Late recovery

Well communicated post crisis

Move at the speed of the crisisand

not the Business as usual speed
Reference

http://www.digitalvidya.com/blog/nestle-maggi-
noodles-banned-in-india-crisis-management/
https://www.linkedin.com/pulse/maggi-crisis-m
anagement-lessons-learned-keith-prabhu
http://www.adageindia.in/marketing/cmo-strate
gy/maggiinasoup-a-case-of-how-not-to-handle-c
risis/articleshow/47612931.cms
Wikipedia