Kitkat Nestle Palm Oil Crisis Management

8/16/2019 Kitkat Nestle Palm Oil Crisis Management

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Case: Nestlé'sOil Crisis in 20

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BACKGROUNDINFORMATION Analysis ol

OUTLIN"


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#$ BACKGROUND INFORMATION

Nes!le %as &oun'e' in #())* %i!h i!shea'+uar!er ,ase' in Ve-ey*%i!.erlan'$

The co/0any is one o& !he lea'ing0layers in !he &oo' an' ,e-erageca!egories$ I! has /ore !han 1222 ,ran's

in 0or!&olio* &ro/ glo,al icons !o local&a-ori!es$ The co/0any has a glo,al 0resence an'

e/0loye' 1(#*222 0eo0le as o& 12#2$ I!sre-enues an' 0ro3!s &or !he year 12#2%ere CHF 124$51 ,illion an' CHF 67$16,illion res0ec!i-ely$

#$#$ Co/0any ,ac8groun'


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Ki!Ka! ,ran' is a &a-ori!e chocola!e ,ran' o&

Nes!le$ Accor'ing !o i!s annual re0or!* #92 Ki!Ka!,ars are consu/e' %orl'%i'e e-ery secon'$


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Greenpeace Organization: A non:go-ern/en!al en-iron/en!al

organi.a!ion$

The s!a!e' o,;ec!i-e o& Green0eace is!o


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Palm oil =al/ oil has a range o& uses an' is

0rinci0ally gro%n in In'onesia %here i!/a8es a su,s!an!ial con!ri,u!ion !o

!he econo/y$ Ho%e-er* !he e>0ansion o& 0al/ oilcul!i-a!ion ca/e a! !he cos! o&'es!ruc!ion o& rain&ores!* %hich %ere aho/e !o orangu!ans$

Besi'es* !he clearing o& rain&ores!scon!ri,u!e' !o greenhouse gase/issions* lea'ing !o glo,al %ar/ing$

Rain forests are home to oran


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#$6$ Ti/eline o& !he case

The In'e0en'en! s!a!e' !ha!Nes!l?@s Ki! Ka! con!aine'0al/ oil resul!ing in'e&ores!a!ion an' !hrea!s !o!he Orangu!ans$

"n-iron/en!al Grou0Green0eace re+ues!e' Nes!l?!o


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Green0eace release' !he-i'eo on Vi/eo an' i! reache'7!"00 -ie%s in &e% hours$

The -i'eos s!ar!e' s0rea'ing+uic8ly -ia social ne!%or8s$

The -i'eos %as ,ac8 on ouTu,e an'reach 1"!000 -ie%s

Green0eace su00or!ers !hen change'!heir 0ro3le 0ic!ures !o an an!i:Nes!l?logo an' 0os!e' ,oyco!!ing Nes!l?/essages on Nes!l?@s T%i!!er an'

Face,oo8 0age$ Ho%e-er* Nes!l? 'ele!e' !hose

nega!i-e co//en!s %i!h an!i:Nes!lelogo an' 0os!e'

“To repeat: we welcome your comments,but please don’t post using an alteredversion of any of our logos as your

prole pic — they will be deleted.

• The s!a!e/en! &ur!her angere' onlineusers an' escala!e' !he nega!i-e

1th March2010

17th March2010


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The -i'eo on ouTu,ereach 1#2 million -ie%s

Nes!les@ Face,oo8 %aso-er%hel/e' %i!h

nega!i-e co//en!s* Nega!i-e co//en!s on T%i!!er a00eare' e$er%1" minutes %i!h /ore!han 21"!000 relate&teets

The all !ree! ournalco-ere' an' s0rea' !hes!ory$

This nega!i-e ,u.. insocial /e'ia*a00aren!ly* le' !o a'ecrease in ,o!h ,ran're0u!a!ion an' sales-olu/e$

2(th March2010


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1$ ANALI

1$#$ =u,lic Analysis

Customers

O

)nternalpu*lics

+etailers

,uppliers-,inar

Mas.

)n&onesiago$ernm

ent

=u,lic


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/ho enet oss

# Cus!o/ers > > !o0 using

1 O00onen! Gain /ar8e! share > orsen !he

6Green0eace

ac!i-is!s

=ro!ec! en-iron/en!*

gain re0u!a!ion> Inuence c

7 Me'ia Ne%s >0rea' !he

in&or/ !he

9 In!ernal 0u,lics >Une/0loy/en!

La,or cu! 'o%n

orsen i/

si!ua!ion

) Re!ailers > Inco/e re'uc!ion Cancel ser

5u00liers inar

Mas>

Decrease 0ro3!

share* /oney

!o0 0ro-i

resource

(In'onesia

go-ern/en!> >

us0en' !h

inar Mas


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Go$ernment!"eep satised#

Consumers

Me&ia

Greenpeace

acti$ists

!manage closely#

Opponents

)nternal pu*lics!minimal e$ort#

+etailers

,uppliers!"eep informed#

PO/3+

)N3+3,

High

Lo%

Lo% High

POMA


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1$ ANALI

1$1$ Crisis Analysis

)ssue +is5 e$el

,uppliers selection

Ina00ro0ria!e 0ar!ners /ay 'e!eriora!e

!he re0u!a!ion o& !he co/0any in !er/s o&

'is+uali3e' /a!erials

u,s!an!ial

3n$ironmental

responsi*ilit%

The co/0any canno! &ull3l !heir

res0onsi,ili!y &or !he en-iron/en!Mo'era!e

Communication Lac8 o& in!erac!i-i!y %i!h !he 0u,lic u,s!an!ial

he &e$elopment o6

internet an& social

me&ia

In&or/a!ion agains! !he co/0any /ay

s0rea' ra0i'lye-ere

Pu*lic aareness o6

en$ironmental

issues

The 0u,lic cri!ici.e !he co/0any

en-iron/en!al res0onsi,leu,s!an!ial

Scop I! !o

'ays!he /ain

Un!i

12#2a!!ra-ie%an' s0rene%uncos0ee


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6$ OLUTION

Solution 1:ue Green0eace in !er/s o&

co0yrigh! issue

Solution 2Juic8ly 0er&or/ ac

&ul3ll en-iron/eres0onsi,ili!y

Solution 3:Juic8ly 0ro-i'e a si!e &or

JA* change su00lier* an'0ar!ici0a!e in en-iron/en!al

ac!i-i!ies$


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6$ OLUTION

Solution 3: %uic"ly provide a site for %&', change supplier, and particenvironmental activities.

ction 1: #7!h Mar 12#2: For/ a crisis /anage/en! !ea/: Call an in!ernal /ee!ing !o In&or/ !he curren! si!ua!ion Gi-e ou! a course o& ac!ions incase o& 'ealing %i!h !he 0ress an'

cus!o/ers$

ction 2: #9!h Mar 12#2=ro-i'e an ocial si!e &or JA &orcus!o/ers &ollo%ers !o: Dri-e 0eo0le@s a!!en!ion a%ay &ro/i!s social ne!%or8 si!e

: U0'a!e con!inuously on socialne!%or8 si!e

ction 8: Fro/ #9!h Ma: us0en' sourcing &ro/ : Fin' a cre'i,le e>!ernal 0cer!i&y !he sus!aina,ili!y o&su00liers$: Hol' /ee!ings %i!h Gree

0ro-i'e 'e!ails o& !he co/0su00ly chains$: Announce !he consu/ers/e'ia a,ou! !he change inNes!le$

ction 4: A0ril 12#2Ac!ion !o 0ro!ec! !he en-iro

: =ar!ici0a!ing in glo,al en


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9N ;O< =O),3N)NG>

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Kitkat Nestle Palm Oil Crisis Management

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