Case Objective: To Understand strategic decision making under uncertain crisis of product recall.
Functional Areas where case can be used: Strategic Management, Risk Management, Brand Recuperating Strategy, Crisis Management.
Organization: NESTLÉ India is a supplementary of NESTLÉ S.A. of Switzerland. With 8 factories and a large number of co-packers, Nestlé India is a energetic organization that provides consumers in India with products of global canons and is committed to long-term sustainable growth and shareholder satisfaction.
Problem or Issue Addressed: Nestlé has been forced to recall all of its wildly-popular instant noodles in India after local regulators said they found dangerously-high levels of lead in some samples in June 2015. Nestlé argued as its Maggi 2-Minute Noodles are safe nevertheless it is in the procedure of trying to pull back them all from store shelves.
In one such study focusing on Indian brands by Millward Brown, Brand Maggi was ranked No. 18 with a valuation of $1.127 billion. Rendering to a Euro monitor report, Maggi accounted for 60% of India's noodle sales last year. The enormous recall came after the Food Safety&Drug Administration (FDA) of of Uttar Pradesh (UP-India) found extreme levels of MSG (Monosodium Glutamate) and lead in a sample batch of Maggi noodles.
Outcomes items used in the decision:The Nestle India is expected to come out with the strategy that retails loyalty of brand Maggie, which took several years to establish and also encashed indirectly by competitors.
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