Question
Hi. I am having trouble answering this questions. Could you help me out please? You never thought much about soft drinks before, but since your
Hi. I am having trouble answering this questions. Could you help me out please?
You never thought much about soft drinks before, but since your kids started going to junior high school and ordering their own lunches, you've become more and more concerned about how many sugary, calorie-loaded drinks they consume every day. You wanted to find a way to help kids and parents find delicious alternatives to unhealthy carbonated drinks. So it seemed quite fortunate when you got a management position at Honest Tea, a beverage company that is dedicated to providing wholesome, healthy teas and juices that use all natural, organic, unprocessed ingredients. The company proudly displays its commitment to natural, wholesome ingredients by including a label on all of its products that says "No High-Fructose Corn Syrup," a sweetener that has been heavily criticized for increasing obesity, diabetes symptoms, liver disease, as well as containing trace amounts of mercury.
Although the label is a small, but very public, part of the company's overall strategy of highlighting the company's commitment to quality ingredients, it's caused a serious conflict with a huge investor. A few years ago, Coca-Cola bought a 40 percent stake in Honest Tea for $43 million. The cash infusion was great for the company, but what was even better was Honest gained access, nearly overnight, to a nationwide distribution network.But the investment from Coca-Cola had its downside, as well. Coca-Cola executives were quite disturbed by the "No High-Fructose Corn Syrup" label, which they saw as an implicit criticism of Coca-Cola's own products, most of which use high-fructose corn syrup. So senior managers from Coca-Cola approached Honest Tea with a request: change the label so that it says "sweetened with organic cane sugar" or "no fake stuff," or better yet, just get rid of the label altogether.
You and the other managers at Honest Tea want to maintain a good relationship with Coca-Cola, but you're worried that any changes to the label will violate the company's philosophical commitments. Many are worried that changing or removing the label will be misleading because it wouldn't be crystal clear to consumers that the ingredients are not highly processed. At the same time, you and the other managers don't want to anger Coca-Cola, which not only owns 40 percent of your company but also has an option to purchase all of it in the future.
You and other senior managers, your peers in this course, have been assigned to a team that will engage in negotiations with Coca-Cola. Think about the following questions: How will you respond to your biggest investor? Will you give in to Coca-Cola's wishes, and if so, how? Or, will you decide just to stick to your guns and do nothing?
Question 1:How is this negotiation, decision, and communication process emblematic of a manager's role as a liaison? How will you respond to Coca-Cola's request?
Question 2:If you respond positively to Coca-Cola's request for changes to the label, how would you explain the change to consumers? If you respond negatively to the request, how would you explain your decision to Coca-Cola? What would you do to make sure your relationship does not turn hostile?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started