Disaster ManagementGroup 7

Coca-Cola

• Originated on March 27, 1944• Also known as Coke• Found over 200 countries worldwide• 2 billion beverage servings per day• Most valuable brand in the world

Companies Approach to Disaster Management

• Step-by-step Strategy• Deal with problems on everyday basis• Clean channel of communication• Two-Way communication• Pay attention to public• Have legitimate research about problem

Local Disasters

• Hurricane Katrina, 2005• Evacuees converged to Baton Rouge/LSU• LSU gained national reputation as leader• Alumni donated $25 million to LSU• Wanted more disaster research, business

leasers, and emergency responders with crisis response experience

• Stephenson Disaster Management Institute (SDMI) was created

SDMI

• Having everyone on the same page• Creates and manages certain plans within and

without the company• Coca-Cola needs SDMI to communicate within

company better• SDMI main sector is incident command center• Provides more communicative model• Enables Coke to maximize resources avaliable to

them

SDMI (cont.)

• Helps Coke make the best possible decision• Help efforts in disaters by organizing and

identifying the problem• Betters the situation• SDMI serves Coke through source of

knowledge, training and guidance in disaster recovery practices

• Help expand their disaster management processes

Crisis Commander

• A Crisis Management framework• Two Core Components:

– Incident Management System– Crisis Management System

• Flows from Incident → Crisis

Incident Management System

• Life of an Incident (A Coca-Cola Example)– Bottling Plant Mishap– Report Creation– Report Routing and Response

• Bio-contaminant Cleanup• Internal Investigators

– Report Resolution and Filing

– Results

Crisis Management SystemWhat happens when an incident escalates?

• Incident Escalation (A Coca Cola Example)– Distribution Contaminants Reported– Investigation of Contaminant Source– Official Statement Release– Recall of Batch– Dealing with consumer complaints, legal

repercussions, etc.

– Results

Other Systems

• Mission Mode• Rapid Responder

– Incident 1 Revisited:• Mishap occurs• Emergency Responders contacted through

R.R.• Report Created• …

Companies Approach to Disaster Management

• Step-by-step Strategy• Deal with problems on everyday basis• Clean channel of communication• Two-Way communication• Pay attention to public• Have legitimate research about problem

1999 - Belgium

• Children were diagnosed with Mad Cow Disease after allegedly drinking Coke

• Coke clearly communicated with the public about the issue

• Sent researchers to find the origin on the problem

• Loss of sales but gained respect

2008 - Twitter

• Negative comment Twitter• No social media crisis management plan• Adam Brown

Natural Disaster

• Earthquake and Tsunami• Largest disaster in Japan• Special Coke machines• Coke donated $33 million to the cause

Natural Disasters

• 2011 – United States flooding• $600,000• beverages• Physical aid

Natural Disasters

• 2004 – tsunami in Indonesia• 2008 – earthquake in China• 2010 – earthquake in Haiti

– $2 Million– 1 Million Liters of Water

Crisis Teams

• Paired with the Thai Red Cross Society to prepare for disaster response

• Adam Brown as Head of Social Media• Teams that responded to health concerns

Companies Approach to Disaster Management

• Step-by-step Strategy• Deal with problems on everyday basis• Clean channel of communication• Two-Way communication• Pay attention to public• Have legitimate research about problem

NetSuite

• Philippines 2011• Information System with Coca-Cola• Provide Real-Time Data• Cost Saving• Provides Clean Water for 60 communities