Most of the important crisis can be prevented if the company addresses the issues and resolves the issue. For this, the companies need to have a smooth system. Being a high reliability company, there was a complacent attitude regarding the production was the main issue of the company. This leads the company to face the issues that it did in the country. When the people in the organization discover a critical situation, they usually state their issues to the upper management and to their supervisors. These are known as the precursor. At this point, the critical situation is known only to a few. If addressed at that point of time, the issues which the company faces will reduce. However, owing to systemic issues, the company started to mass produce a product that had higher than permissible number of certain compounds. This was initially pointed out in one of the stages in the country. The company used a social defence approach (Dhanesh and Sriramesh, 2017).
The systemic issue that were related to the production of the product was the main trigger. People started to wonder about the quality. The company management was initially less worried about the product that they had developed. Food safety administration (FDA) passed an order that the company must recall the products. Initially, the company adopted a very nonchalant approach and continued to defend their product. They stated again that they do not add any MSG in their products. Moreover, they stated that particular product was accidentally contaminated. However, this situation escalated when 6 other states in the nation stated the same and banned the product from the shelves. This is when the situation escalated into the acute stage or the second stage of the crisis.
The stakeholders of the company can be broadly defined as the person who has relationship with the company. Manufacturing unit, employees, distributers, suppliers, retailers and end consumers are the different stakeholders of the company. For effective employee management, there must be proper leadership for the company. The stakeholders of the company are impacted by the businesses and brand equity that the company is able to generate. However, in this crisis, the end consumers were notified that the product in itself was flawed. This caused all the stakeholders of the company to be impacted negatively.