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Arla Foods Case

In: Business and Management

Submitted By astanle4
Words 375
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1. What are the major societal issues or tensions that are raised by this case?
The major societal issues/tensions raised in this case involve the boycott of Danish products encouraged by the OIC and the bad image that danish products had in middle eastern countries. Also, Arla employees were being harassed and needed additional security escorts. The rapid deterioration in relations between Denmark and the Middle East, with Arla losing $1.5 M per day due to 50,000 stores banning their products. Consequently due to the major drop in sales they had to make some layoffs. Arla needed to decided how to communicate with those consumers who felt offended, while determining what kind of political or non political stance they were going to take so that their business had a chance to recover.

What stakeholders does Arla need to consider in developing a crisis management plan?
Arla could consider reaching out to the local state officials in Denmark. If they become aware of how badly the issue is effecting business for Arla and other products created in Denmark, they may take action because this ultimately can hurt Denmark’s economic state and increase unemployment. Also, they need to consider the supermarket chains and consumers in Saudi Arabia. They have built a positive, long standing relationship with them that Arla believes that authorities began to consider them as a local dairy.

What should Arla do?
It may be beneficial for Arla to create a public message or statement, concerning their disassociation with the local newspaper ads and how their product are not a reflection of Denmark’s local media. The consumers need to be aware that Arla’s products are in no way tied to these matters and they do not support them in any way. They should be careful doing this without tainting the image of Denmark like other European companies have done. They should also make…...

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