Name - G.

Havish

F21014

Case study – Odwalla, Inc

Introduction

Stephen Williamson was the chief executive officer in odwalla company worth $400
million. Odwalla is a fruit juice and smoothies’ company were started in September 1980 by Greg
steltenpohl, his wife Bonnie bassett, and a friend named Gerry percy, they were inspired by book
100 business you can start for under $100, they used $200 hand juicer and one box of oranges to
make orange juice and they distributed the juice to local restaurants and they earned their first
profit and began fruit juice empire. The company goal remains to deliver day of juicing quality and
the product line is distributed in seven-state territories. In 1993 odwalla went public and sales
increased from $9 million in 1991 to $59 million in 1996, but in October 30, 1996 a press release a
news stated that odwalla apple juice and mixers consist of E. coli bacteria and some 66 people had
become sick from drinking odwalla juice in recent weeks.

Significant Events

- The Seattle-king County department of public health and the Washington state department.
of health had reported on outbreak of E. coli.
- Some 66 people had become sick from drinking odwalla juices.
- The products were displaced and sold from special odwalla coolers.
- The three founders were inspired by a book entitled 100 business you can start for under
$100.

Problems

- Infection that was epidemiologically associated with drinking odwalla apple juices and
mixers.
- Due to the new spread by the press the company sales have fall down.
- E. coli can grow quickly in uncooked food products.
- Some people had become sick from drinking odwalla juice.
- The failure in the quality control in both inputs and output of the company.

Root cause

- Due to their unpasteurized process their product is infected by E. coli.

- The food must be cooked before eating.
- The company should take the safety measurement for their products.

Alternative solution

- To increase the demand, they should give more adds and get more publicity.
- The company must stop the unpasteurized process.
- To appoint more employees in checking quality esurience.
- The company has to get back their product from the market and test the juice weather they
are the causes of food poisoning or not
- The company has to pay the hospital expenses of the people suffering because of their apple
juice.

Implementations

The company should test their product weather they are causes of food poisoning and also
company has to pay the hospital expenses to the people who are suffering of their juice.

Thankyou