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Word Count: 808
We shall examine a crisis issue initially raised in the US concerning the revealed carcinogenic benzene impurities in the famous Perrier bottled water In the growing US bottled water market Perrier is the largest water company heaving 9 brands and commanding 57 of the US market for imported bottled water with following large sales and revenues The major elements of this success lie on the very efficient reputation management of the company based on the characteristics of a spring water in France followed by proper advertisement and distribution networks On February 1990 a N Carolina laboratory discovered benzene in samples of Perrier that had been bottled six months before New York Times announced on February 11 that on February 10 production had been halted worldwide on Perrier Thus this company had entered a period of crisis What would happen when consumers find that not only is the product not pure but it may contain substances that are more harmful than they would find in their tap water The whole product reputation may collapse This crisis has the characteristics of a smoldering one as it has been a serious business problem not generally known within or without the company which has already gone public generating negative news coverage As we shall see below the source company did not apply the best crisis management frameworks for problem solving The day by day events of the case have as follows Feb 3 1990 A laboratory in N Carolina has discovered 129 to 199 parts per billion of benzene permissible limit 50 a known carcinogen in samples of Perrier bottled 6 months before Feb 3-9 1990 Perrier conducts its own tests Feb 9 1990 Perrier stock at 1692 francs a share Feb 11 1990 NY Times announces that on Feb 10 1990 production has been halted worldwide on Perrier Feb 12 1990 Perrier stock at 1490 francs a share Feb 13 1990 Times
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