Essay on Strategic Memo for Taco Bell Case 2-2

1221 Words Oct 14th, 2014 5 Pages
Strategy Memo for Case 2-2, James S. O'rourke

Date: August 24, 2014
To: Ms. Laurie Gannon, Public Relations Director
Copy: Confidential to the file
From: Esmira Gheisary, Consultant


Backround:
• Taco Bell is a quick-service restaurant concept and operates in a very competitive climate. Was founded in 1962 by Glen Bell.
• Kraft Foods Inc., is the largest food and beverage company in North America and the second largest in the world. Was founded in 1903 by James L. Kraft.
• On August 1, 1996, Taco Bell and Kraft announced the formation of a license agreement for Kraft to manufacture and distribute Taco Bell-branded taco shells in grocery stores.
• Taco Bell branding may be damaged in public perception because
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Among them are franchisees and customers. In fact, Taco Bell's rapid growth in sales was due to the establishment of franchises. Due to huge recall of all corn products that are at their restaurants, the owners of these franchises are at risk for bankruptcy. Taco Bell should set up a financial resource to help franchisees for some period of time. Customers are the main target for all organizations worldwide, Taco Bell as well. Without customers no business would exist, so Taco Bell should let them know through the media what is going on within the organization and present a clear picture of company's characteristics and do it as fast as possible. After that, they should start recalling all corn products that are at their restaurants to prove they are concerned about food safety for their customers, so that they can maintain their reputation even though it might take some time.

Genetically modified foods are produced from crop plants that are enhanced with molecular biology techniques and the major advantage of them is that they provide enough food for the expanding population. However, there could be side effects since there were no enough tests to prove it can be healthy for the human consumption. Moreover these foods are a relatively recent discovery and there has not been an opportunity to study the comprehensive long-tem effects. According to these reasons, Taco Bell…

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