Crisis management in business

Types of Crises

Damage to Profit and Reputation:Importance of responding fast and appropriately

Crisis Management Planning

Public Perception and Trust

Opportunities in Crisis

components

Technological failure

Employee actions (walkouts, fraud)

Supplier loss or rising raw material prices

Environmental disasters

components

Newsworthiness of any crisis

Quick establishment of crisis details

Who, What, When, Where, and How"

Who, What, When, Where, and How"

Quick establishment of crisis details

Newsworthiness of any crisis

Components

Fast public response

Impact on consumer trust

Leadership importance in crisis situations

Example

Johnson & Johnson (Tylenol Crisis, 1982)

Recall of contaminated product

Stop advertising and reintroduction with tamper-resistant packaging

Positive public response and regained trust

Anothe example in the US:

Gerber Products

Handling baby food crisis with glass shards

Lack of recall and evidence-based defense

Negative public response and loss of consumer confidence