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