...On the Crisis Management of the Modern Enterprise BIAN Tingting1, 2, TAN Zhanglu2 1 School of Management, Beijing Union University, Beijing, China, 100101 2 School of Management, China University of Mining &Technology, Beijing, 100083 teacherbian@126.com Abstract: Modern enterprises are facing more and more crisis from the external environment. This paper starts from the four major foreign crisis management theories, then analyzes the main problems of the enterprise crisis management in our country, finally it raises the three aspects ideas of the modern crisis management. The three aspects are named crisis prevention, crisis resolving and summer up after crisis. From the three aspects, we should strengthen the crisis management, and control the deterioration of the crisis in time to ease the crisis finally to turn crises into opportunitiesin order to minimize or avoid the loss of the enterprise caused by crisis. Keywords: Modern enterprise, crisis, crisis management 1 Introduction With the acceleration of economic and social globalization, internal and external business environment becomes more complex and changeable, and are full of uncertainty. This uncertainty has brought the potential for the enterprise crisis. Today's economic and social development is more than ever vulnerable to social conflict, terrorism, technological disasters, and financial crisis. Crisis exists anywhere and anytime...
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...Definition of Crisis Management Crisis is inevitable and the planning and execution to bring under control such an event that has been developed through complicated processes that causes damages and potentially affects an entire organization is called Crisis Management (Vassilikopoulou, Lepetsos, Siomkos, & Chatzipanagiotou, 2009, pp. 65-66). Crisis Management in Relation to Business Vassilikopoulou et al. (2009) stated, “Crisis are events that are difficult for a company to avoid” (p.66). Vassilikopoulou et al. further stated “the types of crisis are numerous from ‘small-scale organizational issues’ to a grave crisis." Several studies prove that when a company neglects a crisis it will eventually hurt the brand and the image. The following two citations will prove this “The immediate expense of product replacement and consumer compensation may pale in comparison with the loss of consumer trust and damage to brand evaluations” (Lei, Dawar, & Gürhan-Canli, 2012, p. 336). “A poorly managed marketing crisis can quickly destroy the affected brand’s equity, which might have been nurtured over many years” (Zhao. Y., Zhao, Y., & Helsen , K., 2011). Managing Crisis Management should minimize negative consequences (Vassilikopoulou et al., p.69). Vassilikopoulou et al. described “companies involved in a crisis are more likely to be held responsible for the defective product if they have a poor reputation” (as cited in Siomkos, 1999). Thus, a good reputation could also play a protective...
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...Employee Behavior, Corporate Intelligence Issues, and Accounting Practices. Employee Mistreatment can also be workplace abuse which is a behavior that causes workers emotional or physical harm. Harassment, discrimination, bullying and violence are forms of workplace abuse. These behaviors aren’t always distinguishable from one another because they frequently overlap. Harassment can be discriminatory, bullying can be a form of harassment, and any of these behaviors can lead to workplace violence. Employee Mistreatment can come from coworkers mistreating each other, managers mistreating employees, sexual mistreatment, assaults, discriminations against woman with lower wages, discriminations against minorities, and corporate bulling. In my research I found that corporate bulling happens more than one thinks and it’s a complex issue. While there are a variety of reasons why bullies choose to target other people, usually their behavior is driven by the bully’s need to control the targeted individual. These employees want to call all the shots. So they often insist on having things their way and if others don’t comply they are targeted. Usually, these bullies have strong social skills and a lot of influence within the company. As a result, they use these attributes to dominate other people. Other workplace bullies may target their co-workers out of envy. They may feel threatened by the target’s strengths or accomplishments or insecure about their own abilities. There is protection...
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...Crisis Communication in theory and practice: Analysis of cultural influence, strategy applicability, and stakeholder relevance in Australia and New Zealand Natascha Pancic A thesis presented in partial fulfilment of the requirements for the degree Master of International Communication Unitec New Zealand, 2010 ABSTRACT This research project explores crisis communication in theory and practice in Australia and New Zealand with specific focus on cultural influence, strategy applicability, and stakeholder relevance. A mixed-method approach was used to evaluate crisis communication in its theoretical and practical constituents. The research project comprises of the two data collection methods of content analysis and in-depth interviews. The content analysis, the selected method to evaluate the theory, was conducted from published research studies in leading Australian and New Zealand Public Relations and Communication journals, the websites of the PRism journal, the Australian and New Zealand Communication Association (ANZCA), the Public Relations Institutes of Australia (PRIA) and New Zealand (PRINZ), and via the database search platform Ebsco. The content analysis provided information about the number of published articles, leading theoretical models, research methods, and research orientation. The in-depth interviews, the chosen method to investigate the crisis communication practices, were conducted with three Australian and three New Zealand practitioners...
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...Halmstad University School of Business and Engineering Master in Management of Innovation and Business Development Toyota Crisis: Management Ignorance? – A Swedish Case of Consumers Perceptions Master’s Dissertation in Management of Innovation and Business Development, 15 ECTS Final seminar 2010-05-27 Authors: Yuanyuan Feng Supervisor: Mike Danilovic Hamlstad University Feng(2010) TOYOTA CRISIS: MANAGEMENT IGNORANCE? – A SWEDISH CASE OF CONSUMERS PERCEPTIONS Yuanyuan Feng School of Business and Engineering, Halmstad University, Sweden Abstract Since the late 2009, the famous vehicle manufacture Toyota has suffered a severe crisis due to unintended quality problems in its cars which had triggered Toyota’s largest officially recalls of its cars around the world. This crisis threatens the company’s previous reputation of good quality cars, as well as the brand image built up over time. This study aims to elaborate on the Toyota crisis in order to understand why Toyota faces this crisis and how they deal with the crisis; and investigate consumers’ perceptions of Toyota brand as the outcome of the crisis, with a focus on Swedish market. A qualitative research along with a number of face-to-face interviews with Toyota Swedish dealer and Swedish vehicle consumers is conducted. The findings reveal that the impact of the Toyota crisis in Sweden is not as serious as that in America; there remain satisfied and loyal Toyota’s customers who are not swayed by...
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...PEPSI COLA CRISIS Yeşim Ekici, M.Sc Bahçeşehir University CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments References CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments Brief History of PEPSI 1891- 1935: faced bankruptcy twice 1898: becomes known as Pepsi Cola, formulated Pepsi-Cola 1941: First signs of success Listed on New York Stock Exchange 1964: formulated Diet Pepsi 1965: PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lays Named one of the world’s top beverage companies CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments CONTENTS Brief History of Pepsi Crisis Timeline of Crisis Crisis Management Analysis and Comments CRISIS PepsiCo was entering peak sales season (Memorial Day to Labor Day) June 9, 1993: Syringe found in Diet Pepsi can (Tacoma, Washington) Hypodermic syringes in cans which cause HIV/AIDS When the crisis hit, days later on: more than 50 new reports in more than 20 states with objects including: Syringes, a wood screw, a bullet, a crack cocaine vial and a broken sew needle TIMELINE OF CRISIS *2 more complaints reported 1 from Los Angeles; 1 from Pennyslvania *First complaint reported in Tacoma , Washington JUNE 9 JUNE 10 *FDA (US Food and Drug Administration) issues 5 states alert advising consumers to inspect their sodas by pouring JUNE 13 JUNE 14 *Multiple complaints reported from...
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...Volume 10 Number 3 Academic Research Protecting Organization Reputations During a Crisis: The Development and Application of Situational Crisis Communication Theory W. Timothy Coombs Department of Communication Studies, Eastern Illinois University, Charleston, IL, USA ABSTRACT Crisis managers benefit from understanding how crisis communication can be used to protect reputational assets during a crisis. Situational Crisis Communication Theory (SCCT) offers a framework for understanding this dynamic. SCCT provides a mechanism for anticipating how stakeholders will react to a crisis in terms of the reputational threat posed by the crisis. Moreover, SCCT projects how people will react to the crisis response strategies used to manage the crisis. From its empirical research emerges a set of evidence-based crisis communication guidelines. The development of SCCT is discussed along with the presentation of its guidelines for crisis communication. Corporate Reputation Review (2007) 10, 163–176. doi:10.1057/palgrave.crr.1550049 KEYWORDS: crisis communication; crisis man- agement; reputation INTRODUCTION Crises are taken as a threat to the organizational reputation. Crises damage the reputation and such changes can affect how stakeholders interact with the organization (Barton, 2001; Dowling, 2002). Postcrisis communication can be used to repair the reputation and/or prevent reputational damage (Coombs and Holladay, 2005). The field of crisis communication is dominated by...
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...Communication to Manage Crisis HCS/320 Communication to Manage Crisis Those who work in hospitals have to face crisis. It may happen in the emergency room or even in the manager’s office. Hospital employees need to be ready for such events. Coombs 1999 states that no organization can guarantee that they will not have any crisis. According to Reynolds 2006, crisis may occur internally or externally for the organization but when it occurs people’s lives may be at stake and at the same time the reputation of the company may get jeopardized. During crisis communication as well as improper communication can play a great role. For lack of communication right things may not be done and crisis may occur. Even a rumor may spread and crisis may happen. Communication methods to be adopted during a crisis have been talked about a lot but defining crisis is not so easy. According to Heath 2006, before defining the crisis, the risks need to be identified. According to him a risk may have both negative and positive influences of different levels. If anything happens to people, communication with them can tell us a lot and it can be understood whether crisis can be overcome. Whether reputation can be left intact needs to be understood. I am acting as the director of the Regional Emergency Office and I got reports about the public water that had been infected with something fatal. The pollutant is a biological element that has life threatening effect. We know that biological agents...
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...COMMUNICATION THEORY 10.1177/0021943604265607 IMPACT OF PAST CRISES ON CURRENT CRISIS COMMUNICATION Insights From Situational Crisis Communication Theory W. Timothy Coombs Eastern Illinois University Previous research based on Situational Crisis Communication Theory (SCCT) suggests that an organization’s past crises history affects the reputational threat posed by a current crisis when that crisis results from intentional acts by the organization. The study reported on in this article provides a wider test of crisis history to better assess its role in crisis communication. Results from the present investigation showed that a history of similar crises intensified the reputational threat of a current crisis even when the crisis arose from the victimization of the organization or from an accident, rather than from the organization’s intentional acts. The threat to reputation was primarily direct, rather than indirect, through perceived responsibility for the crisis. There was little difference in the perceptions of organizations identified as having had no history of past similar crises versus those for whom no information about past crises was provided. Perception of an organization’s responsibility was negatively correlated with the perceived impact on reputation. Implications for the practice of crisis communication and further development of SCCT are discussed. Keywords: crisis; communication; management; reputation; theory On Monday March 27, 2000, a deadly blast ripped...
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...Communication and Crisis HCS 320 May 20, 2013 Teresa Shook Communication and Crisis An Emergency Management Director’s job is very complex. That person is responsible for not only coordinating with other agencies, but also ensuring proper communication with them as well as the media and the public to keep them informed as to the status of the damage, cleanup efforts, and other needs as they arise. In the case of Hurricane Katrina, the director must communicate and coordinate efforts with the EPA, Red Cross, other FEMA departments, and the federal government to ensure that all proper bases are covered to monitor and coordinate the cleanup and shelter of those people affected by the hurricane. The director must also communicate with news media and the public as to the scope of the disaster, what is being done for the victims, and what the public can do to help with recovery. There are several advantages to communicating within the various organizations that are teaming up to help the victims and clean up the aftermath. The first is that each organization has its own strengths and weaknesses when it comes to certain capabilities and they can pool resources to help get things done in a timely fashion. A second advantage is that by getting the information out to different local organizations, they can begin to recruit volunteers to help with gathering food, water, or other materials for the victims quickly, and even nearby towns can begin to help set up shelter areas...
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...CRISIS PLAN IMPLEMENTATION Once an organization has developed and approved the necessary crisis management and communication plans, we work with the client to properly brief and train all individuals responsible for implementing them. Besides, there is also a developing formal crisis management programs which helps managers and others prepare for unexpected high-impact events that threaten an organizations health and well -being. They also work to ensure that any infrastructure development, resource acquisition, or staff realignment that may be necessary takes place in a timely and effective manner. Below is their plan implementation advisory services include: The Implements of Crisis Management The Implements of Crisis Management * Training key executives plus communications, security, HR, operations, and other line managers and employees on how to implement the plan. * Providing ongoing advice and support on plan implementation, including facilitating inter-departmental or cross-functional integration of processes, and design and implementation of crisis operation centers, war rooms, and response procedures. * Monitoring issues, trends and events that may affect or trigger a crisis. * Reviewing, editing and providing editorial support for key document templates and live documents required under the plan. * Designing and facilitating war game exercises for the organization’s senior management, board, crisis team, and other staff. * Providing ongoing...
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...Running head: MANAGING A CRISIS USING PR SIMULATION SUMMARY Managing a Crisis Using PR Simulation Summary University of Phoenix MKT/438 – Public Relations Managing a Crisis Using PR Simulation Summary The following paragraphs present an interesting scenario of a most peculiar mishap regarding one of the turbines used by an environmentally safe electric company named Greenergy. The concepts in this summary give insight into proactive planning, feedback mechanisms, examples of ineffectual deployments, when to use proactive crisis management, and reactive crisis management as is associated with PR. Most importantly, by the end of this report a clear understanding of how to manage a crisis will have been acquired. Proactive Planning Proactive planning is a concept designated to the sole purpose of being prepared prior to an action or occurrence. The ability to cope with and endure an event is always in the company’s best interest as well as all publics involved. Proactive planning is merely the thoughts and actions taken in order to forecast and deal with crisis situations in a positive manner by way of a variety of tools available to Public Relations (University of Phoenix, 2010). Feedback Mechanism The situation Greenergy found itself in affects many publics at every level. An ideal...
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...ISSN: 2278-3369 International Journal of Advances in Management and Economics Available online at www.managementjournal.info CASE STUDY Crisis communication failures: The BP Case Study Daniel De Wolf1, Mohamed Mejri2* 1University 2Ecole of Littoral Côte d’Opale (ULCO)/Management & Economics, Dunkerque, France. Superieure de Commerce/Management Department, University of Manuba, Tunis, Tunisia. *Corresponding author: Email: mohamed.mejri@univ-littoral.fr Abstract On the 20th of April 2010, an outstanding explosion of the BP Deepwater Horizon oil rig situated in the Golf of Mexico caused the largest maritime disaster oil spill in the USA history and particularly caused considerable reputation and financial losses to BP.To deal with the spill oil as well as reputation and financial losses, the company particularly use many tactics and tools to communicate with stakeholders during and after the crisis. However, crisis management and communication experts’ opinions differed on whether BP crisis communication was effective or ineffective.This paper aims to assess BP crisis communication and mainly to point out possible failures through a content analysis of secondary data collected from various sources (newspapers, magazines, annual reports and blogs). Keywords: British Petroleum, Crisis communication, Crisis Management, Deepwater horizon. Introduction On the 20th of April 2010, the petroleum industry has been marked by the largest maritime disaster oil spill...
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...strategic management process David Pollard and Sabine Hotho Dundee Business School, University of Abertay, Dundee, UK Abstract Purpose – The aim of this exploratory paper is to consider the strategic importance of crisis management and integration of crisis planning with the organisation’s strategy processes, in particular the utilisation of scenario planning as a crisis planning activity. Design/methodology/approach – A review of the crisis management literature was undertaken and key issues identified, subsequently strategic aspects of crisis management were developed in the context of scenario planning. Findings – The paper contains a discussion of major factors related to a strategic approach to crisis management and a more proactive approach to building relationships with the media. Particular attention should be given to the roles and responses of the media and agencies acting on behalf of the company, as both should been treated in the same way as other relatively powerful stakeholders. The authors suggest that firms can obtain significant advantages through proactive preparation for major relevant contingencies, and its incorporation into the strategic management process. Originality/value – This paper brings together the debate on the strategic position of crisis management with scenario planning processes to provide a mechanism for designing, evaluating and managing crisis futures. It should prove useful to managers considering the development of crisis management, especially...
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...* * How and why is it important for businesses to engage with the media during a crisis? What strategies are successful in external communications for business during such times? Compare & contrast two news stories which centre on a crisis for different businesses giving detailed analysis of each communications strategy. This Essay will begin by reviewing crisis definitions and message strategies. Next it will explore translation strategies used by organisations involved in a crisis to communicate with stakeholders. The essay will then consider Ford–Firestone’s tire failure crisis of 2000 as an example of poor crisis management, and contrast toy maker Mattel’s recall crisis of 2007 as an example of successful crisis management. It will first lie out the rhetorical context of each case before embarking on a detailed analysis equating the effectiveness of both firms’ external communications, and in the case of Ford-Firestone, how these might have been alternatively approached in order to avoid detrimental reputational damage. * Fink (1986, from King, 2000) defines an organisational crisis as ‘a situation that can potentially escalate in intensity, fall under close government or media scrutiny, jeopardize the current public image of the organisation or interfere with normal business operations.’ Pearson and Mitroff support this in their ‘five dimensions of a crisis’, explaining that the situation will be ‘highly visible, require immediate attention, have a surprise...
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