Dealing with a Product-Harm Crisis in a Corporation Essay examples

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A Product-Harm Crisis can mean the end of a corporation. A Product-Harm Crisis (although considered to be low in probability of occurring), may have severe consequences for a company if not handled properly. For this reason, potential risks associated with a product should be monitored on a continual basis. So much that - without warning, a Product- Harm Crisis can progress into a catastrophic incident that can quickly destroy a business’ future. Since, crises are often difficult to anticipate and prevent (Vassilikopoulou, Lepetsos, Siomkos, Chatzipanagiotou, 2008). Indeed, a Crisis Communication Management Plan is necessary, as it assists in monitoring and detecting potential risks associated with a product. Equally important is that a…show more content…
Secondly is the company’s response to the crisis. According to (Ahluwalia, 2000) individuals presented with new data on a commonplace brand recognize positive news to be as demonstrative as negative data instead of new clients who have a tendency to weigh negative news all the more vigorously. Thirdly is the number and degree of injuries. In spite of the fact that a few studies found that the intensity of damage does not fundamentally influence purchaser conclusions, most specialists concur that the intensity of injury or deaths, influences buyers' responses to a Product-Harm Crisis. Mowen and Ellis found that an organization in a high-harm emergency case condition is recognized less great that an organization in a low-damage circumstance. Lastly are the external effects during and after the crisis with an emphasis in company response as the most important, because response is a stage that a company has to face when a crisis cannot be avoided. That is to say, negative news is accounted more vividly, as it is against the standard, and acknowledged more trustworthy than positive news spread by the organization itself (2009).

In 2008 China faced a crisis of their own regarding Sanlu Group’s Infant Formula, which contained a high concentration of melamine, (compound used in the production of plastic). As a result of this, some of the babies

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