Implementing A Crisis Management Plan

931 Words Aug 2nd, 2015 4 Pages
Businesses should have a crisis management plan to deal with any unexpected issues that may arise during the course of the day to day operations. Implementing a crisis management plan will help a company to be prepared for any situation that may occur. Crisis management is defined as “the process of handling a high-impact event characterized by ambiguity and the need for swift action” (Thorne, O. Ferrell, & L. Ferrell, 2011, p. 66). There is a four stage process that a crisis will follow from the time the issue occurs until the resolution of the issue. Many businesses that are not prepared for an unexpected crisis are unable to handle the situation correctly and as a result their reputation is damaged because of it. Coca-Cola is a company that has suffered from many crises and because of their poor crisis management the company is still trying to rebuild their image in the eyes of the consumer. Coca-Cola suffered a major crisis in June 1999 when children in Belgium became sick after consuming Coke products. The Coca-Cola Company was unable to handle this crisis adequately and because they were unprepared to handle this issue they lost consumer trust and much of the European market. Their slow response time gave people little hope that they were in control and taking care of the problem. The Belgium government had to step in and recall all Coke products, which eventually led to the Netherlands and Luxembourg following suit. If Coca-Cola would have had an effective crisis…
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