The Business World A Crisis

The objective of this case is to understand the importance of crisis management. This case is intended to make the reader consider not only financial implications at the time of the event but the effects on the long term strategies of the organization. Also, the case urges participants to think about the consequences not only on the customer but on those within the organization as well.

When a crisis occurs, it does not affect just one person, but can extend to the family and friends of the person in crisis. A crisis can also affect an entire community. Since the crisis affects many people, when defining a crisis, we must look at how the crisis affects the entire system. A system can be a family, a church or business, or an entire community (James/Gilliland, 2013). A systemic crisis can come in different forms, ranging from financial, like losing a job to a natural disaster, to a terrorist attack. The two systemic crisis situations chose are bullying and a workplace shooting.

This is a review of Mitroff’s Why some companies emerge stronger and better from a crisis chapters six through appendix C. The paper will address the concept of ‘controlled paranoid’ and the validity of the concept. How present organizational structures deal with crises will be discussed. The paper will introduce modifications to organizational concepts to improve crisis response. The ability to deal with a crisis as an objective, dispassionate occurrence separate from normal life events will be reviewed. The four fears and four myths of society,

The Three-Stage Model is just as the name suggests. It takes a crisis and divides it into three distinct phases. The phases are pre-crisis, crisis, and post-crisis. Events, decisions, and communications can be evaluated during each of the phases. The model acts as an essential theoretical structure for the comprehension of emergencies and creating methods for management (Coombs, 2007). While the simplicity of the Three-Stage Model allows for its broad use and understanding, it does not allow for all of the detailed nuances of a crisis.

A crisis has the propensity to arise at any given moment in an individual’s life. Two of the three definitions of a crisis comes from the Merriam-Webster’s online dictionary, the first one is, “a difficult or dangerous situation that needs serious attention”. Another definition of crisis provided by Merriam-Webster is, “the decisive moment”. In addition, (Hoff, Hallisey, & Hoff, 2009) defines crisis as, “ a serious occasion or turning point presenting both danger and oppurtunity.” This is vital and for some mind changing when they look at a crisis from the angles of ‘a decisive moment’ or ‘an oppurtunity’. There is a possibilty that many people in situations where optimism is not popular, will not first view a crisis as a potential for

Over the course of an organizations life span, they will face issues with their environments which can threaten the business unit, damage financial performance or destroy the public’s trust in an organization (Seeger, Sellnow, & Ulmer, 1998). These issues or what can be called a crisis, can occur for many reasons and can be the result of unpredictable events or unforeseeable consequences. Any organization can be faced with a crisis which is considered any substantial disruption in operations that physically affect an organization, its basic assumptions, or its core activities (Parnell, 2014). Firms and their leadership must be able to formulate strategies which help their organization deal with any sudden or negative events which could potentially

Crisis is a word used to describe a situation that has reached a critical phase. In order to minimize the effects after an incident occurs, a crisis manager sets out to indemnify the area. A crisis can be globally felt and personally felt. One major global crisis in recent history was the Ebola virus outbreak, and one personal crisis I have experienced is a bipolar crisis.

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

Responding to crises is an important part of organizational behavior today, especially because of the effects that have been seen in the previous crises involving prominent organizations such as BP and the Sandusky case. Ensuring that the company has some sort of backup plan when the company goes into the limelight on issues, is an important part of making sure that the stakeholders can be forgiving and go past the crises without much loss to the company. This paper is a case study of the crisis involving Smithville Industrial Chemical plant and the mistakes that they made in the course of the media coverage of the spill on White River.

Crisis is a complex, devastating event or event that burdens the abilities of the people who are trying to manage and live with the event that has occurred. As well as the effects it has on society, organizations, groups, or individuals as well as other things trying to exist during the event. One example of Crisis is the October 1962 Cuban Missile Crisis, after the United States failed attempt to overthrow Castro Regime at the Bay of Pigs; Castro began moving Soviet Nuclear missile into to Cuba to prevent any further attacks by the United States. Risk Management is the process that is use when identifying, analyzing, and either accepting or mitigating of uncertainty in decision making. Essentially risk management occurs when there is a

Andy Grove brought definition to the words “crises management,” and has forever changed the way organizations anticipate and recovery from potential destruction. Andy’s strategic approach and recovery plan has been his most effective contribution to the field. Andy believed that building experimentation into the everyday business

They handle the media, internal company meetings, and several other related meetings. Third, set up a notification system (Bernstein, J., 2016). Fourth, one must have a holding statement available (Bernstein, J., 2016). They are used after the event occurred and to let the community know that they are aware of the issue. Know your internal and external stakeholders. After the crisis happened, one must assess the situation, create messages to be sent to the stakeholders informing them on what they need to know (Bernstein, J., 2016). The final step is performing a post-crisis analysis (Bernstein, J., 2016).

What is a crisis management? It is an unexpected crisis that happens on the company that will affect the trust and loyalty of the stakeholder. It can be extremely costly because it will affect the company reputation and brand. For example like financial failure from poor business management, workplace violence, fires, cybercrime, computer viruses, product tampering or union strikes and other external issue like damaged economy that causes from London bombings, terrorists attacks on 11 September and others. The SHRM 2005 report indicates that only 56% organizations created or revised their disaster preparedness plans but 45% did not after the terrorist attacked on

Preventative crises occur again and again for various reasons. One of the main reasons is because managers and top level business executives desire for profits without regard to sound moral principles (Crandall, Parnell, & Spillan, 2014). Unfortunately, this in itself can trigger an organizational crisis. This problem appears in many forms, but the results are usually the same: an organizational crisis of some type, stakeholders who have been hurt, and prevention that would have cost pennies in comparison to the damage done (Crandall et al., 2014). A classic case of unethical decision making and lack of crisis management concerns the Melamine Milk Crisis in China.

There were several causes for the Enron collapse as we mentioned earlier in the paper. If the organization had a clear-thought out plan, then the company could have managed to save itself from bankruptcy and damaging lives. After reviewing the aftermath of this crisis from several articles it is evident that Enron handle this poorly from start to finish. In this section, we will be focusing on two crisis communication theories as they related to the event. It is actually difficult to properly gauge the theories, as Enron did not recover for their scandal. The two most evident theories that we were able to conclude was the Organizational Renewal Theory and Situational Crisis Communication Theory.