Thursday, January 31, 2008

Crisis Management

Wednesday 23rd January, 2008

This lecture was on crisis management and it was very interesting as we looked upon some of good examples in an organization. We started the lecture with what is crisis management and in mandarin language the symbols comprises of two words Danger and Opportunity.

What is crisis and we said that it a turning point, an events that affects the bottom line or reputation of an organization, and we also said that crisis attracts media attention.

We also said that it’s about the organizations ability to cope with the crisis. Some organizations major crisis maybe another’s everyday dealings. We also learnt about different types of crisis and how to tackle them, i.e. by increasing certainty, taking control, Resist attack and reduce isolation.

Later after a break we did a crisis management exercise which was very interesting and enjoyable. We were divided into teams and was given a situation that there are some children from a particular school in harrow who are falling ill due to a mysterious illness and we are the local education authority and what is our role during the crisis. We said that we would first and foremost empathize with the parents whose children are in the hospital and the best thing to do in such a situation would be to shut down the school for sometime till there is no proper investigation to how the children are falling ill.
I leant that it depends on the nature of the crisis and then the organization reacts accordingly. During the times of crisis the organizations sometimes have to issue a press release or call for a press conference if the crisis is too critical or the crisis demands for it. The organization should not panic, it should take the responsibility immediately for what has happened and this shows that the organization as being caring and wants to maintain its trust of its stakeholders.

There is an example of crisis that happened in India with the Cola companies, the pesticide controversy that Cola majors faced in 2003. It describes the New Delhi-based environmental group, Centre for Science and Environment (CSE) report that put the entire soft drink industry in a bad light. The report claimed that its laboratory tests had discovered that most soft drinks sold in India were contaminated with large doses of pesticides like Lindane, DDT, Chlorpyrifos, and Malathion. But the Cola majors overcame this crisis through the use of various marketing communication tools.

Source:http://www.icmrindia.org/casestudies/catalogue/marketing%20management/CLMM003.htm


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