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,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Crisis Management,Crisis Management,Crisis Management Basics,“No comment”fuels hostility,Always try to be helpful,Be aware of deadlines,Befriend journalists before the crisis hits,Crisis Management Basics“No co,Crisis Management Tips,Appoint a spokesperson who is personable and credible,Set up a central place where media and the public can get info,Keep the information coming,Be accessible and return all calls,Be honest,Crisis Management TipsAppoint,Examples of Crisis Management,Odwalla,Exxon,Examples of Crisis ManagementO,Case Study,Odwalla juice e-coli outbreak in 1996,Health officials in Washington state informed the company that they had discovered a link between several cases of E.coli 0157:H7 and Odwalla fresh apple juice.,Case StudyOdwalla juice e-coli,Case Study,One child died and more than 60 people in the Western United States and Canada became sick after drinking the juice.,Sales plummeted by 90%,Odwallas stock price fell 34%.,Customers filed more than 20 personal-injury lawsuits and the company looked as though it could well be destroyed.,Case StudyOne child died and m,What did the company do?,Odwalla acted immediately.,Although at the point where they were first notified the link was uncertain,Odwallas CEO Stephen Williamson ordered a complete recall of all products containing apple or carrot juice.,This recall covered around 4,600 retail outlets in 7 states.,Internal task teams were formed and mobilized,and the recall-costing around$6.5m was completed within 48 hours.,What did the company do?Odwall,Taking Responsibility,On all media interviews,the CEO expressed sympathy and regret for all those affected and immediately promised that the company would pay all medical costs.,This,allied to the prompt and comprehensive recall,went a long way towards satisfying customers that the company was doing all it could.,Taking ResponsibilityOn all me,Internal communications,The CEO conducted regular company-wide conference calls on a daily basis,giving employees the chance to ask questions and get the latest information.,This approach proved so popular that the practice of quarterly calls survived the crisis.,Internal communicationsThe CEO,External communications,Within 24 hours,the company had an explanatory Web site(its first)that received 20,000 hits in 48 hours.,The company spoke to the press,appeared on TV and carried out direct advertising with the Web site address.,All possible attempts were made to provide up to the minute,accurate information.,External communicationsWithin,Fixing the Problem,The next step was to tackle the problem of contamination.,The company switched from unpasteurised juice to a process called flash pasteurization which would guarantee that E-coli had been destroyed without compromising flavor.,Fixing the ProblemThe next ste,Fixing the Problem,Within months of the outbreak,the company had in place what some experts described as the most comprehensive quality control and safety system in the fresh juice industry.,On December 5,the company brought back its apple juice.,The new process was communicated in all advertising and public outreach campaigns,Fixing the ProblemWithin month,Cost and benefit,Odwalla made a rapid recovery.,Much of the good will and trust it had built up over the years remained.,Sales picked up again quite quickly.,Cost and benefitOdwalla made a,Cost and benefit,The company did pay a large cost.Odwalla pleaded guilty to criminal charges of selling tainted apple juice and was fined$1.5m-the largest ever assessed in a food industry case by the US Food and Drug Administration.,Cost and benefit,Case Study,In 1989,the Exxon Valdez oil tanker,entered the Prince William Sound,on its way towards California.,The ship ran aground and began spilling oil.Within a very short period of time,significant quantities of its 1,260,000 barrels had entered the environment.,Case StudyIn 1989,the Exxon V,Case Study,At the moment of the collision the third mate,who was not certified to take the tanker into those waters,was at the helm.,The probable cause was established that the Captain and many of the crew had been drinking alcohol in considerable quantities.,Case StudyAt the moment of the,What did the company do?,The action to contain the spill was slow to get going.,The company refused to communicate openly and effectively to the public about the incident.,The Exxon Chairman,Lawrence Rawl,was immensely suspicious of the media,and reacted accordingly.,What did the company do?The ac,Poor Crisis Management,Media coverage escalated while Exxon dodged the media,The Chairman refused to be interviewed on TV and said that he had no time for“that kind of thing.”,A company spokesman misrepresented the extent of the spill and clean-up efforts,This was in cont
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