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1、Crisis ManagementCrisis Management Basicsl“No comment” fuels hostilitylAlways try to be helpfullBe aware of deadlineslBefriend journalists before the crisis hitsCrisis Management TipslAppoint a spokesperson who is personable and crediblelSet up a central place where media and the public can get info

2、lKeep the information cominglBe accessible and return all callslBe honestExamples of Crisis ManagementlOdwallalExxonCase StudylOdwalla juice e-coli outbreak in 1996lHealth officials in Washington state informed the company that they had discovered a link between several cases of E. coli 0157:H7 and

3、Odwalla fresh apple juice. Case StudylOne child died and more than 60 people in the Western United States and Canada became sick after drinking the juice. lSales plummeted by 90%, Odwallas stock price fell 34%. lCustomers filed more than 20 personal-injury lawsuits and the company looked as though i

4、t could well be destroyed. What did the company do?lOdwalla acted immediately. lAlthough 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. lThis recall covered around 4,600 r

5、etail outlets in 7 states. lInternal task teams were formed and mobilized, and the recall - costing around $6.5m was completed within 48 hours. Taking ResponsibilitylOn all media interviews, the CEO expressed sympathy and regret for all those affected and immediately promised that the company would

6、pay all medical costs. lThis, allied to the prompt and comprehensive recall, went a long way towards satisfying customers that the company was doing all it could. Internal communicationslThe CEO conducted regular company-wide conference calls on a daily basis, giving employees the chance to ask ques

7、tions and get the latest information.lThis approach proved so popular that the practice of quarterly calls survived the crisis. External communicationslWithin 24 hours, the company had an explanatory Web site (its first) that received 20,000 hits in 48 hours. lThe company spoke to the press, appeare

8、d on TV and carried out direct advertising with the Web site address. lAll possible attempts were made to provide up to the minute, accurate information. Fixing the ProblemlThe next step was to tackle the problem of contamination. lThe company switched from unpasteurised juice to a process called fl

9、ash pasteurization which would guarantee that E-coli had been destroyed without compromising flavor. Fixing the ProblemlWithin 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. lOn Dec

10、ember 5, the company brought back its apple juice. lThe new process was communicated in all advertising and public outreach campaignsCost and benefitlOdwalla made a rapid recovery. lMuch of the good will and trust it had built up over the years remained.lSales picked up again quite quickly.Cost and

11、benefitlThe 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.Case StudylIn 1989, the Exxon Valdez oil tanker, entered the Prince Willi

12、am Sound, on its way towards California. lThe 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 StudylAt the moment of the collision the third mate, who was not certified to take the tanker i

13、nto those waters, was at the helm.lThe probable cause was established that the Captain and many of the crew had been drinking alcohol in considerable quantities. What did the company do?lThe action to contain the spill was slow to get going.lThe company refused to communicate openly and effectively

14、to the public about the incident. lThe Exxon Chairman, Lawrence Rawl, was immensely suspicious of the media, and reacted accordingly.Poor Crisis ManagementlMedia coverage escalated while Exxon dodged the media lThe Chairman refused to be interviewed on TV and said that he had no time for “that kind

15、of thing.” lA company spokesman misrepresented the extent of the spill and clean-up efforts lThis was in contrast to the footage of the ecological disaster shown on TVFailure to Fix the ProblemlWhile Exxon stalled and attempted to cover up the problem, the clean-up operation was slow to beginlAround

16、 240,000 barrels had been spilled, with another million still on the ship. lDuring the first two days, when calm weather would have allowed it, little was done to contain the spillage. lThis spillage spread out into a 12 square mile slick. The Problem CompoundslThen the bad weather struck, making fu

17、rther containment almost impossible.lAfter more than a week, the company was still giving no ground on the request for better communication. lThe media clamor became so hostile that eventually Frank Larossi, the Director of Exxon Shipping, flew to Valdez to hold a press conference. lIt was not a suc

18、cess. Small pieces of good news claimed by the company were immediately contradicted by the eyewitness accounts of the present journalists and fishermen.Outrage BuildslJohn Devens, the Mayor of Valdez, commented that the community felt betrayed by Exxons inadequate response to the crisis, in contras

19、t to the promises they had been quick to give of how they would react in exactly this eventuality.Poor CommunicationlEventually, Chairman Rawl was interviewed livelHe was asked about the latest plans for the clean-up. lIt turned out he had neglected to read these, and cited the fact that it was not

20、the job of the chairman to read such reports. lHe placed the blame for the crisis at the feet of the worlds media. The AftermathlThe spill cost around $7 billion, including the clean up costs. l$5 billion of this was made up of the largest punitive fines ever handed out to a company for corporate ir

21、responsibility.The AftermathlExxon lost market share and slipped from being the largest oil company in the world to the third largest. lThe Exxon Valdez entered the language as a shortcut for corporate arrogance and damage.What went wrong?lThe company failed to show that they had effective systems in place to deal with the crisis - and in particular their ability to move quickly once the problem had occurred was not in evidence lThey showed little leadersh

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