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Crisis communication plan case study report
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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 Crisis Communication Management Plan includes a strategic communication –blue print- crucial in a Product- Harm Crisis incident. And so, the goal of this paper is to explain factors contributing to a Product-Harm Crisis and how a Crisis Management Plan is effective in the first phase of a Product-Harm Crisis incident.
Once a product is found to be malfunctioning with the potential of causing injury or death to a consumer, is when a Product- Harm Crisis has occurred. For instance, there are a few categorized instances that can define a Product- Harm Crisis. For example, natural disaster, workplace violence, rumors, malevolence, challenges, technical errors and, human error (W. T. Coombs, 2012) are just a few examples of crisis. Regardless of the threat, a crisis can indiscriminately post a substantial risk to a company’s reputation, credibility, consumer trust and financial future.
Pursuing this further- Vassilikopoulou, Lepetsos, Siomkos and Chatzipanagiotou (2009) mention four disti...
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... altogether by implementing very meticulous business processes with sufficient “checks and balances” and to react in a felicitous fashion when, despite all precautions a product crisis occurs which imperils the health of the firms customers, (p. ).
In exploring the components included in a Product-Harm Crisis and the suggested strategies in the production of a Crisis Communication Management Plan, recommended that while a Product- Harm Crisis is accepted to have a low likelihood of happening, it can advance into an emergency that might be damaging to a brand. A Crisis Management Plan turned out to be important in such a pressing position as a Product-Harm Crisis event, on the grounds that a Crisis Management Plan frameworks particular systems and strategies that will help in managing media, consumer concerns, brand, recall process (if pertinent), and so on.
The first chance a company is a new product may not be what the clienteles want and see it as the necessity. This risk is severe when you base your concepts for new merchandise merely on an impulse, or without conducting sufficient market investigation. Businesses that are not in touch with their clienteles are also likely to issue with the product. One issue that is often met by product designers is determining on what features must be encompassed in the product. There problem that occurs among merchandise because it has too little features and having too much. The second risk is product growth procedure may include mechanical hurdles and functioning risks that must be overcome. The corporation may be developing completely new merchandise that will deliver new and better assistance to clients. The item may also select to adapt its existing product by adding new features that will make it more interesting to the market. The third risk is a financial risk. A new product that you have established may not be able to produce sufficient demand at a price that will transport revenue for the business. The cost of production, as well as the costs of advertising the product, may not be enclosed by the selling value. The company needs first to identify what the risk is how they really will affect everyone involved. The company must do a risk assessment. This assessment will help the company be able to understand the weight of the risk will have on the company. The company will need to prioritize the risk in order of importance. The final step is to mitigate planning, implement, process motoring of the risk that will be affected. The company need create surveys for employees and for customers to see what feature should be offered with the new product. These elements are essential and will show how customer friendly it will be for customers. The company needs to make sure the customers
deaths, injuries and property damage from consumer product incidents cost the nation more than $1 trillion annually. As the world’s largest retailer, in 2015 Walmart worked to positively improve the numbers through a robust product compliance program. The
We’ve all read about companies who’ve suffered hiccups in product quality or service. Some have survived; some have not.
What we conclude from our research that there’s no single organization free from facing complications and difficulties. Each and every organization face few or many strategic problems. Johnson & Johnson had a problem with one of their products, and they were smart in handling that problem to keep the company on the safe side without letting it effect it negatively. It is very important to act quickly to fix the problem before many consumers notice.
There are many definitions for what is considered to be a crisis. Alan Jay Zaremba, author of the textbook ”Organizational Communication,” combines several definitions of the word to conclude that a crisis is “an incident that occurs unexpectedly, could damage an organization’s reputation, values, and/or performance, and requires effective communication. (Zaremba, 2010) In the case of the Nuance Group, their current situation completely blindsided the organization, was a nightmare for their reputation, and communication was now the key element in restoring their image. This was indeed a crisis.
Risk can be defined as “potential disturbances with their negative consequences”. Sharma & Bhat (2011). The objective of this assignment is to examine Mattel’s Toy recalls. In doing so a risk assessment of Mattel’s supply chain practises before the recall will be formed, the actions taken by all parties involved in the production of those toys that were recalled will be examined, the recalls impact on Mattel will be examined, the transparency and accountability of global supply chains will be identified, and Mattel’s current supply chain will be assessed to identify whether they now effectively managing risk.
A rise in manufacturing automation and product complexity has created a product crisis prone environment for businesses (Weinberger & Romeo, 1989). A product crisis occurs when a company faces negative publicity due to a product defect/failure (Laufer & Coombs, 2006). In order to manage the risk of lost revenue and market share, companies need to develop appropriate responses. This work examines research journals that focused on product crisis case studies, response strategies and the response effectiveness. A successful product crisis response is Tylenol as they combated the negative effects of a product crisis. Tylenol responded to a product recall by re-engineering their packaging and increasing sales promotion. As a result, Tylenol effectively
State the purpose of the paper and an overview of what will be covered in the introduction. Tylenol's 1982 ordeal has become a classic example of successful crisis management. Johnson & Johnson faced a major crisis when their leading pain-killer medicine, extra-strength Tylenol, was found to have caused the fatalities of seven people in Chicago, Illinois. It was reported that unknown suspects took the product off store shelves, tampered it with deadly cyanide and returned it to the shelves. As a result, seven people died and consumers lost confidence and panicked over hearing the news of the incident.
Over the last decade, product marketing and ways through which communication takes place between manufacturers and consumers has changed tremendously (Belch & Belch 2004). Due to the technological revolutions and the rise of innovations such as the mobile phones and the internet, control over information has shifted apparently from the manufacturer's hands to the hands of consumers (Belch & Belch 2004). The market environment has also changed due to globalization of marketing strategies, loss of confidence in media advertising, increased reliance on targeted communication methods, and media fragmentation and so on (Belch & Belch 2004).
The communication process is not something that begins when a crisis rears its ugly head rather it is a process that takes place in preparing for a crisis before it happens. While the term crisis represents a blanket term used to describe many situations, each situation is unique, thus presenting different obstacles to overcome. However, with a well-established advanced plan in place an organization places itself in a position to overcome and work around obstacles. The development of a comprehensive crisis management plan is one achieved through effective communication where each member of the crisis management team has an advanced shared understanding of his or her role and responsibility during a time of crisis (du Pr'e, 2005).
2) Limit the damage, and 3) restore credibility. Following these goals ensure a successful public relations plan for any organization. Crisis management definitely needs to be addressed in any organization. ? Although it is usually not a fun role for public relations manager. The.
One Failure example of risk management process is Coca-Cola Company. As known, Coca-Cola is the world’s number one drink manufacture, with Coke being its most important and biggest selling product. In order to beat its main rival, Pepsi, which releases Aquarium into the no-carbonated drinks and bottled water market, sales of Coke decided to launch Dasani which is Coke-Cola’s con tribulation to the bottled water market in Europe. Breaking into the European market would therefore help Coca-Cola’s sale of their bottled water rise above that of Pepsi’s as Pepsi had no
To cater to customer needs. To keep in mind the complications that arises in different situations and handling it. Teamwork and proper service, internal strategy and proper communication.
Louie, A. L., & Kulik, L. R., & Jacobson, R. (2001). When bad things happen to the endorsers of good products.
A hazard is a potential damage, adverse health or harm that may effects something or someone at any conditions. Other than that, the risk may be high or low, that somebody could be harmed depending on the hazards. Risk assessment is a practice that helps to improve higher quality of the develop process and manufacturing process. It is also a step to examine the failure modes of the product in order to achieve higher standard of safety and product reliability. Unfortunately, it is common that a product safety risk assessments are not undertaken, or not carried out effectively by manufacturer. Mostly an unsafe and unreliable product was produced and launched on to the market. Thus, the safety problems are mostly identified after an accident happened or after manufacturing problems arisen. In order to prevent risk, a person should take enough precautions or should do more to prevent them because as a user should be protected from harm that usually caused by a failure for whom did not take reasonable control measures.