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Crisis Management. By Raphael Arrouas. The Basics :. Know the threats, and be prepared React fast (under 48 hours) : Contain the crisis Learn to work with the medias (public opinion) Get outside help (experts, lawyers, specialized companies…) Learn from your / other people’s mistakes.
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Crisis Management By Raphael Arrouas
The Basics : Know the threats, and be prepared React fast (under 48 hours) : Contain the crisis Learn to work with the medias (public opinion) Get outside help (experts, lawyers, specialized companies…) Learn from your/otherpeople’smistakes
Failed crisis management : Tepco and the Fukushima nuclear plant Tepcoignored the seismicriskswhichhad been pointed out in 2003 and 2006 Tepcorefused outside help (American help for instance) BothTepco and the japanesegovernmentlackedcommuncationskills Tepcohad no procedure for this type of case (tsunamis…) and was slow to react
Relatively good crisis management : Picard and the horse meatscandal Picard’s CEO wasinterviewed on RTL, to defendhiscompany The CEO stated to be a fraudvictim, thusdeclining all responsibility, and filed a complaint Picard quicklywithdrewhiscontaminatedproducts from the market Picard made additional DNA analysis of hisproducts, to reassureits clients But the brand’snameremainsassociated with the Food Industryscandal
Great crisis management : Pepsi and the 1993 syringe case In 1993, claims of synringesfound in Pepsi cans Pepsi quickly made a video to show the sturdiness of the manufacturingprocess Theyfound a video of a womantrying to deliberately put a syringe in a can (video surveillance) Pepsi worked with the authorities (FDA), and filed complaints They sent experts on all the medias Advertisingcampaignafter the end
Consequences You canget out of a crisis with benefits : Solid image of responsibility, client awareness, reactivity Although, you’re more likely to endure losses(Shares drop, non-reelection, etc) Crisis management is hard to master, and if you’re in trouble, youshould call experts familiar with it