Public Relations

Public Relations The Crisis of Porsche Jiachen Zhou MPE1-171719

Index • The crisis case of Porsche • The Analysis of the crisis case Athor: Jiachen Zhou

The Crisis Prepare for the worst, ready to cope with disaster

Let me tell you a story Athor: Jiachen Zhou

8:00 am, November 12, 1989, located in Reno, Nevada, the telephone of the headquarters of Porsche Cars North America (PCNA) rang. Who was calling, was a local television reporter, she had just learned of an accident from the local police. A sports car hit 40 children in school bus, many children were injured; and the number of deaths had not been established, the incident was a Porsche 944 sports car Model. Driver was a manager of Porsche. The initial police report showed ,that the car was running in the speed more than 90 miles per hour. Athor: Jiachen Zhou

Porsche was being undertaken by a focus on displaying all the brand car during the high-quality performance advertising. PCNA is a luxury sports car manufacturer Porsche headquarters in Germany in the North American marketing management organizations. That evening, Porsche were also going to be on 2 minutes of advertising spots in the Program ABC's "Monday Night Football". Athor: Jiachen Zhou

8:05 am, a newspaper reporter called to PCNA, interviews with their comments on the matter. Within a few hours, many reporters called in. Media began to ask questions ,which are more and more acute and difficult to answer. • Reporter's questions focused on the car manufacturers consistently emphasized skill and performance. In addition to the driver's responsibilities, whether there are Porsche cars mechanical defects inherent in the evidence? Drivers on the road before they are trained to drive fast? Why did he have to drive at the speed of more than 90 miles per hour? Porsche will be make children dead and injured . How could Porsche respond to the parents? Person in charge when the company met with the media to answer these questions? Porsche will be how to review their own management and the production? Whether the performance of Porsche cars to be realized only over the speed limit. Athor: Jiachen Zhou

9:30 am, an Associated Press radio reporter phoned from Los Angeles: it is said, at the point was Porsche cars unsafe, and the company encourages careless and high-speed driving. • 5 minutes later, exactly the message came from the hospital, eight children died and 12 children are in intensive care. • 10:00, PCNA received a special telephone: Tony Mayer, a dealer of Porsche in New York. He had just known this accident from one news, "Porsche cars are unsafe." He asked: "how this hell's going on actually?“ • Porsche Motor Company's headquarters immediately convened an emergency meeting, but they were constantly interrupted by phone, fax, and so on. Athor: Jiachen Zhou

At 10: 15, Automotive Safety Center issued a statement, saying: At present, the reason of the accident is not yet clear, but such a serious accident should be considered for Porsche cars and certain policies. The statement once again triggered a strong response. • 10:45 am, a phone from the hospitalized children`s mother is received. Her son, burns covering more than 50% of the body, had to immediately transfer to a burn treatment center in Los Angeles. There are no available commercial aircraft, she asked for help, if Porsche companies can rent a plane? Athor: Jiachen Zhou

The hospital called in. The driver of the Porsche car in the accident although seriously injured, has been out of danger. Around the hospital surrounded by a large number of media people, they all wanted to talk with him. TV and newspaper reporters, who were called to the head of PCNA ,because they wanted the driver's photo and the model of Porsche, which he was driving the exact car – at the best both of them. They also ask for a copy of Porsche automobile print advertisement and TV commercials Porsche car video and so on. Athor: Jiachen Zhou

Now there is a new emergency situation. Porsche Automobile Corporation learned from Washington: Congress of the three major subordinate Chairman of the subcommittee is preparing a statement on this incident; Houses of Representatives, the Chairman of the incident and the investigation team also plans to hold a press conference. Athor: Jiachen Zhou

At 11: 10, the Night-show producer called. Program director Ted Koppel were ready to make an interview in the evening to visit and discuss the object of a wide range of sports cars, and has introduced a high-speed car manufacturers. Of course, this program will closely focus on the incident to start, but it will broadcast to the audience fragments of the incident. • Koppel may also be invited to PCNA President and Chief Executive Officer Brian Bowler appearing in the program. If the Bowler inconvenient appearance, then another high-level managers will also appear in the program. They will use remote-controlled manner, to face this accident for comment. Athor: Jiachen Zhou

When the Headquarters were discussing the situation, it was am 11:35, another phone call in. Ted Koppel called personal. He persuaded the company coordinate and participate in the program, thoroughly and frankly to answer the questions, which were asked about the company's, and which were its best choice. After all, no company can hide, isn`t it? • With the dozens, hundreds of media and other calls of inquiries constantly came in, the busy morning had passed. Headquarters staff were busy dealing with one after another thorny issue. Emergency measures, programs, decisions and efforts continue to be introduced as soon as everything is in order to calm the turbulence caused by the accident to protect the benefits of the company. Athor: Jiachen Zhou

This is a very dramatic incident, which not only sparked a great deal of media interest, but also become the focus of the whole nation. But why most people have never heard of this story? The reason is very simple, such an incident did not really happened ,just a commercial conduct. Athor: Jiachen Zhou

Analysis of crisis case The importance of thinking ahead

General principles to deal with crisis Basic response: • Identifying problems; • Seeking solutions; • The public program of action At the same time to complete the three stages and to ensure that everyone understands Athor: Jiachen Zhou

Steps to deal with the crisis response • 1. The crisis management team separate from the Everyday Things to focus on current issues. • By the crisis management team to focus and control the flow of information. Designated spokesperson, only the designated spokesman for the well prepared case before they can and the media dialogue. According to the company's attitude and the basic principles, advance to the spokesman for the training. • 2. Based on worst-case scenario to formulate strategies. • Think of every possible worst-case scenario, and then adjust for a possible strategy for the events. Athor: Jiachen Zhou

3. To control the impact, but doesn`t mean to stop the spread of the message. • For the release and exchange of information caused by improper disposal. To the media explain the problem reasonable, not only can effectively control the serious situation ,but also makes the big thing become small. • 4. To find potential allies, and called to them. Identifying those in times of crisis, their interests may be in line with your company public or private groups to strive for the third-party support. Athor: Jiachen Zhou

5. Ready for the long-term crisis response program. • 6. The drafting of a comprehensive crisis management program of action. Of this document sent to all relevant departments. And joined the company, let them simply to understand the content of crisis response programs. Plan no matter how well designed, its implementation were also wrong situation. Because everyone in key places little or no change to the new people coming details on this project, are likely to become a failed incentive. Athor: Jiachen Zhou

Therefore, the program should include specific actions: • With regard to a statement of principles to deal with crisis • Lists the various crises that may occur • List will then appear on the scene of crisis parties, and every aspect of the analysis, with particular attention to the possible reaction of competitors • A crisis management plan for the mobilization of resources that can be analyzed • Lists the crisis management team lists (including the back of each individual preparing personnel), the respective title, address, phone and fax numbers, etc. Athor: Jiachen Zhou

7. A crisis management team rehearsal Hold regular high-intensity training, occasionally with "Fire training" means to test the system. Improper handling of the crisis are usually four reasons: • In the beginning, not public, frank, or lack of operability • The lack of preparation for the worst cases • Company failed to be honest and full of humane manner with the public, but also did not show a genuine concern for their • Refused to place the company's long-term goals over short-term needs In some cases, completely open from the short-term point of view means that the fight against, but in the long-term point of view is worth it. Athor: Jiachen Zhou

Rapid response and Slow blame • Usefulness of the list of opponents • Public relations one step ahead • Prediction of the crisis • Let some people in emergency situations arise at the scene: What happened? Is there injuries and deaths? When and where happened? How huge is the destruction? What causes it? Athor: Jiachen Zhou

List of References • www.wikipedia.com • www.docin.com • www.porsche.com Athor: Jiachen Zhou

Are these keywords can really help us when facing the crisis cases? Fast, Authority, Preparation, Honest Think and discuss: Athor: Jiachen Zhou

Thanks for your attention ! Athor: Jiachen Zhou

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