5.7 Crisis Management & Contingency Planning
(HL ONLY)
What is a crisis?
What is a crisis?
- A time of intense difficulty, trouble or danger
- A time when difficult or important decision must be made
Examples for a Business Organization:
Examples for a Business Organization:
- Embezzlement of funds by an executive or any employee
- Employee Misconduct or Management Misconduct
- Public relations crises such as:
- McDonald's beef lard being reported to be used to cook french fries in countries that have religious restrictions such as India
- Boeing 737 fatal error crashes resulting in thousands of preventable deaths
- Fox News USA multiple sexual harassment scandals exposing long-time male news anchors as sexual predators
Example of a Public Relations Crisis:
In 2016, there were various customer reported incidents of exploding or self-combusting Samsung Galaxy Note 7 phones, primarily due to poorly designed lithium-ion batteries