5.7 Crisis Management & Contingency Planning

(HL ONLY)

What is a crisis?

  1. A time of intense difficulty, trouble or danger

  2. A time when difficult or important decision must be made

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