References: Anonymous. (2010). Blame Toyota’s Disaster On Japanese Corporate Culture. Retrieved January 12, 2010 from http://www.businessinsider.com/blame-toyotas-disaster-on-japanese-corporate-culture-2010-2…
The phrase “global localization” represents an attempt to capture the spirit of the rallying cry for organizations in the 21st century, namely, “think globally, act locally, and manage regionally.” Most students will agree that Coca-Cola is a global product by virtue of the fact that it is available in more than 195 countries in red cans bearing the distinctive signature style. It must be noted, however, that customer service efforts are adapted to the needs of particular markets (for example, vending machines in Japan). Thus, Coca-Cola is both global and local.…
Business isn’t always about staying on top and trying to beat out the competition or make a name for the company. Sometimes, the issue can be simply staying afloat when harder times come. Businesses occasionally go through situations that could threaten or harm people or property, interrupt business, damage reputation or negatively impact share value. These situations make up the definition of a crisis. Every organization is vulnerable to crisis, whether that organization is large, small, successful, or just getting off the ground. Crisis is something that can determine whether a company will last or simply die out in the near future, so businesses should prepare themselves for times like these. Businesses that have failed because of crises, in the past, seemed to have lacked in proper crisis communication. Without adequate communication, operational response will break down, stakeholders usually react negatively in a confused panic, and the organization will be perceived as inept and criminally negligent (Brice). In order to better prepare for times of crisis, there are eight basic steps that have been implied by businesses that have overcome crises in the past. They require advance work in order to minimize damage, because more damaged is incurred if a business takes longer to respond to a crisis.…
When a corporation experiences a threat to corporate image, protecting one’s stakeholders is the first priority. This is achieved by implementing necessary crisis response strategies, and Coombs (2007b) Situational Crisis Communication Theory offers three key approaches corporations in crisis: deny, diminish, and rebuild. As McDonalds Canada, knowingly placed people at risk by voluntarily making the decision to adjust its nut-free policy, it falls within the preventable cluster of crisis response, and thus should have used rebuilding crisis response strategies to restore its image. Rebuild strategies…
Withholding information can cause dire consequences for an organization. During a crisis, the whole story should be shared with the public. Information should be shared depending on what can help solve the crisis, not what can generate a larger predicament for the organization. An explanation of what caused the crisis should be shared with the public, as well as the steps that will be made to find a feasible resolution. If a mistake was made, it is important to admit fault and tell the truth, rather than hide it or blame others because it could give the organization a negative image once the truth is exposed. Being transparent avoids rumors and erroneous information from circling the crisis and making it more harmful. Establishing key facts and providing appropriate and truthful information in a timely and transparent manner is crucial to an organization’s success. Sharing information as soon as it is available and being accessible to answer questions from the audience shows…
I recently completed a simulation entitled, "Managing a Crisis Using PR." My role during the simulation was that of the Public Relations (PR) Manager for Greenergy. Over the course of the simulation I completed three PR scenarios. As a result of the simulation I have gained a firm understanding of proactive planning and the importance it holds in the success of an organization. In this paper I will analyze the simulation and answer a few questions such as; the definition of proactive planning, the feedback mechanism I developed in the simulation, examples of ineffectual ways of deploying m plan, areas when a proactive crisis management plan is necessary and when and what roles PR plays in reactive crisis management.…
BP oil spill in April 2010, had incurred serious damage to both the company and publics. Though some internal and external communication strategies were carried out after the accident, more improvements should be made by BP to maintain the safety and reputation. The internal strategies used by BP, employing appropriate communication channels and appointing a CEO who is familiar with American cultures, need to be analysed and evaluated, as well as the external strategies aiming at reacting to public by employing crisis response strategy framework. Based on what were concluded from the analysis, some feasible recommendations were to be brought forward. In order to avoid the similar accident, BP must promote trainings focusing on enhancing communication skills in multicultural environment and establish a crisis management team to respond to public. These proposed strategies are valuable to improve BP’s internal and external communication.…
Reduce costs with worldwide standardized products, uniform promotional strategies and distribution channels Seek lower costs or higher quality anywhere in the value chain and in the world…
Proactive planning is the concept of planning AHEAD of the actual event, to be prepared for it, whatever happens. Being proactive is the opposite of reactive, which is waiting for failure. Proactive is the changing of parts before they fail. By being proactive you avoid being over-run by the event, and have plans and procedures in place to cope with it. Emergency organizations, like the police have plans for future events like riots, floods or earthquakes, you should, too. In business, it is always good to be prepared.…
• Benoit, William L., 1995, Accounts, Excuses, and Apologies: A Theory of Image Restoration Strategies.…
Immediately respond to the crisis. With Internet and 24-hour news coverage speeding the flow of information, companies no longer have the luxury of waiting several days to acknowledge the problem while the rest of world figures out what's going on. Companies should publicly state that they have recognized the problem, and identify the action they will be taking in the near future to remedy the problem.…
The form and substance of a company’s response to global business opportunities depend greatly on management’s assumptions or beliefs –both conscious and unconscious – about the nature of the world. The worldview of a company’s personnel can be described as ethnocentric, polycentric, regiocentric, and geocentric. Management at a…
References: Baden Fuller, C. W. F. and Stopford, J. M., 1991. Globalization frustrated: the case of the white goods industry, Strategic Management Journal , 12, 493 – 507. Bartlett, C. A. and Ghoshal, S., 1989. Managing Across Borders: The Transnational Solution , Cambridge, Ma, Harvard Business School Press. Grant, R. M., 1991. Contemporary Strategy Analysis: Concepts , Techniques , Applications , Cambridge, Ma, Basil Blackwell. Hamel, G., Doz, Y. L. and Prahalad, C. K., 1989. Collaborate with your competitors and win, Harvard Business Review , Jan – Feb, 133 – 139. Hamel, G. and Prahalad, C. K., 1985. Do you really have a global strategy?, Harvard Business Review , Jul – Aug, 139 – 148. Hamel, G. and Prahalad, C. K., 1989. Strategic intent, Harvard Business Review , May – Jun, 63 – 76. Porter, M. E., 1986. Competition in global industries: a conceptual framework, in Porter, M. E. (ed.) Competition in Global Industries , Boston, Ma, Harvard Business School Press, pp. 15 – 60. Prahalad, C. K. and Hamel, G., 1990. The core competence of the corporation, Harvard Business Review , May – Jun, 79 – 91. Stopford, J. and Wells, L., 1972. Managing the Multi -National Enterprise , London, Longman. Levitt, T., 1983. The Globalization of Markets, Harvard Business Review , May – Jun, 92 – 102.…
Crisis, which public relations counselor James Lukaszewski once described as “unplanned visibility” can strike anyone at any time. As no sector of society is immune from this “unplanned visibility”, it is a need for attempting to “manage” crises. By thinking logically and responding thoughtfully and quickly in a crisis, like how Hong Thai Travel Service Ltd reacted to the Manila hostage crisis, can possibly solidify a positive reputation and build up an immense goodwill for an organization.…
Globalisation of companies: Every organisation wants to have a product or service that is recognised around the globe such as Mc Donald’s. If you walk into a Mc Donald’s in Dublin you are guaranteed to get the same product and service here as you would in New York.…