Department of Media and Communications.: Priyanka. R Ii Ba-Ceopep. 16CV032T
Department of Media and Communications.: Priyanka. R Ii Ba-Ceopep. 16CV032T
Department of Media and Communications.: Priyanka. R Ii Ba-Ceopep. 16CV032T
COMMUNICATIONS.
PRIYANKA. R
II BA-CEOPEP.
16CV032T.
CRISIS MANAGEMENT:
COMMUNICATIONAL CHANNEL:
Communication channels refer to the way this information flows within the
organization and with other organizations .communicating data from one location
to another requires some form of pathway or medium. An organization may
create a separate web site for the crisis or designate a section of its current
website for the crisis. Taylor and kents (2007) research finds that having crisis
websites is a best practice for using an internet during a crisis . This site should be
designed prior to the crisis. This requires the crisis team to anticipate the types of
crisis an organization will face and the types of information needed for the web
site .For instance any organization that makes consumer goods is likely to have a
product harm crisis that will require a recall stakeholders, including the news
media will turn to the internet during a crisis.
CASE STUDY AND ANALYSIS:
COCA- COLA
The case discusses the crisis faced by coca-cola in Europe, particularly Belgium, in
which people mostly school children fell ill after consuming its products in mid-
1999. Coca-cola had to recall about 30million cans and bottles, the largest ever
product recall in its 113-year history. For the first time, the entire inventory of
coca-colas products in Belgium was banned from sale. The case describes the
crisis in detail and discusses how coca-cola managed it.
The way coca-cola handled the Belgian crisis was a classic example of one of the
worst public relations fiascos in the corporate history. The case also highlights the
need and importance of a crisis management plan to prevent such fiascos in
future.
Coca-colas executives came forward with an explanation of what had gone wrong.
They claimed that their experts had investigated the problem by testing the
suspect batches for chemicals and the tests showed nothing toxic in the
beverages… The Belgian health ministry ordered coca-cola products must be
withdrawn from market and warned people to not use coca-cola. The highest
priority is the quality of products. Coca-cola ignored all complaints and act like
nothing is happened.
Coca-cola financial performance suffered a major setback due to the Belgian
crisis. The recall had a negative impact on coca-colas overall second-quarter net
income in the fiscal year 1999. The recall led to a 5%decline in the bottlers
revenues and a fall in cash operating profit by 6%..
Coca-cola handled was the worst public relations fiascos in the corporate history.
The case structure to achieve: Examining the role of a person with a high degree
of accountability (such as the CEO) in managing public relations and crisis
management.