Advanced Corporate Communication

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Crisis Management代写 Critically analyze the nature of the crisis experienced by both organizations and how the organization dealt with the crisis.

Introduction 

The way organizations communicate with the stakeholders of the company at the time of crisis event is increasingly changing, along with the 24-hour access offered through Facebook, YouTube, and other social media. The practitioners of public relations, as well as various other executives of communication, are facing challenges in crafting the message as well as in maintaining the control over the flow of messages in the dynamic landscape. As Valackiene (2011) discusses that, during a crisis, executives of corporate communication prepare for the manicured statements, and customers keep on e-mailing, blogging as well as post photos out of their desperation because there are many people who listen to them.Crisis Management代写**范文

Alas (2008) mentions that stakeholders become interpretive towards communities existing in an organization’s crisis, and they are highly capable of cultivating the reputation of the company by their information, which they get through cyberspace (Alas, 2008). Social media permits the stakeholders to control where, when and how the reputation is disseminated, as the reputation of the company is built on the stories that are created through stakeholders and spread in the networks (Järvis & Tint, 2009).

Video sharing using a media platform like Youtube has created dynamically on information sharing between the company and the public. Crisis Management代写

This has contributed to the co-production of the information with the blogger and citizens. Anikin (2008) discusses that the users of YouTube get involved with the way information disseminated as if it’s the space specially designed for them and serves their specific interest. This might result in adverse effects to the company during management of crisis caused by an increased number of boundless malicious users.Crisis Management代写**范文

These users also leverage the crisis they cause at the time of brand improvement (Anikin, 2008). Like consumers use social media for creating or deepening a crisis for organizations and harm the reputation of the company, so can companies can use the same channels to manage the crisis and enhancing their reputation. This report will discuss an event that can be considered a crisis that occurred at PS food and beverage, Malaysia and Malaysian airlines, that signifies the local and international market.

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Critically analyze the nature of the crisis experienced by both organizations and how the organization dealt with the crisis. To what extent does the crisis affect its reputation and stakeholders?

PS Food and Beverages’ president analyzed this crisis that occurred at the time of brand market dynamics.Crisis Management代写**范文

The company faced a challenge the moment two of its staff members uploaded a video showing food adulteration. The video was devastating to the reputation of the company. It happened in April 2009, when two employees of the company were getting bored while working in the company and they tried to do something hilarious by posting the video of them self, which shows detailing of sandwich ingredients (Maynard, 1993). These employees created five videos. The videos showed various stomach turning and unsanitary activities. Without being too explicit, in one video, one of the employees tries to stick the mozzarella cheese in his nose and then tried to blow the cheese over the sandwich.Crisis Management代写**范文

Perhaps this behavior might be less problematic during drunken sorority parties, but it certainly is when it happens in a food company. Before was taken offline, after two days, already more than 1 million people had seen it. In the first 24 hours, the Vice President, responsible for the corporate communication, conducted an investigation to analyze the whole situation and to determine the authenticity of the videos (Cucui & Anika, 2010).

After that, he communicated with both internal and external departments. Crisis Management代写

Which includes the people of the social media, senior management team, as well as head of company security. They came together to brainstorm on how to redeem the already tarnished company reputation. They also came up with strategies for ensuring no such incident happen in future especially coming from company employees. These include constant monitoring of employees’ activities while at work as well as addressing their plight at work which might make the resort to such destructive media activities. Ginevicius, Krivka, & Simkunaite (2010) had mentioned that after this incident PS Food and Beverages passed the alert to identify the staff members seen in the video.Crisis Management代写**范文

As per Gudonavicius, Bartoseviciene & Saparnis (2009), the organization responded to the queries of customers on Twitter. Customers wanted to know what the company was doing, and why the firm had not tried to issue any type of official statement (Gudonavicius, Bartoseviciene & Saparnis, 2009). The vice president of the company also came with an apology, which was later uploaded on YouTube (Burgess & Green, 2009).

During this time, both the journalists and bloggers tried to capture the crisis through case studies and articles. Crisis Management代写

Some included step by steps timelines of the PS Food and Beverages critic response (Gudonavicius, Bartoseviciene & Saparnis, 2009). As per the case of PS Food and Beverage, crisis management strategies, with best practices of crisis management, could have been used combined with public relations principles as developed by Burgess & Green (2009) and framework analysis.Crisis Management代写**范文

From the communication’s perspectives, Burgess & Green (2009) case studies basically depict the narrative of whole events. The events can be used to identify the public theories and models for appreciating what happened and consider the optional results and strategies. These events will offer practical value to practitioners and managers that struggle in managing and controlling the message flow in the digital landscape (Ravid & Sundgren, 1998).

On 17th July 2014, Malaysian airline faced a major crisis. Crisis Management代写

When an MH17 flight, heading from Amsterdam to Kula Lumpur, was shot down when it was flying over Ukrainian territory, which comes close to Russian border. MH17 was brought down in the midst of the invasion by pro-Russian separatists in the East of Ukraine, allegedly supported by Russian troops. The crisis happened at an already rough time. Only months before MH17 was brought down with a missile, killing all 283 passengers and 15 crew members, another aircraft was mysteriously lost.Crisis Management代写**范文

MH370 disappeared from the radar on March the 8th, 2014. MH370 was never recovered and its cause is still subject to both speculation as well as conspiracy theories. (Shamsudin, 2014).

In the case of MH17, initially, MAS made the claim that contact with the pilot was lost only after 4 hours and 45 minutes after the plane take off. Crisis Management代写

Nevertheless, later, it was revealed that the plane was shot down. Till this time, no one had taken the responsibility of MH17 crash, but the facts strongly suggest that the plane was shot down through the missiles, which were sent by the Russians to support the separatist (Shamsudin, 2014). In this flight 7 American officials working in the office of the director of national intelligence mention that they have a solid case related to the SA-11 missile, also known as Buk.Crisis Management代写**范文

The investigation suggests that the missile by Russian-backed separatists.  It was claimed by authorities that flying at 10000 meters height, MH17 would be safe. Nevertheless, any plane under the 9753 meters in height is warned, recommending that the region is not safe for them.

This event was given huge attention in the media. Crisis Management代写

The incident happened on a backdrop of a major geopolitical conflict between Ukraine, a potential new NATO member, and Russia, this at the borders of the EU.  There were many questions that were not answered, at least not publicly, crash site inaccessibility and adherence with the responsibility thrown in various directions. It created ambiguity that still lasts in present time (Maksimovic & Phillips, 1998). These two mutually unrelated disaster was a PR disaster and created a serious threat to the firm. Restoring its impeccable image was of the utmost importance for the company’s survival (Shamsudin, 2014).Crisis Management代写**范文

Within the area of crisis management, the role of crisis communication is attaining more attention, when it comes to safeguarding the reputation of the company in the situation of crisis. Through adhering with the influential theorist of crises communication, W. Timothy Coombs, one can achieve the understanding about the significance of the different components for formulating the actual crises feedback (Shamsudin, 2014). Along with this, it is interesting to look into the MAS communication where image restoration strategies are developed for conducting the conceptual analysis.Crisis Management代写**范文

The goal of this approach is to apply the analysis for addressing the disparity and correlation between the theoretical approaches and the real crisis response strategies (Shamsudin, 2014).

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Do these organizations successful in managing the crisis? Discuss by providing specific examples related to the organizations. Give your suggestions to them.

PS Food and Beverages has successfully managed the crisis in their own way (Gudonavicius, Bartoseviciene & Saparnis, 2009).

The YouTube apology made by PS Food and Beverage CEO created an important reduction of the negative sentiments. It impacted on the negative purchase spiral and facilitated factual, non-opinionated conversations. The management had also implemented the practical crisis management and evaluated its implications in business (Paraskev, 2006). To begin with, when the company was faced by the challenges emanating from the social media, the organization discovered the incident and the coverage on social media. Crisis managers were expected to give a quick reaction. In such a case, they had to acknowledge the misconduct, take ownership and apologize publicly in a proper way. (Bell, 2010).Crisis Management代写**范文

Improvements in brand popularity confirmed the positive impact of apology made by CEO in social media like on both YouTube and Twitter in Malaysia. Secondly, the organization started to communicate with their customers on social media, as part of their general communication strategy instead of as part of their crisis communication. Thirdly, referring to the speed at which bad new spreads in social media, and the expectation of stakeholders for a swift response, the company prepared itself to be able to give a proper response within hours, instead of doing this after a few days (Bell, 2010).Crisis Management代写**范文

In the case of Malaysia Airlines, everybody understood that the two incidents which occurred only a few months apart would be a major blow for the company.

Recovering from it would be an arduous and long process. According to Gudonavicius, Bartoseviciene & Saparnis, (2009), the first quarter of operations of the airline will point towards challenging time ahead. For Malaysian Airlines, after this crisis, it was not just to come back to business, but it’s about continuing doing the business as it was doing before and do it in a better way (Parsons, 1996). After the crisis, the company launched a new website and even tried to optimize the digital strategy that could play an important part in crisis management (Bell, 2010).

The steps taken by the company included the continuation of website optimization, creating the complete new enterprise strategy of customer relationship management (CRM) that connects through social CRM and then the journey of the customer satisfaction (Gudonavicius, Bartoseviciene & Saparnis, 2009).Crisis Management代写**范文

In the year-end, the company dedicated MAS to social media sites in around 22 marketplaces. The question that arose that time was, is there anything that any airline would have done differently? In a general context, the recovery plan that was delivered in every objective was probably to move faster, in case these types of incident repeated themselves (Bell, 2010). The company, however, acknowledges that they got engaged directly with the international news agencies. This supported them in making sure that MAS’s voice was clearly heard during the crisis.

In the final say, the Malaysian Airlines’ CEO mentioned that they can never forget MH370.Crisis Management代写

And neither the effect on the families of its passengers and crew, but simultaneously. It’s important for them to understand what happened and move ahead. As per the reports, the raw data collected from satellites was also released by the authorities of the airline. In other reports, the issue about the investigation for Malaysian accident provides the fresh assistance for the theory that links with the missing flight in the remote area of Indian Ocean. This news marks the story that was going on and the work done by marketing and communication operation of Malaysian airline. For the passengers and crew families of MH370, the company showed sympathy and consolation.

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3. Crisis Management代写

By using relevant model or theory of issue, management, discuss in detail how your chosen model/theory can be applied to these organizations in identifying the early development of an issue or potential risk which has or may occur within the organization.

Prior to the understanding of the situational approach to crisis communication.

Perrow (2003) provides the theory of situational crisis communication as the description of how the company chooses the strategy of crisis response. Importantly, the attribution of crisis triggers and the company’s responsibility towards its stakeholders includes three dimensions. Has a crisis taking place and could it happen again? Are the events leading to the crisis considered controllable, or not, by the company or other parties? Is this crisis internal, it only affects the company, or external, others are affected?  In the case of PS Food and Beverages, the company is not held accountable directly for the crisis.Crisis Management代写**范文

The event took place internally by the staff members and the crisis had occurred before. As per the attribution of stakeholders the company can communicatively respond through cycling in a four-step process:  observe the whole event; interpret the data for both relevance and accuracy; select a suitable strategy among the options, and then finally implement your solution. In ideal terms, the selected strategy relates to the right principles and practices that are mentioned above. The same applies to PS Food and Beverages. The question is, the company apply the right practice?Crisis Management代写**范文

What will be the complete action, decision as well as strategies of the brand in crisis management? In the case of PS Food and Beverages, it is the attribution of the customers’ accountability which should have triggered the strategy to be used by the PS Food and Beverages. Instead, the CEO decided to deliver the apology video on YouTube. Did it raise the question social media influences the process of decision making? And what lessons on crisis communication does the whole process teaches us?

The best way to deal with the effects of a by social media amplified crises. Crisis Management代写

Like the one PS Food and Beverages, went through, to integrate the social media as part of the crisis communication strategies and to develop the strategies for the purpose of monitoring and keeping control of the dialogue on social media. According to Perrow (2003), he stated that a successful brand aligns its online activities with that of customers. Further, Hale, Dulek & Hale (2005) had concluded that PS Food and Beverages effectively tried to leverage the social media, the same channel used by the malicious user, in the effort to redeem the lost glory of its brand. The final outcome was that PS Food and Beverages came out from the media criticism, but the company gains knowledge about the need for crisis communication in the time of social media (Hale, Dulek & Hale, 2005).

Crisis feedback and theory of situational crisis communication Crisis Management代写

The crisis feedback content is categorized into three main parts, such as:
  1. Instructions that inform people about the actions to be taken to protect them from the effects of the crisis or reducing the damage.
  2. Sharing the information with all stakeholders about the steps that have been taken to avoid similar crises and/or to show sympathy for the victims.

Reputation Management deals with how the company can rightly protect the reputation that is inevitably threatened in time of crisis (Rogov, 2006).

The key theory on reputation management is Situational Crisis Communication Theory (SCCT). Crisis Management代写

The aim of this theory is to achieve the understanding about the perception of people about the company in a situation of crisis. SCCT is considered the base for attribution theory that implies broad-strokes and is highly related to the human nature of assigning the accountability and exploring the reason for the occurrence of an event. In the case of SCCT, the kind of crisis examines the level of accountability of the company (Rogov, 2006).Crisis Management代写**范文

There are three types of crisis, such as accidental cluster, victim cluster, and preventable cluster. Therefore, it depends on which one is appropriate in crisis analysis and during the process of crisis responsibility evaluation. Finally, the SCCT provides the strategies of crisis feedback based on the kind of crisis and the responsibility of the company as allocated through the stakeholders.

All these strategies rightly offer the users with a model and approach on how to properly frame the company position in the context of a crisis situation. Crisis Management代写

Various strategies go with different frames and it all depends on the communicator to select the strategy and frame that is advantageous for positively impacting the stakeholder’s behavioral intentions. Along with this, Rogov (2006) offers the guidelines as the suggestion on how the company can easily make use of strategies related to crisis feedback for protecting the image and reputation through affliction of crisis. All of these guidelines will be affected as well as expanded in the analysis. Ponikvar, Tajnikar & Pusnik (2009) had developed the theory related to crisis situation model.Crisis Management代写**范文

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1

This model introduces the various variables of which the complete SCCT picture is built of.

Theory of image restoration Crisis Management代写

The theory of image restoration is centered on the requirement to easily retain the right image. 

The theory is highly rooted in two core assumptions. The first one is that any action or activity is directed towards a specific goal. The second one is that building the right image is an important communication tool. Issues occur when the latter is not met. That would be clearly the case if a threat or crisis impacts the company’s image (Pollard & Hotho, 2006). A company will have to take action. As Pollard & Hotho (2006) put that when the image of the company is threatened, they feel compelled to discuss, justify, apologize, defense, excuse and rationalize the behavior. The theory offers different options for types of messages when facing a crisis (Pollard & Hotho, 2006). The theory includes the five main strategies and such their variants.Crisis Management代写**范文

Denial – It includes two variations. The first is simply denying any connection to the company or put the blame outside the company.

Evading Responsibility – It includes four variants of the strategies. Crisis Management代写

First, the company may claim to have been responding to a certain type of provocation. Second is defeasibility. An Allegation is not supported with information or how the company has control over specific components of the circumstances that lead to the crisis. (Ren, 2000). The third variant is convincing the stakeholders that the crisis is the result of an accident, something out of control. Finally, the company can point out its good intentions, avoiding or reducing the focus to the negative outcome.

Reducing Offensiveness – This strategy comes in six different versions. Crisis Management代写

The first one is bolstering. This refers to creating the right feeling of the audience towards the company by providing a better environment that offset the wrong act of the past (Ren, 2000). The second is directed to minimization. It attempts to reduce the adverse feelings towards the wrong act. Differentiation of actions based on common characteristics is done but it’s considered more offensive (Boguslauskas & Kvedaraviciene, 2008). The fourth one is related to transcendence that depicts the incident in the right way. It is analyzed in terms that the attacker becomes the accuser, in which the accused turns around the allegations towards the accuser. Finally, the company can provide compensation that enhances the reputation of the company, if the affected persons accept it.Crisis Management代写**范文

Corrective Action – The Company rectifies the situation and restores everything to its pre-crisis status. (Dagiliene, 2010).

Mortification – The mortification strategy entrails the company into confession, apologies and asks for forgiveness.

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In your opinion why are models/theories of issue and crisis management so important to the organization?

Models and theories on crisis management and the knowledge about them offer a choice in strategies. A company or organization can choose the one that fits the most or generates the best resolution of a crisis. Good crisis management not only protects a brand’s reputation but can strengthen it in the long term. It can actually draw new investors looking for good shareholder value (Gupton, 2005).Crisis Management代写**范文

Theories in crisis management help in bringing different components like communication, international studies, etc. According to the theory, the crisis situation and the information exchange can be undertaken in a rapid way. It is not only significant to offer new information to different media, public, and NGOs, but also as per theories, it’s important to consume as well as filter the various new ways of information. This also includes crowdsourcing, a network of social media, and different traditional ways (Hills, 2000).

References Crisis Management代写

A

Alas, R. (2008). Implementation of Organizational Changes in Estonian Companies. Journal of Business Economics and Management, 9 (4), 289-297

Anikin, A. (2008). Economic Dynamic and the Theory of Steady Growth. International Journal of Economic Theory, (4), 207 – 246.

B

Bell, L. M. (2010). Crisis communication: The praxis of response. The Review of Communication, 10(2), 142-155.

Bivainis, J., & Tuncikiene, Z. (2007). Integrated approach to Strategic Planning in Public Institutions. Journal of Business Economics and Management, 7(4), 245 – 252.

Boguslauskas, V., & Kvedaraviciene, G. (2008). Strategic Outsourcing Plan and the Structure of Outsourcing process. Inzinerine Ekonomika-Engineering Economics, (3), 60 – 66

Burgess, J., & Green, J. (2009). YouTube: Online video and participatory culture. Malden, MA: Polity Press.

C

Cucui, G., & Anika, I. (2010). Using Web mining technologies to improve competitive intelligence capabilities: a historical perspective. Transformations in Business and Economics, 9 (1), 467- 471.

D

Dagiliene, L. (2010). The Research of Corporate Social Responsibility Disclosures in Annual Reports. Inzinerine Ekonomika-Engineering Economics, 21(2), 197-204.

G

Ginevicius, R., Krivka, A., Simkunaite J. (2010). The Model of Forming Competitive Strategy of an Enterprise under the Conditions of Oligopolistic Market. Journal of business economics and management, 11 (3), 367-395.

Gudonavicius, L., Bartoseviciene, V., & Saparnis, G. (2009). Imperatives for Enterprise Strategists. Inzinerine EkonomikaEngineering Economics, (1), 75-82.

Gupton, G. (2005). Advancing Loss Given Default Prediction Models: How the Quiet Have Quickened, Economic Notes. Banca Monte dei Paschi di Siena SpA, 34 (2), 185-230.

H

Hale, J. E., Dulek, R. E., & Hale, D. P. (2005). Crisis response communication challenges: Building theory from qualitative data. Journal of Business Communication, 42(2), 112-134.

Hills, A. (2000). Revisiting Institutional Resilience as a Tool in Crisis Management. Journal of Contingencies and Crisis Management, 8, 109-118.

Hwang, P., & Lichtenthal, J. (2000). Anatomy of Organizational Crisis. Journal of Contingencies and Crisis Management, 8 (3), 129-140.

J

Järvis, M., & Tint, P. (2009). The formation of a good safety culture at the enterprise. Journal of business economics and management, 10 (2), 169-180

M

Maksimovic, V., & Phillips, G. (1998). Asset Efficiency and Reallocation Decisions of Bankrupt Firms. The Journal of Finance, 10, 1495-1533.

Maynard, R. (1993). Handling a Crisis Effectively. Nation’s Business, 81 (12), 54-65.

P

Paraskev, A. (2006). Crisis Management or Crisis Response System? A Complexity Science Approach to Organizational Crisis. Management Decision, 44 (7), 892-907.

Parsons, W. (1996). Crisis Management, Career Development International, 1(5). MCB University Press

Pearson, C. M., & Clair, J. A. (1998). Reframing Crisis Management. Academy of Management Review, 23 (1), 59-76.

Perrow, C. (2003). Normal Accidents Living with High – Risk Technologies. New York, Basic, 34-38.

Pollard, D., & Hotho, S. (2006). Crises, Scenarios and the Strategic Management Process. Management Decision, 44 (6), 721- 728.

Ponikvar, N., Tajnikar, M., & Pusnik, K. (2009). Performance Ratios for Managerial Decision-Making in a Growing Firm. Journal of Business Economics and Management, 10(2), 109-120.

R

Ravid, A., & Sundgren, S. (1998). The comparative efficiency of small firm bankruptcies: a study of the US and finish bankruptcy codes. Financial Management, 27, 28-40.

Ren, C. (2000). Understanding and Managing The Dynamics Of Linked Crisis Events. Disaster Prevention and Management, 9 (1), 12-17.

Rogov, M. (2006). Global Risk Factors. Journal of Business Economics and Management, 7 (1), 25-28.

S

Shamsudin, S. (2014). What Malaysia Airlines must do to survive (and maybe even thrive again)? Retrieved from, https://theconversation.com/what-malaysia-airlines-must-do-to-survive-and-maybe-even-thrive-again-31154

V

Valackiene, A. (2011). Theoretical Substation of the Model for Crisis Management in Organization. Inzinerine Ekonomika-Engineering Economics, 22(1), 78-90

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