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Crisis

ManagementCrisis

ManagementCrisisManagementBasics“Nocomment”fuelshostilityAlwaystrytobehelpfulBeawareofdeadlinesBefriendjournalistsbeforethecrisishitsCrisisManagementBasics“NocoCrisisManagementTipsAppointaspokespersonwhoispersonableandcredibleSetupacentralplacewheremediaandthepubliccangetinfoKeeptheinformationcomingBeaccessibleandreturnallcallsBehonestCrisisManagementTipsAppointExamplesofCrisisManagementOdwallaExxonExamplesofCrisisManagementOCaseStudyOdwallajuicee-colioutbreakin1996HealthofficialsinWashingtonstateinformedthecompanythattheyhaddiscoveredalinkbetweenseveralcasesofE.coli0157:H7andOdwallafreshapplejuice.CaseStudyOdwallajuicee-coliCaseStudyOnechilddiedandmorethan60peopleintheWesternUnitedStatesandCanadabecamesickafterdrinkingthejuice.Salesplummetedby90%,Odwalla'sstockpricefell34%.Customersfiledmorethan20personal-injurylawsuitsandthecompanylookedasthoughitcouldwellbedestroyed.CaseStudyOnechilddiedandmWhatdidthecompanydo?Odwallaactedimmediately.Althoughatthepointwheretheywerefirstnotifiedthelinkwasuncertain,Odwalla'sCEOStephenWilliamsonorderedacompleterecallofallproductscontainingappleorcarrotjuice.Thisrecallcoveredaround4,600retailoutletsin7states.Internaltaskteamswereformedandmobilized,andtherecall-costingaround$6.5mwascompletedwithin48hours.Whatdidthecompanydo?OdwallTakingResponsibilityOnallmediainterviews,theCEOexpressedsympathyandregretforallthoseaffectedandimmediatelypromisedthatthecompanywouldpayallmedicalcosts.This,alliedtothepromptandcomprehensiverecall,wentalongwaytowardssatisfyingcustomersthatthecompanywasdoingallitcould.TakingResponsibilityOnallmeInternalcommunicationsTheCEOconductedregularcompany-wideconferencecallsonadailybasis,givingemployeesthechancetoaskquestionsandgetthelatestinformation.Thisapproachprovedsopopularthatthepracticeofquarterlycallssurvivedthecrisis.InternalcommunicationsTheCEOExternalcommunicationsWithin24hours,thecompanyhadanexplanatoryWebsite(itsfirst)thatreceived20,000hitsin48hours.Thecompanyspoketothepress,appearedonTVandcarriedoutdirectadvertisingwiththeWebsiteaddress.Allpossibleattemptsweremadetoprovideuptotheminute,accurateinformation.ExternalcommunicationsWithinFixingtheProblemThenextstepwastotackletheproblemofcontamination.Thecompanyswitchedfromunpasteurisedjuicetoaprocesscalled"flashpasteurization"whichwouldguaranteethatE-colihadbeendestroyedwithoutcompromisingflavor.FixingtheProblemThenextsteFixingtheProblemWithinmonthsoftheoutbreak,thecompanyhadinplacewhatsomeexpertsdescribedas"themostcomprehensivequalitycontrolandsafetysysteminthefreshjuiceindustry."OnDecember5,thecompanybroughtbackitsapplejuice.ThenewprocesswascommunicatedinalladvertisingandpublicoutreachcampaignsFixingtheProblemWithinmonthCostandbenefitOdwallamadearapidrecovery.Muchofthegoodwillandtrustithadbuiltupovertheyearsremained.Salespickedupagainquitequickly.CostandbenefitOdwallamadeaCostandbenefitThecompanydidpayalargecost.Odwallapleadedguiltytocriminalchargesofsellingtaintedapplejuiceandwasfined$1.5m-thelargesteverassessedinafoodindustrycasebytheUSFoodandDrugAdministration.CostandbenefitCaseStudyIn1989,theExxonValdezoiltanker,enteredthePrinceWilliamSound,onitswaytowardsCalifornia.Theshipranagroundandbeganspillingoil.Withinaveryshortperiodoftime,significantquantitiesofits1,260,000barrelshadenteredtheenvironment.CaseStudyIn1989,theExxonVCaseStudyAtthemomentofthecollisionthethirdmate,whowasnotcertifiedtotakethetankerintothosewaters,wasatthehelm.TheprobablecausewasestablishedthattheCaptainandmanyofthecrewhadbeendrinkingalcoholinconsiderablequantities.CaseStudyAtthemomentoftheWhatdidthecompanydo?Theactiontocontainthespillwasslowtogetgoing.Thecompanyrefusedtocommunicateopenlyandeffectivelytothepublicabouttheincident.TheExxonChairman,LawrenceRawl,wasimmenselysuspiciousofthemedia,andreactedaccordingly.Whatdidthecompanydo?TheacPoorCrisisManagementMediacoverageescalatedwhileExxondodgedthemediaTheChairmanrefusedtobeinterviewedonTVandsaidthathehadnotimefor“thatkindofthing.”Acompanyspokesmanmisrepresentedtheextentofthespillandclean-upeffortsThiswasincontrasttothefootageoftheecologicaldisastershownonTVPoorCrisisManagementMediacoFailuretoFixtheProblemWhileExxonstalledandattemptedtocoveruptheproblem,theclean-upoperationwasslowtobeginAround240,000barrelshadbeenspilled,withanothermillionstillontheship.Duringthefirsttwodays,whencalmweatherwouldhaveallowedit,littlewasdonetocontainthespillage.Thisspillagespreadoutintoa12squaremileslick.FailuretoFixtheProblemWhilTheProblemCompoundsThenthebadweatherstruck,makingfurthercontainmentalmostimpossible.Aftermorethanaweek,thecompanywasstillgivingnogroundontherequestforbettercommunication.ThemediaclamorbecamesohostilethateventuallyFrankLarossi,theDirectorofExxonShipping,flewtoValdeztoholdapressconference.Itwasnotasuccess.Smallpiecesofgoodnewsclaimedbythecompanywereimmediatelycontradictedbytheeyewitnessaccountsofthepresentjournalistsandfishermen.TheProblemCompoundsThentheOutrageBuildsJohnDevens,theMayorofValdez,commentedthatthecommunityfeltbetrayedbyExxon'sinadequateresponsetothecrisis,incontrasttothepromisestheyhadbeenquicktogiveofhowtheywouldreactinexactlythiseventuality.OutrageBuildsJohnDevens,thePoorCommunicationEventually,ChairmanRawlwasinterviewedliveHewasaskedaboutthelatestplansfortheclean-up.Itturnedouthehadneglectedtoreadthese,andcitedthefactthatitwasnotthejobofthechairmantoreadsuchreports.Heplacedtheblameforthecrisisatthefeetoftheworld'smedia.PoorCommunicationEventually,TheAftermathThespillcostaround$7billion,includingthecleanupcosts.$5billionofthiswasmadeupofthelargestpunitivefineseverhandedouttoacompanyforcorporateirresponsibility.TheAftermathThespillcostarTheAftermathExxonlostmarketshareandslippedfrombeingthelargestoilcompanyintheworldtothethirdlargest.The"ExxonValdez"enteredthelanguageasashortcutforcorporatearroganceanddamage.TheAftermathExxonlostmarketWhatwentwrong?Thecompanyfailedtoshowthattheyhadeffectivesystemsinplacetodealwiththecrisis-andinparticulartheirabilitytomovequicklyoncetheproblemhadoccurredwasnotinevidenceTheyshowedlittleleadershipaftertheeventinshowingtheircommitmenttoensuringsuchproblemswouldneverhappenagainTheyquitesimplygavenoevidencethattheycaredaboutwhathadhappened.Theyappearedindifferenttotheenvironmentaldestruction.Whatwentwrong?ThecompanyfaIn-classAnalysisWewillbreakintoteamstoexaminesomerecentPRcrisisscenariosSeetheclassblogIn-classAnalysisWewillbreakFinalReviewCovers:Ch.8–PitchLetters,Advisories,MediaKits&Op-EdCh.9–Radio,Television&WebcastingCh.10–Distribution:Snail-mailtoInternetCh.12–Newsletters,E-zines&BrochuresCh.13–WorldWideWebCh.14–E-mail,Memos,Letters,Proposals&ReportsCh.15–DirectMailandAdvertisingCh.18–ProgramPlanningCh.19–Measurements&EvaluationFinalReviewCovers:FinalReviewThetestwillconsistofwrittenresponse/WritingexamplesOpen-book/notes/InternetaccessWorth60pointsFinalReviewThetestwillcons我們正年輕,讓努力變成常態(tài),用逆襲創(chuàng)造傳奇。變革?創(chuàng)新?共贏我們正年輕,讓努力變成常態(tài),用逆襲創(chuàng)造傳奇。變革?創(chuàng)新Crisis

ManagementCrisis

ManagementCrisisManagementBasics“Nocomment”fuelshostilityAlwaystrytobehelpfulBeawareofdeadlinesBefriendjournalistsbeforethecrisishitsCrisisManagementBasics“NocoCrisisManagementTipsAppointaspokespersonwhoispersonableandcredibleSetupacentralplacewheremediaandthepubliccangetinfoKeeptheinformationcomingBeaccessibleandreturnallcallsBehonestCrisisManagementTipsAppointExamplesofCrisisManagementOdwallaExxonExamplesofCrisisManagementOCaseStudyOdwallajuicee-colioutbreakin1996HealthofficialsinWashingtonstateinformedthecompanythattheyhaddiscoveredalinkbetweenseveralcasesofE.coli0157:H7andOdwallafreshapplejuice.CaseStudyOdwallajuicee-coliCaseStudyOnechilddiedandmorethan60peopleintheWesternUnitedStatesandCanadabecamesickafterdrinkingthejuice.Salesplummetedby90%,Odwalla'sstockpricefell34%.Customersfiledmorethan20personal-injurylawsuitsandthecompanylookedasthoughitcouldwellbedestroyed.CaseStudyOnechilddiedandmWhatdidthecompanydo?Odwallaactedimmediately.Althoughatthepointwheretheywerefirstnotifiedthelinkwasuncertain,Odwalla'sCEOStephenWilliamsonorderedacompleterecallofallproductscontainingappleorcarrotjuice.Thisrecallcoveredaround4,600retailoutletsin7states.Internaltaskteamswereformedandmobilized,andtherecall-costingaround$6.5mwascompletedwithin48hours.Whatdidthecompanydo?OdwallTakingResponsibilityOnallmediainterviews,theCEOexpressedsympathyandregretforallthoseaffectedandimmediatelypromisedthatthecompanywouldpayallmedicalcosts.This,alliedtothepromptandcomprehensiverecall,wentalongwaytowardssatisfyingcustomersthatthecompanywasdoingallitcould.TakingResponsibilityOnallmeInternalcommunicationsTheCEOconductedregularcompany-wideconferencecallsonadailybasis,givingemployeesthechancetoaskquestionsandgetthelatestinformation.Thisapproachprovedsopopularthatthepracticeofquarterlycallssurvivedthecrisis.InternalcommunicationsTheCEOExternalcommunicationsWithin24hours,thecompanyhadanexplanatoryWebsite(itsfirst)thatreceived20,000hitsin48hours.Thecompanyspoketothepress,appearedonTVandcarriedoutdirectadvertisingwiththeWebsiteaddress.Allpossibleattemptsweremadetoprovideuptotheminute,accurateinformation.ExternalcommunicationsWithinFixingtheProblemThenextstepwastotackletheproblemofcontamination.Thecompanyswitchedfromunpasteurisedjuicetoaprocesscalled"flashpasteurization"whichwouldguaranteethatE-colihadbeendestroyedwithoutcompromisingflavor.FixingtheProblemThenextsteFixingtheProblemWithinmonthsoftheoutbreak,thecompanyhadinplacewhatsomeexpertsdescribedas"themostcomprehensivequalitycontrolandsafetysysteminthefreshjuiceindustry."OnDecember5,thecompanybroughtbackitsapplejuice.ThenewprocesswascommunicatedinalladvertisingandpublicoutreachcampaignsFixingtheProblemWithinmonthCostandbenefitOdwallamadearapidrecovery.Muchofthegoodwillandtrustithadbuiltupovertheyearsremained.Salespickedupagainquitequickly.CostandbenefitOdwallamadeaCostandbenefitThecompanydidpayalargecost.Odwallapleadedguiltytocriminalchargesofsellingtaintedapplejuiceandwasfined$1.5m-thelargesteverassessedinafoodindustrycasebytheUSFoodandDrugAdministration.CostandbenefitCaseStudyIn1989,theExxonValdezoiltanker,enteredthePrinceWilliamSound,onitswaytowardsCalifornia.Theshipranagroundandbeganspillingoil.Withinaveryshortperiodoftime,significantquantitiesofits1,260,000barrelshadenteredtheenvironment.CaseStudyIn1989,theExxonVCaseStudyAtthemomentofthecollisionthethirdmate,whowasnotcertifiedtotakethetankerintothosewaters,wasatthehelm.TheprobablecausewasestablishedthattheCaptainandmanyofthecrewhadbeendrinkingalcoholinconsiderablequantities.CaseStudyAtthemomentoftheWhatdidthecompanydo?Theactiontocontainthespillwasslowtogetgoing.Thecompanyrefusedtocommunicateopenlyandeffectivelytothepublicabouttheincident.TheExxonChairman,LawrenceRawl,wasimmenselysuspiciousofthemedia,andreactedaccordingly.Whatdidthecompanydo?TheacPoorCrisisManagementMediacoverageescalatedwhileExxondodgedthemediaTheChairmanrefusedtobeinterviewedonTVandsaidthathehadnotimefor“thatkindofthing.”Acompanyspokesmanmisrepresentedtheextentofthespillandclean-upeffortsThiswasincontrasttothefootageoftheecologicaldisastershownonTVPoorCrisisManagementMediacoFailuretoFixtheProblemWhileExxonstalledandattemptedtocoveruptheproblem,theclean-upoperationwasslowtobeginAround240,000barrelshadbeenspilled,withanothermillionstillontheship.Duringthefirsttwodays,whencalmweatherwouldhaveallowedit,littlewasdonetocontainthespillage.Thisspillagespreadoutintoa12squaremileslick.FailuretoFixtheProblemWhilTheProblemCompoundsThenthebadweatherstruck,makingfurthercontainmentalmostimpossible.Aftermorethanaweek,thecompanywasstillgivingnogroundontherequestforbettercommunication.ThemediaclamorbecamesohostilethateventuallyFrankLarossi,theDirectorofExxonShipping,flewtoValdeztoholdapressconference.Itwasnotasuccess.Smallpiecesofgoodnewsclaimedbythecompanywereimmediatelycontradictedbytheeyewitnessaccountsofthepresentjournalistsandfishermen.TheProblemCompoundsThentheOutrageBuildsJohnDevens,theMayorofValdez,commentedthatthecommunityfeltbetrayedbyExxon'sinadequateresponsetothecrisis,incontrasttothepromisestheyhadbeenquicktogiveofhowtheywouldreactinexactlythiseventuality.OutrageBuildsJohnDevens,thePoorCommunicationEventually,ChairmanRawlwasinterviewedliveHewasaskedaboutthelatestplansfortheclean-up.Itturnedouthehadneglectedtoreadthese,andcitedthefactthatitwasnotthejobofthechairmantoreadsuchreports.Heplacedtheblameforthecrisisatthefeetoftheworld'smedia.PoorCommunicationEventually,TheAftermathThespillcostaround$7billion,includingthecleanupcosts.$5bill

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