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What is a Crisis?
A crisis is a major occurrence with a potentially negative outcome affecting an organization as well as its publics, services, products, and/or good name. Two different views of Crisis:
ACTION :
7mio bottles were recalled from North America Ronald Davis(Perrier America President) declared that the problem was limited to North America Cleaning Fluid on a production line machine mistakenly used. Declaration done before identifying the source of contamination. Three days laterdiscovery:- 6 months worth of production affected.Not only North America but also Global Market
FrederikZimmer(Perriers International Division President) : Perrier water naturally contains several gases including Benzene.The Benzene entered the water because of a dirty pipe filter at an underground spring at Vergezein southern France. (It means that NaturalPerrier was in reality processed)
Plans to restructure
Management structure and bottom line Firing of GustaveLeven(CEO & Founder)
Media controlled the information Defensive behavior Lack of proactive and clear communication towards customers Scandal became a big media event Rapid widespread of the news on a global level Emotional component(People scared , betrayed , bad reputation)
Monitoring crisis
Companies must carefully monitor issues in order to be able to identify potential crises and preventing the issue from turning into a crisis. The issues should not only be monitored in the traditional media. Today, a lot of communication among stakeholders is taking place in social media, and brands must therefore monitor social channels such as blogs, Twitter and Facebook . If a negative comment about your company is circulating online, you must monitor if the negative sentiment is turning into an actual crisis and a crisis quickly flourishes online.