Crisis Management
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Crisis Management
Organizational leaders often see crisis as a uniformly negative event that should be avoided at all costs. They often focus crisis management efforts on trying to predict every negative situation that could possibly occur and developing a plan to avoid them. Such an approach is impractical according to researchers Antonacopoulou and Sheafer (2011) because unexpected crises are an inevitable part of business. Moreover, they propose “a dynamic view of learning and crisis as central to manage¬ment and organization practices” (p. 4). Crises, they say, not only happen during large-scale disasters but also occur on a smaller scale each time someone is pressured to make a decision for which prior solutions are inadequate. These situations force people to “make new connections” among existing knowledge to arrive at novel solutions. Research such as this suggests that crises can be learning opportunities.
To prepare, identify a crisis the organization that you chose for your SSP (Apple Inc.) has faced in the past, a crisis that it is currently facing, or a crisis that a competitor in that industry has faced that your selected organization may face in the future.
Write a 4 paragraph (2 page word document minimum) explanation of the crisis that you selected and a crisis management response recommendation. Include an analysis of
– the ethical implications of that recommendation.
– Reference at least one scholarly peer-reviewed resource in your recommendation.
Resources:
• Senge, P., Smith, B., Kruschwitz, N., Laur, J., & Schley, S. (2008). The necessary revolution: Working together to create a sustainable world. New York, NY: Broadway Books.
o Chapter 19, “Innovation Inspired by Living Systems” (pp. 285–291)
In Chapter 19, the authors highlight printing and photocopying company Xerox’s “Lakes Project.” The authors explain the innovation that was inspired by living systems after several employees spent time observing natural living systems. The author demonstrates how companies have connected nature’s approach, also known as systems thinking, to their business and product development models.
o Chapter 20, “Unleashing Everyday Magic” (pp. 292–301)
In Chapter 20, the authors suggest that a shift from a negative outlook to a positive outlook regarding sustainability is required. The authors stress that becoming part of the solution instead of ruminating about problems that lie ahead for businesses requires optimism. The authors remind readers of the lack of success of many well-known “anti” campaigns and caution against the act of demonizing those who are perceived as having done wrong. They suggest that necessary changes occur most effectively if approached with positive attitudes and feelings of empowerment.
o Chapter 22, “From Low-Hanging Fruit to New Strategic Possibilities” (pp. 310–323)
In Chapter 22, the authors provide strategies and examples to help companies move from making small sustainable changes to escalating their efforts toward larger sustainable solutions. The authors purport that for those companies whose main product offering is not in alignment with sustainable futures, it is still possible to change course to harness emerging business opportunities.
SAMPLE ANSWER
Crisis Management
Crisis faced by Apple Inc’s competitor BlackBerry Limited
A crisis is basically anything that can damage the financial performance of an organization; that can threaten a significant business unit or product line; can harm the well-being and health of staffs, consumers, the environment, or surrounding communities; or can destroy the trust of the public in an organization, or can destroy the organization’s image, and reputation. The selected company is Apple Inc., which operates in the Electronic Equipment industry and is well-known for its iPhone smartphones. In the smartphones business, one of Apple’s direct competitors is BlackBerry Limited.
In the year 2013, BlackBerry Limited faced a crisis that Apple Inc may face in the future. Hamblen (2013) reported that BlackBerry’s senior managers would seek a review by Canadian and American securities officers of what it referred to as a misleading and false report by Detwiler Fenton, an investment analyst. Following a research, Detwiler reported that in several cases, the returns of Blackberry Z10 smartphones are more than sales, a phenomenon that has never been observed previously (Hamblen, 2013). BlackBerry stated that the statistics of return rate reveal that the company is below or at its forecast and actually in proportion to the industry. Suggesting otherwise, according to the firm’s officials, is either willful manipulation or gross misinterpretation of the data. BlackBerry added that Detwiler’s conclusion is totally with no basis and that the company would challenge it (Hamblen, 2013).
All in all, BlackBerry’s officials stated that Detwiler’s findings that its smartphones were being returned in very high numbers was absolutely false, and that they would seek an Ontario Securities Commission and U.S. Securities and Exchange Commission review. BlackBerry specified that Z10 sales are actually meeting expectations and data gathered from its carrier and retail partners shows that consumers are satisfied with their BlackBerry Z10 devices (Hamblen, 2013). In essence, this misleading and false report said that customers are returning BlackBerry’s Z10 smartphones in very high numbers. Market reaction to this report by Detwiler resulted in a 7.8 percent decline in the company’s stock a week later, down to $13.55 a share (Hamblen, 2013). This crisis greatly threatened the reputation and image of BlackBerry Limited. Such a crisis involving misleading and false report is one that Apple Inc. may face in future.
Crisis management response recommendation
If Apple Inc faces such a crisis in future, it is recommended that its senior managers tell the truth regarding the incidence and tell it speedily (Senge et al., 2008). In general, an organization has less than 24 hours to speak out its version of the truth. After that, external stakeholders especially the media would have tapped into tertiary and secondary experts who would have their own viewpoints with regard to what has occurred. The ethical implication of this recommendation is that the organization should not lie to the media reporters and to the public. If indeed there were many Apple product – for instance iPhones – returns, the company should say so to the media reporters and to other external stakeholders. It is notable that today’s world is one in which the truth could be revealed very fast. A manager being caught telling lies about his or her company’s inappropriate actions or lying about sales can really devastate his or her organization (Senge et al., 2008). Generally, an attempted cover-up could turn a media reporter into a folk hero. There could be a huge payoff for revealing wrongdoing of an organization.
References
Hamblen, M. (2013). BlackBerry, in latest crisis, says report of high Z10 returns is ‘false.’ Computer World. Retrieved from http://www.computerworld.com/article/2496596/smartphones/blackberry–in-latest-crisis–says-report-of-high-z10-returns-is–false-.html
Senge, P., Smith, B., Kruschwitz, N., Laur, J., & Schley, S. (2008). The necessary revolution: Working together to create a sustainable world. New York, NY: Broadway Books.
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