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Crisis Management and Communication. Jeremiah Maxel Jeremiah.maxel851@myci.csuci.edu 4/19/2014. Crisis And Communication.
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Crisis Management and Communication Jeremiah Maxel Jeremiah.maxel851@myci.csuci.edu 4/19/2014
Crisis And Communication • Crisis (noun; krī-səs)- an unstable or crucial time or state of affairs in which a decisive change is impending especially one with the distinct possibility of a highly undesirably outcome • Communication (noun, kə-ˌmyü-nə-ˈkā-shən)- the act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feeling, etc. to someone else
Three Components of a Crisis • Truth- Is the crisis caused by something true/real? • Severity- To what degree is the crisis an issue? • Customers- How close are the customers with your product?
The Lethal Tylenol Crisis • Fall of 1982 • Consumption of Extra Strength Tylenol capsules resulted in 7 deaths • Tylenol capsules had contained lethal doses of cyanide
Johnson and Johnson’s Response • Immediate warning to all customers via mass media • Production of Tylenol halted • Tylenol recalled until source could be identified
How Their Response Differed • Full Truth • Customer interests first • Did not attempt to deny or duck responsibilities
Result • Tylenol, instead of dying, continued going strong • Improved public image • Consumer loyalty increased
Reference • Rhode, David, Tylenol for users and a lesson for Ebbers, Network World, August 1999 • Centennial Journal: 100 Years in Business === Chicago’s Poisoned Tylenol Scare, 1982, Wall Street Journal, November 1989 • Gita V. Johar, Matthias M. Birk, Sabine A. Einwiller, How to Save your Brand in the Face of Crisis, MITSlogan Management Review, June 2010
Two Multiple Choice Questions • What is NOT a quality you have to consider when assessing a crisis? • Accountability • Truth • Severity • Customer Loyalty • What did Johnson and Johnson do in response to the Tylenol Scare? • Polishing the Halo • Yes but… • Customers Safety First • No, Not I