Management Essay Example | Topics and Well Written Essays - 3000 words

Management - Essay ExampleThat is the goal of crisis management, which can be defined as a desex of activities aimed at minimizing the potential, or responding to an existing crisis effectively. As such, an effective crisis management plan whitethorn return a gild with an opportunity to effectively take urgent actions for minimizing the harm caused by a crisis and, in such a way, save the future of the organization. Furthermore, relevant crisis and issue management activities may even help the society to block a crisis and, as a result, save valuable resources to be invested into further growth and development. In is especially true considering the fact that news in the contemporary world spread within hours. Therefore, urgent actions for rescuing the company should be taken immediately after an issue arises. At the same time, good and well-structured relationships with the media may help an organization to decrease the level of crisis impact on the companys future. Therefore, the given paper will try to draw up a basic crisis management plan for Shuanghui Business congregation, a food business group that majors in processing pork. The company has already had close to sire managing crisis. However, the presented plant will help it to forecast and assess potential future crisis, recommend specific crisis management processes and team structures, as well as provide a list of materials to be to be produced as part of the crisis toolkit. In addition, business continuity considerations will be addressed and a proposal for test and refining the crisis plan will be presented. All this information will help the company to prepare for a potential crisis and, furthermore, get an opportunity to avoid it and save money. Forecasting and assessing a potential crisis the organization could face. On the 15th of March, 2011, Shuanghui Business Group was suspected of using clenbuterol pigs. As a result, the stock of the company dropped to the trading limit causing a lo ss of CNY 5.2 billion in the capital market. Furthermore, the company had to withdraw its products form all the major supermarkets, while some marketplaces even stopped selling the products of the Business Group or refused to continue working with the company. The organization took back all of its products circulating in market and unsympathetic manufacturing down to be rectified (Zhang, 2011). Nevertheless, what Shuanghui Business Group experienced is the crisis of consumers trust or, if defined more precisely, a product-harm crisis (Dawar & Pillutla, 2000, p. 215), since it involved recalling products from all of the distribution networks due to natural rubber concerns (Chen, Ganesan, & Liu, 2009, p. 214). As a result, the brands equity and companys reputation got damaged, customers loyalty decreased, and revenues and market shares lost (Laufer & Coombs, 2006, p. 379). So, in order for the Business Group not to experience such a disastrous situation again, continuous forecastin g and assessing a potential crisis the organization can face should be conducted. The rattling first condition for forecasting a crisis is noting both internal and external inputs. Peoples perceptions of information differ what one may consider to be a potential threat will be missed by another. Therefore, it is important to make sure that the organization does not miss any internal or external issues that might indicate a potential crisis (Harvard Business School, 2004, p. 12). For this reason clear and open communication channels should be determined and