Case Study on Crisis Management

To manage a crisis means to recognize it, evaluate it, comprehend it, and then act accordingly. Natural disasters, security breaches, and malicious rumours can damage an organization's reputation, leading to a crisis.

Businesses need to have a well-thought-out crisis management plan for handling crises. This will safeguard the company's good name and the welfare of its personnel.

How Johnson & Johnson handled the Tylenol issue in 1982 is often cited as an exemplar of how a firm should react in such a situation. Tylenol tablets containing cyanide were used in the incident, which resulted in the poisoning of seven persons.

J&J, in contrast to many competitors at the time, prioritized the welfare of its customers over its bottom line. The corporation collaborated with law enforcement to assist in the investigation and offered a reward for information leading to the arrest and conviction of those responsible.

The public's increased trust in the goods throughout the crisis was also a boon to the business. Tylenol's market share surged as consumers who had previously doubted the safety of OTC medications returned to using them.

Every second of the clock counts when waiting in a taxi or bus line. That's why the developers of the Uber mobile app conceived of the 'uber' service, which eliminates the need for waiting in lines and simplifies transportation.

On the other hand, taxi firms and government regulators have been vocal in disapproving of the company's controversial economic model, which involves paying drivers extra during peak hours. It also incentivizes airlines to charge more on nights with high demand, such as New Year's Eve, which has stoked customer outrage.

Employees have also claimed that they were victims of sexual harassment at work. Moreover, CEO Travis Kalanick was recorded verbally abusing a driver.

United Airlines' public relations took a significant hit in April 2017 after a video surfaced showing security officials forcibly removing a passenger. Dr David Dao, 69, was the victim in this event; security officials forcibly removed him from his seat and left him bloodied.

The airline made a string of tweets and remarks in the hours after the tragedy. They did not retract their previous statement, describing the passenger as "disruptive and hostile," and instead offered no apology. This is a textbook case of how not to handle a crisis.

P&G has relied on its IWS culture for many years to see it through difficult times. One of the main reasons the corporation survived the global COVID-19 outbreak was that it affected all of its plants.

For instance, during political unrest and violence in Egypt, the corporation had to figure out how to keep its operations and personnel safe.

When faced with a crisis, the company's response was exemplary. It responded promptly and maturely, utilizing humour to win over the public.

Procter & Gamble recognized they had to move quickly to safeguard their brand's image when faced with an unusual internet challenge in which teens have filmed videos of themselves eating Tide Pods. They were also completely honest about the situation, emphasizing that they had done nothing wrong. The lesson here is that even the best-laid plans can go awry and that it's crucial to remember that only some crises result from poor management.