Crisis Management

• What is crisis management?

  The reactive process of handling a sudden, unexpected, and potentially damaging event that threatens a business's operations or reputation
• What are the advantages of crisis management?

  • Rapid response can save the business - effective leadership in crisis can reduce damage and prevent collapse
  • Demonstrates accountability - quick, visible action can protect reputation
  • Motivates employees - clear direction in uncertain times can build loyalty
  • Customer reassurance - Public-facing crisis management (e.g. PR statements) can maintain customer confidence
• What are the disadvantages of crisis management?

  • Stressful and chaotic - lack of planning often leads to poor decisions
  • Reputation damage - if handled badly, public backlash can grow (e.g. via social media)
  • Expensive
• What is a real-life example of successful crisis management?

  KFC's chicken shortage crisis in 2018
• Why was KFC's chicken shortage in 2018 crisis management successful?

  By acknowledging the problem, communicating openly with customers, and injecting humour into the situation.
• When is crisis management critical?

  • When the business has no time for detailed planning
  • When theres reputational damage at risk (e.g. scandals or product safety failures)
• What topics can crisis management link to?

  • Leadership styles (e.g. autocratic may be preferred in crisis)
  • Communication with stakeholders
  • Culture - flexible businesses may react better to crises
• What is the main aim of crisis management?

  Limit damage once the risk occurs