A crisis can be caused by things outside an organization, like a natural disaster, a security breach, or false rumours that hurt its reputation. Crisis management is the process of finding out what's going on, what's going on, and how to deal with it.
No matter what caused the problem, companies should have a complete crisis management plan. This will help keep the company's name and employees safe.
In 1982, when there was a problem with Tylenol, Johnson & Johnson's response became a classic example of how a company can handle a crisis well. Seven people were poisoned when they took Tylenol capsules that contained cyanide. At the time, Tylenol was the most popular product made by the company.
Unlike many other companies at the time, J&J cared more about the safety of its customers than about making money. The company worked with the police to solve the mystery and offered a reward for any information that could lead to the criminals.
The crisis also helped the company because it made people trust the product more. People who had doubts about the safety of over-the-counter products started using them again suddenly, and Tylenol's market share went through the roof.
Every second counts when you must wait in a taxi or bus line for your ride. Because of this, the mobile app Uber came up with the idea of a "uber" service that would let people travel without waiting in line.
But cab companies and government regulators have fought hard against the company because of its controversial business model, which has drivers charge more for rides during busy times. It also makes it more likely that fares will go up when demand is high, like on New Year's Eve, which has made people angry.
Employees have also said that the company has been sexually harassing women. And a video shows CEO Travis Kalanick being rude to a driver.
In April 2017, United Airlines had a huge PR disaster when a video showed security officers dragging a passenger off a plane by force. Dr David Dao, who was 69 years old then, was pulled out of his seat and bloodied by security officers.
After the event, the airline sent out several tweets and public statements. Instead of saying they were sorry, they repeated what they had said before and called the passenger "disruptive and hostile." This is an excellent example of how not to handle a crisis.
P&G has used its IWS culture to deal with problems for a long time. It was a big reason the company got through COVID-19, affecting every plant worldwide.
In Egypt, for example, where there was political unrest and violence, the company had to decide how to keep its plants running and its employees safe.
How the company handled the situation was a perfect example of taking a crisis. It moved quickly and in a responsible way, and it used funny jokes to win public support.
When teens posted videos of themselves eating Tide Pods as part of a strange internet challenge, Procter & Gamble knew they had to act quickly to protect their reputation. They also told the truth and showed that they weren't to blame. This was a good lesson for other businesses because it's important to remember that crises can happen out of the blue and have nothing to do with your business.