1. Introduction
This assignment deals with the management of crisis. First of all, crisis and company crisis will be defined. Secondly, the characteristics of a crisis will be identified. Furthermore, theory about crisis management and crisis planning will be provided. In this context, guidelines, preparation and goals of crisis management will be described. Moreover, different tables will provide additional information and describe the crisis management of BMW.
1.1 Crisis definition
According to Heath and Millar (2004, p. 2), a crisis is an inappropriate and inconvenient event that has negative consequences for everybody who is concerned. Argenti (2009, pp. 258-259) states that a crisis is a “major catastrophe” and argues that these catastrophes are either a result of “natural disaster” or “caused by human error, negligence, or ... malicious intent”. Argenti (2009) argues that a crisis is something everybody can identify with.
1.2 What is a company crisis?
Stacks (2004) states that all organisations will at some time be affected by a crisis. Fearn-Banks defines a company crisis as a “major occurrence with a potentially negative outcome affecting an organization, company, industry, as well as its publics, products, services, or good name” (Fearn-Banks as cited in Heath & Millar, 2004, p. 5).
Table of Contents
1 Introduction
1.1 Crisis definition
1.2 What is a company crisis?
1.3 Characteristics of a crisis
2 Theory – crisis management & planning
2.1 Guidelines and Preparation
2.2 Goals of crisis management
3 Stakeholder Strategy
4 Crisis management strategies
4.1 Crisis Management Team
4.2 Media Management Strategies
4.3 Crisis Preparation
4.4 Crisis Communication
4.5 Crisis Evaluation
5 Conclusion
Objectives and Topics
This document examines the systematic management of crises within the corporate environment, with a specific focus on the operational strategies employed by BMW Motorrad Australia. The primary objective is to analyze how organizations can effectively prepare for, respond to, and evaluate crises to protect their reputation and stakeholder relationships.
- Theoretical definitions and characteristics of corporate crises.
- Strategic planning, guidelines, and organizational preparedness.
- Stakeholder management and communication strategies during emergency situations.
- Implementation of crisis management teams and post-crisis evaluation processes.
Excerpt from the Book
1.3 Characteristics of a crisis
Argenti (2009, p. 259) states that “all crises are unique”. However, according to Argenti (2009, p. 259), all crises have some characteristics in common: “(1) the element of surprise ... ; (2) insufficient information ... ; (3) the quick pace of events ... ; (4) intense scrutiny”. Argenti (2009) argues that the surprising occurrence of a crisis might result in losing control. The organisation needs to explain the crisis but often the necessary facts and explanations are not available immediately. Thus, the company cannot provide an adequate statement. Moreover, events are escalating very quickly. Consequently, the company’s spokesperson is often not prepared when it comes to the company statement, which needs to take place as soon as possible.
According to Heath and Millar (2004), the following characteristics describe a crisis: “magnitude, duration, locus of cause, locus of responsibility, emergency response (timely and effective), and restoration/resolution” (Heath & Millar, 2004, p. 4). Furthermore, the authors argue that, on the one hand, the likelihood of a crisis is low but, on the other hand, the consequences are very high and that crises can be of different severities. However, they state that crises are foreseeable.
Summary of Chapters
1 Introduction: Provides the foundational definitions of crises and company crises, and outlines the scope of the assignment regarding BMW's management practices.
2 Theory – crisis management & planning: Discusses the necessity of theoretical frameworks and corporate communication plans to manage public perception and navigate uncertainty.
3 Stakeholder Strategy: Details the importance of identifying key stakeholder groups and establishing appropriate communication channels for each to maintain organizational trust.
4 Crisis management strategies: Outlines the structural requirements for a crisis management team, media interaction rules, preparation steps, and the cycle of post-crisis evaluation.
5 Conclusion: Summarizes the necessity of proactive pre-planning and commitment to minimizing negative impacts during unpredictable crisis events.
Keywords
Crisis Management, Corporate Communication, Stakeholder Strategy, Crisis Preparation, BMW Motorrad, Media Management, Risk Assessment, Organizational Reputation, Crisis Communication, Crisis Evaluation, Strategic Planning, Emergency Response, Business Continuity, Public Relations, Accountability.
Frequently Asked Questions
What is the core focus of this assignment?
The assignment explores the principles of crisis management and how organizations, specifically BMW Motorrad Australia, prepare for and react to unexpected negative events.
What are the central thematic areas covered?
The main themes include theoretical crisis definitions, stakeholder management, crisis planning, media communication protocols, and the importance of post-crisis evaluation.
What is the primary objective of the research?
The goal is to demonstrate how effective crisis management strategies serve as essential tools to minimize the negative impact of crises on an organization's reputation and business operations.
Which scientific methods are utilized?
The document employs a literature-based research methodology, synthesizing academic theories from experts such as Argenti, Heath, Millar, and Stacks to analyze organizational crisis models.
What topics are discussed in the main body?
The main body covers the identification of crisis characteristics, the role of crisis management teams, specific media handling strategies, and the systematic process of preparing for and learning from various crisis scenarios.
Which keywords define this work?
Key terms include crisis management, stakeholder strategy, crisis preparation, corporate communication, and reputation management.
How does BMW approach stakeholder contact during a crisis?
BMW utilizes a structured approach, ranking stakeholders by importance and utilizing specific contact methods ranging from press releases for the public to personal contact for victims' families.
What is the function of the crisis management team at BMW?
The team is comprised of key executives and specialists (such as PR, legal, and IT) who work collectively to lead the organization, manage communication, and conduct regular audits and rehearsals.
What role does post-crisis evaluation play?
Evaluation is a vital phase that involves learning from past mistakes, analyzing the effectiveness of implemented strategies, and updating the crisis management plan to better handle future events.
Why is proactive preparation considered essential?
Preparation is crucial because while the timing of a crisis is often unpredictable, the potential consequences are severe; proactive planning allows an organization to respond quickly and restore credibility.
- Quote paper
- Anonym (Author), 2010, Crisis Management of BMW Motorrad Australia, Munich, GRIN Verlag, https://www.grin.com/document/152195
