Due to the fact that many companies have to deal with one or more crises, crisis management
has become a buzzword in today.s hyper-competitive business environment. The successful
management of crises is strongly influenced by the performance of a company.s internal as
well as external communication. This thesis investigates how communication serves as a tool
for an organisation to overcome a crisis successfully. In order to answer this question we
undertook broad theoretical research as well as deep empirical investigations.
Before starting our research, we carried out a methodological reflection. We chose to adopt
the hermeneutic approach in order to base our study on the qualitative approach rather than a
quantitative one. We think this is more appropriate for our thesis because crisis management
and communication cannot be sufficiently measured in statistical terms. Furthermore we used
theories to increase our understanding but we did not test them in our empirical part. Thus, we
describe our work as inductive as our empirical study is based on our research question,
which we generated from our theoretical pre-understanding.
We started by scanning the theoretical work that has already been done in the field of crisis
management. We chose to examine all stages of a crisis situation: before, during, and after.
Furthermore we combined these stages to the crisis communications process. All stages
involve several steps, which should be considered by an organisation in order to overcome a
crisis successfully. Before a crisis occurs a company has to get prepared by setting a crisis
management team, identifying and assessing possible risks, developing a crisis
communications plan, and recognising signs which indicate the appearance of a crisis. During
a crisis an organisation has to deal with the point-of-no-return and to activate its crisis
communications plan in order to respond to the crisis. Once a crisis is over the company has
to start to evaluate its performance with the aim of learning from the occurrence and of
improving the preparedness for possible future crises.
The next step when writing this thesis was to find a company, which experienced a crisis
situation in order to analyse its performance throughout the crisis. We have chosen Baxter, an
international medical health-care company, which has been stroke by a crisis in the year 2001. [...]
Table of Contents
1. INTRODUCTION
1.1 BACKGROUND
1.1.1 Crises
1.1.2 Communication as a part of Public Relations
1.2 PROBLEM DISCUSSION
1.3 OBJECTIVES
1.4 LIMITATION OF THE RESEARCH
1.5 THEORETICAL & PRACTICAL RELEVANCE
1.5.1 Theoretical Relevance
1.5.2 Practical Relevance
2. METHODOLOGY
2.1 RESEARCH JOURNEY
2.2 SCIENTIFIC PERSPECTIVES
2.2.1 Positivistic Approach versus Hermeneutic Approach
2.2.2 Deductive, Inductive and Abductive Approaches
2.3 PRE-UNDERSTANDING
2.3.1 General Knowledge of Theories
2.3.2 Specific Knowledge
2.3.3 Personal Attributes
2.4 POSITIONING OF OUR RESEARCH APPROACH
2.5 DATA COLLECTION
2.5.1 Theoretical Data Collection
2.5.2 Empirical Data Collection
2.6 RESEARCH STRATEGY - CASE STUDY
2.6.1 Qualitative versus Quantitative Approach
2.7 VALUE OF THE STUDY
3. THEORY
3.1 CRISIS MANAGEMENT
3.2 CRISIS DYNAMICS
3.3 CRISIS COMMUNICATIONS PLANNING
3.4 CRISIS COMMUNICATIONS PROCESS
3.4.1 Before the Crisis
3.4.1.1 Setting the Team
3.4.1.2 Risk Identification and Assessment
3.4.1.3 Developing the Crisis Communications Plan
3.4.1.4 Warning Stage
3.4.2 During the Crisis
3.4.2.1 Point-of-no-Return
3.4.2.2 The Response Stage
3.4.3 After the Crisis
4. EMPIRICAL DATA
4.1 ABOUT BAXTER
4.1.1 History
4.1.2 Global Presence
4.1.3 The Case
4.2 CRISIS MANAGEMENT
4. 3 CRISIS COMMUNICATIONS PROCESS
4.3.1 Before the Crisis
4.3.1.1 Setting the Team
4.3.1.2 Risk Identification and Assessment
4.3.1.3 Developing the Crisis Communications Plan
4.3.1.4 Warning Stage
4.3.2 During the Crisis
4.3.2.1 The Point-of-no-Return
4.3.2.2 The Response Stage
4.3.3 After the Crisis
5. ANALYSIS
5.1 CRISIS MANAGEMENT
5.2 CRISIS COMMUNICATIONS PROCESS
5.2.1 Before the Crisis
5.2.1.1 Setting the Team
5.2.1.2 Risk Identification and Assessment
5.2.1.3 Developing the Crisis Communications Plan
5.2.1.4 Warning Stage
5.2.2 During the Crisis
5.2.2.1 The Point-of-no-Return
5.2.2.2 The Response Stage
5.2.3 After the Crisis
6. CONCLUSIONS
6.1 RESULTS AND RECOMMENDATIONS
6.2 REFLECTIONS AND CRITICS
6.3 SUGGESTIONS FOR FURTHER RESEARCH
Objectives and Thematic Focus
This thesis examines the role of communication as a critical tool for organizations to successfully navigate and overcome crisis situations. By performing a deep case study analysis of Baxter's experience during the 2001 medical supply crisis, the authors aim to identify how effective communication strategies are implemented and where improvements in organizational preparedness can be made.
- Crisis management strategies and the organizational communication process.
- The relationship between internal preparedness, stakeholder management, and reputation.
- Analysis of specific stages of a crisis: before, during, and after.
- Evaluation of communication channels and the use of crisis response plans.
- Practical insights and guidelines derived from the Baxter case study.
Excerpt from the Book
3.4.1.1 Setting the Team
According to Bernstein (http://www.cmiatl.com/prepare_risk.html) the first thing an organisation should do in the planning process is to set a crisis management team. He further points out the fact that a team is necessary in order to deal with a crisis before, during and after it strikes and that it is therefore crucial to assemble this team before the crisis starts. Nunamaker et al (1988:28ff) share this opinion and state that the crisis planning process should be a group process at any level. They see the advantage of this in the fact that this allows decision makers to learn from each other and that it will increase the creativity and effectiveness with which an organisation will manage a crisis when it gets serious.
Purdom (1995:11ff) also agrees on the importance of setting a team and he argues that a company should surround itself with knowledgeable experts who have special knowledge of how to communicate in a crisis situation. These people can either be internal or external personnel but Rike (2003:26ff) points out that if the team consists of internal personnel it is important that the members of this team should consist of representatives from all functional areas of the company. According to Bernstein (http://www.cmiatl.com/prepare_risk.html) the team should mainly consist of senior executives. He further states that the ideal leader of this team would be the CEO of the organisation, with the company's chief public relations executive and legal council chief as advisers. The author further argues that in case where the in-house public relations executive does not have the necessary expertise in crisis communications, the organisation should instead hark back on external team members.
Summary of Chapters
1. INTRODUCTION: Outlines the research background, defines the core crisis concepts, and establishes the objectives and scope of the study.
2. METHODOLOGY: Details the qualitative research journey, focusing on the hermeneutic approach, data collection methods, and the rationale behind using a case study strategy.
3. THEORY: Provides a comprehensive literature review on crisis management, crisis dynamics, and the structured steps involved in effective crisis communications planning.
4. EMPIRICAL DATA: Presents the case study of Baxter, covering its history and a detailed account of how the company managed its 2001 product crisis.
5. ANALYSIS: Combines the theoretical frameworks with the empirical findings to evaluate Baxter's performance at different stages of the crisis.
6. CONCLUSIONS: Summarizes the key findings, offers practical recommendations for future crisis preparedness, and suggests directions for further research.
Keywords
Crisis Management, Communication, Public Relations, Crisis Dynamics, Stakeholder Management, Baxter, Case Study, Risk Assessment, Crisis Planning, Crisis Communication Process, Media Relations, Corporate Reputation, Internal Communication, Qualitative Research, Crisis Preparedness
Frequently Asked Questions
What is the primary focus of this thesis?
The thesis focuses on investigating how communication functions as a strategic tool for organizations to overcome crises effectively and maintain their reputation.
What are the central thematic areas covered in the work?
The work covers crisis dynamics, crisis management procedures, the development of communication plans, stakeholder engagement, and the post-crisis evaluation process.
What is the main objective or research question?
The primary research question is: "How does communication serve as a tool for an organisation to overcome a crisis successfully?"
Which scientific methodology is utilized?
The authors adopt a qualitative, hermeneutic approach, utilizing a single-firm case study of Baxter to gather in-depth empirical data through interviews and documentation.
What does the main body of the work address?
The main body examines the theoretical stages of a crisis (before, during, and after) and applies these frameworks to the practical actions taken by Baxter during their 2001 product recall.
Which keywords characterize the research?
Key terms include Crisis Management, Communication, Stakeholder Management, Crisis Planning, and Corporate Reputation.
How does the thesis evaluate the "Point-of-no-Return" stage?
The authors analyze how Baxter handled the immediate aftermath of the crisis discovery, noting the speed of their response and the strategic withdrawal of the affected product.
What does the author conclude regarding the "Warning Stage"?
The analysis suggests that Baxter's failure to recognize early warning signs meant the "warning stage" as defined in theoretical literature did not effectively occur in the Baxter case, leading to an immediate escalation.
- Quote paper
- Maike Langmaak (Author), Stefanie Heidrich (Author), Marianne Sjöholm (Author), 2004, Communication as a tool to overcome crises, Munich, GRIN Verlag, https://www.grin.com/document/26759
