Page 190 - (DK) The Business Book
P. 190
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THE CHINESE WORD
“CRISIS” IS COMPOSED
OF TWO CHARACTERS:
“DANGER” AND
“OPPORTUNITY”
CRISIS MANAGEMENT
ankind has faced crises affect businesses across the world.
IN CONTEXT throughout history, from Digital, 24/7 communication means
M natural disasters to man- that news travels far and fast. The
FOCUS
made calamities. Businesses face result is that crises may seem to
Business crises
similar crises—internal or external be more prevalent than they were
KEY DATES events can pose major threats to during the predigital age.
1987 Ian Mitroff, Paul the organization. Unpredictable in
Shrivastava, and Firdaus nature, they require quick decision Responding to crisis
Udwadia publish the paper making and action from leaders. The random nature of crises means
“Effective Crisis Management.” Globalization has increased the that they can strike anywhere.
complexity of the business world, Typical crises include technological
1988 Shrivastava, Mitroff, so an event in one country can failure; employee actions, from
Danny Miller, and Anil Miglani
say that organizational crisis
requires an interdisciplinary
approach, using psychological,
technological-structural and A company develops a An unpredictable,
social-political perspectives. crisis management major crisis hits the
plan covering “who, what, company, requiring
1995 A. Gonzalez-Herrero and when, where, and how” for immediate decisions and
C. Pratt suggest a model for the first critical hours. actions.
crisis management: diagnosis
of impending trouble; decision
and actions; implementation of
change; and monitoring.
2000s Business continuity
planning is introduced to deal
with terrorism and major The crisis is effectively Leadership takes
technology failure. managed and, if possible, control and puts the
turned into an crisis management
2010s Social media allows a
opportunity. plan into action.
crisis to be publicized rapidly,
often to a company’s detriment.
