Crisis Management

By Raphael Arrouas

The Basics :

- Know the threats, and be prepared - React fast (under 48 hours) : Contain the crisis- Learn to work with the medias (public opinion)- Get outside help (experts, lawyers, specialized

companies…)- Learn from your/other people’s mistakes

Failed crisis management : Tepco and the Fukushima nuclear plant

- Tepco ignored the seismic risks which had been pointed out in 2003 and 2006

- Tepco refused outside help (American help for instance)

- Both Tepco and the japanese government lacked communcation skills

- Tepco had no procedure for this type of case (tsunamis…) and was slow to react

Relatively good crisis management : Picard and the horse meat scandal

- Picard’s CEO was interviewed on RTL, to defend his company

- The CEO stated to be a fraud victim, thus declining all responsibility, and filed a complaint

- Picard quickly withdrew his contaminated products from the market

- Picard made additional DNA analysis of his products, to reassure its clients

- But the brand’s name remainsassociated with the Food Industry scandal

Great crisis management : Pepsi and the 1993 syringe case

- In 1993, claims of synringes found in Pepsi cans- Pepsi quickly made a video to show the sturdiness of

the manufacturing process- They found a video of a woman trying to deliberately

put a syringe in a can (video surveillance)- Pepsi worked with the authorities (FDA), and filed

complaints- They sent experts on all the medias- Advertising campaign after the end

Consequences

- You can get out of a crisis with benefits : Solid image of responsibility, client awareness, reactivity

- Although, you’re more likely to endure losses (Shares drop, non-reelection, etc)

Crisis management is hard to master, and if you’re in trouble, you should call experts familiar with it

Thank your for listening !