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CRISIS MANAGEMENT – YOU AS CEO

This exercise explores management reaction to rapid, unexpected change. Each group will act as a management team for a large national company faced with a crisis. Quickly analyze the situation, decide on an appropriate strategy for coping with the situation, and prepare a brief statement/plan outlining how the company should manage the crisis.

A. A national consumer foods company has discovered that several batches of its salad dressing have been contaminated with toxic industrial solvent. One person has died and the media are demanding a statement.

B. At the construction site for a new corporate headquarters, the top floors of the building have collapsed, killing 16 people, including the head of the local union. The cause of the collapse has not been determined, but a local television station has reported that substandard materials have been used in construction.

C.A hurricane has come ashore near your largest distribution facility in Texas, days before your marketing department is scheduled to launch the new fall line of clothing. Communications have been cut off to the area and you have not been able to contact anyone at the facility. News media are reporting large-scale damage and loss of life in the area. Your retail managers across the country are worried that the loss of this distribution facility will disrupt deliveries at this critical point and the product won’t be there when the customer shows up

D. There has been a massive explosion at a chemical plant, centered in the storage area. The resulting fire is threatening a building where dozens of workers have taken refuge. There are rumors that a terrorist bomb was involved. Casualties and extent of damage are unknown. E.A gunman has invaded a large metropolitan bank, killing 4 people and taking 20 employees’ hostage. He has demanded that bank executives publicly apologize for “crimes against African Americans” and declare that Black Lives Matter. If they do not, he will blow up the bank. No one knows what weapons he has.