Tylenol vs. Toyota: Crisis Management at Its Best and Worst
Tylenol Vs. Toyota: Crisis Management at Its Best and Worst
Tylenol and Toyota are two companies that have faced adversity in the form of crises. In Chicago in 1982, Tylenol was faced with the crisis of people dying from consuming its medication. The company acted quickly and appropriately; it was able to minimize its negative publicity and clear its image. Toyota has had its own recent crisis, and has been forced to recall over 8.5 million vehicles in the past seven months due to defective accelerator pedals. Some of these cars have been on the road since 2004.
According to Corporate Communication by Paul A. Argenti, there are eight steps that should be followed in order to manage a crisis. They are as follows: * Step 1: Get Control of the Situation- First off, the appropriate manager must be made aware of the situation. His or her role is to organize everyone and get control of what is happening; this means that the problem must be defined. Goals should be set so the company’s constituencies will be able to measure its progress. * Step 2: Gather as Much Information as Possible- It is important for companies to understand the full extent of the problem. Data must be collected from numerous and reliable sources to ensure accuracy. Some companies have been negatively judged because the information took too long to be presented to the public. Even if it takes time to gather information, the company should still release a statement to explain its delay. * Step 3: Set Up a Centralized Crisis Management Center- Managers should set up a center that can serve as a platform for all communication during the crisis. Fewer communication failures will occur if all of the planning and decision making take place at one location. * Step 4: Communicate Early and Often- The company spokesperson should give a statement as soon as possible especially if the crisis involves a threat to lives or property. The spokesperson should also alleviate constituency concerns by
Tylenol and Toyota are two companies that have faced adversity in the form of crises. In Chicago in 1982, Tylenol was faced with the crisis of people dying from consuming its medication. The company acted quickly and appropriately; it was able to minimize its negative publicity and clear its image. Toyota has had its own recent crisis, and has been forced to recall over 8.5 million vehicles in the past seven months due to defective accelerator pedals. Some of these cars have been on the road since 2004.
According to Corporate Communication by Paul A. Argenti, there are eight steps that should be followed in order to manage a crisis. They are as follows: * Step 1: Get Control of the Situation- First off, the appropriate manager must be made aware of the situation. His or her role is to organize everyone and get control of what is happening; this means that the problem must be defined. Goals should be set so the company’s constituencies will be able to measure its progress. * Step 2: Gather as Much Information as Possible- It is important for companies to understand the full extent of the problem. Data must be collected from numerous and reliable sources to ensure accuracy. Some companies have been negatively judged because the information took too long to be presented to the public. Even if it takes time to gather information, the company should still release a statement to explain its delay. * Step 3: Set Up a Centralized Crisis Management Center- Managers should set up a center that can serve as a platform for all communication during the crisis. Fewer communication failures will occur if all of the planning and decision making take place at one location. * Step 4: Communicate Early and Often- The company spokesperson should give a statement as soon as possible especially if the crisis involves a threat to lives or property. The spokesperson should also alleviate constituency concerns by
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