LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, así como para ofrecer publicidad relevante. Si continúas navegando por ese sitio web, aceptas el uso de cookies. Consulta nuestras Condiciones de uso y nuestra Política de privacidad para más información.
LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, así como para ofrecer publicidad relevante. Si continúas navegando por ese sitio web, aceptas el uso de cookies. Consulta nuestra Política de privacidad y nuestras Condiciones de uso para más información.
Crisis is any event that is expected
to lead to, an unstable and
dangerous situation affecting an
individual, group, community or
It is a situation that is unpredictable,
but it is not unexpected.
Common features of Crisis
The situation materialises unexpectedly.
Decisions are required urgently.
Time is short.
Urgent demands for information are received.
There is sense of loss of control.
Pressures build over time.
Routine business become increasingly difficult.
Types of Crisis
Crisis of Malevolence
Crisis of Deception
These are the crisis that occur in an organization due to its
prevailing financial conditions.
Losses, increase in costs, non-availability of funds,
bankruptcy, unable to pay back loans, etc.
Examples of Financial Crisis
recently faced a financial
Deutsche Bank faced a
financial crisis in USA, in
Technological crisis are caused by human application of
science and technology. This occurs when technology
becomes complex and the system breaks down.
Software failures, Industrial accidents etc.
Examples of Technological Crisis
Exxon Valdez, oil spill in
Alaska, on March 24,1989.
Union Carbide India Ltd,
gas leak in Bhopal, on
December 2, 1984.
Crisis of Malevolence
When opponents or miscreant individuals use extreme
tactics for the purpose of expressing anger or seeking gain
from, a company or economic system, perhaps with the
aim of destroying it.
Product tampering, kidnapping, malicious rumors,
Example of Malevolence Crisis
The Tylenol (Extra-Strength capsules) murder case in
Chicago, on 29 September, 1982.
Natural crisis, are natural disasters considered as 'acts of
God,' are such environmental phenomena.
Earthquakes, volcanic eruptions, tornadoes and hurricanes,
floods, landslides, tsunamis, storms, and droughts etc.
Examples of Natural Crisis
The Power Project of
Jaiprakash Associates, at
Nathpa, in Himachal Pradesh
was devastated by floods.
The Indian Ocean
earthquake (Tsunami) , in
Crisis of Deception
Crisis of deception occur when management conceals or
misrepresents information about itself and its products in
its dealing with consumers and others.
Example of Crisis of Deception
Dow Corning’s silicone-
gel controversy in
The Satyam scam,
which came into
light, in 2009
Workplace Violence and Rumors
Crisis occur when an employee(s) or former employee(s)
commits an act of violence against other employees on
Rumors are, when false information about an organization
or its products creates crises hurting it’s reputation.
Example of Workplace Violence and Rumors
A workplace violence had
occurred between the
laborers and higher
authority, in Vardhman
Group of Companies.
Procter & Gamble’s
Logo controversy in 1985.
Crisis management is the process by which an
organization deals with a major event that threatens to
harm the organization, its stakeholders, or the general
Crisis Management Plan
Communicate quickly and accurately
Develop policies to minimize crisis.
Assemble and organize resources.
Create a Crisis Management Team.
Example of Unsuccessful Crisis Management
Union Carbide India Ltd, gas leak tragedy in
Bhopal, on December 2, 1984.
It occurred on the night of December 2–3, 1984 at the
Union Carbide India Ltd, pesticide plant in Bhopal,
A leak of methyl isocyanate gas and other chemicals from
the plant resulted in the exposure of hundreds of
thousands of people.
Estimates vary on the death toll. The official immediate
death toll was 2,259 and the government of Madhya
Example of Successful Crisis Management
The Pepsi Corporation faced a crisis in 1993,
which was successfully managed by the company.
In 1993, claims of syringes being found in cans of diet
Pepsi were made.
Company urged stores not to remove the product from
shelves while it had the cans and the situation
Pepsi released videos and made public, showing the
production process to demonstrate that such tampering
was impossible within their factories.
Crisis was managed through effective communication.