1. Tell the truth 2. Plan a head 3. Making a plan 4. Act quickly
04-A case study of the Belgium
Coca-Cola crisis Introduction Surprise, loss of control, criticism and panic are among the different stages often experienced by organization during a crisis When leaders are faced with a crisis immediately it become a very tense situation, where the things that they may normally do when it’s calm are not being able to be followed you have things coming at you and you really can’t plan things out. So the key is really to understand a few rules What is a Crisis?
A crisis is an event, rumor or
story that has the potential to affect your reputation, image or credibility in a negative way.
NOBODY IS SAFE! Tell the truth
You should say as much as you know but no
more than that. There is only three things that you can say: 1- I didn’t do it 2- I did it but it was justified 3- I did it and I’m sorry The cardinal rule of communicating in a crisis is to tell the truth tell it all and tell it fast Plan ahead
Don’t wait for a crisis to strike
to spring into action. Develop a plan ahead of time while everything is going well. Making a plan
Make sure that your plan outlines
exactly what you’re going to do once the crisis happens You need to know simple things like: • Who make the decisions • How to contact the CEO at home Set up a team and contact list ahead of time. Act quickly
In today’s internet and cable dominated
society, it is important to act quickly and decisively.
The quickest way to end the agony and
build back the credibility is to communicate through media. In mid-1999, after a huge outcry of negative public opinion and the adverse decision of the health minister of Belgium, Case study of the failure to think Coca-Cola was forced to recall about critically: the Belgium Coca-Cola crisis thirty million cans and bottles of its products.
Not only was this the largest product recall
in the company’s 113-year history, but for the first time ever the entire inventory of Coca-Cola products was banned from sale throughout Belgium.
The ways in which Coca-Cola mishandled
the Belgian crisis was not only one of the worst public relations disasters in the company’s history, but also one of the biggest textbook examples of how not to The crisis began when children at six schools in Belgium complained that the Coke products, they had consumed tasted and smelled funny. Soon afterward they suffered serious headaches, nausea, vomiting, and shivering. The same week, the governments of France, the Netherlands, and Luxembourg also banned Coca- Cola’s products. The first response of the company’s top executives was to have their quality control engineers run extensive tests on the products in question. The engineers quickly ascertained that there was nothing toxic in the beverages; The executives who were involved in handling the crisis said not only that there was nothing wrong with their beverages but also that the reactions of the children, their families, and the Belgian health minister were due to mass hysteria, that their reactions were merely psychological and therefore should be dismissed out of hand. In this way, Coca-Cola’s executives not only attempted to explain the problem away, but also did something far worse. They basically insulted their consumers, their families, and the health minister of Belgium. As a result, not only did sales plummet throughout Europe, but Mac-Donald’s, one of Coca-Cola’s largest and most important customers, stopped selling Coke in all of its European fast food outlets. Coca-Cola’s executives were violating one of the cardinal rules of crisis communication: never, ever insult your customers or key stakeholders, especially children and their parents. Instead, always go out of your way to demonstrate empathy and to convey honest compassion and sincere concern for them. THANKS FOR YOUR ATTENTION