UnitSeven

CrisisManagementLead-inTextA:ACrisisMadeinJapanTextB:CrisisManagementinBelgium:TheCaseofCoca-Cola

Lead-in

Case1:Tylenol

Case2:Nestlé

CaseStudy

Thecrisis:TwoCadburychocolatebarswerefoundinfestedwithwormsinMumbai,India.FoodandDrugAdministration(FDA)quicklyseizedthechocolatestockatCadbury’sclosestmanufacturingplantinPune.Response1Thecompanywasslowoutofthegates.Itreleasedastatementclaimingthattheinfestationwasnotpossibleatthemanufacturingstage,whiletheFDAdisagreed,promptingatusslebetweenthetwo.Q1:Canyoupredicttheresult?Result1ThemediajumpedonCadbury,andthebrandwasunderwidespreadassault.Cadbury’ssalesinIndiaplunged30%inthewakeofallthenegativemediacoverage.Q2:WhatdoyouthinkCadburyshouldacttoturnthesituationaround?ThefollowingiswhatCadburyrespondedafterwards.1)CadburytookitsadvertisingofftheairandlaunchedaneducationalPublicRelationsprojectthattargetedretailers.2)Thecompanykeptthemediaupdatedthroughpressreleasesonthemeasuresitwastakingtocorrectitsmanufacturingandstorageprocesses.3)Thecompanyalsoimportednewmachineryandchangedthepackagingofitschocolatebars.4)Fourmonthslater,Cadburybeganadvertisingmoreaggressively.Q3:Canyoupredicttheresults?Result2Thecompany’srelationshipwiththemediaimprovedgreatly.Salesslowlyrecoveredandreachedpre-crisislevels.Theconsumerconfidencewasbacktonormal.TextAACrisisMadeinJapanDude,IwastextingmyToyotadealerthatthefloormatsweredefective,when...StructuralAnalysisPara(s).MainTopicsParas.1-7ThemismanagementofToyota’squalitycrisisshapedbyJapanesecorporatecultureParas.8-12Thesocial,economicandpoliticalstatusofJapanrelatedtoToyota’squalitycrisisParas.13-19SuggestionsabouthowToyotashouldcopewithqualitycrisisPartI

QuestionsaboutPartI

Q1:What’sthemainideaofPartI(Paras.1-7)?ThemismanagementofToyota’squalitycrisisisdeeplyrootedinJapanesecorporateculture.Q2:Whyisthecaseofbloodcontaminationofpharmaceuticalcompaniessaidtobe“oneglowingexceptiontothisparsimoniousrecord”?Inmostcasesofqualitycrises,Japanesecompanieshabituallythinklightlyoftheircustomersbyshirkingtheirresponsibilitiesandthecostsofsuchbelittlementandnegligencearelow.Butdrugcompanyexecutivespaiddearlyforsellingtaintedblood:arathergeneroussettlementofcompensationandanabjectapology.PartI

QuestionsaboutPartI

PartI

SentenceInterpretation

InJapanthereisaproverb,“Ifitstinks,putalidonit.”

(Line1,Para.1)Ifasituationoraproblemarises,seektocoveruporfudgethefacts.2.Crisismanagementdoesnotgetanymorewoefulthanthisandthecostofthisbunglingsofar…isonlyadownpaymentonthefinaltally.(Line2,Para.2)…isonlyaninitialportionofthetotalamountintheend.

PartI

SentenceInterpretation

Andahigh-statuscompanylikeToyotahasmuchtolosesinceitscorporatefaceisatstake.(Line4,Para.6)ItscorporateprestigeisatriskforToyotaenjoyingagoodmarketstanding.PartI

SentenceInterpretation

PartI

WordsandExpressions

loom(Line8,Para.2)v.hangover,asofsomethingthreatening,dark,ormenacing籠罩；逼近synonyms:emerge,appeare.g.Nationalself-confidencehasbeenflaggingunderthethreatoflooming

recession....theloomingthreatofrecessionpenchant(Line1,Para.6)n.astrongliking特別的偏愛synonym:aptitudee.g.ItisnoticedthatChinesecustomershaveapenchantforproductsprojectingnationalprideintraditionalChineseculture.PartI

WordsandExpressions

PartI

Notes

CrisisManagementtheprocessbywhichanorganizationdealswithamajorunpredictableeventthatthreatenstoharmtheorganization,itsstakeholders,orthegeneralpublicAkioToyoda,formerpresidentofToyotaMotorCorp.,bowedashearrivedforanewsconferenceinJapan.hemophiliaconeaffectedwithhemophilia—hereditarygeneticdisordersthatimpairthebody’sabilitytocontrolbloodclottingorcoagulationPartI

Notes

PartII

QuestionsaboutPartII

Q1:What’sthemainideaofPartII(Paras.8-12)?Thesocial,economicandpoliticalstatusofJapan,closelyrelatedtoToyota,areimpactingToyota’sreformonqualitycrisismanagement.Q2:WhatarethetroublesToyotafacedwith,internallyandexternally?Internally,ToyotacannoteitherresolvetheproblemofovercapacityorshakeoffitsoverrelianceontheAmericanmarket.Externally,theLiberalDemocraticPartyhasgoneoutofpowerandthepublicisappealingtomoretransparencyandaccountabilityofgovernmentaswellascorporations.JapanAirlinesonthevergeofbankruptcyandasoaringdebt-to-GDPratiothreatentounderminenationalconfidence.PartII

QuestionsaboutPartII

PartIISentenceInterpretation

YetearlysignsarethatToyotaisnolongerthenimblecompanythattooktheworldbystormoverthepasthalf-century.(Line9,Para.8)Toyotaisnolongeradynamiccompanywhichcansweeptheworld.Nationalself-confidencehasbeenflaggingforsometime,butamidsttheprolongedmalaise,peoplecouldstillbaskinthesuccessofnationalchampionssuchasToyota.(Line7,Para.12)Nationalconfidencehasbeendecliningforsometime,butamidstanenduringsenseofunease,peoplearestillderivingcontentmentfromthesuccessofnationalchampionsuchasToyota.PartIISentenceInterpretation

PartII

NotesThepowersthatbe“Thepowersthatbe”isaphraseusedtorefertothoseindividualsorgroupswhocollectivelyholdauthorityoveraparticulardomain.TheLiberalDemocraticPartyTheLiberalDemocraticParty(LDP)ofJapanisacentre-rightconservativepoliticalpartyinJapan.Itisoneofthemostconsistentlysuccessfulpoliticalpartiesintheworld.TheLDPhasbeeninpowersince1955,exceptforabrief11monthperiodbetween1993and1994,andfrom2009to2012.Inthe2012electionitregainedcontrolofgovernment.PartII

NotesPartIIWordsandExpressions

above-and-beyond(Line8,Para.8)adj.exceedingwhatisrequiredorexpected超越要求的e.g.Thesoldiersdemonstrateabove-and-beyondcourageindefenseoftheircountrymen.collusive(Line1,Para.10)adj.involvingsecretorillegalcooperation,especiallybetweencountriesororganizations串通的；共謀的

synonym:connivinge.g.Acountryshouldhavelawspenalizingcollusivebehaviorinbiddingorotherformsofbusinesspractice,alongwithacommitmentandcapacitytoenforcesuchlaws.PartIIWordsandExpressions

PartIIIQuestionsaboutPartIIIQ1:What’sthemainideaofPartIII(Paras.13-19)?WithmutualinterestsofToyota,reputationofMade-in-JapanproductsandAmericaneconomy,Toyotaissuggestedofgivingupitsminimalisticapproachofcrisismanagementandhandlingtheissuesmoreactively.Q2:WhatapproachdidthemediainJapantaketothequalitycrisisofToyota?InJapan,themediahastakenasomewhatminimalistapproach,thatis,makingtheminimumresponse.PartIIIQuestionsaboutPartIIIPartIIISentenceInterpretation

Butnow,asinternationalcoverageofqualityproblemsexpands,thedomesticmediaherehavetheirbackscovered...(Line5,Para.17)Butnow,asnewsreportsofqualityproblemsarespreadworldwide,thedomesticmediaherewanttoprotectthemselvesfrombeingcriticized...HereisbettingthatToyotawillturnthisaround,reinvigoratingitsfortunesandinspiringanationbadlyinneedofinspiration.(Line10,Para.19)Surely,Toyotawillachieveapositivespin,revivingitsfortunesandencouraginganationinbadneedofcreativestimulus.PartIIIQuestionsaboutPartIIIPartIIIWordsandExpressions

conflate(Line4,Para.13)v.bringtogether合并；融合synonyms:fuse,mixe.g.TheTVdramaconflates

fictionalcharactersandrealhistoriceventsseamlesslyandingeniously.circumspect(Line5,para.14)adj.heedfulofpotentialconsequences謹慎的；慎重的synonyms:cautious,prudent,scrupulouse.g.Qualifiednegotiatorsarecircumspect

ineverymovetheyaretotake.PartIIIWordsandExpressions

PartIIIWordsandExpressionshavetheirbackscovered(Line7,Para.17)Coverone’sbacksmeanstoprotectonefrombeingcriticized.TextBCrisisManagementinBelgium:TheCaseofCoca-ColaStructuralAnalysis

Thetextisclearlydividedbyalistofsubheadings,basedonwhichthestructureofthetextgoesasbelow:TheproductionanddistributionofCoca-Cola:Para.1Reasonsforrecall:Paras.2-5Banlifted:Paras.6-10Aggressivemarketingbolstersimage:Para.11Masshysteria:Paras.12-14Discussion:Paras.15-19

TheproductionanddistributionofCoca-Cola(Para.1)TheCoca-ColaCompanyistheworld’sleadingproduceranddistributorofsoftdrinkconcentratesandsyrups.

Reasonsforrecall(Paras.2-5)CCCrecalleditsproductsfromBelgianstoresandidentifiedthecausesofthenauseousodourinbottledandcannedproducts.

Banlifted(Paras.6-10)TheBelgianHealthMinistrylifteditsbanonCCCproductspartiallyandconditionally.Ivester,ChairmanandCEOofCCC,madeapublicapologyandpledgedtorebuildconsumerconfidencebyprovidinghighqualityproducts.Aggressivemarketingbolstersimage(Para.11)CCCupdatedanalysisoftheBelgiancrisis,CCCbusiness,andglobaleconomicsituationandlauchedanaggressivemarketingcampaigninEuropetoregainconsumerconfidenceandstimulateintent-to-purchaselevel.

Masshysteria(Paras.12-14)AccordingtothetestonCCCproductsandpsychoanalysisofstudents’reportingillness,itwasconcludedthattheillnesscausedbyunpleasantodourwasattributedtomasshysteriaofpanic-strickenconsumersinEuropepronetofoodcontaminationandqualitycrisis.

Discussion(Paras.15-19)AcrisismanagementplanincludinganSWOTanalysisandatacticalBCP,servestofacilitateanimmediatereponseandtopreservebrandimageincriticalincidents.

ExerciseI.SpeakingReflectionsonBusinessEthics

1.Whatisacustomeradvocacygroup?Whyarecustomeradvocacygroupsimportantforbusinesses?

Acustomeradvocacygroup,composedofhighlyengagedcustomers,servesasabridgebetweenacompanyanditsconsumerbase.Customeradvocacygroupsrepresentapivotalelementinthemoderncustomer-centricbusinesslandscape.Theyprovideinvaluableinsightsforproductandserviceenhancement.Theroleofcustomeradvocacygroupsextendsbeyondmerefeedbackcollection;theyembodythecollectivevoiceofthecustomer,strivingtomeettheirneeds,preferences,andexpectations.2.Canyougiveexamplesaboutunethicalbehavior?

stealingthedesignofanewproductkeepingtwosetsofaccounts—oneforme/oneforVATmandishonestpracticebreachesofconfidenceinvasionofprivacysellingdubiousproductsdeceivingcustomersorrivalsExerciseI.SpeakingDebate

1.Made-in-Chinaissymbolicofcheap,inferiorqualityproducts.AffirmativeSideNegativeSide2.

Deathpenaltyshouldbeusedasadeterrenttofoodcrime.BrainstormpersuasivethoughtsforAffirmativeSideNegativeSideDebate

Affirm