Crisis Management: Impact of your Crisis



Crisis management will most likely require more than being remorseful to the press or the CEO of some firm appearing on the news. We know the news headlines that is broadcasted will go viral quick. Organizations must be vigilant to react to an emergency quickly and decisively utilizing all systems of communication to talk with the public. Furthermore, the main thing is for organizations to simply accept responsibility for the activities and not faraway themselves from the turmoil or from the public. It's given there is absolutely no fix for all methods to cure a crisis, but the lessons learned should make a difference.

In this project, it will allow chance to investigate a major crisis and the impact on a community, nation, and the entire world when bearing in mind turmoil management. The project will discuss the menace or risk to the organization, elements of wonder, decision making of leadership with timelines of event and decisions made, successful and unsuccessful decision making, and changes resulted or is highly recommended.


The New York Times accused Coca-Cola, proclaiming that the business "was funding fatness research that attempted to disprove the link between overweight and diet and shifted the challenge to insufficient exercise". It was said that Coca-Cola financed the new nonprofit Global Energy Balance Network and it advocated propaganda and deflects the role of carbonated drinks in the get spread around of over weight and Type 2 diabetes. (reference COCA). The accusation had a huge impact to the company to a spot it was getting rid of on the market sales. It had been a first-class type of problems for Coca-Cola and it was caught off guard, especially the objective was to fund scientific researches for health insurance and well-being programs. The idea was misconstrued from the public's and social media's eye.


During the crisis that may cripple Coca-Cola, the CEO (Muhtar Kent) experienced professionally maintained the crisis also to act quickly to make decisions. He assumed responsibility, had up to it through the whole ordeal. He recognized the business's level of reputation of course, if he still left the crisis to take its course, the business would have lost it reputation and the marketplace sale of the products. The CEO is the best spokesperson to rectify the issue and see your face is who you want out leading telling the truth or the objective. In most pr (PR) situations, the CEO is shielded and it portrays that the CEO does not have any interest to the issue. The making of any outsized response is essential to the problems. Overreacting is recommended to a little measure or overlooking the critics helps as well, since it is all about thoughts. CEO Muhtar Kent led Coca-Cola to initiate a management committee of impartial experts to give governance on the ventures of the business from an academics research and appoint pros to investigate opportunities for research and health initiatives. The end result is that Coca-Cola's response to the allegations which it finances an organization to protects it interests at the expense of public health is a case study in PR problems management. The reason by CEO Muhtar Kent characterizes a business response that includes the important elements of effective business PR turmoil management.


The successful outcome for Coca-Cola over this accusation was all because of the CEO's professional decision-making. He provided instruction when giving an answer to occurrences and apologies. CEO Muhtar Kent's first successful decision was admitting the business's mistake while not really apologizing in his explanation, "We'll Do Better". Furthermore, he required this accusation in a resilient way, at the source, that was acknowledging the accusations that were deceiving the public's and social media's eyes about its support for technological research. In exchange, he defends the business by attempting to confront the global weight problems epidemic and this the company possessed good motives. However, CEO Muhtar Kent admits the intention is no longer working. Additionally, the activities that were taken to support the research for health and well-being were misconstrued and it triggered a great deal of distress and mistrust. Inside the CEO's explanation, the company will act forwards and with more transparency. It'll put on the website the list of health and well-being partnerships and research activities it supported before five years and upgrading bi-annually. CEO Muhtar Kent mentioned that work will be made to continue to support the healthy options insurance agencies lower sweets and calorie drinks to include his company will stay committed to deal with obesity.

The unsuccessful decision-making by the leaders was broadcasting their intention and guaranteeing it wasn't misleading to permit the objective to find out that Coke was averting criticism about the role sweet drinks have enjoyed in the get spread around of overweight and Type 2 diabetes. The support is at good motives with health insurance and well-being, but the way the public and public media looked at it was the opposite. It became an enormous PR problems as it looked that Coca-Cola was hoping to save their sales by financing an alleged cover up.


The businesses or organizations can save themselves from potential turmoil is the highpoint of their element. In the event the organization is faced with these crisis, its ability to rise from the bottom and show the power shows its crisis management plan. On top of that, the organizations do have practice something called the 'Turmoil Management Life Circuit'. It is a circuit that supports organizations to remain steady during or after a crisis. The Issue Management Life Circuit is the circuit that provides the 'know how' to control a issue or turmoil. The cycle deals with being proactive (environmental scanning, issue tracking, issue management, and problems planning), proper (risk communication, turmoil positioning, and crisis management), reactive (turmoil marketing communications, litigation PR, and conflict image resolution), and restoration (reputation management and image repair).

Coca Cola experienced an emergency Management Plan and the CEO Muhtar Kent utilized the Turmoil Management Life Cycle. The things to consider that was discussed for Coca-Cola was coping with issue management, plan for communications, and how to respond to an emergency. For issue management, the key steps were to recognize the issue (accusation of promoting for the wrong intention), measure the facts (support for the right reasons), priorities (reputation and sales), response (response from CEO with the real facts), and execution (plan to gain trust and show motives were good). The communication plan that CEO Muhtar Kent (Coca-Cola) got allowed for expectation (identify the risk and monitor risks), prepare (define the key information in advance and anticipate information), and response (react quickly and efficiently, make use of the organization's operations and steps, and practice potential situations). CEO Muhtar Kent responded with Coca-Cola helping health insurance and well-being programs is at good intentions and not to be misconstrued. He responded with the '5C's' (self-assurance, clarity, control, concern, and competence).


Crisis management requires more than being remorseful to the press or the CEO of some business appearing on the news. Organizations must be vigilant to react to a crisis quickly and decisively utilizing all programs of communication to speak to the general public. Furthermore, the main thing is for organizations to accept responsibility for the actions and not faraway themselves from the crisis or from the public. It's given there is absolutely no fix for those methods to remedy a crisis, but the lessons learned should be important.

Coca-Cola's CEO, Muhtar Kent, quickly tackled the accusations appropriately into the reactive phase of the Issue Management Circuit. Furthermore, he made assertions acknowledging accusations and the strategies "is not working". Even though he did not completely express regret, he disclosed the company did not pick the best way to fight obesity and assuring they might be "transparent" to any extent further. The CEO advantages from this approach to go to the reputation management part of the recovery stage by promising that Coca-Cola will update frequently a list of its well-being partnerships and research activities. In this manner, the public's trust will be salvaged and the company's image will be restored.

Coca-Cola does a commendable thing when they required responsibility for their unsuccessful decision-making. The company proved interest and sent their CEO to address the situation that got good intentions by following Discord Management Life Cycle and their Crisis Management Plan. The need for the CEO speaking away is crucial since communication performs another part in not determining the problems and the impact. An emergency can damage the organization's products or services, threat public safety, damage employees, customers and stakeholders (in physical form, emotionally, and fiscally). Furthermore, it can cause operational, financial and reputational damage to include the impacting the future probability and progress. The frameworks, Turmoil Management Life Pattern and Problems Management Plans, are essential when it comes to being proactive to a crisis, using technique for a crisis, being reactive to a crisis, and dealing with an emergency.


Bernstein, Jonathan (N/A) Free Management Library, All About Turmoil Management, Retrieved

from: http://managementhelp. org/crisismanagement/.

Cantoria, Ciel S. (2011). Bright Hub Job Management, Great Real-Life Samples of

Successful Turmoil Management, Retrieved from: http://www. brighthubpm. com/risk-


January 29, 2011.

Comcowich, W. (2015). Cyber Alert, Case Study: Coca-Cola PR Turmoil Management, Retrieved

from: http://www. cyberalert. com/blog/index. php/case-study-coca-cola-pr-crisis-


Preach (N/A). How will you act in crisis?, PR, Retrieved from:

https://bronk002. wordpress. com /2016/10/25/how-do-act-in-crisis/.

Poston, Leslie (2012). Salesforce Marketing Cloud, Shining types of excellent public media

crisis management, Retrieved from: https://www. marketingcloud. com/blog/shining-examples-

of-excellent-social-media-crisis-management, September 21, 2012.

O'Connor, A. (2015). The New York Times, Coca-Cola Funds Scientists Who Transfer Blame for

Obesity FROM Bad Diets, Retrieved from: http://well. blogs. nytimes. com/2015/08/09


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