The 99p companies’ slogan of 'Amazing Value', 'Mega Deals', ‘We won’t be beaten on value’ and ‘unbeatable value’ was claimed to be incorrect. Based on the research of BBC Watch dog, BBC confirmed with a call to one of 99p stores that they stand by that in store promise. They told that 'we will not be beaten on price' means that we can't buy products cheaper in someone else store, but in 99p Store, we can get cheaper price than others retail market or supermarket. BBC has did a price comparison on 99p Stores with others four different supermarket and they have found out some of the price in the supermarket are selling even cheaper than the 99p Store. Owner and co-founder of the 99p Stores, Hussein Lalani show up on the BBC watchdog to show the …show more content…
A company should have a crisis manager, and a crisis manager have a responsibility to settle this crisis. Crisis managers should consider this case when selecting the crisis response strategies to protect an organization’s reputation. Reputation is very important to a company. SCCT is premiss on matching the crisis response to the level of crisis responsibility attributed to a crisis. SCCT is to match crisis situations to crisis response strategies and limitations. SCCT maintains that as attributions of crisis responsibility and the threat of reputational damage in crisis. SCCT proposes for dealing with crises involves analyzing the situation first and then select different strategies from the attribution theory and situational crisis communication theory. There are different types of crisis response strategies by SCCT. There are, diminish, deny, reinforcing and rebuild. Diminish strategies is to minimize the organization’s responsibility. Deny strategies claiming there is no crisis, no crisis exists and trying to justify the organization they has no responsibility for the crisis, or attacking the accusers. Reinforcing strategies is reminding stakeholders about their past good works or praising stakeholders. Rebuild strategies is providing compensation and making apologies to the public for the crisis. According to SCCT, reinforcing strategies must be used with one of the other three strategies. Taking effective and appropriate action to deal with crisis is critical in crisis management. It is more important for organizations to recognize what is the issues generating the reputational threats, who is/are involved, and figure out what and how to respond the crisis (Greyser, 2009). As mentioned above, in the initial stage of the crisis, Toyota had been
Pennsylvania (Penn) State’s assistant football coach Jerry Sandusky who worked under head coach Joe Paterno appeared to be an upstanding model citizen; however, he was found to be a serial child rapist (Crandall et al., 2014). Those who were high in power were responsible for informing other of the past of Sandusky. The Board of Trustees knew about his predatory actions and incidents, yet fail to report them. Jerry Sandusky started out as the assistant coach at Penn State in 1969 and later became the defensive coordinator. He was most known for the establishing of the Second Mile, a charity that developed in 1977 as a group foster home for troubled disadvantaged boys (CNN, 2013).
As the magnitude of the failure increases, the clients will feel unfairly treated. This can then contribute to client’s dissatisfaction. It is vital for a company to fix a task related problem promptly and effectively to avoid its escalating into a full scale crisis. To prevent a problem from escalating, I have formulated a Reputation management repair process: 1.
During a time of crisis, one is solely focused on survival. Cooperation is essential for survival because, no matter what, people are stronger
Some of these roles may include advocacy, collaboration with other professionals regarding the creating of crisis response plans, providing education related to mental health and resilience, holding leadership roles on multi-disciplinary crisis response teams, serving as media liaisons, assessing the needs of those affected by disasters, providing crisis intervention and support, and assisting with death notifications. Furthermore, CMHCs may fulfill the following roles and responsibilities when assisting those in
Communication in a crisis is vital. It is often the first aspect of teamwork to go because many team members have different ways of dealing with a crisis. It is important to slow down for a moment and communicate what you are doing so there aren’t any errors. Simply stating what you are doing allows the other teammates to plan for their next steps. Organization is also hard to keep when things change unexpectedly.
Power as conceptualized by critical theorists. Power is one of the words that holds great effect. It is defined by Webster (2015) as “the ability to control people or things; a person or organization that has a lot of control and influence over other people or organizations”. In general, a person or organization that holds power has authority over others. Thus, power is conceptualized in the organizational communication by critical theorists.
ALDI specializes on its own labeled products brand, creates high quality products with fair features, designs and packaging, ALDI also focuses on the variety of products that are mostly needed in each and every household, so ALDI does not only offer food but also offers electronic products, clothes, household goods, health and beauty products. By creating ALDI’s exclusive own brands, ALDI can minimize the costs on the products itself, therefore listing low prices for customers; Also ALDI is fortunate enough for its high purchasing power from suppliers, therefore ALDI can bargain the best prices so it can keep low costs and low prices; Another several ways ALDI is minimizing costs is for example: cart renting, as well as ALDI’s re-usable bags to reduce costs and insure low prices and saving for customers. ALDI took into consideration the importance of locating its stores in places convenient for people and also accessible, also taking into consideration public transportation links and parking spaces available, creating online channels for customers to locate their nearest ALDI store; Yet unlike other supermarket ALDI is not opened for 24H, ALDI’s opening hours are at the times where people are most likely to go shopping to minimize cost. As mentioned before prices aren’t something ALDI can compromise on and one of ALDI’s strategies is minimizing costs for competitive
Six-step model: Step 1. Firstly, the clients’ point of view needs to be understood. In this session it is important to show core listening skills of empathy, genuineness and acceptance. A crisis will be caused by an event - an initial, identifiable occurrence in the life of the individual. The scale of such events can vary enormously, from large-scale natural disasters and wars to situations that can appear less dramatic (e.g., incidences of bullying in a school, a marriage, transition from college to a job).
Companies succeed if their strategies are appropriate for their circumstances they face, feasible in respect of their resources, skills and capabilities and desirable to their important stakeholders-those individuals and groups, both internal and external, who have a stake in the behaviour. or expectations of the organization’s performance and fluencies over the business. They include employees, managers, shareholders, suppliers, customers or clients, trade unions and the communities local and national in which the organisation operates. Companies fail when their strategies are failed to meet the expectations of these stakeholders or produce outcomes which are undesirable to them. So it needs to consider all implications of a shift in strategy, not simply the effect a specific stakeholders
Segment 1 – Wal-Mart’s Revolutionary Power 1. How much was Wal-Mart’s sales figure quoted in the beginning of the segment? Wal-Mart recorded $256 Billion in sales and is the first company in the world to record such a figure on sales. 2. How many Americans stream into Wal-Mart on a weekly basis?
Drilling into Disaster: BP in the Gulf of Mexico Gulf of Mexico is one of the valuable place in which it has variety of marine life, such as fish, shrimp and other species The issues of incident on spill oil should be on concerned as it leads to this disaster for human being and environment. The case is discussed how BP company responses. It means how its board and management accountability, corporate responsibility, risk management, code of conduct and whistleblowing, compensation practices, and stakeholder communications react on this disaster. With regard to the disaster, BP CEO should have behaved appropriately because he should have responsibility on his job and should give his employees a better solution better than not saying anything. The problem was still there even BP change CEO to Dudley.
Toyota Revolves around its organizational structure, culture, climate and decision making perspectives. All these factors impact Toyota’s ability to make decision and then take actions. Failure to acknowledge anyone of them in a sensible way might damage a company’s reputation. Lets discuss these factors in detail. Organizational Structure is the framework of the company which lays down the foundation of the company.
Strategy also defines what kind of resources we need to achieve the goals set by the
The analysis will be made on a basis of combination with the pre-understanding of crisis management theory and the empirical data, by answering the three research questions respectively as follows: What are the reasons that force Toyota coming to the troublesome crisis? Crises pose certain risks to an company – potentially affecting critical aspects like reputation, image, brand equity, credibility, publicity, financial viability, legitimacy, community standing, etc. (Smudde, 2001). In auto industry vehicle recalls happen all the time and everywhere.
Although many customers are disappointed in the way Toyota has dealt with these issues, it is obvious that their demand has dropped, however Toyota is still a popular brand and people are continuing to purchase their vehicles, some of which know the circumstances. Therefore Toyota’s unethical practice hasn’t affected their brand power. I have included some statistics of their market share and how sales decreased because of these unethical issues with the