Crisis management v contingency plan Flashcards
(2 cards)
1
Q
Crisis management
A
Reactive
How to avoid a crisis (Whirlpool)
- Issue; household appliances caught fire
- Use quality assurance; check for design flaws, more thorough safety testing, prevent issues
- Improve behaviour in a crisis; delaying recall makes a scandal worse, should prioritise immediate action for a better reputation
2
Q
Contingency planning
A
Plans for possible but unlikely events
Advantages
- helps business to respond immediately
- staff feel more secure (maslow’s hierarchy)
Disadvantages
- resources can be wasted planning for something that doesn’t happen
Evaluation
- good to have a contingency plan for things that have happened to others in the industry (such as a drought)
