Alexander Consulting Enterprise 1/31/2016 Public Relationship Crisis Management in Global Markets.

Alexander Consulting EnterpriseAlexander Consulting Enterprise 05/03/2305/03/23

Public Relationship Crisis Management in

Global Markets


Public Relationship Crisis

“There can’t be a crisis next week. My schedule is already full”

Henry Kissinger



1. What does it mean?

20

70

120

170

220

BMW SalesMercedes SalesAudiCadillac

Luxury Car Segment U.S.



2. Where does it come from?

Crisis might spill over to different Products and Regions

- Accidents- Revealed Illegal Activity- Public Perception of Wrongdoing



3. Can You Prevent It?

Accidents can not be predicted. What can be predicted is public reaction to accident.


„It is instructive here to recall that Noah started building the ark before it began to rain“

Norman AugustineEx-CEO of Lookheed Martin



Recognizing the Crisis Early

Stakeholder Interest Potential ThreatCustomer Product safety,

quality, servicePurchasing decision, negative WOM

Employee Salary, security, job satisfaction

Performance, resign, negative publicity

Supplier Payment, ongoing business

Switch to competitor, lower quality

Shareholder Shareholder Value Voting rightsGovernment Taxes, Employment Legislation, Media Headlines, Bad PublicityNGO Social, environmental

issuesPublicizing issues, influencing Government and consumers



Pote

ntia

l for

Thr

eat

Potential for CooperationLowLow

High

HighStakeholder Matrix

But: - Changing Agendas- Changing Influence of Stakeholder- Changing Exposure of Company- Interdependencies of Stakeholder



Interdependencies of Stakeholder

Company

NGOs

Legislation Media Customer



Dynamic Issue Matrix

LowLow

High

High

Importance for NGO

Impo

rtanc

e fo

r Com

pany Immediate Action

Do Nothing Give In

Monitor Closely



“What is relevant is what the public feel and believe. It does not matter if a crisis follows scientific guidelines, logical structures or rational thinking, emotions are empirically evident and one will have to deal with them”

Ulrich Steger



Issues Company Perspective

1. What is at stake?2. Who are our enemies (influence, power)?3. What does it take to resolve issue? (easy solution?)4. What are the consequences of giving in?5. Are arguments against issue plausible?6. Does issue evoke emotions?7. Is issue Media friendly?8. Are we isolated?9. Connections to other issues?10. How far has issue advanced?



Issues NGO Perspective

1. Does campaign have a clear goal?2. Is target well known and powerful? (no underdog effect)3. Is target’s image vulnerable?4. Does issue allow to draw public attention? (easily

understood, evokes emotions)5. Can public get involved?6. Does issue have symbolic value?7. Is there dramatic element to get media attention?


Managing the Crisis

“One’s objective should be to get it right, get it quick, get it out, and get it over. You see, your problem won’t improve with age“

Warren Buffet

Alexander Consulting Enterprise 1/31/2016 Public Relationship Crisis Management in Global Markets.

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