How an organization handles a major crisis can have a long-term effect on it for good or bad. Using examples from your texts, the Internet, your own experiences, and your observations of organizations that have undergone crises in your area, discuss how good crisis management can ultimately benefit an organization whereas poor crisis management can often do it irreparable harm. (And let's avoid the obvious: Enron and Arthur Andersen. Pick on somebody else!)
Good crisis management by an organization can really put an organization, which has deviated from its original course of action, back on track and can help the shattered organization to reorganize itself and face the tougher times with courage and determination.
In order to explain this fact in a better manner, I will take a real life example of the beneficial impact of good crisis management. I used to work in financial services industry with a boutique investment advisory and stockbroking firm on Wall Street, wherein our primary work was to manage the funds of high networth individuals and corporates. We had to operate with caution and extreme care as we were working in a very risky and fluctuating industry, ie, Stock Markets where sudden changes takes place often. Also, we were dealing with a very sensitive object, ie, Personal wealth and hard earned money of individuals.
During my tenure with this firm, we were once faced with a huge crisis due to sudden drop in the price of stock of a pharmaceutical company, whose shares were recommended by our firm and ...
Long Term Effects - How an organization handles a major crisis can have a long-term effect on it for good or bad.