CRITICAL THINKING EXERCISE 7-2



critical thinking exercise 7-2

Crisis Management

This exercise explores management reaction to rapid, unexpected change. Divide the class into groups of 5 to 6. Each group will act as a management team for a large national company faced with a crisis. Have the groups quickly analyze the situation (5-6 minutes,) decide on an appropriate strategy for coping with the situation, and prepare a brief statement outlining how the company should manage the crisis.

A. A national consumer foods company has discovered that several batches of their salad dressing have been contaminated with toxic industrial solvent. One person has died and the media is demanding a statement.

B. At the construction site for a new corporate headquarters, the top floors of the building have collapsed, killing 16 people, including the head of the local union. The cause of the collapse has not been determined, but a local television station has reported that substandard materials have been used in construction.

C. A hurricane has come ashore near your largest distribution facility days before your marketing department is scheduled to launch the new fall line of clothing. Communications have been cut off to the area and you have not been able to contact anyone at the facility. News media are reporting large-scale damage and loss of life. Your retail managers across the country are worried that the loss of this distribution facility will disrupt deliveries at this critical point.

D. There has been a massive explosion at a chemical plant, centered in the storage area. The resulting fire is threatening a building where dozens of workers have taken refuge. There are rumors that a terrorist bomb was involved. Casualties are unknown. Extent of damage is unknown.

E. A gunman has invaded a large metropolitan bank, killing four people and taking 20 employees hostage. He has demanded that bank executives publicly apologize for “crimes against African-Americans” or he will blow up the bank. No one knows what weapons he has.

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