DOCSLIB.ORG

Crisis Management & Brand Reputation

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Crisis Management & Brand Reputation Crisis Management & Brand Reputation An exploratory study on crisis management and its effects on brand reputation BACHELOR THESIS THESIS WITHIN: Business Administration NUMBER OF CREDITS: 15 PROGRAMME OF STUDY: Marketing Management AUTHOR: Kim Bodeklint, Angelica Lindhe, William Unosson TUTOR: Johan Larsson JÖNKÖPING May 2017 Bachelor Thesis in Business Administration Title: Crisis Management & Brand Reputation, An exploratory study on crisis management and its effects on brand reputation Authors: Kim Bodeklint, Angelica Lindhe, William Unosson Tutor: Johan Larsson Date: 2017-05-22 Key terms: Crisis, Management, Effects, Brand, Reputation, Preparation, Crisis Analysis, Communication, Forgetfulness, Strong Brand Abstract Background – Existing literature suggest that crisis management is essential for companies to be able to maintain the company image. However, the literature has no models and theories for the relationship between crisis management and brand reputation. Furthermore, even though there are literature about the subject, the field is not to be concluded which lay the ground for an exploratory research. Additionally, when reading company interviews after crises, some state that the company benefitted from the crisis which is essential to explore. If the company performs better after a crisis than before, the reasons for this is interesting to explore. Purpose – The purpose of the thesis is to explore how crisis management affects brand reputation and discuss the factors that determines the effect. When doing this, the study adds value to the field as it will never be concluded and thus, it will always benefit from additional research. The purpose of the thesis is explored from a company point and the conclusion is therefore also in the same manner. Method – The study is of the qualitative nature and the empirical data is collected through semi- structured interviews with 14 companies and one crisis management expert within the Swedish market. As the study seek to modify and develop new theories, it has an abductive research approach. Findings – When concluding the study, it is found that crisis management rather than having a direct effect on brand reputation, minimise the negative effect that a crisis can have in the long- term perspective. Furthermore, the result shows that consumers, as a following of a good crisis management and a strong brand, do forget about crises and thus, the brand will not experience long term damaged if the crisis management is handled in a correct manner. However, in the short term, it can be concluded that the brand will be affected. i Acknowledgements Gratitude is expressed to those who supported this thesis and made it possible to reach a good result. Firstly, the result of this thesis would not have been reached without the participating interviewees. Therefore, sincere gratitude to all included, namely crisis management expert Jeanette Fors- Andrée and the company respondents; Marcus Thomasfolk (Volkswagen Group Sverige), Eva Berglie (Santa Maria), Jacob Broberg (Cloetta Group), Fredrik Gemzell (Gröna Lund), Jakob Holmström (IKEA), Niclas Härenstam (SJ), Carina Hanson (Estrella), Dan Jonsson (Atteviks), Anita Skoogh (SIA Glass), Gunnar Gidefeldt (Arla), Robert Badics (Bergendahls), Helen Knutsson (Orkla Foods Sverige), Gunilla Svensson (SEB) and Sara Hoff (HK Scan) for the valuable knowledge that strengthened this thesis. Secondly, the tutor Johan Larsson provided the useful guidance and feedback which led to increasing the overall quality of the thesis and ensuring that the purpose of the study was met. For this, gratefulness is sincerely expressed. Finally, gratitude is expressed to the seminar group as the research quality increased with help from the advices given in the meetings. Jönköping, 22nd of May 2017 _______________ _______________ _______________ Kim Bodeklint Angelica Lindhe William Unosson ii Table of Contents 1 Introduction ...................................................................... 1 1.1 Problem discussion ............................................................................................ 1 1.2 Purpose ................................................................................................................ 2 1.3 Definitions .......................................................................................................... 2 2 Frame of Reference ........................................................... 4 2.1 Crisis management ............................................................................................. 4 2.1.1 Crisis ..................................................................................................................... 4 2.1.2 Fundamentals for crises .................................................................................... 4 2.1.3 Preparation .......................................................................................................... 5 2.1.4 Communication .................................................................................................. 6 2.2 Brand Management ............................................................................................ 8 2.2.1 Brand .................................................................................................................... 8 2.2.2 Brand Reputation ............................................................................................... 9 2.2.3 Brand Equity ....................................................................................................... 9 2.2.4 Brand Loyalty .................................................................................................... 11 2.2.5 Brand Avoidance .............................................................................................. 12 2.2.6 Consumer-brand relationship ........................................................................ 13 2.3 Crisis management’s effect on brand reputation ........................................ 14 2.3.1 How to minimise the negative effect on brand reputation ....................... 14 2.3.2 How to recover from a brand crisis .............................................................. 16 2.3.3 Brand Forgiveness ........................................................................................... 16 3 Method and Data ............................................................ 18 3.1 Research Design ............................................................................................... 18 3.2 Research Philosophy ....................................................................................... 18 3.3 Research Approach .......................................................................................... 19 3.4 Method .............................................................................................................. 21 3.4.1 Literature search ............................................................................................... 21 3.4.2 Sampling ............................................................................................................ 22 3.4.3 Interviews .......................................................................................................... 25 3.4.4 Analysis of Qualitative Data ........................................................................... 26 3.5 Trustworthiness ................................................................................................ 27 3.5.1 Limitations ........................................................................................................ 28 3.5.2 Ethics ................................................................................................................. 29 4 Empirical Data ................................................................ 30 4.1 Interviews .......................................................................................................... 30 4.1.1 Companies view on crisis management ........................................................ 30 4.1.2 Experts view on crisis management .............................................................. 40 5 Analysis ........................................................................... 43 5.1 External Factors ............................................................................................... 43 5.1.1 Strong Brand ..................................................................................................... 43 5.1.2 Forgetfulness .................................................................................................... 44 5.2 Internal Factors ................................................................................................ 46 5.2.1 Preparation ........................................................................................................ 46 5.2.2 Crisis Analysis ................................................................................................... 47 5.2.3 Communication ................................................................................................ 48 5.3 Crisis Management effect on brand reputation ........................................... 50 iii 6 Conclusion ....................................................................... 52 7 Discussion ....................................................................... 55 7.1 Managerial Implication .................................................................................... 55 7.2 Limitations .......................................................................................................
Load more

Recommended publications
  • Small Business Crisis Management Strategies Dovie Wilson Walden University
    Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2016 Small Business Crisis Management Strategies Dovie Wilson Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Administration, Management, and Operations Commons, and the Management Sciences and Quantitative Methods Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Dovie Wilson has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Greg Banks, Committee Chairperson, Doctor of Business Administration Faculty Dr. Beverly Muhammad, Committee Member, Doctor of Business Administration Faculty Dr. Peter Anthony, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2016 Abstract Small Business Crisis Management Strategies by Dovie Wilson MA, Liberty University, 2013 BS, Troy University, 2011 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2016 Abstract The absence of adequate crisis management strategies in small firms could result in a premature small business closure. A qualitative multiple-case study was used to explore the crisis management strategies that 3 small business owners have used to survive an unexpected operational interruption.
    [Show full text]
  • COVID-19 Crisis Management Toolkit for Women-Owned Businesses
    GUIDEBOOK COVID-19 COVID-19 Crisis Management Toolkit for Women-owned Businesses SHETRADES COMMONWEALTH GUIDEBOOK About SheTrades THE SHETRADES INITIATIVE The International Trade Centre launched the SheTrades initiative to create an ecosystem of integrated solutions that empower women economically through greater participation in trade and investment. THE GOAL: Connect 3 million women to market by 2021. THE PLAN: To work with partners including governments, private sector partners, international organizations, and others to expand opportunities for women entrepreneurs. Through country-based activities, SheTrades enables women entrepreneurs to improve the quality of their products and services. THE SHETRADES COMMONWEALTH PROJECT The SheTrades Commonwealth project aims to increase economic growth and job creation in Commonwealth countries by enabling the increased participation of women-owned businesses in international trade. The project is funded by the UK Department for International Development (DFID) and implemented by the International Trade Centre (ITC) under the framework of the SheTrades Initiative. COMMONWEALTH-WIDE SUPPORT: SheTrades Outlook, a key output of the project, is an innovative interactive mapping tool that focuses on how countries support women’s participation in international trade. Policymakers, private sector partners, and other stakeholders will benefit from access to analysis of legislation and outcomes, best practices, and key documents. 2 COUNTRY-LEVEL INTERVENTIONS: The SheTrades Commonwealth project supports: • Women-owned businesses - to make them more competitive and connect them to markets, by building their competitiveness and their capacity to participate in trade, through intensive training, mentoring and coaching. In addition to supporting their participation in trade fairs and other business generation activities • Business Support Organizations (BSOs) - to improve their service offerings for women entrepreneurs.
    [Show full text]
  • Relationship, Trust and Crisis Communication on Social Media with Millennials and Generation Z
    Relationship, trust and crisis communication on social media with millennials and generation Z by Danielle Golway B.A., Kansas State University, 2015 A THESIS submitted in partial fulfillment of the requirements for the degree MASTER OF SCIENCE Journalism and Mass Communication College of Arts and Sciences KANSAS STATE UNIVERSITY Manhattan, Kansas 2017 Approved by: Major Professor Xiaochen Angela Zhang Copyright © Danielle Golway 2017. Abstract This study examined crisis communication on social media applying relationship management theory. There are few credibility checks on social media platforms, and some say publics no longer believe messages through this type of media (Domonoske, 2016; Ho, 2012). However, many people get news from social media platforms and trust the information they read (Turcotte, York, Irving, Scholl, & Pingree, 2015). Crisis theories suggest strong relationships are less affected by crisis situations, and relationships are heavily based on trust (Broom, Casey, & Ritchey, 1997; Coombs, 2000; Coombs & Holladay, 2006; Ledingham, 2003). Through a survey, this study found a statistically significant positive relationship between perceived organization- public relationship, trust and, credibility in crisis communication on social media within the Millennial and Generation Z groups. These generations are the most active on social media, and this study challenged the claim that they do not believe information online (Richards, 2017; Statista, 2016). Keywords: Crisis Communication, Social Media, Relationship Management
    [Show full text]
  • Crisis Management
    REPRINT risk & R&Ccompliance DATA PRIVACY INCRISIS EUROPE MANAGEMENT REPRINTED FROM: RISK & COMPLIANCE MAGAZINE JAN-MARJUL-SEP 20152014 ISSUE rriskisk && && compliance compliance ������������ JAN-MAR 2014 RC ��������������������������������� RC www.riskandcompliancemagazine.com Inside this issue: ������������������ FEATURE The evolving role������� of ���������������������������������the chief risk officer �������������������������������������EXPERT FORUM Managing���������������� your company’s regulatory������������ exposure �������������������� HOT TOPIC ��������������������� Data privacy in Europe ��������� ���������������������������� ������������� www.riskandcompliancemagazine.com VVisitisit the website to request a free copy of the full e-magazine Published by Financier Worldwide Ltd [email protected]@financierworldwide.com © 20152014 Financier Worldwide Ltd. All rights reserved. risk & R&Ccompliance www.riskandcompliancemagazine.com 2 RISK & COMPLIANCE Jul-Sep 2015 www.riskandcompliancemagazine.com ONE-ON-ONE INTERVIEW ONE-ON-ONE INTERVIEW CRISIS MANAGEMENT Michael B. Schwartz Principal KPMG T: +1 (713) 319 2258 E: [email protected] Michael Schwartz is a principal in KPMG LLP’s Forensic Advisory Services practice. He assists corporate and public sector clients in preventing, detecting and investigating fraud, waste, abuse and other misconduct. Mr Schwartz is a national leader for providing public sector, anti-bribery and corruption and crisis management- related Forensic services. Prior to
    [Show full text]
  • Definitions in Crisis Management and Crisis Leadership
    Security Nexus Research DEFINITIONS IN CRISIS Key Points . The term “leader” or MANAGEMENT “leadership” have taken on many symbols and AND CRISIS LEADERSHIP definitions throughout history. By Deon Canyon1 . Several descriptions of Introduction what makes for effective The following terms are framed differently by social phenomena and leadership have gained more professional sectors so there is little agreement on their exact favor than others. Among the definition. In fact, there are so many published definitions that to more widely accepted present them all would not be constructive. This variety in the meaning factors are traits, behavior, of terms, which would be completely bewildering to a scientist, and is information processing, completely contrary to a scientific approach, has resulted in authors relationships and follower having to redefine terminology repeatedly in almost every paper and perceptions (Kets de Vries, book that is published. The following terms are defined in this paper 2004). with prominent examples so that their use in the DKI-APCSS executive . In this paper, we examine course on Comprehensive Crisis Management is clear. two types of organizations; Leadership those in normal-mode that It has been argued that the term ‘leadership’ is ambiguous due to its predominantly pursue a origins in the common vocabulary (Yukl, 2006, Janda, 1960). If this is linear path, and those in truly the case, all languages must be said to be entirely ambiguous crisis-ready-mode that apart from recently constructed words. At this point, it is necessary to experience a greater degree look backwards to clarify concept origins. of non-linear events. The earliest written evidence of this originates from Egyptian hieroglyphics dating back to 2300 BC.
    [Show full text]
  • Crisis Management
    Global Center for Corporate Governance Stepping in: The board’s role in crisis management Introduction A true crisis brings a punishing level of scrutiny In a crisis, when the stakes are and pressure that can be overwhelming if an organization is not prepared to manage it. A high and scrutiny is intense, good crisis response is, of course, about swiftly the board has a unique fixing what has gone wrong, but it is also about role. Stepping in may be being externally focused—communicating to stakeholders, shareholders, regulators— uncomfortable, but stepping and it is about making big decisions that aside is not an option. have a significant impact on the future of the organization. September 2019 Nearly 60% of respondents of more than WHAT DO WE MEAN 500 crisis management experts believe that BY ‘CRISIS’? organizations face more crises today than they A crisis is not a ‘bad did 10 years ago.i day in the office’. It Our own experience working with clients tells can make or break us that the frequency and velocity of crises is growing. Just think of the last decade that has organizations and brought us the banking crisis, the Arab spring, careers. It will always require an debilitating cyber-attacks on government, on executive-level response. political parties and on private companies, The British Standards Institute (BSI)’s European terrorist attacks, not to mention high profile Guidance on Crisis Management defines a crisis governance failures. as ‘an unprecedented or extraordinary event In this increasingly volatile environment, it is or situation that threatens an organization no longer possible to say ‘it can’t happen to and requires a strategic, adaptive, and timely us’ or ‘we’d manage.’ In post crisis reviews we response in order to preserve its viability increasingly see investors, regulators and other and integrity’.ii A crisis can emerge from an interested stakeholders scrutinizing the crisis incident or from a longer-running issue.
    [Show full text]
  • Crisis Management
    3rd EDITION THE NEW RULES OF CRISIS MANAGEMENT ISSUES & CRISIS PLANNING AND RESPONSE IN THE DIGITAL AGE Edited by Ron Culp Professional in Residence, Public Relations & Advertising, DePaul University Published by RockDove Solutions Creator of the award-winning crisis management platform, In Case of Crisis The New Rules of Crisis Management COPYRIGHT Copyright Pending 2018 by RockDove Solutions All rights reserved. No parts of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. RockDove Solutions is the creator of In Case of Crisis, an award-winning crisis management platform. In Case of Crisis is trusted by over 750 global brands to prepare for and respond agilely to a broad array of digital and traditional crises. You can learn more about RockDove Solutions and In Case of Crisis by visiting www.rockdovesolutions.com or calling 1-800-787-1639. Copyright Pending 2019 RockDove Solutions, Inc., all rights reserved 2 The New Rules of Crisis Management FLORIDA SUNSHINE AWARD FOR BEST PUBLICATION 2018 WASHINGTON DC THOTH AWARD FOR BEST PUBLICATION 2018 PRESTIGE AWARD FOR BEST BROCHURE 2018 Copyright Pending 2019 RockDove Solutions, Inc., all rights reserved 3 The New Rules of Crisis Management CONTENTS FOREWORD 5 CHAPTER 6: 46 CHRISTOPHER BRITTON THE IMPORTANCE OF DATA AND ANALYTICS IN THE DIGITAL AGE JEFF BODZEWSKI INTRODUCTION 6 DIGITAL AGE DEMANDS NEW APPROACH TO CRISIS CHAPTER 7: 51 MANAGEMENT RON CULP CRISIS IMPLICATIONS FOR BRANDS
    [Show full text]
  • Boin Introduction and Editorial Arrangement © Arjen Boin 2008
    Crisis Management ii contents SAGE LIBRARY IN BUSINESS & MANAGEMENT Crisis Management VOLUME II Edited by Arjen Boin Introduction and editorial arrangement © Arjen Boin 2008 First published 2008 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. Every effort has been made to trace and acknowledge all the copyright owners of the material reprinted herein. However, if any copyright owners have not been located and contacted at the time of publication, the publishers will be pleased to make the necessary arrangements at the first opportunity. SAGE Publications Ltd 1 Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc. 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B 1/I 1, Mohan Cooperative Industrial Area Mathura Road New Delhi 110 044 SAGE Publications Asia-Pacific Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-84787-088-9 (set of three volumes) Library of Congress Control Number: 2007934293 Typeset by Star Compugraphics Private Limited, Delhi Printed on paper from sustainable resources Printed and bound in Zrinski d.d.
    [Show full text]
  • A Guide to Creating a Crisis Management Plan
    1 2 Table of Contents INTRODUCTION ....................................................................................................................................3 What Is a Crisis?........................................................................................................................................3 THE IMPORTANCE OF CRISIS MANAGEMENT ........................................................................................4 PRE-CRISIS CONSIDERATIONS ...............................................................................................................5 Assess Your Risks and Establish Goals ......................................................................................................5 Create a Crisis Management Team...........................................................................................................6 Identify Stakeholders and Consider Communication Channels................................................................8 Set Alert Levels .........................................................................................................................................9 Practice the Crisis Management Plan .....................................................................................................13 MID-CRISIS CONSIDERATIONS.............................................................................................................14 Evaluate the Situation ............................................................................................................................14
    [Show full text]
  • Strategic Crisis Management
    OECD Risk Management: STRATEGIC CRISIS MANAGEMENT OECD Risk Management: Strategic Crisis Management Charles Baubion 3 TABLE OF CONTENTS Note by the OECD Secretariat ..................................................................................................................... 4 1. Introduction .............................................................................................................................................. 5 2. New forms of crises are calling for new and innovative crisis management responses .......................... 6 2.1 New nature of crisis ............................................................................................................................ 6 2.2 Increased vulnerabilities of modern societies ..................................................................................... 7 2.3 Changing roles of governments and increased demand from citizens and the media ........................ 7 2.4 A changing landscape for risk managers ............................................................................................ 8 3. Managing crises remains at the core of government’s roles in risk management .................................... 8 4. Crisis management: traditional approach vs. dealing with novelty ......................................................... 9 4.1 Crisis management frameworks and concepts ................................................................................... 9 4.2 Crisis Preparedness: planning scenarios vs. preparing for the unknown ........................................
    [Show full text]
  • Essential Steps for Crisis Management and Crisis Containment Andromachi Ioannou – 126109 IB X3215 Dr
    Essential Steps for Crisis Management and Crisis Containment Andromachi Ioannou – 126109 IB X3215 Dr. Andreas Andrianopoulos Word count: 3 , 0 3 2 4 / 2 1 / 2 0 1 5 2 Introduction While international business expansion undoubtedly presents many opportunities, there are also a multitude of challenges that companies face when deciding to operate on a global scale. This is because today’s international business environment is largely uncontrollable, highly uncertain and complex and constantly evolving, which exposes companies to multiple areas of risk. As a consequence, no organization, regardless of its size or strength is immune from a crisis that can strike unexpectedly, and that can have profound negative effects on its operations, can imperil future growth, profitability, and even the company’s survival. Managers must recognize the necessity to develop the skills to handle any threat and challenge that will inevitably arise, and make it a priority to be ready to handle such a crisis, through careful and meticulous preparation. A crisis is any situation or series of events that launch a group, team or an organization into a downward spiral, by threatening to harm people or property and negatively impact and damage an organization, its stakeholders, or even an entire industry if not handled effectively and efficiently, characterized by “high consequence, low probability, ambiguity, and decision- making time pressure,” (J. Hale, Dulek, and D. Hale, 2005), and always creates three inter related threats: public safety, financial loss due to disruption of operations and loss of market share, and inevitably reputation damage, because it reflects poorly on an organization (Coombs, 2011).
    [Show full text]
  • Project Management Core Curriculum
    NOW GUARANTEE DELIVERY LIVE CLASSES ON-SITE or ONLINE, Equally Well Project Management Game Bottom-Line and Team-Based Training ® Management PCI has gamified PM skills and tools into digital project games; in the cloud. Accessed onto students laptops – anywhere in the world. SOCIAL LEARNING. Learn in teams. Practice tools on game with immediate feedback on results. MAKE DECISIONS to complete project. SEE on Screen what worked – what failed. Discard fails – take what worked back to apply on next project. COMPRESS 4 – 6 MONTHS PROJECT LIFE CYCLE INTO 16 – 24 GAME and TEAM-BASED FUN HOURS Courses include: - Project Management - The Basics (in class or on demand) - Project Management - Foundations - PMP® or CAPM® Certification Curriculum - Project Team Leadership - PTLC Advanced - Applied Risk Management - Applied AGILE - PM Professional Day Workshops - Single Topic Courses - Versions for Information Technology and Construction Available in: 1) class or 2) full remote or 3) a blended solution! The PMI Registered Education Provider logo, PMI, PMP, CAPM and PMBOK are registered marks of the Project Management Institute, Inc. ® North America +1 (201) 489-9200 - Europe: 33 0 7 78 12 07 89 pci global inc. www.pciglobal.com PROJECT MANAGEMENT - THE BASICS 8 Learning Hours - On-Site or Online class or e-learning or both Audience: Anyone in your company; executive, senior manager, team leader, individual contributor and administrative staff who have never had any formal training in project management. Also, for new hires or leadership development programs who have assigned projects but lack any methodology or training. Learning Model: (1) Instructor Led - Team-based learning model with Case Study, simple tools, and exercises on how to apply each.
    [Show full text]