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20 June 2010

Issues and Crisis Management :the Death and Life of Organizations

Speaking of corporate organization, we take account of all business entities registered by law on the provision of services or products to increase profitability.

Indirect a corporate profit organization or service-oriented. Primarily oriented companies organizations are committed to profitably fill the financial needs of consumers and the general members of society, while service-oriented business organizations generally are needed for the socio-economic (infrastructure requirements) Requirements for the society whose main purpose is to perform a standard installation maintenance of the community.

In most economies in the world, especially when the conservative neo-classical system with the economy booming, the government is normally required to provide services to citizens, while profit-oriented business organizations are staffed with people - this scheme is known as a characteristic of capitalism and neo -liberal economic system.

Given set of what a corporate organization is and what features would be a kind of distinction, we still conclude that the place of meeting between corporate organizations, regardless of their tendency is that due to a series of still willing borrowers, buyers and sellers (market).

Borrowers who are classified as markets are the focus of all corporate organization. The success of any business organization is measured on the assumption that the share of the market, the checks and how it is able to shape the opinions of the readers to accept them socially and economically.

Borrowers on the one hand, business organization, on the other side is exposed to a stream of spontaneous naturalness of the artificial elements of the business environment created nests. That does not mean that the business climate is independent of the natural environment.

The artificial business environment further divided into (a) the internal business environment (or verifiable business climate) and (2) The external business environment (or uncontrolled business environment).

The internal business environment, are the elements of the activity to the firm's operational objectives, as basic factors of production. They can acronymic as cell - Capital, Entrepreneur, Labor, Land.

The uncontrollable elements that constitute the economic environment, the fundamentals of the social structure created, they are politics, economics, religion, law, competition, technology, environment, consumer behavior, etc. These items, the company organization can all try to involved (but not control).

As much as the body automatically exposed to environments analyzed, there are some reactions from the environment that can cause death or instability in the company. This analogy leads us to the main content of this discourse - The Death and Life of organizations

Companies are doomed to failure on a professional or ignore them affect the dynamics, complexity and mutifacetedness of the environment they operate in.

We must remember that a company is not patronizing the sole basis of that product or service offered, but the image, goodwill and how such activities have proven social responsibility into its daily work.

The public relations terms, the inner and outer parts of the business environment that includes people very busy. This is because they believe that people are builder and destroyer of each institution. This human aspect of the organization in PR is known as procurement.

Until a person acting on his orders, its existence probably no better company was not established.

Any organization's reputation with its audience will surely miss growth retardation and die.

For example: "It's about the Nigerian Indomie Noodles killer products can be considered. If consumers are not even affected by the widespread rumor that the death of a young man due to his consumption of Indomie Noodles and Indomie toxic materials, public (audience / consumers of Indomie included) dropped their demand for the product and helped to spread rumors, such that those who were ardent loyalists of the product, the product can be taken with utmost caution.

Indomie was then on the brink of extinction. Were it not for urgent action taken in the professional handling of the crisis through the instrumentality of PR, would Indomie history.

Remember that the case was also said that rumors of a crisis started by a competitor of the pasta market. This could possibly be, so companies should not pass go to the machinations of evil: a portion van competing organizations to date picture of its competitors vernietigen problems concerning establishment of companies, so that even the affected sector is fighting audience of products can be moved.

In 1982. EU-Johnson and Johnson a taste of what the crisis really is yours was a great crisis. It was discovered that numerous bottles of Johnson and Johnson's Extra Strength Tylenol capsules were laced with cyanide. By the end of the crisis, seven people died. How Johnson and Johnson dealt with this situation, a new precedent for crisis management. The company was praised for his quick decisions and a real concern for consumers. Despite the early losses put Johnson and Johnson back on its market share in the month of the incident.

The same was the case. Odwalla apple juice, which was considered the cause of an outbreak of E. coli bacteria, the company lost a third of its market value. The same accusation against Jack in the Box restaurant in 1993 caused the hamburger chain's share price $ 14 per share to nearly $ 3 per share, what a great loss for investors!

The examples could make you understand that the crisis is a threat or a case which appears as a threat to survival and development of an organization. We also note that in all cases where there had been question of a crisis, companies have large losses, not only experienced in terms of reputation, but also economically, why because they do not take into account the possibility that these issues (crises) which has cost them all their might have been.

That is, they never workable plan crisis on earth to unforeseen happened to record. Geary Sikich mused in one of his works, including "If there is a workable Crisis Management Program is akin to playing Russian rolled with an automatic pistol. You do not have the luxury of a tractor in an empty room"

If an organization intends to resolve the crisis, that its rights include public opinions about the organizational form of the iceberg when the crisis environment, and it is generally dangerous, because the public real action on the ground, and is conflagrate difficult for the organization to change these views . It is psychologically true that it is easier to opinions about people than to people's attitudes changing shape.

Trying to change attitudes in the form of a crisis can be described as a crisis. In this case the organization should only respond to public opinion, which focuses on ways to target groups in the organization. The following model explains the situation of an organization as reaction to the crisis.

The figure above shows that if an organization waits until he is hit by the crisis begins to shrink, because of the converging rays focus in crisis through the crisis source. The organization loses all its contacts with the market, usually control. Publication details, start by licentious statements which together do not bode well for the organization. Organization refers to decreasing economic deprivation, while the weakening of links refers to the loss of goodwill.

As mentioned earlier, most companies or organizations like Johnson and Johnson and bathing Indomie power crisis and the other not, is becoming increasingly clear that in both cases, organizations through the process shown in the model.

But no organization can even Microsoft do not suggest that all crises that would (not) from the rear, implementation issues management is proactive in nature can save organizations the cost of having to respond to the crisis, and so when the crisis is despair completed or fully matured .

Issues Management Crisis contrast alternative is to identify problems that could mutate into a crisis. Problem Management seeks to develop plans to solve the problem once it is made or sliding in the bud, although it remains latent sleep.

In question is the organization through its Public Relations Executive able to view shared by the public rather than to change their views during the discussion of the crisis to shape.

Public relations manager, the first person after the meeting with the board to a crisis committee composed of officials in key positions within the organization constitutes a corporate crisis and political statement that would be sent to the media from time to time. It shows the organization responsible for the situation on the ground.

The company's crisis political statement herein should not be confused with propaganda, or invention, but a fair statement that the public will know that their interest in the organization is protected.

The issues management model shows the position in the organization as proactive measures for crises that can affect the organization will control.

The graph shows that the organization is in the hands of both the new crises and its publics, why it remains financially reputable and not a lack of goodwill.

Here in issues management, the organizational problems that may affect the period of three years. So in the short term plans to crisis situations or long-term plans in place.

For example, body corporate as ADC plane crash that has a problem and must be planning to solve the problem of crashes to solve. The plans include keeping the plane on time, rushing to rescue any survivors, and they fly abroad for treatment (if necessary) to the Chief Executive Officer of tea come to speak with the media started with the relevant authorities waited full report on what went wrong that condolence packages prepare surviving victims, etc.

All of these are not realistic in terms of organization convicted or charge-backs, but in any case would have been that organization is really its Corporate Social Responsibility and care more felt for her audience.

Earlier in the pilot of the plane to blame for his idiosyncratic and so on. Even if this were the case, it is not worth mentioning in particular the family pilot are also survivors. This shows the organization as irresponsible, and it is here that organizations must know that the role of the Public Relations industry is one of the lifeline of any organization.

Professional PR activities were rolled out as in the case of Johnson and Johnson and Indomie, did not match costs, ADC do even better than she did.

Most organizations that are dead today may be able to mold the opinions of their audience to swim through times of crises, but they were gradually falling to death by waiting without planning for crises.

Importance of issues management Public Relations 'yes' to any organization cannot be underestimated, and should not tea, especially if it is an organization that intends to be among the most prestigious and financially capable business organization with the growing global village.

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