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Q:
Root cause analysis involves the identification and analysis of the effects of a crisis.
Q:
Organizational policies and learning is an important part of root cause analysis.
Q:
Firms susceptible to a crisis need a crisis management team that can be mobilized quickly and can substantively address the root cause of a crisis.
Q:
In addition to covering direct harm done to the insured, insurance also compensates for damage done to a firms reputation.
Q:
Organizational learning is important to crises management program.
Q:
Reputation risk assessment assesses the potential impacts of a crisis on the stakeholders of the firm and its reputation with them, the public, and the government.
Q:
Auditing and risk assessment are components of preparedness.
Q:
Root cause analysis is the most important component of a crisis management program.
Q:
Intervention involves turning the crisis into a manageable nonmarket issue.
Q:
The identification stage of a crisis involves actions by the company or government to deal with the crisis.
Q:
Social importance and potential audience base are factors that influence the media coverage of an issue at the core of the crisis.
Q:
Media coverage is essential to influencing the development of the public phase of a crisis.
Q:
The last stage in the life cycle of a crisis is intervention.
Q:
The first stage in the life cycle of a crisis is escalation.
Q:
Crises are random and thus cannot be analyzed using a conceptual framework.
Q:
A crisis is a situation in which harm to people or property either has occurred or is imminent.
Q:
Only firms that have experienced a crisis take measures to reduce the likelihood of a crisis, formulate management preparedness plans, or develop crisis response plans.
Q:
Due to the minimal damage of crises on a firms operating performance and reputation, the management of a firm sdoes not need to react to a crisis with a sense of urgency.
Q:
Crisis Management
Q:
You are a newly appointed vice president in a large chemical firm. One of your first tasks is to develop a crisis management program for the company. Outline the steps in such a program.
Q:
Consider the case of Wal-Mart and Hurricane Katrina where Wal-Mart analyzed sales data prior to a hurricane. It also used forecasts from the National Weather Service and private meteorologists and projected the path of the storm. Wal-Mart initially sent supplies to its stores in Florida where the storm was projected to hit. When the storm crossed the tip of Florida without causing much damage, Wal-Mart turned its attention to the GulfCoast. With the aid of its meteorologists it projected landfall just east of New Orleans and immediately began sending generators and supplies to its distribution centers in the Gulf region.
Can companies prepare for a major crisis or is the case of Wal-Mart and Hurricane Katrina an exception?
Q:
Reputations are easier to build than dissipate. Discuss.
Q:
What do you understand by the intervention stage of crisis development?
Q:
Describe the pattern of crisis development.
Q:
Once a crisis has been resolved, a firm must reassess its ________ and its preparedness.
a) organizational policies
b) communication methods
c) crisis avoidance measures
d) root cause analyses
Q:
One4All is a software company that provides classroom management tools as well as computer management software tools to schools and universities in Massachusetts. It reacts to the governments decision to increase taxes on software companies by shutting business in the region. Which of the following responses to crisis management is applicable to this situation?
a) conciliatory
b) agreeable
c) hardball
d) denial
Q:
Which of the following can enhance the effectiveness of communication in crisis management?
a) releasing incomplete information immediately
b) communicating with stakeholders
c) communicating with employees
d) government approved messages
Q:
________ are the two principal components of crisis response.
a) Auditing and analysis
b) Communication and rectification
c) Agreement and settlement
d) Risk assessment and negotiation
Q:
Which of the following portrays a response strategy in crisis management program?
a) A computer screen manufacturing company decides to recall its faulty dispatch.
b) A pharmaceutical company appoints a contractor auditor to assess its manufacturing process.
c) A company appoints a knowledgeable spokesperson to inform the public that the water bottled by it is safe and tamper-proof.
d) A waste management company reveals that the root cause for incorrect disposal method was lack of sufficient training to its employees.
Q:
Which of the following is a function of root cause analysis?
a) it identifies the causes of a crisis
b) it identifies the geometric and geographic properties of an organization
c) it assesses risks and their causes
d) it assesses the potential impacts of a crisis on a firm's reputation
Q:
________ provides the basis for resolution of the present crisis, avoidance of future crises, and preparedness for crises that do result.
a) Auditing
b) Root cause analysis
c) Insurance
d) Risk assessment
Q:
Seawell is a retail company with branches all over Georgia. Seawell has experienced several tropical cyclones and decided to stock essentials like bottled water, flash-lights, and survival food in the cyclone-prone areas. Which of the following components of a crisis management program is applicable here?
a) resolution
b) response
c) preparedness
d) avoidance
Q:
Which of the following portrays an avoidance strategy in a crisis management program?
a) An oil exploration and petroleum company appoints a contractor to publish advertisements explaining its packaging process to stakeholders.
b) A pharmaceutical company appoints a contractor auditor to assess the manufacturing process.
c) A company appoints a knowledgeable spokesperson to inform the public about its waste disposal mechanism.
d) A waste management company appoints a team of workers to reduce pollution of nearby water sources.
Q:
________ does not help a firm to directly manage a crisis situation?
a) Insurance
b) Risk assessment
c) Auditing
d) Organizational learning
Q:
________ is an aspect of an avoidance strategy.
a) Budgeting
b) Auditing
c) Organizational learning
d) Root cause analysis
Q:
________ is the last component of a crisis management program?
a) Escalation
b) Preparedness
c) Root cause analysis
d) Budgeting
Q:
________ is the first component of a crisis management program.
a) Preparedness
b) Resolution
c) Avoidance
d) Reconciliation
Q:
Resolution involves turning the crisis into a manageable ________ issue.
a) inorganic
b) market
c) cross-subsidization
d) nonmarket
Q:
Which of the following scenarios represents resolution in crisis management?
a) government shuts an emission management company
b) a media report publishes malpractices in a company
c) company officials are informed about wide-spread defaults by employees in certain branches
d) company officials issue a country-wide recall of computer screens dispatched in the last quarter.
Q:
________ involves turning the crisis into a manageable nonmarket issue.
a) Escalation
b) Resolution
c) Identification
d) Intervention
Q:
Which of the following scenarios represents intervention in crisis management?
a) government shuts an emission management company
b) a media report publishes malpractices in a company
c) company officials are informed about wide-spread defaults by employees in certain branches
d) company officials communicate that actions are being taken to ensure stakeholder safety
Q:
________ involves actions by the company or government to deal with the crisis and provide assistance to victims.
a) Resolution
b) Escalation
c) Identification
d) Intervention
Q:
In what stage can a crisis explode as a result of media coverage, government actions, or company actions?
a) reconciliation
b) identification
c) intervention
d) escalation
Q:
GreenYouth Corp is a waste management company based in Colorado. It is discovered that one of its plantsin Saguache and Rio Blancois violating environmental laws. Which of the following is the last step to crisis management?
a) Company officials arrange a meeting with the stakeholders and a public announcement on the actions to be taken by them.
b) Company officials are notified of the sickness of the residents of Saguache and Rio Blanco due to ground water pollution.
c) Company officials discover that officials at the Saguache and Rio Blanco plants have been dumping hazardous waste at a local dump.
d) Company officials agree to a three-year contract with the government to assure public safety in Saguache and Rio Blanco.
Q:
GreenYouth Corp is a waste management company based in Colorado. It is discovered that one of its plantsin Saguache and Rio Blancois violating environmental laws. Which of the following is the first step to crisis management?
a) Company officials arrange a meeting with the stakeholders and a public announcement on the actions to be taken by them.
b) Company officials are notified of the sickness of the residents of Saguache and Rio Blanco due to ground water pollution.
c) Company officials discover that officials at the Saguache and Rio Blanco plants have been dumping hazardous waste at a local dump.
d) Company officials agree to a three-year contract with the government to assure public safety in Saguache and Rio Blanco.
Q:
Write a short note on confrontational private politics.
Q:
Firms need to develop approaches to address social pressure from activist groups. Discuss.
Q:
Describe four factors that affect the effectiveness of private politics social pressure.
Q:
Why do activists play an important role in the nonmarket environment?
Q:
Write an essay on the positive and less than positive roles played by activist groups. Give specific examples of each of these roles. Use Greenpeace International as your focus of analysis.
Q:
Which of the following should a company follow when opposing an activist campaign?
a) invest in reputation management
b) file a lawsuit
c) develop an alternative organization
d) develop a corporate campaign
Q:
Which of the following should a company follow when challenging activists?
a) avoid explanations to employees
b) file a lawsuit if the company can bear the social pressure
c) avoid negotiation
d) challenge the group after evaluating the issue
Q:
Which of the following is the last step in addressing social pressure from activist groups?
a) understand the broader public support for activist groups agenda
b) identify relevant interest groups and activist organizations in a companys market and nonmarket environments
c) challenge the activists
d) assess how the media is likely to cover and treat the
Q:
Which of the following is the first step in addressing social pressure from activist groups?
a) understand the broader public support for activist groups agenda
b) identify relevant interest groups and activist organizations in a companys market and nonmarket environments
c) assess how the media is likely to cover and treat the issue
d) partner with activist groups
Q:
Which of the following describes an activist groups first-mover advantage?
a) frames an issue by identifying its societal significance
b) stages protests and demonstrations
c) uses low-cost source of information
d) uses social media to coordinate activities
Q:
Which of the following is applicable to private politics strategy to put pressure on a company and its reputation?
a) It avoids using policy studies.
b) It attempts to pass legislation through government action.
c) It questions the board of directors directly.
d) It uses shareholder rights by questioning at annual meetings.
Q:
Which of the following represents a centralized activity used by activists to apply pressure on firms?
a) Activists arrange a campaign led by labor unions to lower emission rates for workers safety.
b) Activists pressure firms to lower emission rates after reading annual list of companies emission rates.
c) Activists send emails to spread information about the increasing emission rates of companies.
d) Activists form an online community that shares relevant information on emission rates and signs petitions.
Q:
Which of the following statements describes the trust gap in private politics?
a) negative information provided by a firm can have more impact on an issue than that provided by an NGO
b) negative information provided by an NGO can have more impact on an issue than that provided by a firm
c) negative information provided by an NGO does not affect a firm due to the lack of trust gap
d) negative information provided by an NGO does not provide the adequate threat as firms are more trustworthy
Q:
In terms of an activists generic strategy, what is a low-cost method of getting information out to the public that they want to be distributed?
a) use the news media
b) use television spots
c) use nationwide lobbying of legislatures
d) file a lawsuit
Q:
What are the two basic strategies of activists?
a) putting direct pressure on firms and working through public institutions
b) putting indirect pressure on firms and direct pressure on government
c) putting little pressure on firms and lots of indirect pressure on government
d) putting pressure on firm boards of directors and working with public entities
Q:
Which of the following statements is NOT true of activist groups?
a) They alert a corporation to issues about which it is unaware.
b) They can affect the organization of interests by forming watchdog and advocacy groups.
c) They are often appointed to a firms board of directors.
d) They provide information to the public as well as public office holders.
Q:
Which of the following statements describes the relationship between confrontational and cooperative private politics?
a) cooperative private politics does not affect confrontational private politics
b) cooperative private politics is independent of the threat of confrontational private politics
c) confrontational private politics creates a demand for cooperative private politics
d) confrontational private politics does not provide the adequate threat because of which cooperative private politics is preferred by companies
Q:
Which of the following can a company do to make it less attractive to a confrontational activist?
a) adopt an external certification from an NGO
b) neglect required practices
c) adopt a nontransparent policy
d) adopt internal certification
Q:
Cooperative private politics ________.
a) increases the vulnerability of a brand
b) attracts more confrontational activists to the firms policies
c) increases social pressure on a firm
d) improves the public standing of a firm
Q:
Certification to provide external legitimacy ________.
a) increases the vulnerability of a brands reputation
b) improves the public standing of a firm
c) increases social pressure on a firm
d) attracts more confrontational activists to the firms policies
Q:
An NGO with expertise in environmental practices assists a company to design and implement an external legitimate policy. This is an example of ________.
a) cooperative private politics
b) cooperative public politics
c) public nonmarket action
d) market competition analysis
Q:
Which of the following is an example of cooperative engagement in private politics?
a) Advertisement campaign by an NGO that shows a company official melting polar ice.
b) An NGO uses lobby correspondents for their global-warming propaganda.
c) An NGO pressures consumers to switch to a different brand of gas due to the companys high emission level.
d) An NGO appoints a group to provide external legitimacy to a companys environmental practice.
Q:
Which of the following companies is least susceptible to private politics?
a) ReleeF, a pharmaceutical company that manufactures generic drugs
b) Bluetip, a petroleum exploration and production company
c) MoreSay, a multinational clothing company based in California with the manufacturing done in Vietnamese sweatshops
d) WeGroom Group, that designs and builds houses in developing countries because of the advantages of low-cost labor
Q:
The ________ of a firm determines the scope of the social pressure the firm could face.
a) brand reputation
b) line of business
c) stock price
d) product switching costs
Q:
A group of activists organize a campaign to constrain the sale of a well-known brand of clothing because of worker rights issues in its Vietnamese branch. Which of the following strategies is applicable to the situation?
a) confrontational public politics
b) confrontational private politics
c) cooperative private politics
d) public nonmarket action
Q:
Which of the following is an important function of private politics?
a) It regulates the market dynamics for a specific industry.
b) It initiates and passes legislation in Congress.
c) It endorses a firms brand reputation.
d) It mobilizes people to work for causes.
Q:
In which of the following ways does private politics shape the nonmarket environment?
a) It attempts to influence public policy through Congress.
b) It informs the management of a corporation about relevant social issues.
c) It organizes labor unions by delivering votes.
d) It enables corporations to make donations to candidates for Federal offices.
Q:
Which of the following statements is true of private politics?
a) It is not motivated by self-interest or broader concerns.
b) It implements strategies to apply legislation through government action.
c) It implements strategies to affect the public sentiment.
d) It is independent of public support.
Q:
FreeWorld is a non-profit campaigning organization that has discovered that Shine4Ever Corp. is dealing in conflict diamondsdiamonds from the coasts of Liberia that originate from areas controlled by forces that fund anti-government operations. After several demonstrations, boycotts, and advertising campaigns by FreeWorld, Shine4Ever agrees to an external certification process to ensure that the diamonds are clean. This social pressure is a result of ________.
a) private politics
b) business intelligence
c) market demand
d) competitive analysis
Q:
Private politics focuses on ________.
a) changing the behavior of the government through regulation and legislation
b) changing the behavior of private economic agents through social pressure
c) changing the behavior of private economic agents through government action
d) changing the behavior of the state through economic policy
Q:
A simple agreement accepting the issues is usually sufficient where the stakes are high and monitoring of the firms actions is difficult.
Q:
In a private politics campaign, negotiation with activists is involuntary.
Q:
Unless challenged by an activist group or NGO, specific issues of concern in a company can be reserved for later.
Q:
Cooperative private politics is beneficial to a potentially vulnerable company.
Q:
Identifying relevant interest groups and activist organizations in a companys market and nonmarket areas is an important part of addressing an activist environment.