"Crisis management amounts to controlling of an unruly horse which, if not be properly bridled, it carries its rider where he knows not. Even if it is an apology, it has to be carefully crafted." Explain the statement wi

Crisis management is the process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders. Any business, large or small, may run into problems that may negatively impact its normal course of operations. Crises such as fire, death of a key managerial personnel, terrorist attack, data breach, natural disasters, management disputes, litigations, and/or regulatory actions can lead to tangible and intangible costs to a company in terms of lost sales, customers, and a decrease in the firm's net income. Crisis can either be self-inflicted or caused by external forces. Examples of external forces that could affect an organization's operations include natural disasters, security breaches, or false information about a company that hurts its reputation. Therefore, crisis management is tantamount to controlling of an unruly horse which, if not be properly bridled, it carries its rider where he knows not. The statement can be explained with the help of examples mentioned below: 1. The United Airlines PR Crisis A conflict occurred in United Airlines flight number 3411, which departed from Chicago to Louisville on April 9, 2017. Before passengers began boarding, it was announced that the flight was overbooked. United needed to put their employees on this plane. So, they asked for volunteers to give up their seats in exchange for $400 US, a free hotel room and a ticket for a flight the next day. No one volunteered. When boarding was complete, it was announced that four passengers had to leave the plane. Again, no one volunteered, so the company decided to choose passengers randomly. Two of the passengers left, and one refused. The one who remained said that he was a doctor and needed to get to his patients. When he refused to leave the plane, he was forcefully dragged from his seat and was struck in the process. The crisis started when a cell phone video recording of the incident was published on social media. When United realized that they could not get out of the scandal, the CEO Oscar Munoz commented on the situation. He apologized for "having to re-accommodate the customer. The statement of CEO Oscar Munoz is as under: "This is an upsetting event to all of us here at United. I apologize for having to re-accommodate these customers. Our team is moving with a sense of urgency to work with the authorities and conduct our own detailed review of what happened. We are also reaching out to this passenger to talk directly to him and further address and resolve this situation." This statement provoked a new wave of crisis. United's social media audience accused him of being disrespectful and of misidentifying the cause of the problem. Instead of apologizing for forcing the passenger to deplane, Munoz apologized for his inconvenience. The company's social media audience was indignant. They satirized the situation, created memes and GIFs, and made jokes. What's more, United lost more than $800 Million in revenue. United was not able to manage the crisis by themselves, and they had to hire a professional crisis management team. The CEO apologized, but his words caused even more indignation than before. The instance that occurred on the plane was quite traumatic to those that witnessed it personally and those that saw it on video. It deserved a heartfelt response, but the tweet showed a lack of understanding and accountability. In United's case, the CEO's apology sounded as if he did not actually care, and their audience immediately felt it. Therefore, it is clear that online apologies have to be carefully crafted. Think of the emotions that need to be addressed and consider your words carefully. An apology should not sound like a press-release. When a brand makes a mistake they need to own up to it and let the public know they are going to address it and ensure it never happens again. 2. Facebook's silence about its data breach The social media giant reportedly chose to stay silent even though it had known for three years that Cambridge Analytica - the consulting firm hired by President Donald Trump's 2016 campaign - improperly accessed information on millions of people. Since then, the company has racked up misstep after misstep. From the failure to issue an immediate statement from Chief Executive Officer Mark Zuckerberg when Facebook finally admitted what happened to hiring a shady opposition research firm to investigate its critics. Facebook was the subject of more trouble, when the New York Times reported that it shared even more user data with outside companies than previously acknowledged. Moral of the story: When the news broke, disclosure is the most effective strategy in a crisis because the truth always emerges. Companies and even the government need to explain what happened on their own terms and regain confidence by demonstrating that they have learned a lesson and are taking immediate steps to change course. 3. Lockheed Martin asks people to share photos of its products In August, the world's largest weapons maker tweeted: "Do you have an amazing photo of one of our products? Tag us in your pic and we may feature it during our upcoming #WorldPhotoDay celebration on Aug. 19!" People quickly responded with pictures showing the impact of its weapons, including an image of UNICEF backpacks belonging to children killed in Yemen with a bomb made by the company. Lockheed Martin later deleted the tweet. Moral of the story: Although it's important to engage in conversations on social media, first be aware of how people generally feel about your company, products and policies. Carefully consider possible responses before asking for content. 4. Chipotle In July 2015, the E coli outbreaks started for Chipotle and lasted through January 2016. It began in the Northwest and spread across dozens of states. The result was an 82% decrease in profits over the course of a year and Chipotle stock down 15%. 2016 also saw an executive arrested for cocaine possession and 10,000 workers suing the company for unpaid compensation. Chipotle's Crisis Management The burrito company's crisis management strategy has been a long and often criticized one. In the midst of the 2015 outbreaks, co-CEO Monty Moran spoke at an industry conference for investors saying: It's been fueled by the sort of unusual and "even unorthodox way the CDC has chosen to announce cases related to the original outbreak in the Northwest," he said. And: "Because the media likes to write sensational headlines, you'll probably see, you know, when somebody sneezes — 'Ah, it's E. coli from Chipotle' for a little bit of time. While truthful, as journalists at Fortune pointed out, "this is not how you win back the world's confidence." A few days later, Chipotle founder Steve Ellis appeared on the today show apologizing to consumers and promising that "The procedures we're putting in place today are so above industry norms that we are going to be the safest place to eat." It was a bold promise, and one that made some PR professionals nervous for the already queasy company, but Chipotle's stock made a 5% climb after Ellis' speech. In 2017, Moran stepped down as co-CEO, a move that was heralded by many. However, finger pointing, wishywashy answers and apologies, and a lack of company representation at the 125 food safety cases that were settled in 2016 has some feeling that the brand could have done a better, more authentic job of recovering its image.