Deck 13: Crisis Management

Question 1

In response to the release of the movie Blood Diamond, the World Diamond Council created a Web site to ________.

A) provide information about Nelson Mandela's involvement in the diamond industry
B) address concerns about the glut of poor quality diamonds on the market
C) explain the difference between blood diamonds and conflict diamonds
D) assert that the majority of diamonds on the market were not conflict diamonds
E) advocate consumers boycott the film due to its inaccurate depiction of the diamond industry

Answer 1

assert that the majority of diamonds on the market were not conflict diamonds

Question 2

The World Diamond Council hired a crisis-management firm when the movie Blood Diamond was released to educate the public about diamonds and to ________.

A) prevent a significant sales loss during the holiday season
B) restrict the import of conflict diamonds to the U.S.
C) promote a rare diamond only available for a limited time
D) counter claims made by the film's actors during interviews
E) eliminate studio concerns about the film's premiere in Africa

Answer 2

prevent a significant sales loss during the holiday season

Question 3

All of the following were crisis-management methods used by the World Diamond Council in response to the movie Blood Diamond EXCEPT ________.

A) issuing press releases to the media
B) establishing an informational Web site
C) using Kanye West as a spokesperson
D) enlisting the help of Nelson Mandela
E) providing retailers with information packets

Answer 3

using Kanye West as a spokesperson

Question 4

For MPR professionals working for Tylenol in 1982, which of the following was the most essential skill needed for the job?

A) event planning
B) sales promotion
C) crisis management
D) thought leader development
E) consumer-generated marketing

Question 5

Which of the following best describes the crisis situations involving BP in 2005 and 2006?

A) Stockholders became enraged by the illegal trading of BP's upper level managers.
B) The public learned about the improper behavior in the personal lives of BP executives.
C) The products developed by BP were marketed despite knowledge of their potential harm.
D) Political candidates supported by BP failed to pass significant environmental restrictions.
E) Customers realized that their perception of BP as environmentally responsible did not match reality.

Question 6

Which of the following firms is best known for a crisis involving misbehavior and unethical business practices of its upper level executives?

A) WorldCom
B) Exxon
C) Firestone
D) Compaq
E) General Motors

Question 7

Which of the following approaches to dealing with crisis situations involves developing a plan based on a problematic issue after it arises?

A) passive
B) defensive
C) subjective
D) reactive
E) preemptive

Question 8

The passive approach to handling a crisis situation is based on the idea that problems ________.

A) could be avoided with preparation
B) eventually go away when ignored
C) require elaborate plans to manage
D) should be actively defended from all sides
E) are an unavoidable aspect of any organization

Question 9

The ________ approach to crisis management requires firms to identify potential issues in advance and either eliminate the potential problem or devise a plan to manage it.

A) reactive
B) subjective
C) preemptive
D) defensive
E) passive

Question 10

Which of the following has had the greatest effect on the speed in which a crisis situation is discovered by the public?

A) eyewitness accounts
B) newspaper coverage
C) communications plans
D) communications technology
E) marketing and public relations

Question 11

The primary cause of the MPR crisis involving a Taco Bell restaurant in New York City in 2007 stemmed from ________.

A) footage filmed by a local news crew
B) leaks at the city's health department
C) rumors spread by disgruntled employees
D) fake YouTube videos aired on the national news
E) amateur video shared with various media outlets

Question 12

What role did the media play in the crisis involving rats at a New York City Taco Bell in 2007?

A) preventing a national crisis for the marketing department
B) turning a potential disaster into a humorous story
C) speeding up the manner in which the story spread
D) alleviating health and safety fears among the public
E) providing information regarding meal vouchers

Question 13

How does modern media and technology affect a marketer's understanding of public feedback during a crisis?

A) downplaying a marketing crisis through the limitations of minor media outlets
B) making the feelings of the majority and the minority unclear to marketers
C) defending firms from unwarranted rumors through media mentions
D) using word-of-mouth to stifle the spread of False information
E) reflecting consumer marketing trends and connector influence

Question 14

Which of the following led to a crisis for Motrin in 2008?

A) capsules laced with poison that killed seven people
B) environmental concerns at manufacturing facilities
C) employee backlash regarding management salaries
D) fears about the drug's connection to heart disease
E) negative reactions to an advertising campaign

Question 15

The Motrin crisis surrounding the "Baby Wearing" commercial highlights the need for organizations to ________.

A) create more humorous ads
B) target niche markets
C) communicate with consumers
D) prepare for the new media
E) reach out to connectors

Question 16

Which of the following is the primary benefit of new media during an MPR crisis?

A) discovering potential customers in a new platform
B) circulating advertisements prior to official release
C) quickly reaching out to consumers and connectors
D) facilitating the passive approach to crisis management
E) methodically gathering demographic information

Question 17

What was at the center of Ford's crisis management efforts during the economic problems faced by the Big 3 auto makers in 2008?

A) a Web site distinguishing Ford from GM and Chrysler
B) full page advertisements in local newspapers across the U.S.
C) information about Ford's history on social networking sites
D) a YouTube video comparing Ford, GM, and Chrysler cars
E) viral marketing campaigns geared to generate public support

Question 18

The purpose of a crisis communications plan is to create a tool for ________.

A) communicating with consumers and connectors about mistakes that were made by a firm
B) assessing a situation and communicating with stakeholders about the intended response
C) immediately implementing a single action plan that applies for all types of situations
D) understanding the short-term and long-term effects of a corporate crisis
E) anticipating a crisis before it occurs to avoid negative media attention

Question 19

Which of the following is especially critical to firms faced with an MPR crisis?

A) employees
B) executives
C) location
D) structure
E) time

Question 20

Firms facing an MPR crisis have an immediate need for ________ plans to effectively handle the situation.

A) stockholder and competitor
B) technological and ethical
C) financial and technical
D) communications and business
E) human resources and advertising

Question 21

In order to be most effective, a crisis plan should be ________.

A) simple to understand
B) based on industry precedents
C) developed for one spokesperson
D) implemented through print media
E) generated by middle management

Question 22

An exercise for identifying and documenting potential MPR crises for planning purposes is known as a ________.

A) positioning statement
B) vulnerability audit
C) news aggregator
D) white paper
E) scenario statement

Question 23

A ________ crisis is a slowly developing internal crisis within an organization.

A) monumental
B) sudden
C) brewing
D) potential
E) smoldering

Question 24

Which of the following would be categorized as a sudden crisis if faced by an electronics firm?

A) mismanagement in the finance department
B) conflict among union and non-union workers
C) a fire destroying the main manufacturing facility
D) drastic decline in consumer demand for products
E) numerous blogs posted by unhappy customers

Question 25

All of the following are aspects of creating a vulnerability audit EXCEPT ________.

A) assessing the potential impact of a specific crisis
B) rating the likelihood of a specific crisis occurring
C) considering likely and worst-case scenarios
D) developing a script to recite during a crisis
E) asking questions to employees at every level

Question 26

Which of the following best describes the heart of a crisis communications plan?

A) comparing and contrasting different approaches to crisis management
B) coordinating communication with media, community, and stakeholders
C) scheduling and assessing practice drills for likely situations
D) evaluating the causes and long-term effects of a firm's crisis
E) delving into worst-case scenarios and unusual possibilities

Question 27

What is the purpose of the heart of a crisis communications plan?

A) keeping people focused on timely communication
B) outlining a firm's vulnerability to a sudden crisis
C) ranking the probability of a specific crisis occurring
D) gathering information from people in an organization
E) anticipating questions likely to be asked during a crisis

Question 28

How many statement templates should be included in every crisis communications plan?

A) 1
B) 2
C) 3
D) 4
E) 5

Question 29

The first critical statement in a crisis communications plan provides ________.

A) specific details
B) scenario statements
C) basic facts
D) vulnerability descriptions
E) potential impact

Question 30

What term refers to the portion of an MPR crisis plan that maps out the "who, what, when, where, why, and how" of a specific potential crises?

A) statement of tactics
B) sphere of influence
C) positioning statement
D) vulnerability audit
E) scenario statement

Question 31

Which of the following enables all parties to become familiar with a crisis communications plan and to ensure that it works as intended?

A) surveys
B) bridging
C) work events
D) practice drills
E) self-produced events

Question 32

What is the first step that an MPR professional should take in developing a crisis communications plan for the Falcon's Lair?

A) generating a scenario statement
B) assembling a vulnerability audit
C) assigning communication roles to personnel
D) running a real-time practice drill
E) discussing liability issues with the firm's lawyers

Question 33

When reacting to a crisis, an organization benefits from breaking a story before media outlets because the ________.

A) situation can be covered up
B) stakeholders can be informed
C) message can be controlled
D) details can be omitted
E) event can be trivialized

Question 34

All of the following are rules for implementing a crisis management plan EXCEPT ________.

A) keeping all stakeholders informed
B) being an information resource
C) keeping the media up to date
D) offering a truthful apology
E) using softened language

Question 35

Video is the recommended medium for implementing a crisis management plan because the ________.

A) original message remains intact
B) spokesperson controls the questions
C) public relies on televised news
D) speaker appears sincere
E) message is easily edited

Question 36

For a firm implementing a crisis management plan, which of the following is the desired source for connectors to gather current information?

A) a firm's competitors
B) industry analysts
C) a firm's spokesperson
D) former firm employees
E) talk-show hosts

Question 37

During a crisis, it is the responsibility of a firm's MPR professionals to convey the idea that the top priority of a firm is ________.

A) increased earnings
B) forward progression
C) connector relationships
D) customer satisfaction
E) positive media coverage

Question 38

When Jack-in-the-Box faced an E.coli crisis, the company took a proactive approach to handling the situation by ________.

A) modifying its menu
B) hiring a microbiologist
C) changing all of its suppliers
D) firing the entire board of directors
E) shutting its restaurants for six months

Question 39

All of the following helped Jack-in-the-Box become profitable after the E. coli crisis EXCEPT ________.

A) selling poorly managed stores
B) putting customer safety first
C) making operational changes
D) focusing on product safety
E) utilizing the marketing mix

Question 40

After a Falcon's Lair customer injures himself while rock climbing, the firm should handle the situation by ________.

A) waiting to respond to Internet stories
B) concealing specific details from connectors
C) paying the customer's medical bills
D) blaming the equipment manufacturer
E) swiftly communicating with stakeholders

Question 41

The speed with which the World Diamond Council dealt with the issues raised by the film Blood Diamond suggests that the organization had previously prepared a crisis communications plan.

Question 42

A marketing crisis may result from the misbehavior of people within a firm or faulty products manufactured and distributed by a firm.

Question 43

A firm that assumes a problem will eventually go away or be forgotten if it is ignored is using the defensive approach to crisis management.

Question 44

Identifying potential issues before they occur and constructing a plan for dealing with them exemplifies a preemptive approach to crisis management.

Question 45

The Internet, blogs, Twitter, and YouTube speed up the time it takes for a perceived crisis to become an actual crisis.

Question 46

Digital media hinders the ability of a firm to manage an MPR crisis due to the extensive number of platforms and sites used for communicating messages.

Question 47

Time is a minor concern during a crisis, so an MPR professional should respond slowly and cautiously to a situation to prevent making mistakes.

Question 48

A crisis communications plan should center on a single trained communicator who will be in charge of the plan's execution in all scenarios to maintain consistency for the firm.

Question 49

When developing a crisis communications plan, a firm should involve employees from multiple levels and functional areas within the firm.

Question 50

The first step in creating a successful MPR crisis communications plan is to develop scenario statements with fill-in-the-blank sections.

Question 51

A smoldering crisis, which is an internal problem at a firm that develops slowly over time, is more likely to occur than a sudden crisis.

Question 52

Decision paralysis occurs when leaders fail to execute a crisis communications plan in a swift manner, such as during the shootings at Virginia Tech.

Question 53

A successful MPR crisis communications plan instructs leaders to refrain from revealing any facts about a crisis until a thorough investigation into the matter has occurred.

Question 54

Scenario statements typically include a fill-in-the-blank section, a complete script to be read verbatim by a spokesperson, and a list of agencies likely to respond during a specific type of crisis.

Question 55

A real-time practice drill for a crisis communications plan involves having those involved in the plan run through their reactions to a scenario in a conference room setting.

Question 56

Crisis communication plans should be approved by a firm's attorneys and corporate leaders before it is ever implemented.

Question 57

The chances of a conflicting story about a crisis reaching the media are significantly increased when a firm communicates too quickly with stakeholders.

Question 58

A firm is more likely to be portrayed in a positive light by the media during a crisis if its MPR professionals provide reliable and up to date information to connectors.

Question 59

Apologizing for a crisis too frequently keeps an issue in the public eye and conveys a firm as weak and inept.

Question 60

Tylenol's poorly implemented crisis communications plan significantly harmed the image and profit of the firm in 1982, and the firm has only regained the trust of consumers in the last few years.

Question 61

Briefly describe the four approaches used by organizations to deal with MPR crises.

Question 62

What is a crisis communications plan? Why do firms need to have crisis communications plans?

Question 63

What are the general guidelines for creating an effective crisis communications plan?

Question 64

What is a vulnerability audit? What information should be included in a vulnerability audit?

Question 65

What is the difference between the two sets of statement templates included in crisis communications plans?

Question 66

What are the benefits of running a crisis communications drill?

Question 67

What is the importance of speed in the implementation of a crisis management plan? Provide an example where a swift response helped a firm in the midst of a crisis.

Question 68

How does a firm benefit from making sure its MPR professionals are communicating with connectors during a crisis?

Question 69

Briefly explain why it is important to communicate with stakeholders during an MPR crisis.

Question 70

What are the responsibilities of a marketer after an MPR crisis has passed?

Question 71

What are the different forms that an MPR crisis can take? Give a specific example of each type in your answer.

Question 72

What are the advantages and disadvantages of todays' media and technology environments on a firm experiencing an MPR crisis? Provide a specific example of each in your answer.

Question 73

What are the four steps to creating a successful MPR crisis communications plan? Explain each step fully.

Question 74

If an MPR crisis cannot be handled with a preemptive approach, what are the guidelines for implementing a reactive plan? Explain your answer in detail.

Question 75

What opportunities are available to a firm that successfully handles an MPR crisis? Provide specific examples to illustrate your answer.