Issue and Crisis management

Issue and Crisis management

RISK ISSUES AND CRISIS MANAGEMNT IN PUBLIC RELATIONS
(PRL5002)

ASSIGNMENT
ON
CRISIS MANAGEMENT
AT 99P STORES

99P STORES
Introduction:
By Inthis case study a news channel program called BBC Watchdog did undertookresearch on a retail store ‘99p Store’, a United Kingdom (UK) chain store. its big retail network in London has nearly 250 stores. This organization is a family owned business the co-founder is Mr. Hussein Lalani.This is an accidental type of crisis. Media has challenged that 99p Stores to pull thecustomers using misleading price claim labels &andsigns such as ‘We will not be beaten on price’, ‘amazing value’, ‘Mega deals’, ‘Unbeatable value’. For some products it also has price comparison labels on their shelves which are inaccurate. And Lalanidefended the media by justifying his company pricing reputation targeting the comparators and by reminding the previous price track and apology for some inaccurate price comparisons.

Type of crisis:
Crisis is a negative impact to an organization, an issue or more than issues can become a crisis or it can happen sudden. They are victim cluster, accidental cluster, and preventable cluster.
Victim crises are minimal reputation threat to organizations, this type of crisis occur by natural disasters, rumors, violence at work area or malevolence.
Accidental crises are low reputational threats to organizations, this type crisis usually rises by technology error accidents or Equipment /technology failures to a product or it can be challenges to organizations from stakeholders.
Preventable crisis are strong reputational threat to organizations, this crisis rises by human error, product harm by human error, and organizational misdeeds which are put stakeholder in risk.

In this case study BBC Watchdog attacked 99p store by challenging that the stores are not giving the best price to consumers as they advertising with attractive signs, and they are misleading customers by product price comparison labels, in BBC watchdog research out of 37 price labels 27 are inaccurate and some of the products are even cheaper in supermarkets than the 99p store, This research and media created the crisis to 99p store. This is accidental crisis occurred by a challenge from media to 99p store.

Approach by posture:
An approach posture is acceptance of some level of responsibility by organization for crisis, According to Coombs (2007) theory there are four types of postures in that three are primary and the other one is secondary, these strategies helps in defending crisis and show organization get its side in media.
Types of Postures: Denial, Diminish, rebuild, Bolstering
i) Denial: Denial strategycan be used when the organization not involved in crisis, the strategic manager can attack with law response or there is no crisis or blaming the third party.
ii) Diminish: This strategy help when the crisis is in relation with the organization but there is nothing to do with company that means when the situation not in control and also how crisis looks like but not the same impact on organization. When the crisis doesn’t create any harm to stake holders or if there is no much damage the manager can use this strategy by justifying the situation.
iii) Rebuild: This strategy can use when the crisis happened by organization and its clear that something is wrong by the organization. This strategy responds to the crises in a positive way to change perception of the organization by giving some compensation to victims and accepting the damages, asks victims for forgiveness.
iv) Bolstering: This response is a secondary strategy for crisis, this can be used to get sympathy of the stakeholders by reminding the past track records or the good will of the company. And also by praising stakeholders, informing the organization is also a victim of the crisis. As Coombs said Bolstering can be used as secondary strategy with a primary posture this cannot replace the primary strategy.
In our theory the crisis happened by media challenging on price outlets and the deals, this effect to company reputation.Mr. lalani Lalaniaccepted the facts and used the same media to communicate with customers and he mainly used the rebuild strategy by asking the apology for some of the products are not cheaper and some price comparison labels are not accurate. He also justified the organization deals and price comparisons in a way that out of 37 price comparison labels 27 are inaccurate that means 99p stores are still beating the supermarkets. He used media research as publicity to build his reputation by introducing the new label with changed price comparison that 82.5% of 99p stores are beating the supermarkets. To get the positive impact from the stakeholders Lalani used the secondary strategy bolstering by reminding previous big price differences when compare to the major supermarkets and explained why the some of the price comparisons are not accurate, the pricing of the products are changed the present pricing is keep updating every hour and the mistake 99p store not checking in all the times.

Selection of a theory:
After watching the video I choose framing theory for this particular case study, framing theory isrelated to the media. Framing is a communication used to draws a public view on particular topics.Media frames their view on particular topics or events based on research or some incidents or any particular situations. Framing in essence is how media presents something about an event can be called frame. Framing influences an audience most of the stakeholders can be audience.

In this case study the reason for the crisis to 99p store is media, BBC watchdog programmer did own research on 99p Store pricing that‘are they really standing on their promises?’ like ‘we will not beaten on price’ and they found some differences in prices when compare with other supermarkets, price comparison are not matching with what they are showing on labels. Based on the research, the media framed news on 99p store and claimed that they are misleading customers. The major reason for the crisis to 99p store is the media

Every business reputation build by stakeholders, mostly stakeholders knows about an organization through advertisements, mouth talk, social media networks, and internet. Media is a powerful communicating tool in the society and Customers mostly believe on media. Telecasting of BBC Watch dog program 99p Stores effects to the reputation of the company. BBC framed program targeting the retail customers it can be influenced by company competitors or any other stakeholders.
An individuals and groups who are depending on the organization to achieve their personal aims and the firm on which it depending to stand for the long run are all called stakeholders.
(Source:-Nasi 1995, p. 24)
Conclusion:
Mr. Hussain Lalanidid a done great job in recovering his 99p Store from this crisis.He reacted very quickly when he got the allegation from BBC and attended the interview. The way he justifies inaccurate price comparison labels and asking for the apology for the mistakes had made by the company. He took all the responsibilities and created a new image that they are really beating the supermarket prices. He is well prepared and used the same media for the indirect publicity by showing his new label that ‘based on BBC Watchdog program research 82.5% of the time 99p stores do beat the major supermarkets in London’.
References:
http://www.palgrave-journals.com/crr/journal/v10/n3/full/1550049a.html, viewed on 16 Aug, 2015
http://stuartbrucepr.overblog.com/good-crisis-comms-99p-stores-ceo-on-bbc-watchdog, viewed on 16 Aug, 2015
http://masscommtheory.com/theory-overviews/framing-theory/, viewed on 16 Aug, 2015
http://www.retail-week.com/what-its-like-to-work-at-99p-stores/5012358.article, viewed on 16 Aug, 2015
Coombs, WT 2007, ongoing crisis communication: planning, managing and responding,Sage Publications, Thousand Oaks, California, pp. 128–38.
Micheal R, Judy L 2008,Risk issues and crisis management in public relations, London.
PRL5002 Assignment 1 – Marking criteria
HD A B C F Mark
Introduction 2
Exceptional.
Outlines the problem and the approach to be taken to solve it; outlines the arguments to be presented. Demonstrates understanding of the problem. 1.5 – 2
Good.
Outlines the problem and the approach to be taken to solve it.
Gives an insight into the writer’s understanding of the problem and refers to arguments to be presented. 1 – 1.5
Competent.
Outlines the problem and some of the approaches to be taken to solve it. Needs some work on the wording of the problem and the approaches to be taken in the paper. 1
Basic.
Simply outlines the problem and lists the steps the writer will take to solve it. < 1 Insufficient. Does not outline the problem, or how the writer will solve it. Tends to get sidetracked into other facts or approaches. 0.5/2 Type of crisis 4 Demonstrates wider research of the types and draws insightful parallels between the literature’s explanation of these and the pointers to typology in the case study. Excellent use of literature to support the discussion. 3.5 Very good. Discussion of key concepts and comparisons between the elements of the types and the elements contained in the case study pointing to the crisis type could be stronger. Good use of literature. 3 Contains generally sound but quite basic explanation of the characteristics of the type chosen and identification of some characteristics within the case study to support argument. Uses some literature to support the discussion. 2 Outlines the type and its characteristic in very brief form and identifies one or two characteristics from case study to support argument. Uses scant literature to support. <2 Fails to draw connections between the type characteristics according to the literature and uses no literature to support any statement of parallels with the case study. 1/4 Approach by posture – discussion of three approaches. 5 Outlines in succinct detail each of the approaches by posture and uses literature from wider sources than just course material. Demonstrates deep understanding of the approaches. 4 Outlines each of the approaches by posture and demonstrates good understanding of the approaches, with some wider reading evident. 3 Uses course materials well to show understanding of the three selected approaches by posture. Includes more than one sentence on each. 2.5 Uses some references from course material to show understanding of three approaches by posture. Outlines these, but does not give depth. <2.5 Refers to the three approaches by posture but does not explain them or demonstrate any understanding of them. Uses little or no literature to demonstrate/support understanding. 2/5 Approach by posture – discussion on the theoretical approach by posture that might best explain the approach used in the case study. 5 Draws out every characteristic from the case study that points to one predominant approach being used, and discusses these in the context of the literature on that approach. 4 Draws out most of the characteristics of the case study that points to one predominant approach being used and outlines these in the context of some literature on the topic, but demonstrates understanding. 3 Draws out most of the characteristics of the case study that points to one predominant approach being used. Tends not to use literature to support the discussion and shows some understanding. 2.5 Points to characteristics within the case study that support selection of one approach, uses occasional or scant referencing to support the decision. Shows a very basic understanding of the concept and the task. <2.5 May point to some characteristics, but uses no referencing to support the discussion. Seems not to understand what the task requires. 2/5 Selection of theory – discussion on the theory selected 4 Outlines in succinct detail the theory and uses literature from wider sources than just course material. Demonstrates deep understanding of the theory. 3.5 Outlines the theory and demonstrates good understanding of it, with some wider reading evident. 3 Uses course materials well to show understanding of the selected theory. Includes more than one sentence as an introduction to the theory. 2 Uses some references from course material to show understanding of the theory. Outlines the theory, but does not give depth – presentation of the theory occurs in one sentence. <2 Discusses the theory without any initial explanation of the theory, or use of literature to support argument. 1/4 Selection of theory – drawing parallels from theory to case study 4 Thorough identification of the components of the theory that occur in the case study. Use of extensive literature by theory proponents to support this discussion. Some discussion of post- case study effect of the organisation’s activity according to the theory. Shortcomings in the application of this theory recognised and identified. 3.5 Good identification of the components of the theory that occur in the case study. Substantial use of literature to support this discussion. Touches on what might happen post-case study according to the framework identified by the theory. Shortcomings in the application of this theory recognised. 3 Sound identification of the components of the theory that occur in the case study. Some use of literature to support this discussion and demonstration of some understanding of how the theory might inform crisis management practice. 2 Sufficient identification of components of the theory that occur within the case study in order that the premise that this theory is most appropriate be supported. Some referencing used to support this. <2 Few components of the theory identified as occurring in the case study. Single or no referencing used to support discussion. No recognition of how the theory might inform crisis management practice. 1/4 Conclusion 2 Conclusions well identified and drawn in a succinct and articulate way. Shortcomings referred to. 1.5 – 2 Conclusions briefly identified and drawn out. Rounds off the discussion easily. 1 – 1.5 Some conclusions made, ties up the paper nicely. 1 One or two conclusions referred to. Sufficient. <1 Does not refer to conclusions made in the discussions. Leaves the paper “dangling” with no rounding off with a final word. 0.5/2 Spelling and typography* 4 No errors, clean copy. 3.5 Only a few errors, generally good work. 3 Some errors, but overall sound quality. 2 Quite a few errors affecting the quality of the work. <2 Unsatisfactory, many errors. 1/4 Total 9/30 *Grammatical and style mistakes will be highlighted but no marks deleted. These errors must be corrected in the next assignment. Mark – 9/30 Comments – A reasonable attempt on your essay Hari, but you need to improve your essay writing skills. The USQ Learning and Support Centre offers free one-on-one consultations with students to help them understand what is required in relation to what is required for academic writing: I am also concerned at your lack of referencing and the significant errors in your ‘List of References’. Please read this information on ‘What is referencing’: Please also see read my comments about the length of your essay.

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