Page 34 - Crisis Management
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External organizational opportunities
and potential crisis events – examples
External opportunities Corresponding potential crises
Expand product • Offering products online can lead to denial-of-service cyber
availability by moving attacks by hackers
from a ‘brick-and- • Note that though such hackers are usually external to the
mortar’ to a ‘brick-and- organization they could also be internal if there is a
click’ arrangement disgruntled employee in the work force
Expand company • The risk of outside interference from the host country
manufacturing
facilities to another • In some cases, companies have been taken over by the host
part of the world country’s government and become state owned
• Because the domestic jobs may be lost in the process, the
Outsourcing manu- company could incur negative publicity from external
facturing to another
stakeholders, particularly former employees and
company putside the
municipalities that hosted the business
host country
• There is the possibility that proprietary information may be
pirated by parties in the host country
• The product from the outsourced company may be defective
External threats Corresponding potential crises
Changing
• The organization may become a target of crime, such as
demographics of
surrounding vandalism or robbery
neighborhoods
• The building and facilities where the organization is located
Severe weather may be damaged by wind, snow, or flooding
• Sales revenue will be interrupted while the building is being
repaired
Dysfunctional customers • There could be an incident of workplace revenue
or other individuals
Poor-quality • The components that are assembled into final product will
components from a cause that product to be defective as well
supplier
Consumer activism due • Consumer law suits may develop in the case of poor-quality
to poor products products
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