Question

In three paragraphs or more, describe a business crisis scenario; it can be a real scenario that happened to an existing company or a new scenario that you create. Then, come up with a crisis management plan of 3-5 steps that addresses how you would fix the crisis and how you would communicate to the public about it.

Answer 1

A business crisis occurs when an unexpected problem puts the stability of a company at risk. It may be a financial crisis, personnel crisis, organizational crisis , Technological crisis or any other form of crisis . The future of the company will be depend on whether the crisis can be tackled or not.

At present, uncertainty created by the Corona pandemic has led to a crisis situation for most of the business. Lets look at an example, SoftBank Group Corp ,a Japanese multinational conglomerate company head quartered in Tokyo has been badly hit . The losses of the company accounted for $12.7 billion, in the fiscal year that ended on 31 March. Company faced an annual loss for the first time and the losses were higher than its estimates .The dismal results were driven by soft bank's big bets on a series of technology related companies that had once been darlings of the world. Those included WeWork, office space company and Uber as well as poor showings by other companies that have been hit hard by the corona virus pandemic. Now , softbank's flagship tech fund is underwater and a key board member ( Jack Ma ,co founder of Alibaba) has left as Masayoshi Son, Cheif executive of the following mustered a spirited defense pf his troubled empire.

The crisis faced by SoftBank won't be easy to tackle. A prudent crisis management plan is necessary which may include steps like,

* Measures must be taken to reassure the Investors and restore the reputation of the following in the global market.

* Boost the performance of vision fund 2 , an ambitious initiative of the company .

* Take a cautious approach to both future investments as well as current investments.

The company should try to boost the performance of its unicorns which hasn't been fallen into the valley of corona virus.

Crisis management plan must be clearly communicated with employees and investors before announcing anything related to I front of the world. There is no need to be pessimistic , SoftBank will be able to get back on track, but it's recovery process will be gradual.