Organizations in the Face of Crisis: Managing the Brand and Stakeholders

187 Pages·2013·2.279 MB·English

by  Dennis W. Tafoya (auth.)

Or ganizations in the
Fa ce of C risis
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O rganizations in the
F ace of Cr isis
M a naging the B rand and
Stakeholders
D W. TTT
ENNIS AFOYA
ORGANIZATIONSINTHEFACEOFCRISIS
Copyright © Dennis W. Tafoya, 2013.
Softcover reprint of the hardcover 1st edition 2013 978-1-137-30695-1
All rights reserved.
First published in 2013 by
PALGRAVE MACMILLAN®
in the United States— a division of St. Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Where this book is distributed in the UK, Europe and the rest of the world,
this is by Palgrave Macmillan, a division of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills,
Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-45529-4 ISBN 978-1-137-31397-3 (eBook)
DOI 10.1057/9781137313973
Library of Congress Cataloging-in-Publication Data
Tafoya, Dennis W.
Organizations in the face of crisis : managing the brand and
stakeholders / Dennis W. Tafoya.
pages cm
Includes bibliographical references and index.
1. Crisis management. 2. Organization. 3. Strategic planning.
4. Brand name products—Management. 5. Corporations—Investor
relations. I. Title.
HD49.T34 2013
658.4(cid:2)056—dc23 2012037391
A catalogue record of the book is available from the British Library.
Design by Newgen Imaging Systems (P) Ltd., Chennai, India.
First edition: March 2013
1 0 9 8 7 6 5 4 3 2 1
Dr. Anthony Tomazinis of the University of Pennsylvania whose
contribution more than formalized my thinking regarding planning andd
its functions it expanded my vision of planning’s use and potential in
national and international business and political affairs.
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Co ntents
List of Illustrations ixx
A Acknowledgments xi
Part 1 The Organization, the Brand, and
the Organization’s Stakeholders
1. Introduction 3
2. Acknowledging the Relationship between an
Organization, Its Stakeholders, and Brand 9
3. The Nature of Organization, Brand, and
Stakeholder Dynamics: Setting the Stage for a Crisis 23
4. Stakeholders, the Stakeholder Network, and the Brand:
How the Stakeholder Network Affects a Crisis and
Management Efforts 41
Part 2 Strategy and the Emergent Crisis
5. Understanding the Nature of a Crisis: Why It Has the
Potential to Effect an Organization, Its Stakeholders,
and the Brand 65
6. The Emerging Crisis and the Phenomenon of the
Stakeholder Swarm: Stakeholder Influence on a Stakeholder’s
Network Equilibrium, Brand Attractiveness, and Crisis
Management Efforts 89
7. Managing Brand Trauma 113
Part 3 Implementing the Strategy
8. Building a Crisis Management and Recovery Plan 139
vviii Contents
9. The Emergence of a Crisis in Complex, Adaptive Systems—
The Organization, Its Brand, Stakeholders, and the Future 161
A Appendix A Events and Organization Types: A Mini
Case Study of Channeled Effects Triggered by Attempt to
Destabilize a Community-Type Organization 169
Bibliography 173
Index 179
Illustrations
Figures
3.1 The brand as a transaction point 26
4.1 A stakeholder network at two points in time (the event
and crisis: An automobile accident) 49
4.2 Representative stakeholder roles and their effects on a
network and its resources 52
6.1 Shifting equilibrium as a stakeholder swarm engulfs
the initial stakeholder network (demanders and reliers
increase; supporters and feeders decrease) 94
6.2 Illustration of the potential impact of events on a network 101
6.3 Hypothetical estimation of relationship strengths prior
to and after a crisis emerges 103
8.1 Stakeholder relationships around a shared event 148
Tables
3.1 Strategic practices as potential inhibitors of or contributors to
the evolving brand crisis: Use of strategic practices to advance
or encumber an organization 37
4.1 Stakeholder typology: Profiles of an organization’s stakeholder
network 51
4.2 Five typical network components with representative
stakeholders 54
4.3 The stakeholder network has features and benefits too
(we only name some positive ones) 57
5.1 The Event Spectrum: Model of the crisis-causing event 68