Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Crisis Management Plan: ABC Pvt.Ltd Add in library

307 Download10 Pages 2,313 Words


Describe about the Crisis Management Plan of  ABC Pvt.Ltd?


ABC, it is known as world premiere toy company. These company mainly produce a picture frames. Subsequently, the organization introduced dollhouse furniture as another product in the market. This particular product is produced using picture frame scraps. Meanwhile, after gaining knowledge about the market potentiality of this particular product, the organization decided to change dollhouse furniture to toy manufacturing (Regester & Larkin 2008). After that they created a world most popular product which we known as Barbie doll.  After getting inspired from paper dolls, they started making a three dimensional doll which is known as Barbie doll, which was played in a dream of a little girl. After creating a famous toy which is popular among little girl they decided to develop a famous market popular toy like hot wheels, iron man cartoon characters etc (The Harvard Business Review, 2002). Then they decided to build their company more and more and known as the world largest manufacturer toy company for that they start get merged up with a top most successful company like children program company, start producing a Disney character, famous story book character like harry potter, Alice in wonderland etc, they also merger with some more company.

 After that to gain trust from their customer they tried a lot. The organization tried so many things to position itself as one of the pioneer of children toys (Regester & Larkin, 2008). For being into the market they started organizing some charity show, and also created a global manufacturing principle, to position itself as the world first organization to manufacture a structure on a global level. However sometimes they can’t able to maintain their brand image and has numerous complaints about they have stolen idea from other company to become popular (Coombs and Halladay 2012). After that the company recalls for numerous reasons and at the end of august to September the company faced a biggest recall that was default in their products which is not good for the children. Both recall come one by one which is not good for the company and made the company to face biggest recalls.

First the biggest issues was that they found a faulty magnets on their toy products and the design of the toy occurred a high range of magnet, here the magnet only used for the industry purpose which is not good for the kids, infects they have that magnet because they don’t know what is magnet and can easily have it which is not good for their digestive tract (Seymour & Moore 2000). The major issue was that if the numerous magnets were gulped down they will unite in the stomach as well as rip through the stomach tissue. This serious problem make the company knowing for designing a poor product and it is a serious issue for the young or small children. This problem was found in some of the famous toy like Barbie, action figure of batman etc.  The other reasons were that they used lead based paint for their product which was found on the surface area of many toys. It is dangerous for the children because with this they will suffer from serious disease like hearing loss, anemia, brain damage, slow muscle, bone growth etc.

They were recall for several magnet sets sold that cause harm for the children. In early the retailer said that it is a high lead content toys, from that the company get notification, they came for the investigation were they produce their product (Tench &Yeomans, 2006). After investigation they found that there are number of products did not conform to safety standard. On the other hand they started a recall for the lead paint based products were they put this paint for many of the toys. After all investigation is done they again recalled the company of possible hazards which children can easily swallow those faulty magnets, and they were also recalled for the other reason that is lead based paint. The American safety welfare for children’s toy they said that it would consider the new legislation to keep hazardous toys always from the children (Coombs 2011). They said that many of the toys were evoked as a consequence of magnets compare with painting issue using lead and the culpability of this were profoundly positioned by media. Later the company tells to media they are apologized and taking full blame for the incident.


Program crisis plan:

When the company realized that due to this recall they are facing many problems, they firstly connected to some of agency which is known for the toy problem and their safety. Then they come up with the plans and the facts company had a product defects (Fearn-Banks, 2010). After their investigation they made an official announcement and made first company recall, many public relation personnel called reporters, media outlets were there (Massey & Larsen, 2006). The day when the recall was done by the agency and the company CEO faced many interview on television and continuously taking call from media. They come up with the different ads to tell public about the recalls they took help from the newspaper, online crusade to inform people about the recalls (Fearn-Banks, 2010). There are many Medias press was there who said the company already knew about the fault before the announcement has made to the public and the company constantly been open to media and with their customer too and they said that they have very high standard with the best quality and testing procedures were safety. The company says clearly about the situation they all are doing as much as possible.

Stakeholder issues:

Here the toy company put their customer before because customer are the one who have the direct effect of purchasing those product and also the customer is one who drive their business as success and failure. The company licensed and their shareholders are placed because of this problem employees are affected. Customers are the main assets of the company because the toy company is directly benefited to their customer, and the customers are the main force for their survival and their company growth. It is very difficult to built company brand names and for one crisis they turn out unfavorable. The company loses their profitable opportunities with their partners (Sáez & Gutiérrez, 2015). Employees are also one of the valuable assets for the company and it is necessary to have a continuous support from their employees to sales, reputation etc. Due to this crisis the most effective communication with their shareholders, company convinced their shareholders that in past or in future they will always be transparent with their information. The company is able to make positive impacts on their shareholders, and also they explain their future and current responsibilities. The company also maintains their details about their products and about their recall in their website The company do not want to repeat their mistakes for that the supplier who supply the paint and from that each single batch were tested and they will not use if they does not reach up to the mark (Avraham, 2008).


What company is currently doing?

Thus the company done best, and they come out and talk to media about the recalls or the mistake which is faced by the company (Griffin, 2007). On the front page of the newspapers their company talks about the recalls. This link tell us about the company recall information and also say that how many countries are affected due to this recalls, they also tell their customers why the company are calling for recalled.

Here first company talks about the lead paint, they said that manufacture will use the paint that much they are required and after using the paint they will check each and every product and if their they found the default piece and they will won’t used that product.

Secondly, the company constantly increases their monitoring at every stage of production so that they can implement facilities for all the venders.

And lastly they say that they will test each and every product before the product reach to customers and the product meet series of severe protection prior to go to the marketplace.

Many of the news articles they say about the company second recall that was lead paint rather than the toy problem, for this media is blaming the particular country that they are doing and creating this kind of issues (Stauber, &Rampton, 1995). Many of them were blaming that the part of recall involves the magnet toys, but half of them are not saying that the toys recalled were the design flaw not the lead paint but many of them saying it was totally because of lead based paint. The media coverage of the particular company as vastly different and the company were suffering from many of the crisis; many Medias are also saying that the company was getting the word out quickly and efficiency. The company also says their directness with the consumers as well as with the media and the company want to talk to media about the company favorable coverage and the blamed totally shifted to the country that is producing it (Susskind, and Field, 1996). They want to build the representation of the organization’s brand image and want to talk about the entire problem at the very early stage. There is one article that is in support of the country which is blaming for their products, the article printed in the country itself.  They say that the toy company are fully blaming on our country which is not good here I will say how the country are put on blaming, one of our producer was damaged. One of the articles emphasized that the country product need to improve their safety level as well as gain knowledge of more eminence of goods is habitually for the unsurpassed course of action.


Economic trends:

1. Due to this problem company are facing problems like buying behavior of the customers are changed because many parents don’t want to buy this company product with the tag line of that particular country and their buying habits are changes (Pauly,& Hutchinson, 2005).
2. Many of the companies have partner with the particular toy company have chosen to put into practice their own research work on the particular product ('Company sector', 2013).
3. Some of the emails and notice say that no one can buy and sell that company product.



Here you can see that how company handles their reputation, they handled it exactly what corporation say them to handle it (Mitroff, Shrivastava, and Udwadia, 1987). Company handles the experience very smoothly and handles every corner of crisis management plan. Organization handle the situation very well they say the truth they accept the mistakes and they make an apology in public, and also enforce initiatives to resolve the specific issue ( Courtright, & Slaughter, 2007). One of the articles says that the company handles the problem very well they come out to the public and say about their problem, they confessed then made a mistake and also offered the solutions. The other blaming country does not accept their fault for the product at the initial stage in facts the nation most of the time got into elongated way of corporation for recalls (Murphy, 1991). Accepting all the blame the toy company able to continue and focus on right thing instant of blaming each other’s fault, by this entire thing happen the consumer should see how the company is dependable and who is responsible for it. Other thing you can see that it regards to the comprehensive cost-cutting measure and it is hard to be acquainted with who manufactured the product and who is regulating them.



Avraham, E. (2008), Media Startegies for Marketing Places in Crisis: Improving the Image of Cities, Countries and Tourist Destinations, London: Butterworth-Heinemann

Company sector. (2013). Economic Outlook37(3), 51-52. doi:10.1111/1468-0319.12018

Coombs, T (2011), Ongoing Crisis communications: Planning, Managing & Responding, Lose Angeles: Sage

Coombs, T and Halladay, S (2012), The Handbook of Crisis Communication, West Sussex: Wiley-Blackwell

Courtright, JL & Slaughter, GZ (2007), remembering Disaster: Since the Media Do, So Must Public relations, Public Relations Review, 33 (2007), 313-318

Fearn-Banks, K. (2010), Crisis Communications: A Casebook Approach, London: Routledge

Fearn-Banks, K. (2010), Student Workbook to Accompany Crisis Communications: A Casebook Approach, London: Routledge

Griffin, A. (2007), New Strategies for Reputation Management: Gaining Control of Issues, Crises and Corporate Social Responsibility, London: Kogan Page

Massey, J., & Larsen, J. (2006). Crisis Management in Real Time. Journal Of Promotion Management,12(3-4), 63-97. doi:10.1300/j057v12n03_06

Mitroff, I, Shrivastava, P and Udwadia, F (1987) Effective Crisis Management, The Academy of Management Executive. Vol. 1, No. 3, pp 283-292

Murphy, P (1991), Game Theory Models for Organisational/ Public Conflict, Canadian Journal of Communication, Vol 16, nu. 2

Pauly, J & Hutchinson, L (2005), Moral Fables of Public Relations Practice: The Tylenol and Exxon Valdez Cases, Journal of Mass Media Ethics, 20 (4), 231-249

Regester, M & Larkin, J (2008), Risk Issues and Crisis Management, Kogan Page/ CIPR, 4th Ed

Regester, M & Larkin, J. (2008), Risk Issues and Crisis Management in Public Relations: A Casebook of Best Practice, Kogan Page

Sáez, M., & Gutiérrez, M. (2015). Dividend Policy with Controlling Shareholders. Theoretical Inquiries In Law16(1). doi:10.1515/til-2015-006

Seymour, M & Moore, S (2000) Effective Crisis Management: Worldwide Principles and Practice. London: Cassell

Stauber, J &Rampton, S (1995), Toxic Sludge is Good for You: Lies, Damn Lies and the Public Relations Industry, Monroe, M E: Common Courage Press

Susskind, L and Field, P (1996) Dealing with an Angry Public: The Mutual Gains Approach to Solving Disputes. New York, The Free Press

Tench, R &Yeomans, L, Ed. (2006), Exploring Public Relations, Harlow: Pearson

The Harvard Business Review (2002) The Harvard Business Review on Crisis Management

OR is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.

Most Downloaded Sample of Management

271 Download1 Pages 48 Words

Toulin Method Of Argumentation

You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
202 Download9 Pages 2,237 Words

Consumer Behavior Assignment

Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
367 Download13 Pages 3,112 Words

Internet Marketing Plan For River Island

Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
326 Download9 Pages 2,203 Words

Strategic Role Of HR In Mergers & Acquisitions

Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
353 Download7 Pages 1,521 Words

Relationship Between Knowledge Management, Organization Learning And HRM

Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...

Read More Tags: Australia Arlington Management Management University of New South Wales Management 
Free plagiarismFree plagiarism check online on mobile
Have any Query?