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Formal Analytical Report: A Crisis Management Communication Plan for the Sunnako
Confectionery Company
For all organizations, the need for a crisis management communication plan is
underscored by the myriad challenges that can emerge in day-to-day operations. An
effective crisis management plan can help the organization to anticipate potentially
serious issues before they become a major problem. This formal analytical report will
outline a comprehensive crisis management communication plan for the Sunnako
Confectionery Company. Preliminary research has identified the lack of a clear crisis
communication plan as contributing to the company's current shortage of employees
and other resources in many areas of operations. In light of this potentially serious
issue, this formal analytical report provides a robust plan for the management of the
shortage, including communications, along with various other issues which could
potentially arise and create significant disturbances or disruptions in the firm's ongoing
operations. It will be demonstrated that an effective crisis communications management
plan can help Sunnako Confectionery anticipate critical operations issues and be better
prepared to manage and address such issues before they reach the level of a crisis.
Sunnako Confectionery: Industry Risk Factors and the Current Crisis
The nature of Sunnako Confectionery's business necessitates that management
has appropriate procedures in place for identifying, assessing, and addressing various
issues related to operations that could create a crisis situation for the company. The
proposal for this formal report identified a problem with Sunnako Confectionery's lack of
a sufficient number of employees to meet the company's considerable demands in
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regard to production. The failure of the organization to identify this issue early on and
before it became a significant problem, highlights a larger issue regarding the
company's lack of a crisis communications management plan. The presence of an
established and formalized crisis communications management plan would have likely
helped the company to avoid this particular issue. In addition, the presence of such a
plan would help the firm better manage a range of potentially significant and impactful
events Sunnako may be likely to face in the future.
Historically, the confectionery industry has been affected by a large number of
occupational health risks, as well as accidents related to the actual duties of workers
(New York (State) Workmen's Compensation Board , 1947; National Center for Trade
Union Action and Democracy, 1965). A strong understanding of the historical risks
associated with the industry has contributed to the company's robust and
comprehensive safety standards and workplace codes of condut; however, the lack of a
clear crisis communication plan for managing such crises arising from potential
industrial accidents represents a significant vulnerability for the company to address.
Public health risks also necessitate Sunnako's development and implementation
of a crisis communications management plan. The literature notes that chocolate candy
products have frequently been cited as the source of salmonella outbreaks in recent
years (Cordier, 1994). Moreover, in the event that a product is contaminated and a
recall is required, the negative attention from media that may arise can create major
damages to a firm's overall reputation (Martinez, 2011). A crisis communications
management plan is essential in helping to prevent such issues from before they occur.
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In addition, it is also important for Sunnako's management to be aware of any
environmental issues or incidents that may arise out of the company's operations. An
accident resulting in environmental harms, such as the spill of waste products, or the
release of potentially harmful emissions, could also create a major crisis for the firm. It is
argued that "being in an industry where an environmental crisis is even a remote
possibility requires that you plan for such a contingency" (Oltmanns, 2008, p. 162). In
this sense, there are a great many reasons for Sunnako to adopt a crisis communication
management plan. The next section of this report outlines the design and of the specific
crisis management program, given Sunnako's pressing needs.
Crisis Management and Employee Shortfalls
Effective management of an organization is facilitated by sound communication
practices (Daft & Marcic, 2008). Indeed, the literature notes that good communication is
essential if managers and leaders are to be able to potentially identify issues at an early
stage so as to prevent a crisis from occurring (Daft & Marcic, 2008). At its core, crisis
management involves creating a deliberate and efficient response to serious events,
while facilitating the organization's ongoing and uninterrupted business operations (Ray,
1999). Thus, an effective crisis management plan is involves creating effective
communications channels, and ensuring any barriers to clear communications in the
organization are eliminated.
The layered crisis communications architecture (CCA) (Hale, 1997), may provide
a useful framework for helping to develop and establish an effective crisis management
communications plan in the Sunnako Confectionery company. The literature notes that
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the CCA framework can help to explicate the communication needs for an effective
crisis management plan (Hale, 1997). Indeed, according to the CCA framework, it is
noted that communications systems must be comprised of six layers in order to
effectively address the needs of those responding to crisis situations, and that each
higher layer relies on the last to ensure all communications needs are met (Hale, 1997).
In this sense, the framework is useful for helping to make clear the communications
needs of all actors in a crisis response setting.
Implementation of Plan
Responding to this particular crisis requires that the company take a number of
immediate steps to increase its overall manpower, as well as increase the number of
vehicles it has in order to meet order demands and reduce the number of late orders.
Indeed, the firm's immediate response must involve hiring and training new staff to
address the employee shortfalls, as well as acquiring new trucks to ensure delivery
targets can be better met. Following these steps to immediately address the pressing
issue, the implementation of reporting systems to uncover potential production shortfalls
must be implemented.
Staff and vehicles should be provided to those sites and
locations where shortages are the greatest, and delays have been the longest. By
directing these resources to the areas of operations most in need, the company can
ensure the most efficient use of resources possible.
Establishing clear and direct reporting structures for delivery and production
targets, as well as customer complaints, would help the organization's management
team to better anticipate and address potential issues before they may become more
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serious. Establishing clear reporting structures fulfills two key components of crisis
preparation, including, "looking for and reducing the likelihood that a crisis will occur;
and communicating with key markets... to prepare them for a crisis" (Heath & Millar,
2003, p. 6). In this case, the presence of such reporting structures would have alerted
management to the presence of a potential problem early on, and allowed the
organization to take pro-active measures to ensure the employee shortfalls did not
reach the crisis level.
Furthermore, in the event that the employee problem regarding the insufficient
amount of labour was unavoidable, reporting structures would have allowed the
company to alert stakeholders, thus, avoiding a crisis or seriously lessening its impact.
To be sure, reporting structures would have allowed management to contact suppliers
and potentially adjust orders to account for the reduced production capacity, as well as
contacted customers to alert them of potential shortages in services. Had such a crisis
management communications plan actually been in place, it is likely the firm could have
reduced the potential impact of this crisis, even if it were somehow deemed
unavoidable. In this sense, ensuring effective communications prior to the crisis is
essential for helping the company to prevent such issues from occurring.
In addition, the literature establishes the importance of clear communication
channels during both a crisis, as well as during regular operations (Hale, 1997).
Moreover, it is argued that "an effective crisis communication plan identifies
communication initiatives to assist the organization in achieving its objectives of
controlling a particular crisis, preventing its escalation, and protecting the organization's
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long-term corporate interest and public image" (Ray, 1999, p. 48). With these
considerations in mind, Sannako should take steps to further limit the potential damage
caused by this crisis by reaching out to customers affected by the late orders and
production difficulties.
It is argued that companies in crisis who attempt to deceive wronged consumers
or other stakeholders frequently end up doing more harm to their reputations (Martinez,
2011). As an alternative course of action, Sannako can engage the services of a public
relations firm to draft an apology to customers, with the explanation that the company's
growth and profitability has been unprecedented, ultimately resulting in the unfortunate
service disruptions. Offering consumers affected a discount on future orders may help
to satisfy customers with complaints, and protect the image of the firm. Implementing
this as a component of the communications plan represents a relatively inexpensive
method of both addressing the potential harm done to the company's reputation, as well
as improving overall communications with important stakeholders.
Moreover, the literature on crisis management notes that the organization must
take into account the opinions and feelings of stakeholders throughout the crisis, and
tailor communications to these stakeholders based on an understanding of their feelings
and needs (Ray, 1999). Indeed, it is argued that messages must be highly tailored to
the specific audience they are intended (Fearn-Banks, 2007). Thus, offering an apology
as well as discount to customers affected can also be lauded as a response for the way
this approach attempts to take responsibility for the shortfall, and acknowledge the
customer's complaint as legitimate. Such actions may be important toward not only
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reducing complaints, but also retaining potentially valuable and longstanding customers
and clientele.
Conclusion
The formal analytical report presented here outlines a number of potentially
significant communications problems within the Sannako Confectionery company.
These problems have contributed to a crisis situation involving staff and vehicle
shortfalls, resulting in production shortfalls and consumer complaints. In assessing this
situation, it is clear that Sannako's lack of a crisis management communication plan
contributed to both the development of this crisis, as well as its severity. The
recommendations outlined in this report include establishing reporting structures to
better anticipate such resource problems, as well as improving communications
channels to ensure all stakeholders are informed of pertinent operations and business
information. By adopting the recommendations specified here, Sannako Confectionery
can protect the company against a range of risks, as well as better manage any crises
that do develop. Given the significant number of risks the company faces due to the
nature of its operations, the need for a sound crisis management communications plan
is clear.
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