Crisis Management- a Case Study on Mumbai Terrorist Attack 359give early warning of change and the possibility of a future national crisis? Again, the challenge is notonly to recognize the crisis but also to bring the complex factors into focus in such a manner thatindividuals can understand and marshal the forces necessary to address the situation. A crisis has been defined as a”turning point for better or worse,” ”decisive moment,” or”crucial time.” A crisis can also be described as”a situation that has reached a critical phase.” A crisisis, therefore, an unstable time or state of affairs in which a decisive change is impending – either onewith a distinct possibility of a highly undesirable outcome, or one with a distinct possibility of a highlydesirable and extremely positive outcome. Any executive who can predict and plan for a turning pointin his or her organization stands a far better chance of capitalizing on that opportunity than someonewho allows the crisis to sneak up on him or her unprepared. Contrary to popular belief, a crisis may notbe necessarily bad. It is merely characterized by a certain degree of risk and uncertainty (Fink, 1986). Crisis management – planning for a crisis, a turning point – is the art of removing much of therisk in uncertainty, thereby allowing those concerned to achieve more control over the destiny of anorganization, and thus creatively exercising the role of management leadership (Darling, Shelton andWalker, 2002)Crisis Management at National LevelCrisis management is a critical organizational function. Failure can result in serious harm tostakeholders, losses for an organization and its very existence. A crisis is defined as a significant threat to operation that can have negative consequences if nothandled properly. It can create three related threats 1) Public safety 2) Financial loss 3) Reputationloss. It damages the organization in terms of finance. The primary concern in a crisis has to be publicsafety. If failure to address public safety intensifies the damage from crisis reputation and financialconcern are considered after public safety has been remedied. Barton (2001), Coombs (2007a), and Fearn –Banks (2001) have noted how a CMP saves timeduring a crisis by pre assigning tasks, pre- collecting some information, and serving as a referencesource. Barton (2001) identifies the common members of the crisis team as a public relations, legalsecurities, operations, finance and human resources. Time saved because the team has already decidedon who will do the basic tasks required in a crisis. Augustine(1995) notes that plans and teams are of little value if they are never tested. Mitroff,Harrington and Gia (1996) emphasize that training is needed so that team members can practicemaking decisions in crisis situation. Coombs (2007a) summaries the research and shows how practiceimproves a crisis team’s decision making and related task performance.Models and Theories Associated with Crisis ManagementCrisis Management ModelSuccessfully diffusing a crisis requires an understanding of how to handle a crisis – before it occurs.Gonzalez-Herrero and Pratt created a four-phase crisis management model process that includes: issuesmanagement, planning-prevention, the crisis, and post-crisis (Gonzalez-Herrero and Pratt, 1995).Management Crisis PlanningNo nation looks forward to facing a situation that causes a significant disruption to their massespecially one that stimulates extensive media coverage. Public scrutiny can result in a negativefinancial, political, legal and government impact. Crisis management planning deals with providing thebest response to a crisis. (12Manage, 2007)
360 Manisha ShekharContingency PlanningPreparing contingency plans in advance, as part of a crisis management plan, is the first step toensuring a nation is appropriately prepared for a crisis. Crisis management teams can rehearse a crisisplan by developing a simulated scenario to use as a drill. The plan should clearly stipulate that the onlypeople to speak publicly about the crisis are the designated persons, such as the nation spokesperson orcrisis team members. The first hours after a crisis breaks are the most crucial, so working with speedand efficiency is important, and the plan should indicate how quickly each function should beperformed. When preparing to offer a statement externally as well as internally, information should beaccurate. Providing incorrect or manipulated information has a tendency to backfire and will greatlyexacerbate the situation. The contingency plan should contain information and guidance that will helpdecision makers to consider not only the short-term consequences, but the long-term effects of everydecision. (12Manage, 2007)Structural-Functional Systems TheoryConsidering a nation as an organization for a while when the crisis stuck…………..Providinginformation to an organization or nation in a time of crisis is critical to effective crisis management.Structural-functional systems theory addresses the intricacies of information networks and levels ofcommand making up organizational communication. The structural-functional theory identifiesinformation flow in organizations as "networks" made up of members and "links". Information inorganizations flow in patterns called networks (Infante, Rancer, & Womack, 1997).Diffusion of Innovation TheoryAnother theory that can be applied to the sharing of information is Diffusion of Innovation Theory.Developed by Everett Rogers, the theory describes how innovation is disseminated and communicatedthrough certain channels over a period of time. Diffusion of innovation in communication occurs whenan individual communicates a new idea to one or several others. At its most elementary form, theprocess involves: (1) an innovation, (2) an individual or other unit of adoption that has knowledge of orexperience with using the innovation, (3) another individual or other unit that does not yet haveknowledge of the innovation, and (4) a communication channel connecting the two units. Acommunication channel is the means by which messages get from one individual to another (Infante etal., 1997).Pre-Steps Involved IN Crisis Management 1) A crisis management plan has to be developed firstly and updated periodically. 2) Create and designate crisis management team and proper training should be provided. 3) Pre- draft select crisis management including content for dark websites and templates for crisis statements have the legal department review and pre- approve these messages. 4) Media person should be trained before hand to hand crisis effectively. Lerbinger (1997), Feran- Bank (2001), devote considerable attention to media relation in a crisis.Don’t Do’s 1) Avoid the phrase no comment. 2) Avoid jargon or technical terms. 3) Avoid nervous habit that people interrupt or deception. 4) Avoid distracting nervous gestures such as pacing.
Crisis Management- a Case Study on Mumbai Terrorist Attack 361Do’s 1) Present information clearly 2) Appear pleasant on camera 3) Media person need to have strong eye contact, limited disfluences ‘uhms’or ‘uhs’. 4) Media person should have latest crisis information. 5) Be prepared to use internet as one of the channel for reaching public. 6) Be prepared to use unique websites or part of your websites to address crisis concern.Disaster Scenario Networking and Networking Research NeedsThe disaster scenario discussion identified networking challenges including: • Sensornet: An as hoc network of sensors configured for and attached to the existing infrastructure. High bandwidth connections, e.g. gigabyte satellite to reach rural areas. • Heterogeneous environment of sensors, networking capabilities, and administrative structures • Dynamic environment and changing user requirements providing a need for new network management and visualization tools and automatic reconfiguration, management and control. • Technology reuse: using surviving resources for purposes other than the primary purpose they were designed for • Data resources: Satellite sensors and deployed video sensors that produce data at the rate of hundreds of megabytes per second. These data are used in modeling and by command centers. Rapidly changing loads place emphasis on QoS based on media type (sensor data, voice, and video) and user. • Real-time modeling: Significant distributed computational and communications resources top support now casting. The disaster scenario discussion identified research needed to meet these challenges, including:InteroperabilityOrganized sensor and networks will have to operate seamlessly with the existing infrastructure andwith each other to overcome existing incompatibilities, routing mismatches, and security mismatchesbetween different providers.Robustness and Dynamic ReconfigurationThe infrastructure must be designed to cope with a wide variety of faults and dynamically changingresources by providing resources and paths and the ability to actively reconfigure. Redundanttechnologies should be used so that their failure modes are as distinct as possible to decrease theprobability of system failure.Reuse of TechnologiesReuse of wireless devices (including routing, spotcasting, ad hoc communication, sensing andapplication software download) could help ensure that local resources are available during a disasterresponse. Reuse could also support functions needed to transform from short-term crisis management tolonger-term emergency response.Self Organizing, Self-Healing NetworksSelf- Organizing, self-healing network will expedite the organization of remaining and newly deployedsensors and technologies to establish routes and to connect to the existing infrastructure with minimalhuman intervention. The involvement and coordination of government agencies, companies and
362 Manisha Shekharindividuals may require establishing a temporary administrative domain including components fromthe different organizations.Dynamic, Adaptive, Time-Varying QoSIn a crisis response, bandwidth resources may not match the work load and work loads may varysignificantly over time and space. For example, time criticality and video quality requirement may varydepending on whether its supports telemedicine or media are appropriate to the application andnetwork technologies.Discovering Resources and their LocationsEstablishing and ad hoc infrastructure and for disaster response require resource discovery such asidentifying and locating available links and their capacities; information, computational and otherresources; and QoS capabilities to support priority information distribution and delivery of telemedicalresources.Trust: Security, Privacy and ReliabilityIssues of trust, encompassing security, privacy and reliability, pervade the disaster scenario. Thedisaster response resources must provide differing levels of security, assurance and reliability based onthe needs of the end user and their applications such as medical data transmission and patient privacyover heterogeneous, ad hoc networks and devices. Research needs to address: • Heterogeneity of parties involved: A major disaster will involve many government agencies (local, state and Federal), companies and individuals. Disaster response networks must be responsive to their diverse security and trust policies that may contain incompatibilities and hinder sharing data and other resources. This issue can be further complicated if other sovereign nations are involved. • Flexibility: Disaster responses may require temporary flexible modification or violation of security and trust policies. For example- an emergency medical team may need to access patient records for which it ordinarily would not have authorization. • Reuse of technologies: Technologies may be designed so they can perform actions in crisis that are not their primary functions. They also need to be designed so they are not then susceptible to third party invasion during normal times of operation using their crisis response capabilities. • False alarms: Research should be conducted on detecting a false alarm by an intruder and being able to identify that intruder.Network Visualization and Network ManagementCurrent network visualization and management tools are not able to handle the ad hoc heterogeneousnetworks needed for disaster response. New network monitoring and measurement tools are needed tosupport visualization and management.Spectrum ConflictsSpectrum conflicts that arise whenever different technologies (for example, Medium access control(MAC) protocols and cellular standards) share the same portion of the spectrum will need to beovercome.Metrics and PerformanceMetrics are needed to measure the time to set up a network and the amounts of traffic supported atdifferent levels of QoS. Simulation and analysis tools are needed to deal with time dependent responseproblems and networks with many orders of magnitude difference in speeds from one part of the
Crisis Management- a Case Study on Mumbai Terrorist Attack 363network to another. Solutions to the time dependent response problem should be evaluated in multipleway including simulation using benchmarks. In addition, training exercises are needed to stress and testdifferent solutions.Crisis ResponsePublic relation plays are critical role in crisis responses by helping to develop the messages that aresent to public various public. Initial crisis response is what Government does and says after the crisishits. Arpan and Korko-Ewoldren (2005) conducted a study that documented how a quick earlyresponse allows an organization to generate greater credibility than a slow response. Crisis management will make it easier for crisis management to respond quickly. Governmentshould be ready to provide stress and trauma counseling to victims of the crisis and their families.Master List of Reputation Repair Strategies 1) Attack the accuser: crisis manager confronts the person or group claiming something is wrong with the organization. 2) Denial: crisis manager asserts that there is no crisis. 3) Scapegoat: crisis manager blames some person or group outside of the organization for the crisis. 4) Excuse: crisis manager minimizes organizational responsibility by denying intent to do harm and/or claiming inability to control the events that triggered the crisis. 5) Provocation: crisis was a result of response to some one else’s actions. 6) Defeasibility: lack of information about events leading to crisis situation. 7) Accidental: lack of control over events leading to crisis situation. 8) Good intentions: organization meant to do well. 9) Justification: crisis manager minimizes the perceived damage caused by the crisis. 10) Reminder: crisis manager tell stakeholder about the past good works of the organization. 11) Intragation: crisis manager praises stakeholders for their actions. 12) Compensation: crisis manager offers money or gifts to victims. 13) Apology: crisis manager indicates the organization takes full responsibility for the crisis and asks stakeholders for forgiveness.Case StudyCenter for Strategic Analysis and Research (referred here to as CSAR) has taken up this nationaltask and find out a mathematical model for the analysis and evaluation of crisis management. According to the dates of terror attack plotted against the places of attack on INDIAN MAP- alogical trajectory was observed which had a uniform angle of 26 degrees and the hyperbola was lyingon Visakhapatnam when the trajectory was extrapolated on wider scale the probable target with linearterrorist operation were found to be LUCKNOW/ KANPUR and GOA/ PANAJI with the strikingdates as January 13 and March 26 respectively. The hyperbola falling on Visakhapatnam reveals thebitter truth that a submarine of Pakistani origin was torpedo in the Jet by INDIAN Forces. The submarine PNS GHAZI was located in beneath the Visakhapatnam during the BangladeshLiberation War and that was destroyed by INS RAJPUT. To avenge the ruthless defeat at the hands ofINDIAN forces in 1971, the Pakistani army has developed a well planned trajectory to demonstrate itsmilitary might with a clear demonstration of their covering the entire INDIAN area.
364 Manisha Shekhar Kindly look at the pattern below followed by terrorists: S no. Date of Attack City of Attack 1 13 May 2008 Jaipur 2 June- Lean 3 26 July 2008 Ahemdabad 4 August- Lean 5 13 September 2008 Delhi 6 October- Lean 7 26 November 2008 Mumbai 8 December- lean 9 Expected Date-13 Jan 2009 May be Lucknow/Kanpur 10 February- Lean 11 Expected Date- 26 March 2009 May be Goa The INDIAN GOVERNMENT should keep this in mind and hopefully we shall be able to avertthe next terrorist attack on the country. On 26 November, 2008, the world experienced the most publicized sudden crisis, which wasoutbreak of anti social activity against common people of India. Total 183 people lost their lives and314 were seriously injured in almost three days of terror that unleashed on Mumbai starting 26November 10 attackers. At the same time Indian Government was blamed by foreign government, internationalorganizations & international press for being reluctant to admit the outbreak of terror attack.Why??...... One criticism was that the police force on the ground had World War II guns and that thebullet-proof jackets of the force were sub-standard. Thats why we saw so many casualties in the policeforce.
Crisis Management- a Case Study on Mumbai Terrorist Attack 365 Modernization of the force is the need of the hour and should be at the top priority So we needspecialized teams in the police force to deal with such situations. But one must understand thatpolicemen and officers from nearest police stations will be the first ones to reach the spot and will bethe first in the firing line. On bullet-proof jackets, Id like to point out that there is no bullet-proof jacket that can stop abullet fired from .303 rifles. In the case of modern assault rifles, if one gets hit from 10 metres, then toothe bullet can pierce the shield. In the case of ATS chief Hemant Karkare, the bullet hit his throat, which is not protected byany jacket, Additional Commissioner Ashok Kamate was not wearing the jacket as it hampersmobility. Only in the case of Senior Inspector Vijay Salaskar did the bullet pierce his bullet-proofjacket. The Intelligence Bureau has confirmed that the attacks that took place in Mumbai on 26 Nov,2008 might were an act of terror and aimed at disrupting peace and causing panic among Mumbaikers. The reason for IB to say that the terror attack is due to fact that operation was synchronized alsoit was a serial firing and apart from security personal only terrorist had access to AK-47 rifles. Also thepurpose of this retrospective study is to examine the Indian Government’s role in crisis managementduring this terror attack.Crisis Management Success StoriesMumbaiIn 2008, 26 November, 9 terrorists attacked Taj hotel, Oberoi Hotel and Nariman House at Mumbaiand killed almost 200 people and about 300 were seriously injured in these three places. It took threedays for NSG commandos to overcome these terrorist. In the three days long fight, the commandoswere able to kill 8 terrorists and captured one injured. Despite the terror attack, the basic feature ofMumbai as a safe and secure city for everyone, whether he is living in a slum or is the CEO of acorporate giant, has not changed. Parents in the city dont worry about their young professional daughters coming home late atnight in public transport. Having said that, there is no guarantee that this -- a better law-and-ordersituation in the city compared with other metros -- will protect you from a terror attack.Tylenol (Johnson and Johnson)In the fall of 1982, a murderer added 65 milligrams of cyanide to some Tylenol capsules on storeshelves, killing seven people, including three in one family. Johnson & Johnson recalled and destroyed31 million capsules at a cost of $100 million. The affable CEO, James Burke, appeared in televisionads and at news conferences informing consumers of the companys actions. Tamper-resistantpackaging was rapidly introduced, and Tylenol sales swiftly bounced back to near pre-crisis levels(Dezenhall, 2004). Johnson & Johnson was again struck by a similar crisis in 1986 when a New York woman diedon Feb. 8 after taking cyanide-laced Tylenol capsules. Johnson & Johnson was ready. Respondingswiftly and smoothly to the new crisis, it immediately and indefinitely canceled all televisioncommercials for Tylenol, established a toll-free telephone hot-line to answer consumer questions andoffered refunds or exchanges to customers who had purchased Tylenol capsules. At weeks end, whenanother bottle of tainted Tylenol was discovered in a store, it took only a matter of minutes for themanufacturer to issue a nationwide warning that people should not use the medication in its capsuleform (Rudolph, 1986).
366 Manisha ShekharOdwalla FoodsWhen Odwallas apple juice was thought to be the cause of an outbreak of E. coli infection, thecompany lost a third of its market value. In October 1996, an outbreak of E. coli bacteria inWashington State, California, Colorado and British Columbia was traced to unpasteurized apple juicemanufactured by natural juice maker Odwalla Inc. Forty-nine cases were reported, including the deathof a small child. Within 24 hours, Odwalla conferred with the FDA and Washington state healthofficials; established a schedule of daily press briefings; sent out press releases which announced therecall; expressed remorse, concern and apology, and took responsibility for anyone harmed by theirproducts; detailed symptoms of E. coli poisoning; and explained what consumers should do with anyaffected products. Odwalla then developed - through the help of consultants - effective thermalprocesses that would not harm the products flavors when production resumed. All of these steps werecommunicated through close relations with the media and through full-page newspaper ads (Dwyer,1998).MattelMattel Inc., the countrys biggest toy maker, has been plagued with more than 28 product recalls and inSummer of 2007, amongst problems with exports from China, faced two product recall in two weeks.The company “did everything it could to get its message out, earning high marks from consumers andretailers. Though upset by the situation, they were appreciative of the companys response. At Mattel,just after the 7 a.m. recall announcement by federal officials, a public relations staff of 16 was set tocall reporters at the 40 biggest media outlets. They told each to check their e-mail for a news releaseoutlining the recalls, invited them to a teleconference call with executives and scheduled TVappearances or phone conversations with Mattels chief executive. The Mattel CEO Robert Eckert did14 TV interviews on a Tuesday in August and about 20 calls with individual reporters. By the weeksend, Mattel had responded to more than 300 media inquiries in the U.S. alone” (Goldman and Reckard,2007).Lessons Learned in Crisis ManagementImpact of Catastrophes on Shareholder ValueOne of the foremost recognized studies conducted on the impact of a catastrophe on the stock value ofan organization was completed by Dr Rory Knight and Dr Deborah Pretty, (1995, Templeton College,University of Oxford - commissioned by the Sedgewick Group). This undertook a detailed analysis ofthe stock price, (post impact), of organizations that had experienced catastrophes. The study identifiedorganizations that recovered and even exceeded pre-catastrophe stock price, (Recoverers), and thosethat did not recover on stock price, (Non-recoverers). The average cumulative impact on shareholdervalue for the recoverers was 5% plus on their original stock value. So the net impact on shareholdervalue by this stage was actually positive. The non-recoverers remained more or less unchangedbetween days 5 and 50 after the catastrophe, but suffered a net negative cumulative impact of almost15% on their stock price up to one year afterwards. One of the key conclusions of this study is that "Effective management of the consequences ofcatastrophes would appear to be a more significant factor than whether catastrophe insurance hedgesthe economic impact of the catastrophe". While there are technical elements to this report it is highly recommended to those who wish toengage their senior management in the value of crisis managementBhopalThe Bhopal disaster in which poor communication before, during, and after the crisis cost thousands oflives, illustrates the importance of incorporating cross-cultural communication in crisis management
Crisis Management- a Case Study on Mumbai Terrorist Attack 367plans. According to American University’s Trade Environmental Database Case Studies (1997), localresidents were not sure how to react to warnings of potential threats from the Union Carbide plant.Operating manuals printed only in English is an extreme example of mismanagement but indicative ofsystemic barriers to information diffusion. According to Union Carbide’s own chronology of theincident (2006), a day after the crisis Union Carbide’s upper management arrived in India but wasunable to assist in the relief efforts because they were placed under house arrest by the Indiangovernment. Symbolic intervention can be counter productive; a crisis management strategy can helpupper management make more calculated decisions in how they should respond to disaster scenarios.The Bhopal incident illustrates the difficulty in consistently applying management standards to multi-national operations and the blame shifting that often results from the lack of a clear management plan(Shrivastava, 1987).Ford and Firestone Tire and Rubber CompanyThe Ford-Firestone dispute transpired in August 2000. In response to claims that their 15-inchWilderness AT, radial ATX and ATX II tire treads were separating from the tire core—leading togrisly, spectacular crashes—Bridgestone/Firestone recalled 6.5 million tires. These tires were mostlyused on the Ford Explorer, the worlds top-selling sport utility vehicle (SUV) (Ackman, 2001). The two companies’ committed three major blunders early on, say crisis experts. First, theyblamed consumers for not inflating their tires properly. Then they blamed each other for faulty tiresand faulty vehicle design. Then they said very little about what they were doing to solve a problem thathad caused more than 100 deaths—until they got called to Washington to testify before Congress(Warner, 2002).ExxonOn March 24, 1989, a tanker belonging to the Exxon Corporation ran aground in the Prince WilliamSound in Alaska. The Exxon Valdez spilled millions of gallons of crude oil into the waters off Valdez,killing thousands of fish, fowl, and sea otters. Hundreds of miles of coastline were polluted and salmonspawning runs disrupted; numerous fishermen, especially Native Americans, lost their livelihoods.Exxon, by contrast, did not react quickly in terms of dealing with the media and the public; the CEO,Lawrence Rawl, did not become an active part of the public relations effort and actually shunnedpublic involvement; the company had neither a communication plan nor a communication team inplace to handle the event—in fact, the company did not appoint a public relations manager to itsmanagement team until 1993, 4 years after the incident; Exxon established its media center in Valdez,a location too small and too remote to handle the onslaught of media attention; and the company acteddefensively in its response to its publics, even laying blame, at times, on other groups such as the CoastGuard. These responses also happened within days of the incident (Pauly and Hutchison, 2005).Public Sector Crisis ManagementIndia, America, is not the only community that is vulnerable to the perils of a crisis. Whether a terroristattack, a school shooting, a public health crisis or that leaves the public seeking comfort in the calm,steady leadership of an elected official, no sector of society is immune to crisis. In response to thatreality, crisis management policies, strategies and practices have been developed and adapted acrossmultiple disciplines.Government and Crisis ManagementHistorically, government at all levels – local, state, and national – has played a large role in crisismanagement. Indeed, many political philosophers have considered this to be one of the primary roles
368 Manisha Shekharof government. Emergency services, such as fire and police departments at the local level, and theUnited States National Guard at the federal level, often play integral roles in crisis situations. To help coordinate communication during the response phase of a crisis, the U.S. FederalEmergency Management Agency (FEMA) within the Department of Homeland Security administersthe National Response Plan (NRP). Similarly in India. ATS (Anti Terrorist Squad) is there to fight andprotect the nation against the terrorism. This plan is intended to integrate public and private responseby providing a common language and outlining a chain-of-command when multiple parties aremobilized. It is based on the premise that incidences should be handled at the lowest organizationallevel possible. FEMA offers free web-based training on the National Response Plan through theEmergency Management Institute.ConclusionIt is difficult to distill all that is known about crisis management into one, concise entry. I have tried toidentify the best practices and lessons created by crisis management researchers and analysts. Whilecrisis begin as a negative/threat, effective crisis management can minimize the damage and in somecase allow an organization to emerge stronger than before the crisis. However, crisis are not the idealway to improve an organization. But no organization is immune from a crisis so all must do their bestto prepare for one. This entry provides a number of ideas that can be incorporated into an effectivecrisis management program. The world is not undergoing a crisis in the system but a crisis of the system in which the realeconomy has become subservient to financial economy. All solutions must be based on this underlingtruth. Nothing less than a Global Round on a Reconstructed Economic Order is required to address anintegrated reform and restructuring of the global economy- including finance, trade, investment,production, corporate codes of conduct, labor standards, systemic risk and environmental regulation.The efforts of the G20 are puny compared to the comprehensive and serious process appropriate to thescale of these converging crises of the 21st century.AcknowledgementThe author would like to thank all the member of Centre for Strategic Analysis & Research whocontributed to the 2000 similar incident report upon which this and other papers in the crisismanagement series are based. The author would also like to thank Dr. M. C. Saxena and Late Dr. H.M. Srivastava, for their excellent guidance and constant encouragement. The author also give hersincere regards to Er. L. Shekhar, Mr. Vishal Saxena, Er. Priya Bhatnagar, Er. Anand Rai for theiruntiring co operation all through the way.The author take this opportunity to thank all staff members ofElectronics and Communication Department of Dr M.C. Saxena College of Engineering AndTechnology for providing their moral support.
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