A crisis is an unstable situation that threatens an individual, group, or organization. Common features of a crisis include a sense of loss of control, urgent demands for information, and pressure building over time. There are several types of crises such as financial, technological, natural, deception, and workplace violence. Crisis management involves gathering facts, communicating accurately, developing policies to minimize future crises, and assembling resources to respond effectively. Examples provided show both successful crisis management by Pepsi and unsuccessful crisis management of the Bhopal gas tragedy.

2. Crisis
 Crisis is any event that is expected
to lead to, an unstable and
dangerous situation affecting an
individual, group, community or
whole society.
 It is a situation that is unpredictable,
but it is not unexpected.

3. Common features of Crisis
 The situation materialises unexpectedly.
 Decisions are required urgently.
 Time is short.
 Urgent demands for information are received.
 There is sense of loss of control.
 Pressures build over time.
 Routine business become increasingly difficult.
 Reputation suffers.

4. Types of Crisis
 Financial Crisis
 Technological Crisis
 Natural Crisis
 Crisis of Deception
 Workplace Violence

5. Financial Crisis
 These are the crisis that occur in an organization due to its
prevailing financial conditions.
 Losses, increase in costs, non-availability of funds,
bankruptcy, unable to pay back loans, etc.

6. Examples of Financial Crisis
 Kingfisher Airlines,
recently faced a financial
crisis.
Deutsche Bank faced a
financial crisis in USA, in
2009.

7. Technological Crisis
 Technological crisis are caused by human application of
science and technology. This occurs when technology
becomes complex and the system breaks down.
 Software failures, Industrial accidents etc.

8. Examples of Technological Crisis
 Exxon Valdez, oil spill in
Alaska, on March 24,1989.
Union Carbide India Ltd,
gas leak in Bhopal, on
December 2, 1984.

9. Natural Crisis
 Natural crisis, are natural disasters considered as 'acts of
God,' are such environmental phenomena.
 Earthquakes, volcanic eruptions, tornadoes and hurricanes,
floods, landslides, tsunamis, storms, and droughts etc.

10. Examples of Natural Crisis
 The Power Project of
Jaiprakash Associates, at
Nathpa, in Himachal Pradesh
was devastated by floods.
The Indian Ocean
earthquake (Tsunami) , in
2004.

11. Crisis of Deception
 Crisis of deception occur when management conceals or
misrepresents information about itself and its products in
its dealing with consumers and others.

12. Example of Crisis of Deception
The Satyam scam, which came into light, in
2009

13. Workplace Violence and Rumors
 Crisis occur when an employee(s) or former employee(s)
commits an act of violence against other employees on
organizational grounds.
 Rumors are, when false information about an organization
or its products creates crises hurting it’s reputation.

14. Example of Workplace Violence and Rumors
 A workplace violencehad
occurred between the
laborers and higher
authority, in Vardhman
Group of Companies.
Procter & Gamble’s
Logo controversy in 1985.

15. Crisis Management
 Crisis management is the process by which an
organization deals with a major event that threatens to
harm the organization, its stakeholders, or the general
public.

16. Crisis Management Plan
 Gather facts.
 Be prepared.
 Communicate quickly and accurately
conduct brainstorming.
 Develop policies to minimize crisis.
 Assemble and organize resources.
 Create a Crisis Management Team.

17. Example of Unsuccessful Crisis Management
 Union Carbide India Ltd, gas leak tragedy in
Bhopal, on December 2, 1984.

18.  It occurred on the night of December 2–3, 1984 at the
Union Carbide India Ltd, pesticide plant in Bhopal,
Madhya Pradesh.
 A leak of gas and other chemicals from the plant resulted
in the exposure of hundreds of thousands of people.
 Estimates vary on the death toll. The official immediate
death toll was 2,259 and the government of Madhya
Pradesh.

19. Example of Successful Crisis Management
 The Pepsi Corporation faced a crisis in 1993,
which was successfully managed by the company.

20.  In 1993, claims of needles being found in cans of diet
Pepsi were made.
 Company urged stores not to remove the product from
shelves while it had the cans and the situation
investigated.
 Pepsi released videos and made public, showing the
production process to demonstrate that such tampering
was impossible within their factories.
 Crisis was managed through effective communication.