Page 211 - Crisis Communication Practical PR Strategies

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1 192 Crisis Communication
overall globalization of activities, markets and the media brings about
a globalization of the crisis (see Figure 16.1). An incident that takes
place in a small area and which, in the past, could easily have been con-
tained (with costs limited to damages and repair) is now blown out of
proportion on a worldwide scale, with commensurate costs.
Here are some cases in point. (Please note that the information
given here is pertinent to France.)

Cost of crises – losses and expenses
The impact of the number of casualties and the level of danger
1k€ 10 100 1M€ 10 100 500 1Md€ 5 10Md€

• Products crisis without
known danger
– without media
– with media
• Industrial crisis with
known danger
• Industrial crisis with
known casualties
• Products crisis with
known casualties
• Reputation crisis
Figure 16.1 An exponential inflation in the cost of crises

Bridgestone & Firestone tyres (2000)

Tyre blowouts (200 deaths and more than 500 hurt) – 1,400
complaints filed in 2002.
6.5 million tyres recalled.
Net profits divided by 4 between 1999 and 2000.
Share value fell by 60 per cent.

Automobile manufacturers

Regular recalls in this industry.
Average recall – 100,000 vehicles for an average cost of r50
million.