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Walmart Reputation Strategy Plan

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0% found this document useful (0 votes)
97 views16 pages

Walmart Reputation Strategy Plan

source procutehotme

Uploaded by

Nguyên Bảo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Question 1: Defining Strategy Intent and Themed Message

1. Analyzing the Gap Between Walmart’s Vision and Actual Reputation

Walmart’s vision of being a market-driven retailer that cares for its stakeholders is a
commendable one. However, the company has faced significant criticism, particularly regarding
its treatment of employees and local communities. This discrepancy between Walmart’s stated
values and its perceived actions creates a significant gap in its reputation.

Key areas of criticism:

 Employee treatment: Low wages, inadequate benefits, excessive working hours, and
lack of opportunities for career advancement.
 Local communities: Negative impact on small businesses, contributing to urban sprawl,
and insufficient support for local economies.

This gap in perception undermines Walmart’s reputation as a caring and responsible corporate
citizen, despite its efforts to position itself as customer-focused.

2. Communication Campaign Plan

Strategic Intent:

To re-establish Walmart as a trusted and respected corporate citizen by demonstrating genuine


care for its employees and local communities. The goal is to bridge the gap between Walmart’s
stated values and its perceived actions, thereby enhancing its overall reputation.

Themed Message:

 Walmart Cares: This theme emphasizes Walmart’s commitment to its stakeholders and
its role as a positive force in the community.

Main Message Style:

 Authenticity and transparency: The message should be delivered in a sincere and


genuine manner, highlighting real actions and progress.
 Empathy and compassion: Walmart should demonstrate understanding and care for the
concerns of employees and community members.
 Storytelling: Sharing compelling stories of Walmart’s positive impact on individuals and
communities can be effective in building trust.

Explanation:

By focusing on authenticity, empathy, and storytelling, Walmart can effectively address the
criticisms it has faced. The "Walmart Cares" theme provides a clear and concise message that
resonates with the company's desired image. By sharing genuine stories of how Walmart is
making a positive difference, the company can rebuild trust and credibility with employees, local
communities, and the general public.

Potential campaign elements:

 Employee-focused initiatives: Highlight increased wages, improved benefits, career


development programs, and employee recognition.
 Community engagement programs: Showcase Walmart's support for local schools,
charities, and environmental initiatives.
 Transparency and accountability: Regularly report on progress towards achieving
corporate social responsibility goals.
 Employee and community ambassadors: Encourage employees and community
members to share their positive experiences with Walmart.

By implementing this communication campaign, Walmart can begin to repair its damaged
reputation and move closer to its vision of being a market-driven retailer that is truly valued by
all stakeholders.

Question 2: Who Will You Want to Be?


1. Specialized Disciplines in Corporate Communication

Corporate Communication Disciplines:

 Media Relations: Managing relationships with media outlets to shape public perception.
 Internal Communications: Building and maintaining employee engagement and
satisfaction.
 Crisis Communication: Developing and executing plans to manage crises and protect
reputation.
 Investor Relations: Communicating with shareholders and potential investors.
 Public Affairs: Managing relationships with government officials and policymakers.
 Corporate Social Responsibility (CSR): Implementing and communicating a
company's social and environmental initiatives.
 Executive Communications: Advising and supporting company leaders in their
communication efforts.
 Marketing Communications: Promoting products or services through various channels.

Integrated PR and Marketing Disciplines:

 Brand Management: Developing and maintaining a strong brand identity.


 Advertising: Creating and placing paid advertisements to reach target audiences.
 Direct Marketing: Building relationships with customers through personalized
communication.
 Sales Promotions: Stimulating customer demand and sales through incentives.
 Digital/Online Communication: Utilizing digital channels to engage with audiences.
 Community Relations: Building positive relationships with local communities.
 Publicity/Sponsorship: Generating media coverage and public attention through events
and partnerships.

2. Desired Specialized Discipline: Digital/Online Communication

Job Description:

A Digital/Online Communication specialist is responsible for developing and executing digital


communication strategies to achieve organizational goals. This includes managing social media
platforms, creating engaging content, optimizing websites, and analyzing digital performance
metrics. The role also involves staying up-to-date with digital trends and technologies.

Requirements:

 Strong understanding of digital marketing and social media platforms


 Excellent writing and communication skills
 Proficiency in content management systems and analytics tools
 Ability to manage multiple projects and deadlines
 Strong analytical and problem-solving skills

Reason for Choosing Digital/Online Communication:

I am passionate about the digital landscape and its potential to connect with audiences in a
meaningful way. The rapid evolution of digital communication presents exciting opportunities to
be creative and innovative. Additionally, the ability to measure and analyze campaign
performance allows for data-driven decision-making, which is essential for achieving effective
communication outcomes. I believe this role would allow me to contribute significantly to an
organization's success by leveraging digital channels to build strong relationships with customers
and stakeholders.

Question 3: Developing an Online Community


1. Researching an Existing Online Community

Here's a breakdown of a general online community (Facebook Group) focusing on Graphic


Design:

Strengths:

 Information sharing: Members can access tutorials, resources, and advice from
experienced designers.
 Peer support: Offers a platform for constructive criticism, feedback, and
encouragement.
 Networking opportunities: Connects students with other designers and potential
employers.
 Job postings: Provides a space for companies to share job openings.
 Sense of belonging: Creates a supportive and collaborative environment for designers.

Weaknesses:

 Information overload: Finding specific information can be challenging due to a large


number of posts.
 Spam and irrelevant content: Requires active moderation to maintain quality.
 Limited engagement: Not all members actively participate in discussions.
 Echo chambers: Can lead to confirmation bias with limited exposure to diverse
viewpoints.
 Security concerns: Sharing personal information requires caution.

Role in Corporate Communication:

 Brand awareness: Enables companies to showcase their expertise and services.


 Customer engagement: Provides a platform for direct interaction with customers and
potential clients.
 Market research: Allows companies to gather insights into customer needs and
preferences.
 Recruitment: Enables companies to connect with talented individuals through
networking.
 Crisis management: Provides a platform for addressing customer issues and concerns.

2. Building a Community for FPT University MC Students:

Community Name: FPTU Multimedia Communication Hub

Goals and Targets:

 Goal 1: Create a supportive and collaborative online community for MC students at


FPTU.
 Target 1.1: Increase membership to 500 active members within the first semester.
 Target 1.2: Achieve a weekly average of 20 engaging posts (questions, discussions,
resource sharing).
 Goal 2: Foster knowledge sharing and skill development among MC students.
 Target 2.1: Host at least 3 guest webinars with industry professionals per semester.
 Target 2.2: Organize monthly online challenges to encourage creative exploration.
 Goal 3: Facilitate peer-to-peer mentoring and networking opportunities.
 Target 3.1: Establish a dedicated mentorship channel within the community.
 Target 3.2: Organize online/offline meetups for students to connect and collaborate.

Program of Activities:

 Weekly Discussion Prompts: Pose questions or themes related to MC coursework,


industry trends, or software tutorials.
 "Ask Me Anything" Sessions: Invite FPTU MC faculty to answer student questions in
real-time sessions.
 Software Tutorials: Share video tutorials or written guides on relevant software
programs.
 Student Showcase: Provide a platform for students to share their work and receive
feedback.
 Job Board: Advertise internship and job opportunities relevant to MC students.
 Alumni Network Feature: Connect current students with FPTU MC alumni for career
advice.

How to Gather Members:

 Promote the community through official FPTU MC channels: Include a link or QR


code in social media platforms, school websites, and student newsletters.
 Organize a launch event: Host a virtual event with a guest speaker or interactive activity
to generate excitement.
 Incentivize participation: Offer rewards for active members, such as online badges or
exclusive resources.
 Encourage student organization collaboration: Partner with FPTU MC clubs and
societies to promote the community.

Additional Considerations:

 Establish clear community guidelines: Outline expectations regarding respectful


communication and content sharing.
 Moderation team: Recruit responsible and active members to moderate discussions and
maintain a positive environment.
 Regularly analyze engagement metrics: Track member growth, post interactions, and
adjust strategies as needed.

By implementing this plan, you can build a valuable online community for FPTU MC students.
It will provide a platform for knowledge sharing, peer support, and professional development,
ultimately fostering a thriving community within the program.

Question 4: Build a Communication Campaign


1. 7 Steps of Planning & Executing a Campaign

Based on common communication campaign models, here are seven key steps:

1. Situation Analysis: Understanding the internal and external environment, including the
organization's strengths, weaknesses, opportunities, and threats (SWOT analysis), as well
as the target audience, competitors, and industry trends.
2. Setting Communication Objectives: Defining clear and measurable goals for the
campaign, such as increasing brand awareness, generating sales, or improving brand
reputation.
3. Target Audience Identification: Identifying and profiling the primary target audience
for the campaign, including demographics, psychographics, and behaviors.
4. Developing Key Messages: Crafting compelling and consistent messages that resonate
with the target audience and support the campaign objectives.
5. Selecting Communication Channels: Choosing the most effective media channels to
reach the target audience, considering factors such as budget, reach, and target audience
preferences.
6. Campaign Implementation: Executing the campaign tactics, including creating content,
managing media relations, and coordinating with internal and external stakeholders.
7. Evaluation and Measurement: Assessing the campaign's effectiveness in achieving its
objectives through data analysis and feedback.

2. Communication Plan for TH True Milk's New Product

Assumptions:

 TH True Milk is launching a new organic yogurt product targeting health-conscious


consumers.
 The product's unique selling point is its high protein content and natural ingredients.

Communication Objectives:

 Increase awareness of the new organic yogurt product among the target audience.
 Position the product as a healthy and premium option.
 Drive trial and purchase of the new product.

Target Audience:

 Health-conscious consumers aged 25-45, primarily women, with a focus on urban areas
and middle to upper income levels.

Theme Messages:

 "Nourish your body with nature's goodness."


 "High protein, low sugar, pure taste."
 "Indulge in guilt-free goodness."

Message Styles:

 Informative: Highlight the product's nutritional benefits and ingredients.


 Emotional: Connect with consumers' desire for a healthy lifestyle and well-being.
 Aspirational: Position the product as a premium choice for discerning consumers.

Media Strategy:

 Digital Channels:
o Social media marketing (Instagram, Facebook, TikTok) to engage with the target
audience through visually appealing content, influencer partnerships, and user-
generated content contests.
o Content marketing (blogs, articles, videos) to educate consumers about the
benefits of organic yogurt and the product's unique features.
o Search engine optimization (SEO) to improve website visibility and drive organic
traffic.
 Traditional Media:
o Television commercials during prime-time slots to reach a broad audience.
o Print advertising in lifestyle magazines and health publications to target the
specific demographic.
o Outdoor advertising (billboards, bus stops) in high-traffic areas to create brand
visibility.
 Public Relations:
o Media relations to generate positive press coverage and product reviews.
o Event sponsorship related to health and wellness to increase brand exposure.
o Influencer collaborations to create authentic product endorsements.

By combining these elements, TH True Milk can launch a successful communication campaign
for its new organic yogurt product, effectively reaching its target audience and driving sales.

Question 5: Media Relations


1. Tools and Techniques for Obtaining News Coverage and Monitoring

1. Media Databases and Contact Lists: Building and maintaining comprehensive lists of
journalists, influencers, and media outlets relevant to the organization. This enables
targeted outreach and relationship building.
2. Media Pitching: Crafting compelling press releases, media alerts, and story ideas to
generate interest among journalists. Effective pitching involves tailoring messages to
specific media outlets and building relationships with reporters.
3. Media Monitoring Tools: Utilizing software to track media coverage of the
organization, including news articles, social media mentions, and online discussions. This
provides insights into media sentiment and helps identify opportunities for follow-up.
4. Media Outreach: Proactively engaging with journalists through phone calls, emails, and
in-person meetings to build relationships and share news. Attending industry events and
conferences also provides opportunities to connect with media professionals.
5. Social Media: Leveraging social media platforms to share news, engage with audiences,
and interact with journalists. Social media can be used to amplify media coverage and
generate buzz around the organization.

2. Press Relations for a New Bphone Product Launch

To maximize news coverage for the launch of a new Bphone product, I would employ the
following tools and techniques:
 Comprehensive Media List: Create a detailed list of technology journalists, influencers,
and media outlets with a focus on smartphones and consumer electronics.
 Targeted Media Pitching: Develop compelling press releases highlighting the unique
features and benefits of the new Bphone. Tailor pitches to specific media outlets,
emphasizing the angles that would be most appealing to their audience.
 Exclusive Product Demos and Briefings: Offer exclusive opportunities for journalists
to experience the new Bphone firsthand through hands-on demos and product briefings.
This can generate in-depth coverage and create excitement around the launch.
 Influencer Partnerships: Collaborate with tech influencers to promote the new Bphone.
This can help reach a wider audience and generate buzz on social media.
 Media Monitoring and Response: Utilize media monitoring tools to track coverage of
the product launch. Respond promptly to inquiries and correct any inaccuracies in
reporting.
 Social Media Campaign: Launch a robust social media campaign to generate excitement
and engage with potential customers. Utilize user-generated content and contests to
increase visibility.
 Event Planning: Host a high-profile launch event with media, influencers, and special
guests. This can create a memorable experience and generate significant media coverage.
 Crisis Communication Plan: Develop a comprehensive crisis communication plan to
address potential issues or negative publicity that may arise during the launch.

By effectively combining these strategies, it is possible to achieve maximum media coverage for
the new Bphone product and generate significant interest among the target audience.

Question 6: The Volkswagen Emissions Scandal


1. Crisis Description, Cause, Categorization, and Volkswagen's Response

Crisis Description: The Volkswagen emissions scandal was a major corporate crisis that erupted
when it was revealed that the company had installed software in millions of diesel cars to cheat
emissions tests. This deception led to significantly higher levels of harmful pollutants being
emitted into the environment than legally permitted.

Cause: The crisis was primarily caused by a deliberate corporate decision to prioritize profit and
market share over environmental responsibility and ethical conduct. The installation of the defeat
device was a conscious effort to deceive regulators and consumers.

Crisis Categorization (Coombs' Crisis Response Strategy Matrix): Based on Timothy


Coombs' crisis response strategy matrix, the Volkswagen emissions scandal can be categorized
as a victim crisis. This type of crisis occurs when an organization is harmed by an external
factor, but no one is held responsible. However, in this case, the crisis escalated to an
organizational crisis due to the intentional deception and subsequent cover-up.

Volkswagen's Communication Strategy: Initially, Volkswagen adopted a defensive and


evasive communication strategy. They denied any wrongdoing and attempted to downplay the
severity of the issue. However, as the scandal grew, the company shifted towards a more
apologetic stance, admitting to the deception and promising to rectify the situation.

Consequences for Volkswagen: The consequences for Volkswagen were severe. The company
suffered immense reputational damage, leading to a decline in sales and consumer trust. It faced
billions of dollars in fines and legal settlements, and its executives were held accountable.
Additionally, the scandal triggered a broader industry-wide scrutiny of emissions testing and
regulations.

2. Proposed Communication Strategy

If I were tasked with handling this crisis, I would have adopted a proactive and transparent
communication strategy from the outset. The following steps would be crucial:

 Immediate and Full Disclosure: Admitt the wrongdoing openly, honestly, and without
delay. Provide clear and detailed information about the extent of the deception, the
number of affected vehicles, and the steps being taken to address the issue.
 Empathy and Apology: Express sincere apologies to customers, regulators, employees,
and the public for the breach of trust. Demonstrate genuine empathy for the harm caused
and commitment to making amends.
 Transparency and Accountability: Be transparent about the investigation process,
cooperate fully with authorities, and hold responsible individuals accountable.
 Remediation and Compensation: Develop a comprehensive plan to rectify the issue,
including vehicle recalls, software updates, and compensation for affected customers.
Communicate clearly about the timeline and process for these actions.
 Long-Term Reputation Repair: Implement a long-term communication strategy
focused on rebuilding trust and demonstrating a commitment to sustainability and ethical
business practices. This could involve investing in clean technologies, supporting
environmental initiatives, and engaging in open dialogue with stakeholders.

By adopting a proactive and transparent approach, Volkswagen could have mitigated the damage
to its reputation and potentially avoided some of the severe consequences. Trust is essential for
any organization, and rebuilding it requires honesty, accountability, and a genuine commitment
to change.

Question 7: Samsung Galaxy Note 7 Recall


1. Crisis Description, Cause, Categorization, and Samsung's Response

Crisis Description: The Samsung Galaxy Note 7 crisis was a major product safety issue that
resulted in the recall of millions of smartphones due to battery failures causing devices to
overheat, catch fire, and even explode.

Cause: The primary cause of the crisis was a defect in the battery design, which led to
overheating and subsequent fires. Additionally, Samsung's initial response and handling of the
recall process exacerbated the crisis.
Crisis Categorization (Coombs' Crisis Response Strategy Matrix): Based on Timothy
Coombs' crisis response strategy matrix, the Samsung Galaxy Note 7 crisis can be categorized as
an accidental crisis. This type of crisis occurs when an organization is responsible for an
accident or product failure.

Samsung's Communication Strategy: Initially, Samsung adopted a defensive communication


strategy, downplaying the issue and offering limited information. As the crisis escalated, the
company shifted to an apologetic stance, initiating a recall and offering replacements. However,
the second recall and subsequent discontinuation of the Note 7 line indicated a more proactive
approach.

Consequences for Samsung: The crisis severely damaged Samsung's reputation for product
safety and reliability. The company suffered significant financial losses due to the recall, product
discontinuation, and loss of consumer confidence. The crisis also impacted Samsung's brand
image and market share, particularly in competition with Apple.

2. Proposed Communication Strategy

If I were tasked with handling this crisis, I would have prioritized transparency, speed, and
customer safety from the outset. The following communication strategy would be implemented:

 Immediate and Full Disclosure: Acknowledge the issue publicly as soon as possible,
providing clear and accurate information about the problem and its potential risks.
 Empathy and Apology: Express sincere apologies to customers for the inconvenience
and safety concerns, demonstrating empathy for their situation.
 Proactive Recall: Initiate a swift and efficient recall process, providing clear instructions
and support to affected customers. Offer convenient replacement options or refunds.
 Transparency and Investigation: Communicate openly about the investigation into the
battery issue, sharing findings and updates with the public. Demonstrate a commitment to
understanding the root cause and preventing recurrence.
 Customer Focus: Prioritize customer safety and satisfaction throughout the crisis.
Provide exceptional customer service, offering support and assistance to those affected.
 Long-Term Reputation Repair: Develop a comprehensive plan to rebuild trust and
restore the brand's reputation. This could involve increased investment in product safety
testing, enhanced quality control measures, and transparent communication about safety
standards.

By adopting a proactive and customer-centric approach, Samsung could have mitigated the
negative impact of the crisis and potentially accelerated the recovery process. Transparency,
empathy, and swift action are crucial in managing product safety crises effectively.

Question 8: Vodafone: Using Employee Communication to


Empower Employees
1. Importance of Employee Communication and Vodafone's CICS
Importance of Employee Communication

Effective employee communication is crucial for several reasons:

 Increased employee engagement: When employees feel informed, valued, and


connected to the organization, they are more likely to be engaged and motivated.
 Improved organizational performance: Strong internal communication can lead to
better decision-making, increased productivity, and enhanced collaboration.
 Stronger employer brand: Positive employee experiences can contribute to a positive
external reputation.
 Crisis management: Effective communication is essential for managing crises and
maintaining employee trust.

Vodafone's CICS and Communication Flow

Based on the information provided, Vodafone's current CICS appears to be primarily focused on
downward communication. The reliance on newsletters, intranets, and annual surveys suggests
a top-down approach, where information is disseminated from management to employees. While
these channels can be effective for delivering information, they do not foster engagement or two-
way communication.

2. Enhancing Upward Communication at Vodafone

To enhance upward communication, Vodafone should consider implementing the following


channels:

 Employee Suggestion Platforms: This could be an online platform or suggestion box


where employees can share ideas, feedback, and concerns directly with management.
 Employee Surveys and Feedback Mechanisms: Regular pulse surveys and feedback
mechanisms can provide valuable insights into employee sentiment and identify areas for
improvement.
 Town Hall Meetings and Q&A Sessions: These forums allow employees to ask
questions, share concerns, and provide feedback directly to leadership.
 Social Intranet: A social intranet can create a more interactive and collaborative
environment, enabling employees to connect, share knowledge, and participate in
discussions.
 Employee Advocacy Programs: Empower employees to become brand ambassadors by
providing them with the tools and resources to share company news and information on
social media.
 Employee Recognition Programs: Publicly recognizing and rewarding employee
contributions can boost morale and encourage open communication.
 Open-Door Policies and Management Accessibility: Encouraging open communication
between employees and managers can foster a culture of trust and transparency.
By implementing these channels, Vodafone can create a more inclusive and engaging workplace
where employees feel heard and valued. This can lead to increased employee satisfaction,
productivity, and innovation.

Question 9: Cocoon Crisis


1. Stakeholders and Power-Interest Matrix

Stakeholders are individuals or groups who have an interest or stake in the organization and its
activities. In the case of Cocoon, the stakeholders involved in the crisis are:

 Customers: The primary consumers of Cocoon's products, who were directly affected by
the product issue.
 Employees: Individuals working for Cocoon, whose reputation and livelihood are
impacted by the crisis.
 Media: News outlets and journalists who reported on the incident and shaped public
opinion.
 Government agencies: Regulatory bodies responsible for overseeing the cosmetics
industry, such as the Ministry of Health.
 Suppliers: Companies providing raw materials and ingredients to Cocoon.
 Investors and shareholders: Those who have financial interest in Cocoon.
 Competitors: Other cosmetic brands who may benefit or be negatively impacted by the
crisis.
 Public: The general public who may have an interest in the safety of cosmetic products.

Power-Interest Matrix

The Power-Interest matrix categorizes stakeholders based on their level of power (ability to
influence) and interest (level of concern) in the organization.

Stakeholder Power Interest


Customers High High
Employees Medium High
Media High Medium
Government agencies High High
Suppliers Medium Medium
Investors and shareholders High High
Competitors Medium Medium
Public Low High
Xuất sang Trang tính

Core Stakeholder: In this case, customers are the core stakeholder. They have a high level of
both power and interest, as their decisions to purchase or boycott the product directly impact
Cocoon's revenue and reputation.
2. Importance of Stakeholder Relationships

Developing and maintaining strong relationships with stakeholders is crucial for Cocoon's long-
term success, especially after a crisis.

Should Cocoon develop relationships with all stakeholders?

While it is ideal to build positive relationships with all stakeholders, it may not be feasible or
necessary to invest equal effort in all of them. Prioritizing stakeholders based on their power and
interest can be effective.

In the case of Cocoon, the focus should be on:

 Customers: Rebuilding trust and loyalty through effective crisis management and
customer support.
 Employees: Maintaining morale and productivity by providing clear communication and
support.
 Media: Managing media relations to shape public perception and mitigate negative
publicity.
 Government agencies: Ensuring compliance with regulations and maintaining a positive
relationship.

While relationships with suppliers, investors, and competitors are important, they may not
require as much immediate attention compared to the core stakeholders.

By focusing on building strong relationships with key stakeholders, Cocoon can improve its
crisis response, enhance its reputation, and build resilience for future challenges.

Media Crisis of Tan Hiep Phat in 2015: Analysis and


Solution
Crisis Description:

 Event: Customer Vo Van Minh found a fly in a bottle of Number One soft drink,
demanded VND 500 million in compensation from Tan Hiep Phat. Tan Hiep Phat called
the police, Minh was arrested and sentenced to 7 years in prison for "extortion".
 Consequences: Public outrage led to a boycott campaign against Number One products,
Tan Hiep Phat suffered losses of VND 2 trillion.

Causes:

 Tan Hiep Phat's lack of understanding: Instead of reaching a reasonable compensation


agreement and apologizing to the customer, Tan Hiep Phat chose to call the police,
leading to a negative image in the eyes of the public.
 Lack of transparency in the production process: The discovery of the fly in the bottle
raised concerns about Tan Hiep Phat's food safety and hygiene.
 Declining consumer trust: This crisis further increased consumer suspicion and distrust
of the Number One brand in particular and Tan Hiep Phat in general.

Crisis Classification according to the Crisis Type Matrix:

 Crisis Type: Product Crisis


 Crisis Level: Level 3 - Severe Crisis

Tan Hiep Phat's Communication Strategy:

 Apology: Tan Hiep Phat apologized to customers and acknowledged the mistake.
 Explanation of the cause: The company explained that the fly could have entered the
bottle during transportation or distribution.
 Commitment to fix: Tan Hiep Phat pledged to strengthen product quality control and
improve production processes.

Consequences for Tan Hiep Phat:

 Revenue loss: Number One's revenue plummeted after the crisis.


 Brand reputation damage: Tan Hiep Phat's image and reputation were severely
affected.
 Loss of customer trust: This crisis has led many consumers to lose trust in Tan Hiep
Phat's products.

Proposed Communication Strategy:

If hired to handle this crisis, I would recommend the following strategy:

 Empathize: Listen to and understand customer concerns, and show concern for their
health and safety.
 Take responsibility: Take responsibility for the incident and acknowledge the
company's mistakes.
 Transparency: Provide complete and transparent information about the incident,
production processes, and corrective measures.
 Effective communication: Communicate openly and regularly with customers,
stakeholders, and the media.
 Concrete action: Demonstrate a commitment to rectifying the mistake through concrete
actions, such as improving production processes, strengthening quality control, and
compensating customers.
 Collaborate with stakeholders: Collaborate with government agencies, consumer
protection organizations, and experts to resolve the crisis.

Conclusion:
The media crisis of Tan Hiep Phat in 2015 is a valuable lesson for businesses about the
importance of building and maintaining customer trust. To overcome the crisis, businesses need
to demonstrate sincerity, transparency, and accountability in addressing the problem.

In addition, building an effective crisis management system is also essential to help businesses
respond promptly and effectively to unexpected incidents.

Communication Crisis: Volkswagen Emissions Scandal


1. Crisis Description, Causes, Communication Strategy, and Consequences

Crisis Description:

In 2015, Volkswagen was embroiled in a massive scandal when it was revealed that the company
had installed software in millions of diesel cars to cheat emissions tests. These vehicles emitted
nitrogen oxide pollutants far above legal limits. The deception was systematically implemented
across multiple models and markets.

Causes:

 Corporate greed: The primary motive was to boost sales and profits by meeting
stringent emissions regulations without the necessary technological advancements.
 Organizational culture: A culture of secrecy and disregard for ethical considerations
allowed the deception to flourish.
 Regulatory loopholes: The complexity of emissions testing regulations provided
opportunities for exploitation.

Communication Strategy:

Initially, Volkswagen adopted a defensive stance, denying any wrongdoing. As the scandal
intensified, the company shifted to an apologetic tone, admitting to the deception and promising
to rectify the situation. However, their initial denial and lack of transparency exacerbated the
crisis.

Consequences:

 Massive financial losses due to recalls, legal settlements, and damage to the brand.
 Severe reputational damage, leading to a decline in consumer trust and loyalty.
 Legal repercussions, including fines and criminal charges for executives.
 Loss of market share and competitive advantage.

2. Proposed Communication Strategy and Reputation Restoration

Communication Strategy:
If I were tasked with handling this crisis, I would have implemented a proactive and transparent
communication strategy from the outset. Key elements would include:

 Immediate and full transparency: Admitting the wrongdoing promptly and providing
complete and accurate information about the extent of the deception.
 Empathy and apology: Expressing sincere remorse for the actions of the company and
acknowledging the harm caused to customers, the environment, and the public.
 Commitment to accountability: Holding individuals responsible for the deception
accountable and implementing measures to prevent recurrence.
 Repair and rebuild: Developing a comprehensive plan to rectify the emissions issue,
compensate affected customers, and invest in clean technology.
 Stakeholder engagement: Establishing open communication channels with customers,
regulators, employees, investors, and the public to address concerns and build trust.
 Long-term sustainability: Positioning Volkswagen as a leader in sustainable mobility
and demonstrating a genuine commitment to environmental responsibility.

Reputation Restoration:

Restoring Volkswagen's reputation would require a sustained and multifaceted effort:

 Time and consistency: Demonstrating consistent and transparent actions over an


extended period to rebuild trust.
 Investment in clean technology: Leading the industry in developing and adopting
innovative, environmentally friendly solutions.
 Corporate social responsibility: Engaging in initiatives that contribute to society and
demonstrate a commitment to ethical business practices.
 Customer focus: Prioritizing customer satisfaction and loyalty through exceptional
service and support.
 Employee engagement: Fostering a culture of integrity, transparency, and accountability
within the organization.
 Measuring progress: Continuously monitoring and evaluating the effectiveness of
reputation restoration efforts.

By implementing these strategies, Volkswagen could have mitigated the damage to its reputation
and positioned itself as a leader in sustainable mobility.

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