Tue. Aug 4th, 2020

Critical Incident Analysis

2 min read

Critical Incident Analysis
1.
Under stress, some of the impediments towards the making of good decisions include time pressure, group conflict, and individual biases. Time pressure could pressurize the decision makers to shift their logical process towards an intuitive process (Schwester, 2012). Under stress, most decision makers make rushed decisions based on their emotional pressure. The decisions are usually not good due to the lack of composure to consider the various factors and information available on the issues. The knowledge of the potential impediments and the potential actions is important in helping the decision makers to anticipate such challenges. After anticipating them, they will be more conscious while making decisions during stressful situations within the organization.
2.
In this week’s lecture, there are exists various commonalities of the successful and unsuccessful responses towards the emerging crisis in the organizations. Both Johnson & Johnson and PepsiCo were able to respond immediately to the issues raised. For example, in the case of J&J, they focused on putting the customers first and pulled the product suspected to have cyanide of the shelves (Schwester, 2012). The company was successful in crisis management as media recognized the company’s efforts to address the public.
Similarly, PepsiCo response to the crisis of an alleged syringe found in Diet Pepsi can be effective. The company worked with FDA to determine the honesty of the allegations. For example, PepsiCo provided a comprehensive report on the process of canning soda. The potential rumors quelled in two weeks with multiple arrests done by FDA for the recording of false reports. The response of PepsiCo was successful, as they were able to handle the crisis within a short term. Unlike J&J and PepsiCo, Exxon Mobil and the Exxon Valdez were unable of addressing the crisis successfully after an oil spill. The company was fined around $7bn for spill cost, and its reputation was damaged adversely.

Reference
Schwester, R. (2012). Handbook of critical incident analysis. New York, NY: ME Sharpe.

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