Need an argumentative essay on Shuanghui Business Group: Crisis Management Plan. Needs to be 12 pages. Please no plagiarism.
On the 15th of March, 2011, Shuanghui Business Group was suspected of using clenbuterol pigs. As a result, the stock of the company dropped to the trading limit causing a loss of CNY 5.2 billion in the capital market. Furthermore, the company had to withdraw its products form all the major supermarkets, while some marketplaces even stopped selling the products of the Business Group or refused to continue working with the company. The organization took back all of its products circulating in the market and closed manufacturing down to be rectified (Zhang, 2011). Nevertheless, what Shuanghui Business Group experienced is the crisis of consumers’ trust or, if defined more precisely, a product-harm crisis (Dawar & Pillutla, 2000, p. 215), since it involved recalling products from all of the distribution networks due to safety concerns (Chen, Ganesan, & Liu, 2009, p. 214). As a result, the brand’s equity and the company’s reputation got damaged, customers’ loyalty decreased, and revenues and market shares – lost (Laufer & Coombs, 2006, p. 379). So, in order for the Business Group not to experience such a disastrous situation again, continuous forecasting and assessing a potential crisis the organization can face should be conducted. The very first condition for forecasting a crisis is noting both internal and external inputs. People’s perceptions of information differ – what one may consider being a potential threat will be missed by another. Therefore, it is important to make sure that the organization does not miss any internal or external issues that might indicate a potential crisis (Harvard Business School, 2004, p. 12).