Crisis by Анастасия Гончарова https://padlet.com/likethesea2001/6gc6vwzpsho6saxl Crisis situations with three companies: Sady Pridonya, Boeing, Facebook Anastasiya Goncharova & Alex Balukhtina РСОБ6 en-us 2022-03-15 11:46:32 UTC 2022-03-21 20:09:50 UTC hello@padlet.com https://padlet.net/icons/png/1f48e.png Sady Pridonya likethesea2001 https://padlet.com/likethesea2001/6gc6vwzpsho6saxl/wish/2095794217 Company: Sady Rridonya
Time: 2008

Meaning and action:
The apple processing and juice production plant began operating in the pre-default 1997. 
In 2008, prices for imported raw materials rose by 40% following the dollar. In addition, imported apple concentrate doubled in price in 2008 due to a poor harvest in China.
Company decision:
1. Reduced the price and process optimization
2. The company has managed to implement five projects for the modernization, expansion and creation of new production facilities.
3. Unlike competitors, we used not loans, but leasing schemes in work with equipment manufacturers.
4. The company did not reduce the advertising budget and did not lose.
Moreover, the company existed thanks to domestic raw materials.

What lesson learned: We believe that the success of the company during the crisis is ensured by the fact that Sady Pridonya used preventive methods and were ready for the crisis before it began. This not only helped to survive during the crisis, but also to become a market leader.


]]> 2022-03-15 11:59:19 UTC https://padlet.com/likethesea2001/6gc6vwzpsho6saxl/wish/2095794217 BOEING 737 MAX balukhtinaa https://padlet.com/likethesea2001/6gc6vwzpsho6saxl/wish/2095805270 Company: Boeing
Time: 2018-2019

Meaning and action:
Boeing experienced a major crisis when two of its 737 Max airplanes fatally crashed in Indonesia and Ethiopia just 5 months apart in 2018 and 2019. The crashes killed a combined 346 people and the manufacturer is still suffering the fallout from the events.

At first, Boeing deflected blame for the crashes to “inexperienced pilots,” but an investigation later showed that it was Boeing’s flight control software that was the main contributor to the crash. Moreover, the US Justice Department found that Boeing knew about the software issue and tried to conceal the faulty software from investigators.


While nothing would have made up for the loss of life, Boeing would have been better off coming clean about the existing software glitch. Their efforts to conceal the issue meant that pilot training manuals lacked information about the faulty system, which forced planes to nosedive after it overrode pilot commands.


What lesson learned:
We truly believe that Boeing's problem was in lack of information during pilot training and in lack of transparency in information field. So you shouldn't lie to people and hide information. It's better to admit mistakes.
]]> 2022-03-15 12:06:21 UTC https://padlet.com/likethesea2001/6gc6vwzpsho6saxl/wish/2095805270 Facebook likethesea2001 https://padlet.com/likethesea2001/6gc6vwzpsho6saxl/wish/2095890189 Company: Facebook
Time: March 2018

Meaning and action:
In March 2018, a whistleblower told two newspapers that a British firm called Cambridge Analytica had bought data about 87 million users and their friends without their consent from Facebook. The company used the data to build voter profiles that Cambridge sold to election campaigns, including Donald Trump’s presidential run.

The episode sparked a scandal over user privacy at Facebook, the biggest of many. CEO Mark Zuckerberg was called to testify before Congress.

The financial repercussions included the following:
The U.S. Federal Trade Commission imposed a $5 billion fine against the company — the largest ever. The Securities and Exchange Commision fined the company $100 million and British regulators fined 500,000 pounds.
Engagement on Facebook dropped by 20 percent in the months after the scandal.
Facebook users’ confidence in the company dropped 66 percent in the weeks. Some users quit Facebook (including 3 million Europeans). The hashtag #DeleteFacebook began trending on social media, and public support for tighter regulation of social media grew.
The company’s stock valuation lost $130 billion.

Crisis Management Lesson: Apologize When You are Wrong
U.S. investigators found that Facebook violated consumer trust by allowing a third party to collect users’ personal data without their knowledge. The data collectors also violated Facebook policies that required deleting the data. Facebook CEO Zuckerberg was silent for five days before issuing a statement acknowledging that mistakes had been made. Facebook users heavily criticized the response, prompting Zuckerberg later to say, “I’m sorry” in media interviews. IT experts said the response was slow and underwhelming.

What lesson learned:
Crisis Management Lesson: Apologize When You are Wrong
U.S. investigators found that Facebook violated consumer trust by allowing a third party to collect users’ personal data without their knowledge. The data collectors also violated Facebook policies that required deleting the data. Facebook CEO Zuckerberg was silent for five days before issuing a statement acknowledging that mistakes had been made. Facebook users heavily criticized the response, prompting Zuckerberg later to say, “I’m sorry” in media interviews. IT experts said the response was slow and underwhelming. Consumer trust is the most important thing for the existence of a company, without it it is impossible to gain loyalty and build a good reputation. But if it happens that a mistake is made, it is necessary to act immediately, apologize to the public and provide additional services as an apology.

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