Strategic Management in Crisis Communication

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1 Christian Fronz Strategic Management in Crisis Communication A Multinational Approach Diplomica Verlag

2 Christian Fronz Strategic Management in Crisis Communication - A Multinational Approach ISBN: Herstellung: Diplomica Verlag GmbH, Hamburg, 2012 Dieses Werk ist urheberrechtlich geschützt. Die dadurch begründeten Rechte, insbesondere die der Übersetzung, des Nachdrucks, des Vortrags, der Entnahme von Abbildungen und Tabellen, der Funksendung, der Mikroverfilmung oder der Vervielfältigung auf anderen Wegen und der Speicherung in Datenverarbeitungsanlagen, bleiben, auch bei nur auszugsweiser Verwertung, vorbehalten. Eine Vervielfältigung dieses Werkes oder von Teilen dieses Werkes ist auch im Einzelfall nur in den Grenzen der gesetzlichen Bestimmungen des Urheberrechtsgesetzes der Bundesrepublik Deutschland in der jeweils geltenden Fassung zulässig. Sie ist grundsätzlich vergütungspflichtig. Zuwiderhandlungen unterliegen den Strafbestimmungen des Urheberrechtes. Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme, dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei zu betrachten wären und daher von jedermann benutzt werden dürften. Die Informationen in diesem Werk wurden mit Sorgfalt erarbeitet. Dennoch können Fehler nicht vollständig ausgeschlossen werden und der Verlag, die Autoren oder Übersetzer übernehmen keine juristische Verantwortung oder irgendeine Haftung für evtl. verbliebene fehlerhafte Angaben und deren Folgen. Diplomica Verlag GmbH Hamburg 2012

3 You cannot not communicate Paul Watzlawick (July 25, March 31, 2007)

4

5 INDEX TO CONTENTS LIST OF ABBREVIATIONS...IX LIST OF FIGURES...XI LIST OF TABLES...XII 1 INTRODUCTION Research Purpose Research Problem and Objectives Background Structure of Study LITERATURE REVIEW Multinational Companies and their Mode of Internationalisation The Challenge in Strategic Management in MNCs The Process of Strategic Management MNCs Internal and External Environment Stakeholder Management Management of MNCs Environment Corporate Communication Definition and Background Corporate Reputation Management Importance of Cultural Intelligence Crisis Communication Corporate Risk Corporate Crisis Definition and Corporate Context Origins and Causes of Crises Corporate Crisis Management Strategic Crisis Communication RESEARCH METHODOLOGY Research Planning V

6 3.1.1 Research Design Research Method Research Approach and Source of Data Research Process ANALYSIS RESULTS AND DISCUSSION Introduction and Assistance The changing Communication Environment Diversification of Target Groups Stakeholder Groups Societies and Culture Groups Diversification of Crisis Characteristics Crisis Lifecycle Consideration Crisis Type Differentiation Organisational Integration THEORY DEVELOPMENT Preparation of Theory Collocation of Analysed Intelligences and Analysis Summary Organisational and Strategic Integration Merger into the new Theory Introduction and process Conflation and Implementation Values and Critical Aspects STUDY CONCLUSION Limitations and Future Research Conclusion APPENDICES INDEX TO CONTENTS APPENDIX A: The System-Oriented Approach APPENDIX B: Communication Methods, Characteristics, and Quality Criteria APPENDIX C: Components of Corporate Identity VI

7 APPENDIX D: Models on Cultural Management APPENDIX E: Advanced Definition in Corporate Risk APPENDIX F: Qualitative vs. Quantitative Research APPENDIX G: Inductive vs. Deductive Research Approach APPENDIX H: Main Sources of Data APPENDIX I: Underlying Case Studies and Best Practices APPENDIX J: Underlying Studies and Reports APPENDIX K: Underlying Theories in Crisis Communication APPENDIX L: Underlying Literatures APPENDIX M: Underlying Categories and Sub-categories APPENDIX N: Analysis Fact s APPENDIX O: Literacy Rates and World s Religions APPENDIX P: History and Types of Corporate Social Responsibility APPENDIX Q: Components of Corporate Mission Statement APPENDIX R: Level of Trust in Channels and Media APPENDIX S: Phases of Crisis Management APPENDIX T: Ten Principles of United Nation s Global Compact LIST OF REFERENCES BIBLIOGRAPHY VII

8

9 LIST OF ABBREVIATIONS 3G AG AGIL AMCM AMEC AMEX ARD B2B BCP BECR BP BRIC CC CCBPG CCC CCF CCI CCM CCO CCS CEO CI CSR DoH DW EUPRERA EVA FDI GDP GTS HR IABC Third Generation of Mobil Technology Aktien Gesellschaft (engl. Public limited Company) Adaption, Goal-attainment, Integration, Latency Anticipatory Model of Crisis Management Association for the Measurement and Evaluation of Communication American Express German Public Television Channel Business to Business Business Continuity Plan Basic Elements of Crisis Response British Petroleum Brazil, Russia, India, and China Corporate Communication Crisis Communication Best Practice Guideline Corporate Crisis Communication Crisis Communication Framework Corporate Communication Institute Crisis Communication Model Chief Communication Officer Crisis Communication Strategies Chief Executive Officer Corporate Identity Corporate Social Responsibility Department of Health (United Kingdom) Deutsche Welle (German TV and Radio Broadcast Channel) European Public Relations Education and Research Association Economic Value Added Foreign Direct Investment Gross Domestic Product Grounded Theory Study Human Resources International Association of Business Communicators IX

10 ICM IMM IPR IRS ISCT IT ITU KPI LSBU MIT MNC NGO NHDR OECD PC PEST PM PR PRSA R&D RAMM ROI SBU SC SCCM SMCCM SME SWOT TI TV U.S. UK UN USA Institute for Crisis Management Issue Management Model Institute for Public Relations Image Restoration Strategies Integrative Social Contracts Theory Information Technology International Telecommunication Union Key Performance Indicators London Southbank University Massachusetts Institute of Technology Multinational Company Non Government Organisation National Human Development Report Organisation for Economic Co-operation and Development Personal Computer Political, Economical, Social, and Technological Factors Performance Measurement Public Relation Public Relation Society of America Research and Development Rhetorical Area Micro Model Return on Invest Strategic Business Unit Sub-Category Situational Crisis Communication Model Strategic Multinational Crisis Communication Model Small and Medium Enterprise Strengths, Weaknesses, Opportunities, Threats Transparency International Television United States (see USA - United States of America) United Kingdom United Nations United States of America X

11 LIST OF FIGURES Figure 1: Modes of Internationalisation Figure 2: Elements of the Strategic Management Process Figure 3: Corporate Strategy Formulation Figure 4: Strategic Driver for Globalisation Figure 5: Strategic Driver for Localisation Figure 6: Stakeholder Navigator for MNC Figure 7: Corporate Communication Disciplines in North American Companies (in %) Figure 8: Reputation Management Figure 9: Basis Crisis Management Process Figure 10: Organisational Integration of Crisis Communication Figure 11: Inductive and Deductive Research Approach (basic illustration) Figure 12: Overview Grounded Theory Study s Bodies of Data Figure 13: Grounded Theory Study - Process of Research Figure 14: Multidimensional Stakeholder Connection and Interaction Figure 15: Strategic Driver for Socio-Cultural Adapted Crisis Communication Figure 16: Corporate Crisis Life-Cycles Figure 17: Multinational Crisis Communication Grid Figure 18: First Level of Organisational Integration Figure 19: Second Level of Organisational Integration Figure 20: Strategic Multinational Crisis Communication Model (SMCCM) Figure 21: St. Gallen Management-Model (third Generation) Figure 22: Watzlawick s Sender Receiver Model Figure 23: Inductive and Deductive Research Approach (advanced) Figure 24: Crisis Communication Framework of Coombs Figure 25: Situational Crisis Communication Model of Coombs and Holladay Figure 26: Rhetorical Area Model of Frandsen and Johansen Figure 27: Basic Elements of Crisis Response of Nikolaev Figure 28: Anticipatory Model of Crisis Management of Olanivan and Williams Figure 29: Crisis Communication Model of Oliver Figure 30: Literacy Rates in % (by region, worldwide) XI

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