Crisis Management Case Study

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Introduction Crisis as defined by Oxford Advanced Learner’s Dictionary (computer app), “is a time of great danger, difficulty or confusion when problems must be solved or important decisions must be made”. There are various forms of crisis caused by different conditions be it natural phenomenon, such as natural disasters or disease outbreaks, and or man-made crisis such as human failures and accidents. Crisis management on the other hand refers to the process of solving crisis situations. However, very common these days are the crisis that occurs in companies which usually carries adverse effects in the companies’ growth and success. Most importantly, how a company respond to a crisis to effectively manage a crisis situation depends very much…show more content…
The shortage issue got the attention of the government as a stakeholder concern about the country’s economic welfare and growth of its people. Being the regulator of economic and trade policies of the country, the government responded rationally through the attorney general, minister for economy by making a decision that facilitated an agreement that saw Pacific Cement Limited (PCL) sold its clicker (a machine component for cement production plant) to Tengy Cement Limited (TCL) to increase production of cement and to resolve the shortage of cement issue. On the other hand, cement customers were hit the hardest as they were posed to make loss as a result of this crisis. Hardware shops, civil constructors and private home builders had to put up with the crisis with adverse impacts. Hardware shops would have to outsource for the purchase of their cement stocks thus, they would have to pay huge amount of money to import from overseas to meet the increasing demands from their retailers and customers during this period. This would mean, sourcing additional funding to meet the budget and outstretching their usual expenditure on cement products. Furthermore, civil construction companies and private home builders will also have to put in more money to buy expensive cement products from overseas. Others who could not afford to stretch their budgets too thin for imports may as well wait for situation to…show more content…
It was obvious in the newspaper report that TCL, the sole cement supply at the time (a week after TCL has stopped its production of cement due to mechanical problems), did well in trying to resolve the crisis by taking on two reactive measures. One is the short-term solution whereby TCL bought the clinker from PCL to continue its production to meet the increased cement demands in the local markets due to the crisis. Interestingly, the second measure taken in response to the crisis is a long-term solution which allowed TCL’s engineers to work at the manufacturing site to fix the problem so that production will continue. This will also allow TCL engineers to properly diagnose the fault and fix it to ensure that occurrence of such incidents in the future is reduced to a

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