This paper examines how an organization can handle a crisis. The steps an organization takes during a crisis will determine how they come out of it. This paper lays out how an organization can effectively deal with crisis to prevent lasting damage.
1,430 words (approx. 5.7 pages), 8 sources, 2002, $ 47.95
Abstract This paper looks at the importance of a company's crisis management strategy and how the strategy that an organization takes during a crisis can affect the long-term health of that organization. It also puts forth the theory that organizations often collapse because when a crisis occurs they are not equipped to deal with it in a quick and timely fashion.
From the paper:
"Planning ahead of time can help soften the negative impact of an ongoing crisis. Decisions made while planning for a potential crisis tend to be more rational then a decision made in the middle of a crisis. Develop a crisis manual that is simple and easy to read and make sure it is used; it is worthless if it sits idle on a shelf. All employees need to be trained so they know what their roles will be during a crisis. This training will help prepare everybody in the organization to avert or effectively manage extraordinary incidents. It is not possible to plan for all potential crises that can occur. Rather an organization should prepare an action plan that involves responses for various aspects of a possible crisis."
Abstract This paper looks at the currency crisis in Thailand, which started in the summer of 1997 and rapidly engulfed a number of East Asian "Tiger economies" in a major financial crisis. This crisis became a an interesting case study for economists who were interested in analyzing the pros and cons of globalization and laissez faire market economies. The author further examines the effects of the East Asian currency crisis, on Thailand itself, which underwent a painful re-adjustment of its economy.
Outline:
Background
The Danger Signals
Foreign Exchange Reserves
Current Accounts Deficit
Excessive Credit Expansion
Why Did the Growth Slow Down?
The Housing and Real Estate Bubble
The Stock Market Bubble
The Crisis The Aftermath of the Crisis for Thailand
Conclusion
From the Paper "The country took a number of measures to attract foreign capital during the 1980 and early 1990s. These included lifting of restrictions on foreign investments, elimination of most barriers on foreign ownership of export oriented industries, granting of tax incentives to foreign mutual funds and investments in the stock market, creation of closed-end mutual funds, and reduction of taxes on dividends remitted abroad (Antczak 40-41). These measures along with a pegged exchange rate policy (i.e., the Thai currency baht was pegged to the dollar and its value rose and fell with dollar's value), and the large differential in interest rates provided comfort to foreign investors who came to Thailand in droves. "
Tags: Thailand, currency, crisis, globalization, Asia
Abstract This paper analyzes the best methods and techniques for effectively planning for, managing and mitigating the damage from a political crisis. It explores the need to develop a crisis plan before a crisis occurs. It expands on the four stages to effectively deal with a crisis, and how political crises relate to these crisis management techniques. The author includes steps that must be taken when a crisis occurs.
From the Paper "Every organization must at some point deal with a crisis. Crisis situations are exceedingly difficult to deal with because, by definition they are times of flux and change whose outcome will often depend on the organization's reaction. Managing a crisis is a ..."
Abstract This paper is a discussion, and analysis of the fiscal crisis currently facing Argentina. The author details some of the causes of the current crisis, including defaulting on the debt, the devaluation of the country's peso and political corruption. The affects of the crisis on the region's stability, Argentina's trade relationships with Europe and the United States are also discussed. The turmoil within the country itself is discussed in detail, and the author also offers some creative solutions to the crisis.
From the Paper "Despite criticism from some nations like Spain, who is heavily affected by Argentina's crisis, the International Monetary Fund (IMF) has so far refused to give any more aid to the country. However, many people blame the IMF for loaning "massive" amounts to Argentina earlier in their crisis, along with conditions requiring the country to tighten its fiscal policies. Now, Argentina is unable to repay these outstanding loans. Some of the over 130 million in debt was defaulted on in December, and "Critics say the IMF-imposed reforms have failed to work because they don't take into account the local situation. They argue that the insistence on debt repayment is what's brought Argentina to the brink of collapse" (Editors)"
Abstract The paper explains how a crisis communications plan is a vital aspect of virtually any business. The paper discusses that this plan is a companion to the crisis plan that is put into effect after a crisis has taken place; therefore, one aspect of this plan is to calm a heightened situation with reasoned thinking. The paper adds that a second aspect of the plan, however, is to strategize a process that will be put into force when such an event occurs. The paper shows how a crisis communications plan in that aspect can provide access to critical thinking and swift action at a time when such things are difficult, if not impossible.
Abstract In this paper, the writer examines President John F. Kennedy's decision-making during the Cuban missile crisis of 1962. The writer provides a background of the crisis. In the article, the writer discusses dealings between Kennedy and Soviet leader, Khrushchev. The writer also covers the outcome of the crisis.
From the Paper "The Cuban Missile Crisis occurred in October when the Soviet Union under the leadership of Premier Nikita Khrushchev began placing offensive ballistic missiles in Cuba, just miles off the U. S. coast. Traditionally, historians have contended that Khrushchev began placing the missiles in Cuba from a position of strength, intended to defy a weak foe, President John F. Kennedy. They emphasized the apparent resolve Kennedy showed in dealing with Khrushchev, essentially portraying Kennedy as a man who finally became presidential during ... "
Abstract This paper cites the fact that Ashland Oil Inc. at the beginning of this decade recognized that it had a management crisis and that it needed to gain control of it in order to cope with the unforeseen shifts in the oil business. It shows that in 1991, the company made a number of decisions regarding how to prepare for a crisis, after it had faced a crisis with a major oil spill in 1988 and had not handled the situation as well as it might.
From the Paper "The public sees long line at the gas pump and notes the rising costs of oil and may believe that the oil companies are making money hand over fist and doing so with relatively little effort. In fact, though, whether an oil company can weather the ups and downs of the oil business depends on the management of the company. Ashland Oil Inc. at the beginning of this decade recognized that it had a management crisis and that it needed to gain control of it in order to cope with the unforeseen shifts in the oil business. Americans have been aware of an oil crisis since the 1970s, when the first oil crisis brought higher prices and long lines and made Americans more aware than ever before of their dependence on foreign sources for their oil and energy needs."
Abstract This paper discusses the cause of the Asian Financial Crisis in 1997, and the South Korean government's reaction to monetary and financial pressures. According to this paper, the Asian financial crisis has many causes and consequences, but loans by U.S. banks to businesses in South Korea and elsewhere are an important part of the story. These loans helped create the crisis by supporting unsound investments and creating repayment obligations that Korean enterprises were unable to meet, thus undermining financial market confidence in the South Korean economy.
From the Paper "For thirty years prior to the Asian' financial crisis South Korea enjoyed fast growth that translated into impressive economic performance, strong fiscal positioning, and macroeconomic stability (Radelet et al). Economic indicators including decreased inflation, increased saving rates, open economies, and thriving export segments made it impossible for economists to predict what was to follow. In the summer of 1996, the Asian financial crisis erupted in Thailand after the country had just experienced an influx in economic growth."
Abstract This paper reviews how in the contemporary context in the middle of the first decade of the 21st century, the Asian Financial Crisis of 1997-1998 seems a distant memory that has been obscured by the meteoric economic boom of China and the global changes that have occurred post-September 11, 2001. However this perspective risks ignoring the significance of this crisis given that the underlying structures of the global economy during this crisis, in particular the phenomenon of globalization and its primary institutions the International Monetary Fund (IMF) and World Trade Organization (WTO) continue to shape our economy today.
Abstract The paper discusses how in a major crisis, leadership throughout a company are challenged to help manage the crisis, and therefore it is not feasible to bring in new leadership in all these positions. The paper explains that it really depends on the crisis in determining whether to bring in new leadership or retain existing leadership. The paper shows how in some situations, existing leaders are the best choice to weather the storm and return the company to normalcy, while in others, the best solutions is to clean house and bring in new, dynamic, and positive leadership.
From the Paper "On the other hand, retaining management during a crisis can help add a sense of normalcy to the situation, and may help others better manage and eliminate the crisis. An experience manager is also more familiar with the company, its procedures, and the best way to deal with the crisis using existing company resources, if that is possible, and so, they may be the most prepared and best choice to help manage a company in crisis. New leadership, brought in to manage a crisis, would have to familiarize themselves with the company and its operations, which could lead to a slower reaction to the crisis. Using existing management means they can hit the ground running to come up with solutions to manage the crisis and save the company from further damage."
Abstract This paper details the roots and causes of the Asian Financial Crisis in the late 90's. The author discusses some of the economic conditions responsible for the crisis and the various countries involved.
From the Paper "Some economic analysts have described the Asian financial crisis as one of the worst financial disasters to occur in history. These same economists argue that the Asian financial crisis was far worse than the Latin American debt crisis and could be likened to the great depression of the 1930?s. While not any one specific cause can attempt to explain the reason for the crisis, a number of factors during this time frame existed that helped to facilitate the collapse of the Asian economy. Each country affected by the crisis had different impending circumstances for being vulnerable to this predicament during that time period. The crisis began in a few concentrated countries in southeastern Asia and by the end had propagated throughout many of the countries located in Asia bringing devastating affects."
Abstract This paper traces the Suez Crisis from its origins. The author follows the development of the crisis stating the positions of all those involved. This includes, France, Britain, Israel and America. Eisenhower's role in negotiating the peace in Egypt is discussed in some detail.
From the Paper "In 1956, the Suez Canal became the focus of a major world conflict. The canal represents the only direct means of travel from the Mediterranean to the Indian Ocean, making it crucial to the flow of trade between Asia, the Middle East, Europe, and the United States. President Eisenhower had a major foreign policy crisis dealing with the Suez Canal. His decision during the Suez Crisis was one of the most important, delicate, and controversial of his presidency."
Abstract The paper reviews the impact of the financial crisis upon Thailand, which then spread through Southeast Asia, and also reviews its present impact upon that nation and whether or not this impact can be considered positive or negative. The paper takes the view that the 1997 crisis was devastating initially for the people of Thailand. However, if there are any lingering effects, they are largely positive ones as the country has remodeled itself and revamped a financial sector that was plagued by a lack of transparency, proper over-sight and inefficiency.
From the Paper "The 1997 financial crisis in Southeast Asia was a water-shed moment in many ways. Not least of all, the crisis in Thailand brought an unceremonious end to the heady optimism that had spread through the region during the course of the booming 1980s and 1990s. While economic growth in Asia during this period rewarded various groups unevenly - as is generally to be expected in predominantly free markets - there was a general economic healthfulness that offered the promise of still more gains in the future. Suffice it to say, these roseate projections for the future were turned up-side-down by the sudden collapse of the Thai baht and the subsequent currency devaluation experienced in other parts of Asia. This paper will briefly review the impact of the crisis upon Thailand (the nation wherein the problem began)."
Abstract The paper discusses the Cold War, viewed as a battle of power between the two major actors, the United States of America and the USSR, had several turning points in its evolution. The paper continues and states that one of the most important moments of the Cold War, when mankind was closest to a nuclear disaster, happened in 1962 in Cuba. The paper then relates that, in order to further understanding of the crisis, it discusses it in a historical context, describes it and discusses its results within the Cold War evolution. The paper concludes that an effect of the crisis was the creation of a direct link between the US and the USSR (the Hot Line) which represented a first step towards a better communication and cooperation between the two political systems.
From the Paper "The beginning of the crisis can be placed when the American President, John F. Kennedy was notified that the Soviets deployed missile equipment and missiles in Cuba, on October 16, 1962. Viewed as a serious threat not only for the American security but also a threat for the European Allies, the US's response had a large number of possibilities to be taken into account. These were "a Blockade Plan--employs 24 to 36 destroyers, a carrier task force, etc., which can marshal significant strength to blockade Cuba, both air and maritime; air Strike Plan--currently being revised, but employs between 450 and 500 aircraft. (...); fast Reaction Assault Plan--employs both air-borne and amphibious assault with about 32,000 troops in initial phase, with balance of assault forces arriving in increments as they become available. Ultimately builds up to about 80,000 troops in Cuba around D+18 days. Full-Scale Deliberate Assault Plan--employs simultaneous airborne and amphibious assault with around 49,000 troops engaged on D-Day, building to about 60,000 by D+5 days, and again to 80,000 by D+16 days." (The Avalon Project, 1998). Form the scenarios that President Kennedy and his team made, the first option was chosen. This was a very important moment not only for the crisis itself, but for the evolution of the Cold War. A military naval blockade was chosen for several reasons: Kennedy wanted to diffuse the crisis on the basis of a non-military action that would have probably given reason for an increase in tensions between the US and the USSR. Also, because the US was unable to 100% prove that USSR had rockets in that area it needed to gain support from its European allies. "
Abstract This paper describes the crisis that occurred in 1958 when Chiang Kai-Shek placed Nationalist Chinese troops on the islands of Quemoy and Matsu in the Taiwan Straits. It focuses on the support of the US and USSR for their respective all.
From the paper:
"In 1958 at the Chinese communist party congress Mao Zedong proposed the implementation of the Great Leap Forward in an attempt to modernize China and disengage from Soviet economic control. At the time, he was voted down. However, Mao was able to get Lin Biao, one of his allies, appointed to the central committee, thus changing the votes on the committee in his favor. Soon Mao was able to begin a "test phase" of the Great Leap Forward, and even this beginning brought great social and economic upheaval to China."
