Crisis Management of IKEA

Crisis Management – IKEA
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Crisis Management – IKEA
Crisis management has become a fundamental concept of both public relations and organizational behavior. To understand crisis management, starting from the basics is essential to get a wholesome picture of the core ideas that relate to the concept. A crisis is subject to varied definitions, and a complete definition of the term crisis entails phrases like an unexpected or expected event that is likely to cause negative outcomes and disruption to the organization. Crisis in an organizational setting is bound to occur, considering numerous variables come to play and might conflict in one way or the other. The most apparent variables that influence the occurrence of crisis in an organization include the community with which the organization operates, the media, and all the stakeholders that relate to the organization.
A crisis has the potential to cause considerable harm to the organization, especially if it is unexpected. It might derail the relationship with key stakeholders and paint a bad picture of the organization for the media to disseminate to the public members. When a crisis hits, organizations' reputations are often at stake and might impact their long-term existence. On the brighter side, a crisis can be a turning point for an organization, particularly if it is predictable and takes the most appropriate measures to prevent or mitigate it. In this regard, a response to quell the devastation of the crisis or point the organization towards the right direction becomes necessary or expected. Most often, a response towards a crisis can either be crisis prevention that occurs before an anticipated crisis or crisis management, which comes after the unfortunate event.
IKEA – Background
IKEA is a well-known multinational corporation that interacts with the public by selling products used in everyday life. Other than the core business of selling low-cost, well-designed, and diverse home furnishing equipment, the company is committed to helping fight against some of the social problems affecting contemporary society such as inequality, poverty, health, and some arising issues such as climate change. Despite the exemplary commitment to social responsibility, the company has had some backlash from the customers, particularly regarding Malma Dressers, one of the company's leading products. The company is accused of failing to meet industry standards, which has caused four injuries and killed five toddlers. Surprisingly, the Malma Dressers have been in the market for quite a long time, and with such claims that involve death, it is certain to jeopardize the company's reputation and even threaten its existence, meriting it as a crisis within IKEA.
Moving Forward
Stick to the Crisis Response Strategy
It would be prudent for IKEA to stick to one crisis management strategy and prove beyond a reasonable doubt following the occurrence of the crisis. Quite a notable number of parents have come out to condemn IKEA, claiming that its products do not meet the industry standards, which has attracted the authorities' attention. The authorities, including the federal regulators, have delved into the issue, launching an investigation into the matter following the death of a toddler. However, IKEA has chosen a crisis management strategy that involves denial, claiming that its products do not need to satisfy the industry standards of supporting up to 50 pounds weight. IKEA needs to stick to its claim of not being responsible for the crisis, providing supporting data on the company's compliance with the safety requirements, accompanied by all the likely scenarios where the MALM Dresser cannot, in its own, harm or cause death. The need to stick to a crisis response strategy to ensure consistency and credibility can further enhance stakeholder trust. Failure to prove beyond reasonable doubt that the product is not the cause for the deaths and injuries can be detrimental to the company's reputation.
Closely Work with Stakeholders in Crisis Response
In the case of IKEA, a global conglomerate has a wide range of stakeholders, but the stand-out stakeholders include the customers, the employees, and the external stakeholders like the media and the authorities. A crisis, be it expected or not, is certain to impact the various stakeholders. The customers, for instance, are the sole consumers of IKEAs products. Their safety is at stake, while the media are responsible for agenda setting and driving the consumer perception of the products and the company. On the other hand, the authorities are tasked with enforcing and setti...