Company at Risk in the Term Paper

Excerpt from Term Paper :

This is the point that customers would go different locations and they received poor service. The lack of accountability is what contributed to the communication breakdown.

How could the crisis be avoided?

The way that this crisis could have been avoided, is by implementing a policy of improving employee training and communication. The way that this could have been conducted, was to teach everyone on the store level how to deal with irate customers and stay within company policies. This would have prevented these situations from spiraling out control, by satisfying their needs and admitting to possible mistakes that were made. Once this occurred, it would have meant that the image of the company would have improved.

Prepare to manage, recognize, contain, resolve and profit from the crisis

The best way to deal with these kinds of issues is that Wal Mart must completely revaluate these situations. The way that this could have been accomplished was to have executives watchful of possible recalls that were occurring. They could have then, worked with all of the various departments to quickly admit that there was a problem and they were doing everything they can to fix it. Next, the company should have encouraged customers to come back to their different locations. During this stage of the process, is when they would work with staff member to learn how to deal with issues. Once this took place, it meant that their customer services would improve by addressing their needs. This would have allowed them to profit from the crisis by showing that they are going the extra mile for them. Over the course of time, this would have meant that same store sales and profit margins would increase dramatically.


Clearly, Wal Mart has poor track record for dealing with different product recalls. Part of the reason for this, is because executives are focused on finding the lowest prices on a host of products they are selling. This means that they will often purchase those products with different defects. Over the course of time, this increases the odds that these goods will be the subject of product recalls. When this takes place, it means that management will not be focused on effectively dealing with the situation. As they will announce, that there was a product recall to customers. However, once they begin to coming to the stores is when they are unprepared for what is happening. This is because supervisors and employees are given limited amounts of training about how they should be dealing with these issues. Once this occurs, the majority of customers will become frustrated by the lack of service they are receiving. This is when they will begin shopping at their competitors. To deal with these issues, it is recommended that: Wal Mart improves communication, has specifications for product quality and establishes proper procedures for dealing with recalls. If this kind of approach can be taken, it will ensure that the company will protect their image and address the most common issues affecting their customers (the lack of service).

Develop a chart which displays concepts on the chapters enclosed (reference page) and what they mean.

The various concepts on the different chapter are enclosed below. The most notable areas include:

Managing the Crisis You Tried to Prevent

Key findings: understand how to avoid the crisis, managing the situations, recognizing change, containment, resolving and profiting from the situation.

A Strategic Approach to Managing Product Recalls

Key findings: creating small response team, conducting product testing with recalls in mind, having effective channels of communication and staging mock recalls.

Leadership within there is No One to Ask

Key findings: any kind of long lasting changes will come from how managers are focused on making sure the customer is always protected. This will help to improve the image of the organization itself.


Consumer Complaints. (2011). Consumer Affairs. Retrieved from:

Augustine, N. (2000). Harvard Business Review on Crisis Management. Boston, MA: Harvard Business School Press.

Bianco, A. (2007). Wal Mart. New York, NY: Doubleday Press.

Marquard, W. (2007). Wal Smart. Chicago, Il: Marble Leadership.

Smith, N. (2000). Harvard Business Review on Crisis Management. Boston, MA: Harvard Business School Press.

Soderquest, D. (2005). The Wal Mart Way. Nashville, TN: Thomas Neilson.

Spotts, G. (2005). Wal Mart the High Costs of Low Price.…

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