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European Journal of Scientific Research
ISSN 1450-216X Vol.27 No.3 (2009), pp.358-371
© EuroJournals Publishing, Inc. 2009
http://www.eurojournals.com/ejsr.htm


Crisis Management- A Case Study on Mumbai Terrorist Attack

                                         Manisha Shekhar
          Centre for Strategic Analysis & Research Deptt. of Electronics & Communication
             Dr. M. C. Saxena college of Engg. & Technology, UPTU, Lucknow, India
                              E-mail: manisha.shekhar123@gmail.com
                          Tel: +91-0522-4095700; Fax: +91-0522-4095730

                                                Abstract

             This paper examined the Indian government intervention in crisis management
     during 2008, terrorist attack on MUMBAI. Empirical findings show that the intervention of
     increasing external pressure and internal self awareness forced INDIAN Government to
     change its crisis management strategy. Different administrative level (local, regional,
     national and international) were co operatively involved in taking action and controlling
     crisis. A strange pattern has been observed and study has been done to find out the next
     probability of occurrence of crisis. Also a detailed analysis of crisis management program
     has been done utilizing the information of various crisis case studies that had occurred in
     the past.


     Keywords: Crisis Management, Government Intervention, Media Intervention, Disaster
               Scenario Networking and Recovery Growth process.

Introduction
Terrorism has assumed serious dimensions after the September 11 attack on the twin towers of World
Trade Centre in United States of America. The full blown up pictures of the abrupt vertical collapse of
the commercial might of USA was witnessed world over. Since then the periodical attacks are aimed at
various targets by the radical groups in various parts of the globe. Stringent laws vis-à-vis nonpolitical
swift handling of the terrorist attacks in some countries has yielded deterrent results and the countries
where able to overcome this menace. However, contrary to this, India which has belatedly converted
into the epicenter of terrorism, is dealt with casual approach and resulted into heavy mortality and gave
a setback to the growing economy.
        Another attack………more than a couple of hundred dead and several hundreds injured in the
recently Mumbai terrorist attack. The regular phenomenon of terrorist attacks in India are keeping
everyone guessing as to who could be next victim of the flow of terror. Security forces did a splendid
job in evacuating every possible hostage but could not save many as they were caught unaware but
shown below is some strategic pattern by which we can actually earmark where the next attack would
be and when. This has been analyzed in the case study which follows later in this research paper.


Definition and Anatomy of Crisis
The real challenge is not just to recognize crises, but to recognize them in a timely fashion and with a
will to address the issues they represent. What are the early warning signs? What analysis serves to
Crisis Management- a Case Study on Mumbai Terrorist Attack                                            359

give early warning of change and the possibility of a future national crisis? Again, the challenge is not
only to recognize the crisis but also to bring the complex factors into focus in such a manner that
individuals can understand and marshal the forces necessary to address the situation.
        A crisis has been defined as a”turning point for better or worse,” ”decisive moment,” or
”crucial time.” A crisis can also be described as”a situation that has reached a critical phase.” A crisis
is, therefore, an unstable time or state of affairs in which a decisive change is impending – either one
with a distinct possibility of a highly undesirable outcome, or one with a distinct possibility of a highly
desirable and extremely positive outcome. Any executive who can predict and plan for a turning point
in his or her organization stands a far better chance of capitalizing on that opportunity than someone
who allows the crisis to sneak up on him or her unprepared. Contrary to popular belief, a crisis may not
be necessarily bad. It is merely characterized by a certain degree of risk and uncertainty (Fink, 1986).
        Crisis management – planning for a crisis, a turning point – is the art of removing much of the
risk in uncertainty, thereby allowing those concerned to achieve more control over the destiny of an
organization, and thus creatively exercising the role of management leadership (Darling, Shelton and
Walker, 2002)


Crisis Management at National Level
Crisis management is a critical organizational function. Failure can result in serious harm to
stakeholders, losses for an organization and its very existence.
        A crisis is defined as a significant threat to operation that can have negative consequences if not
handled properly. It can create three related threats 1) Public safety 2) Financial loss 3) Reputation
loss.
        It damages the organization in terms of finance. The primary concern in a crisis has to be public
safety. If failure to address public safety intensifies the damage from crisis reputation and financial
concern are considered after public safety has been remedied.
        Barton (2001), Coombs (2007a), and Fearn –Banks (2001) have noted how a CMP saves time
during a crisis by pre assigning tasks, pre- collecting some information, and serving as a reference
source.
        Barton (2001) identifies the common members of the crisis team as a public relations, legal
securities, operations, finance and human resources. Time saved because the team has already decided
on who will do the basic tasks required in a crisis.
        Augustine(1995) notes that plans and teams are of little value if they are never tested. Mitroff,
Harrington and Gia (1996) emphasize that training is needed so that team members can practice
making decisions in crisis situation. Coombs (2007a) summaries the research and shows how practice
improves a crisis team’s decision making and related task performance.


Models and Theories Associated with Crisis Management
Crisis Management Model
Successfully diffusing a crisis requires an understanding of how to handle a crisis – before it occurs.
Gonzalez-Herrero and Pratt created a four-phase crisis management model process that includes: issues
management, planning-prevention, the crisis, and post-crisis (Gonzalez-Herrero and Pratt, 1995).

Management Crisis Planning
No nation looks forward to facing a situation that causes a significant disruption to their mass
especially one that stimulates extensive media coverage. Public scrutiny can result in a negative
financial, political, legal and government impact. Crisis management planning deals with providing the
best response to a crisis. (12Manage, 2007)
360                                                                                     Manisha Shekhar

Contingency Planning
Preparing contingency plans in advance, as part of a crisis management plan, is the first step to
ensuring a nation is appropriately prepared for a crisis. Crisis management teams can rehearse a crisis
plan by developing a simulated scenario to use as a drill. The plan should clearly stipulate that the only
people to speak publicly about the crisis are the designated persons, such as the nation spokesperson or
crisis team members. The first hours after a crisis breaks are the most crucial, so working with speed
and efficiency is important, and the plan should indicate how quickly each function should be
performed. When preparing to offer a statement externally as well as internally, information should be
accurate. Providing incorrect or manipulated information has a tendency to backfire and will greatly
exacerbate the situation. The contingency plan should contain information and guidance that will help
decision makers to consider not only the short-term consequences, but the long-term effects of every
decision. (12Manage, 2007)

Structural-Functional Systems Theory
Considering a nation as an organization for a while when the crisis stuck…………..Providing
information to an organization or nation in a time of crisis is critical to effective crisis management.
Structural-functional systems theory addresses the intricacies of information networks and levels of
command making up organizational communication. The structural-functional theory identifies
information flow in organizations as "networks" made up of members and "links". Information in
organizations flow in patterns called networks (Infante, Rancer, & Womack, 1997).

Diffusion of Innovation Theory
Another theory that can be applied to the sharing of information is Diffusion of Innovation Theory.
Developed by Everett Rogers, the theory describes how innovation is disseminated and communicated
through certain channels over a period of time. Diffusion of innovation in communication occurs when
an individual communicates a new idea to one or several others. At its most elementary form, the
process involves: (1) an innovation, (2) an individual or other unit of adoption that has knowledge of or
experience with using the innovation, (3) another individual or other unit that does not yet have
knowledge of the innovation, and (4) a communication channel connecting the two units. A
communication channel is the means by which messages get from one individual to another (Infante et
al., 1997).


Pre-Steps Involved IN Crisis Management
 1) A crisis management plan has to be developed firstly and updated periodically.
 2) Create and designate crisis management team and proper training should be provided.
 3) Pre- draft select crisis management including content for dark websites and templates for crisis
    statements have the legal department review and pre- approve these messages.
 4) Media person should be trained before hand to hand crisis effectively. Lerbinger (1997), Feran-
    Bank (2001), devote considerable attention to media relation in a crisis.

Don’t Do’s
 1)   Avoid the phrase no comment.
 2)   Avoid jargon or technical terms.
 3)   Avoid nervous habit that people interrupt or deception.
 4)   Avoid distracting nervous gestures such as pacing.
Crisis Management- a Case Study on Mumbai Terrorist Attack                                         361

Do’s
 1)    Present information clearly
 2)    Appear pleasant on camera
 3)    Media person need to have strong eye contact, limited disfluences ‘uhms’or ‘uhs’.
 4)    Media person should have latest crisis information.
 5)    Be prepared to use internet as one of the channel for reaching public.
 6)    Be prepared to use unique websites or part of your websites to address crisis concern.


Disaster Scenario Networking and Networking Research Needs
The disaster scenario discussion identified networking challenges including:
 • Sensornet: An as hoc network of sensors configured for and attached to the existing
     infrastructure. High bandwidth connections, e.g. gigabyte satellite to reach rural areas.
 • Heterogeneous environment of sensors, networking capabilities, and administrative structures
 • Dynamic environment and changing user requirements providing a need for new network
     management and visualization tools and automatic reconfiguration, management and control.
 • Technology reuse: using surviving resources for purposes other than the primary purpose they
     were designed for
 • Data resources: Satellite sensors and deployed video sensors that produce data at the rate of
     hundreds of megabytes per second. These data are used in modeling and by command centers.
     Rapidly changing loads place emphasis on QoS based on media type (sensor data, voice, and
     video) and user.
 • Real-time modeling: Significant distributed computational and communications resources top
     support now casting.
       The disaster scenario discussion identified research needed to meet these challenges, including:

Interoperability
Organized sensor and networks will have to operate seamlessly with the existing infrastructure and
with each other to overcome existing incompatibilities, routing mismatches, and security mismatches
between different providers.

Robustness and Dynamic Reconfiguration
The infrastructure must be designed to cope with a wide variety of faults and dynamically changing
resources by providing resources and paths and the ability to actively reconfigure. Redundant
technologies should be used so that their failure modes are as distinct as possible to decrease the
probability of system failure.

Reuse of Technologies
Reuse of wireless devices (including routing, spotcasting, ad hoc communication, sensing and
application software download) could help ensure that local resources are available during a disaster
response.
       Reuse could also support functions needed to transform from short-term crisis management to
longer-term emergency response.

Self Organizing, Self-Healing Networks
Self- Organizing, self-healing network will expedite the organization of remaining and newly deployed
sensors and technologies to establish routes and to connect to the existing infrastructure with minimal
human intervention. The involvement and coordination of government agencies, companies and
362                                                                                    Manisha Shekhar

individuals may require establishing a temporary administrative domain including components from
the different organizations.

Dynamic, Adaptive, Time-Varying QoS
In a crisis response, bandwidth resources may not match the work load and work loads may vary
significantly over time and space. For example, time criticality and video quality requirement may vary
depending on whether its supports telemedicine or media are appropriate to the application and
network technologies.

Discovering Resources and their Locations
Establishing and ad hoc infrastructure and for disaster response require resource discovery such as
identifying and locating available links and their capacities; information, computational and other
resources; and QoS capabilities to support priority information distribution and delivery of telemedical
resources.

Trust: Security, Privacy and Reliability
Issues of trust, encompassing security, privacy and reliability, pervade the disaster scenario. The
disaster response resources must provide differing levels of security, assurance and reliability based on
the needs of the end user and their applications such as medical data transmission and patient privacy
over heterogeneous, ad hoc networks and devices. Research needs to address:
  • Heterogeneity of parties involved: A major disaster will involve many government agencies
      (local, state and Federal), companies and individuals. Disaster response networks must be
      responsive to their diverse security and trust policies that may contain incompatibilities and
      hinder sharing data and other resources. This issue can be further complicated if other sovereign
      nations are involved.
  • Flexibility: Disaster responses may require temporary flexible modification or violation of
      security and trust policies. For example- an emergency medical team may need to access patient
      records for which it ordinarily would not have authorization.
  • Reuse of technologies: Technologies may be designed so they can perform actions in crisis that
      are not their primary functions. They also need to be designed so they are not then susceptible to
      third party invasion during normal times of operation using their crisis response capabilities.
  • False alarms: Research should be conducted on detecting a false alarm by an intruder and being
      able to identify that intruder.

Network Visualization and Network Management
Current network visualization and management tools are not able to handle the ad hoc heterogeneous
networks needed for disaster response. New network monitoring and measurement tools are needed to
support visualization and management.

Spectrum Conflicts
Spectrum conflicts that arise whenever different technologies (for example, Medium access control
(MAC) protocols and cellular standards) share the same portion of the spectrum will need to be
overcome.

Metrics and Performance
Metrics are needed to measure the time to set up a network and the amounts of traffic supported at
different levels of QoS. Simulation and analysis tools are needed to deal with time dependent response
problems and networks with many orders of magnitude difference in speeds from one part of the
Crisis Management- a Case Study on Mumbai Terrorist Attack                                           363

network to another. Solutions to the time dependent response problem should be evaluated in multiple
way including simulation using benchmarks. In addition, training exercises are needed to stress and test
different solutions.


Crisis Response
Public relation plays are critical role in crisis responses by helping to develop the messages that are
sent to public various public. Initial crisis response is what Government does and says after the crisis
hits.
        Arpan and Korko-Ewoldren (2005) conducted a study that documented how a quick early
response allows an organization to generate greater credibility than a slow response.
        Crisis management will make it easier for crisis management to respond quickly. Government
should be ready to provide stress and trauma counseling to victims of the crisis and their families.


Master List of Reputation Repair Strategies
 1) Attack the accuser: crisis manager confronts the person or group claiming something is wrong
     with the organization.
 2) Denial: crisis manager asserts that there is no crisis.
 3) Scapegoat: crisis manager blames some person or group outside of the organization for the crisis.
 4) Excuse: crisis manager minimizes organizational responsibility by denying intent to do harm
     and/or claiming inability to control the events that triggered the crisis.
 5) Provocation: crisis was a result of response to some one else’s actions.
 6) Defeasibility: lack of information about events leading to crisis situation.
 7) Accidental: lack of control over events leading to crisis situation.
 8) Good intentions: organization meant to do well.
 9) Justification: crisis manager minimizes the perceived damage caused by the crisis.
 10) Reminder: crisis manager tell stakeholder about the past good works of the organization.
 11) Intragation: crisis manager praises stakeholders for their actions.
 12) Compensation: crisis manager offers money or gifts to victims.
 13) Apology: crisis manager indicates the organization takes full responsibility for the crisis and asks
     stakeholders for forgiveness.


Case Study
Center for Strategic Analysis and Research (referred here to as CSAR) has taken up this national
task and find out a mathematical model for the analysis and evaluation of crisis management.
         According to the dates of terror attack plotted against the places of attack on INDIAN MAP- a
logical trajectory was observed which had a uniform angle of 26 degrees and the hyperbola was lying
on Visakhapatnam when the trajectory was extrapolated on wider scale the probable target with linear
terrorist operation were found to be LUCKNOW/ KANPUR and GOA/ PANAJI with the striking
dates as January 13 and March 26 respectively. The hyperbola falling on Visakhapatnam reveals the
bitter truth that a submarine of Pakistani origin was torpedo in the Jet by INDIAN Forces.
         The submarine PNS GHAZI was located in beneath the Visakhapatnam during the Bangladesh
Liberation War and that was destroyed by INS RAJPUT. To avenge the ruthless defeat at the hands of
INDIAN forces in 1971, the Pakistani army has developed a well planned trajectory to demonstrate its
military might with a clear demonstration of their covering the entire INDIAN area.
364                                                                                  Manisha Shekhar




                      Kindly look at the pattern below followed by terrorists:

 S no.   Date of Attack                              City of Attack
   1     13 May 2008                                 Jaipur
   2     June- Lean
   3     26 July 2008                                Ahemdabad
   4     August- Lean
   5     13 September 2008                           Delhi
   6     October- Lean
   7     26 November 2008                            Mumbai
   8     December- lean
   9     Expected Date-13 Jan 2009                   May be Lucknow/Kanpur
  10     February- Lean
  11     Expected Date- 26 March 2009                May be Goa

        The INDIAN GOVERNMENT should keep this in mind and hopefully we shall be able to avert
the next terrorist attack on the country.
        On 26 November, 2008, the world experienced the most publicized sudden crisis, which was
outbreak of anti social activity against common people of India. Total 183 people lost their lives and
314 were seriously injured in almost three days of terror that unleashed on Mumbai starting 26
November 10 attackers.
        At the same time Indian Government was blamed by foreign government, international
organizations & international press for being reluctant to admit the outbreak of terror attack.
Why??...... One criticism was that the police force on the ground had World War II guns and that the
bullet-proof jackets of the force were sub-standard. That's why we saw so many casualties in the police
force.
Crisis Management- a Case Study on Mumbai Terrorist Attack                                              365

         Modernization of the force is the need of the hour and should be at the top priority So we need
specialized teams in the police force to deal with such situations. But one must understand that
policemen and officers from nearest police stations will be the first ones to reach the spot and will be
the first in the firing line.
         On bullet-proof jackets, I'd like to point out that there is no bullet-proof jacket that can stop a
bullet fired from .303 rifles. In the case of modern assault rifles, if one gets hit from 10 metres, then too
the bullet can pierce the shield.
         In the case of ATS chief Hemant Karkare, the bullet hit his throat, which is not protected by
any jacket, Additional Commissioner Ashok Kamate was not wearing the jacket as it hampers
mobility. Only in the case of Senior Inspector Vijay Salaskar did the bullet pierce his bullet-proof
jacket.
         The Intelligence Bureau has confirmed that the attacks that took place in Mumbai on 26 Nov,
2008 might were an act of terror and aimed at disrupting peace and causing panic among Mumbaikers.
         The reason for IB to say that the terror attack is due to fact that operation was synchronized also
it was a serial firing and apart from security personal only terrorist had access to AK-47 rifles. Also the
purpose of this retrospective study is to examine the Indian Government’s role in crisis management
during this terror attack.


Crisis Management Success Stories
Mumbai
In 2008, 26 November, 9 terrorists attacked Taj hotel, Oberoi Hotel and Nariman House at Mumbai
and killed almost 200 people and about 300 were seriously injured in these three places. It took three
days for NSG commandos to overcome these terrorist. In the three days long fight, the commandos
were able to kill 8 terrorists and captured one injured. Despite the terror attack, the basic feature of
Mumbai as a safe and secure city for everyone, whether he is living in a slum or is the CEO of a
corporate giant, has not changed.
        Parents in the city don't worry about their young professional daughters coming home late at
night in public transport. Having said that, there is no guarantee that this -- a better law-and-order
situation in the city compared with other metros -- will protect you from a terror attack.

Tylenol (Johnson and Johnson)
In the fall of 1982, a murderer added 65 milligrams of cyanide to some Tylenol capsules on store
shelves, killing seven people, including three in one family. Johnson & Johnson recalled and destroyed
31 million capsules at a cost of $100 million. The affable CEO, James Burke, appeared in television
ads and at news conferences informing consumers of the company's actions. Tamper-resistant
packaging was rapidly introduced, and Tylenol sales swiftly bounced back to near pre-crisis levels
(Dezenhall, 2004).
       Johnson & Johnson was again struck by a similar crisis in 1986 when a New York woman died
on Feb. 8 after taking cyanide-laced Tylenol capsules. Johnson & Johnson was ready. Responding
swiftly and smoothly to the new crisis, it immediately and indefinitely canceled all television
commercials for Tylenol, established a toll-free telephone hot-line to answer consumer questions and
offered refunds or exchanges to customers who had purchased Tylenol capsules. At week's end, when
another bottle of tainted Tylenol was discovered in a store, it took only a matter of minutes for the
manufacturer to issue a nationwide warning that people should not use the medication in its capsule
form (Rudolph, 1986).
366                                                                                    Manisha Shekhar

Odwalla Foods
When Odwalla's apple juice was thought to be the cause of an outbreak of E. coli infection, the
company lost a third of its market value. In October 1996, an outbreak of E. coli bacteria in
Washington State, California, Colorado and British Columbia was traced to unpasteurized apple juice
manufactured by natural juice maker Odwalla Inc. Forty-nine cases were reported, including the death
of a small child. Within 24 hours, Odwalla conferred with the FDA and Washington state health
officials; established a schedule of daily press briefings; sent out press releases which announced the
recall; expressed remorse, concern and apology, and took responsibility for anyone harmed by their
products; detailed symptoms of E. coli poisoning; and explained what consumers should do with any
affected products. Odwalla then developed - through the help of consultants - effective thermal
processes that would not harm the products' flavors when production resumed. All of these steps were
communicated through close relations with the media and through full-page newspaper ads (Dwyer,
1998).

Mattel
Mattel Inc., the country's biggest toy maker, has been plagued with more than 28 product recalls and in
Summer of 2007, amongst problems with exports from China, faced two product recall in two weeks.
The company “did everything it could to get its message out, earning high marks from consumers and
retailers. Though upset by the situation, they were appreciative of the company's response. At Mattel,
just after the 7 a.m. recall announcement by federal officials, a public relations staff of 16 was set to
call reporters at the 40 biggest media outlets. They told each to check their e-mail for a news release
outlining the recalls, invited them to a teleconference call with executives and scheduled TV
appearances or phone conversations with Mattel's chief executive. The Mattel CEO Robert Eckert did
14 TV interviews on a Tuesday in August and about 20 calls with individual reporters. By the week's
end, Mattel had responded to more than 300 media inquiries in the U.S. alone” (Goldman and Reckard,
2007).


Lessons Learned in Crisis Management
Impact of Catastrophes on Shareholder Value
One of the foremost recognized studies conducted on the impact of a catastrophe on the stock value of
an organization was completed by Dr Rory Knight and Dr Deborah Pretty, (1995, Templeton College,
University of Oxford - commissioned by the Sedgewick Group). This undertook a detailed analysis of
the stock price, (post impact), of organizations that had experienced catastrophes. The study identified
organizations that recovered and even exceeded pre-catastrophe stock price, (Recoverers), and those
that did not recover on stock price, (Non-recoverers). The average cumulative impact on shareholder
value for the recoverers was 5% plus on their original stock value. So the net impact on shareholder
value by this stage was actually positive. The non-recoverers remained more or less unchanged
between days 5 and 50 after the catastrophe, but suffered a net negative cumulative impact of almost
15% on their stock price up to one year afterwards.
        One of the key conclusions of this study is that "Effective management of the consequences of
catastrophes would appear to be a more significant factor than whether catastrophe insurance hedges
the economic impact of the catastrophe".
        While there are technical elements to this report it is highly recommended to those who wish to
engage their senior management in the value of crisis management

Bhopal
The Bhopal disaster in which poor communication before, during, and after the crisis cost thousands of
lives, illustrates the importance of incorporating cross-cultural communication in crisis management
Crisis Management- a Case Study on Mumbai Terrorist Attack                                            367

plans. According to American University’s Trade Environmental Database Case Studies (1997), local
residents were not sure how to react to warnings of potential threats from the Union Carbide plant.
Operating manuals printed only in English is an extreme example of mismanagement but indicative of
systemic barriers to information diffusion. According to Union Carbide’s own chronology of the
incident (2006), a day after the crisis Union Carbide’s upper management arrived in India but was
unable to assist in the relief efforts because they were placed under house arrest by the Indian
government. Symbolic intervention can be counter productive; a crisis management strategy can help
upper management make more calculated decisions in how they should respond to disaster scenarios.
The Bhopal incident illustrates the difficulty in consistently applying management standards to multi-
national operations and the blame shifting that often results from the lack of a clear management plan
(Shrivastava, 1987).

Ford and Firestone Tire and Rubber Company
The Ford-Firestone dispute transpired in August 2000. In response to claims that their 15-inch
Wilderness AT, radial ATX and ATX II tire treads were separating from the tire core—leading to
grisly, spectacular crashes—Bridgestone/Firestone recalled 6.5 million tires. These tires were mostly
used on the Ford Explorer, the world's top-selling sport utility vehicle (SUV) (Ackman, 2001).
        The two companies’ committed three major blunders early on, say crisis experts. First, they
blamed consumers for not inflating their tires properly. Then they blamed each other for faulty tires
and faulty vehicle design. Then they said very little about what they were doing to solve a problem that
had caused more than 100 deaths—until they got called to Washington to testify before Congress
(Warner, 2002).

Exxon
On March 24, 1989, a tanker belonging to the Exxon Corporation ran aground in the Prince William
Sound in Alaska. The Exxon Valdez spilled millions of gallons of crude oil into the waters off Valdez,
killing thousands of fish, fowl, and sea otters. Hundreds of miles of coastline were polluted and salmon
spawning runs disrupted; numerous fishermen, especially Native Americans, lost their livelihoods.
Exxon, by contrast, did not react quickly in terms of dealing with the media and the public; the CEO,
Lawrence Rawl, did not become an active part of the public relations effort and actually shunned
public involvement; the company had neither a communication plan nor a communication team in
place to handle the event—in fact, the company did not appoint a public relations manager to its
management team until 1993, 4 years after the incident; Exxon established its media center in Valdez,
a location too small and too remote to handle the onslaught of media attention; and the company acted
defensively in its response to its publics, even laying blame, at times, on other groups such as the Coast
Guard. These responses also happened within days of the incident (Pauly and Hutchison, 2005).


Public Sector Crisis Management
India, America, is not the only community that is vulnerable to the perils of a crisis. Whether a terrorist
attack, a school shooting, a public health crisis or that leaves the public seeking comfort in the calm,
steady leadership of an elected official, no sector of society is immune to crisis. In response to that
reality, crisis management policies, strategies and practices have been developed and adapted across
multiple disciplines.

Government and Crisis Management
Historically, government at all levels – local, state, and national – has played a large role in crisis
management. Indeed, many political philosophers have considered this to be one of the primary roles
368                                                                                       Manisha Shekhar

of government. Emergency services, such as fire and police departments at the local level, and the
United States National Guard at the federal level, often play integral roles in crisis situations.
        To help coordinate communication during the response phase of a crisis, the U.S. Federal
Emergency Management Agency (FEMA) within the Department of Homeland Security administers
the National Response Plan (NRP). Similarly in India. ATS (Anti Terrorist Squad) is there to fight and
protect the nation against the terrorism. This plan is intended to integrate public and private response
by providing a common language and outlining a chain-of-command when multiple parties are
mobilized. It is based on the premise that incidences should be handled at the lowest organizational
level possible. FEMA offers free web-based training on the National Response Plan through the
Emergency Management Institute.


Conclusion
It is difficult to distill all that is known about crisis management into one, concise entry. I have tried to
identify the best practices and lessons created by crisis management researchers and analysts. While
crisis begin as a negative/threat, effective crisis management can minimize the damage and in some
case allow an organization to emerge stronger than before the crisis. However, crisis are not the ideal
way to improve an organization. But no organization is immune from a crisis so all must do their best
to prepare for one. This entry provides a number of ideas that can be incorporated into an effective
crisis management program.
         The world is not undergoing a crisis in the system but a crisis of the system in which the real
economy has become subservient to financial economy. All solutions must be based on this underling
truth. Nothing less than a Global Round on a Reconstructed Economic Order is required to address an
integrated reform and restructuring of the global economy- including finance, trade, investment,
production, corporate codes of conduct, labor standards, systemic risk and environmental regulation.
The efforts of the G20 are puny compared to the comprehensive and serious process appropriate to the
scale of these converging crises of the 21st century.


Acknowledgement
The author would like to thank all the member of Centre for Strategic Analysis & Research who
contributed to the 2000 similar incident report upon which this and other papers in the crisis
management series are based. The author would also like to thank Dr. M. C. Saxena and Late Dr. H.
M. Srivastava, for their excellent guidance and constant encouragement. The author also give her
sincere regards to Er. L. Shekhar, Mr. Vishal Saxena, Er. Priya Bhatnagar, Er. Anand Rai for their
untiring co operation all through the way.The author take this opportunity to thank all staff members of
Electronics and Communication Department of Dr M.C. Saxena College of Engineering And
Technology for providing their moral support.
Crisis Management- a Case Study on Mumbai Terrorist Attack                                          369

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Crisis 2

  • 1. European Journal of Scientific Research ISSN 1450-216X Vol.27 No.3 (2009), pp.358-371 © EuroJournals Publishing, Inc. 2009 http://www.eurojournals.com/ejsr.htm Crisis Management- A Case Study on Mumbai Terrorist Attack Manisha Shekhar Centre for Strategic Analysis & Research Deptt. of Electronics & Communication Dr. M. C. Saxena college of Engg. & Technology, UPTU, Lucknow, India E-mail: manisha.shekhar123@gmail.com Tel: +91-0522-4095700; Fax: +91-0522-4095730 Abstract This paper examined the Indian government intervention in crisis management during 2008, terrorist attack on MUMBAI. Empirical findings show that the intervention of increasing external pressure and internal self awareness forced INDIAN Government to change its crisis management strategy. Different administrative level (local, regional, national and international) were co operatively involved in taking action and controlling crisis. A strange pattern has been observed and study has been done to find out the next probability of occurrence of crisis. Also a detailed analysis of crisis management program has been done utilizing the information of various crisis case studies that had occurred in the past. Keywords: Crisis Management, Government Intervention, Media Intervention, Disaster Scenario Networking and Recovery Growth process. Introduction Terrorism has assumed serious dimensions after the September 11 attack on the twin towers of World Trade Centre in United States of America. The full blown up pictures of the abrupt vertical collapse of the commercial might of USA was witnessed world over. Since then the periodical attacks are aimed at various targets by the radical groups in various parts of the globe. Stringent laws vis-à-vis nonpolitical swift handling of the terrorist attacks in some countries has yielded deterrent results and the countries where able to overcome this menace. However, contrary to this, India which has belatedly converted into the epicenter of terrorism, is dealt with casual approach and resulted into heavy mortality and gave a setback to the growing economy. Another attack………more than a couple of hundred dead and several hundreds injured in the recently Mumbai terrorist attack. The regular phenomenon of terrorist attacks in India are keeping everyone guessing as to who could be next victim of the flow of terror. Security forces did a splendid job in evacuating every possible hostage but could not save many as they were caught unaware but shown below is some strategic pattern by which we can actually earmark where the next attack would be and when. This has been analyzed in the case study which follows later in this research paper. Definition and Anatomy of Crisis The real challenge is not just to recognize crises, but to recognize them in a timely fashion and with a will to address the issues they represent. What are the early warning signs? What analysis serves to
  • 2. Crisis Management- a Case Study on Mumbai Terrorist Attack 359 give early warning of change and the possibility of a future national crisis? Again, the challenge is not only to recognize the crisis but also to bring the complex factors into focus in such a manner that individuals can understand and marshal the forces necessary to address the situation. A crisis has been defined as a”turning point for better or worse,” ”decisive moment,” or ”crucial time.” A crisis can also be described as”a situation that has reached a critical phase.” A crisis is, therefore, an unstable time or state of affairs in which a decisive change is impending – either one with a distinct possibility of a highly undesirable outcome, or one with a distinct possibility of a highly desirable and extremely positive outcome. Any executive who can predict and plan for a turning point in his or her organization stands a far better chance of capitalizing on that opportunity than someone who allows the crisis to sneak up on him or her unprepared. Contrary to popular belief, a crisis may not be necessarily bad. It is merely characterized by a certain degree of risk and uncertainty (Fink, 1986). Crisis management – planning for a crisis, a turning point – is the art of removing much of the risk in uncertainty, thereby allowing those concerned to achieve more control over the destiny of an organization, and thus creatively exercising the role of management leadership (Darling, Shelton and Walker, 2002) Crisis Management at National Level Crisis management is a critical organizational function. Failure can result in serious harm to stakeholders, losses for an organization and its very existence. A crisis is defined as a significant threat to operation that can have negative consequences if not handled properly. It can create three related threats 1) Public safety 2) Financial loss 3) Reputation loss. It damages the organization in terms of finance. The primary concern in a crisis has to be public safety. If failure to address public safety intensifies the damage from crisis reputation and financial concern are considered after public safety has been remedied. Barton (2001), Coombs (2007a), and Fearn –Banks (2001) have noted how a CMP saves time during a crisis by pre assigning tasks, pre- collecting some information, and serving as a reference source. Barton (2001) identifies the common members of the crisis team as a public relations, legal securities, operations, finance and human resources. Time saved because the team has already decided on who will do the basic tasks required in a crisis. Augustine(1995) notes that plans and teams are of little value if they are never tested. Mitroff, Harrington and Gia (1996) emphasize that training is needed so that team members can practice making decisions in crisis situation. Coombs (2007a) summaries the research and shows how practice improves a crisis team’s decision making and related task performance. Models and Theories Associated with Crisis Management Crisis Management Model Successfully diffusing a crisis requires an understanding of how to handle a crisis – before it occurs. Gonzalez-Herrero and Pratt created a four-phase crisis management model process that includes: issues management, planning-prevention, the crisis, and post-crisis (Gonzalez-Herrero and Pratt, 1995). Management Crisis Planning No nation looks forward to facing a situation that causes a significant disruption to their mass especially one that stimulates extensive media coverage. Public scrutiny can result in a negative financial, political, legal and government impact. Crisis management planning deals with providing the best response to a crisis. (12Manage, 2007)
  • 3. 360 Manisha Shekhar Contingency Planning Preparing contingency plans in advance, as part of a crisis management plan, is the first step to ensuring a nation is appropriately prepared for a crisis. Crisis management teams can rehearse a crisis plan by developing a simulated scenario to use as a drill. The plan should clearly stipulate that the only people to speak publicly about the crisis are the designated persons, such as the nation spokesperson or crisis team members. The first hours after a crisis breaks are the most crucial, so working with speed and efficiency is important, and the plan should indicate how quickly each function should be performed. When preparing to offer a statement externally as well as internally, information should be accurate. Providing incorrect or manipulated information has a tendency to backfire and will greatly exacerbate the situation. The contingency plan should contain information and guidance that will help decision makers to consider not only the short-term consequences, but the long-term effects of every decision. (12Manage, 2007) Structural-Functional Systems Theory Considering a nation as an organization for a while when the crisis stuck…………..Providing information to an organization or nation in a time of crisis is critical to effective crisis management. Structural-functional systems theory addresses the intricacies of information networks and levels of command making up organizational communication. The structural-functional theory identifies information flow in organizations as "networks" made up of members and "links". Information in organizations flow in patterns called networks (Infante, Rancer, & Womack, 1997). Diffusion of Innovation Theory Another theory that can be applied to the sharing of information is Diffusion of Innovation Theory. Developed by Everett Rogers, the theory describes how innovation is disseminated and communicated through certain channels over a period of time. Diffusion of innovation in communication occurs when an individual communicates a new idea to one or several others. At its most elementary form, the process involves: (1) an innovation, (2) an individual or other unit of adoption that has knowledge of or experience with using the innovation, (3) another individual or other unit that does not yet have knowledge of the innovation, and (4) a communication channel connecting the two units. A communication channel is the means by which messages get from one individual to another (Infante et al., 1997). Pre-Steps Involved IN Crisis Management 1) A crisis management plan has to be developed firstly and updated periodically. 2) Create and designate crisis management team and proper training should be provided. 3) Pre- draft select crisis management including content for dark websites and templates for crisis statements have the legal department review and pre- approve these messages. 4) Media person should be trained before hand to hand crisis effectively. Lerbinger (1997), Feran- Bank (2001), devote considerable attention to media relation in a crisis. Don’t Do’s 1) Avoid the phrase no comment. 2) Avoid jargon or technical terms. 3) Avoid nervous habit that people interrupt or deception. 4) Avoid distracting nervous gestures such as pacing.
  • 4. Crisis Management- a Case Study on Mumbai Terrorist Attack 361 Do’s 1) Present information clearly 2) Appear pleasant on camera 3) Media person need to have strong eye contact, limited disfluences ‘uhms’or ‘uhs’. 4) Media person should have latest crisis information. 5) Be prepared to use internet as one of the channel for reaching public. 6) Be prepared to use unique websites or part of your websites to address crisis concern. Disaster Scenario Networking and Networking Research Needs The disaster scenario discussion identified networking challenges including: • Sensornet: An as hoc network of sensors configured for and attached to the existing infrastructure. High bandwidth connections, e.g. gigabyte satellite to reach rural areas. • Heterogeneous environment of sensors, networking capabilities, and administrative structures • Dynamic environment and changing user requirements providing a need for new network management and visualization tools and automatic reconfiguration, management and control. • Technology reuse: using surviving resources for purposes other than the primary purpose they were designed for • Data resources: Satellite sensors and deployed video sensors that produce data at the rate of hundreds of megabytes per second. These data are used in modeling and by command centers. Rapidly changing loads place emphasis on QoS based on media type (sensor data, voice, and video) and user. • Real-time modeling: Significant distributed computational and communications resources top support now casting. The disaster scenario discussion identified research needed to meet these challenges, including: Interoperability Organized sensor and networks will have to operate seamlessly with the existing infrastructure and with each other to overcome existing incompatibilities, routing mismatches, and security mismatches between different providers. Robustness and Dynamic Reconfiguration The infrastructure must be designed to cope with a wide variety of faults and dynamically changing resources by providing resources and paths and the ability to actively reconfigure. Redundant technologies should be used so that their failure modes are as distinct as possible to decrease the probability of system failure. Reuse of Technologies Reuse of wireless devices (including routing, spotcasting, ad hoc communication, sensing and application software download) could help ensure that local resources are available during a disaster response. Reuse could also support functions needed to transform from short-term crisis management to longer-term emergency response. Self Organizing, Self-Healing Networks Self- Organizing, self-healing network will expedite the organization of remaining and newly deployed sensors and technologies to establish routes and to connect to the existing infrastructure with minimal human intervention. The involvement and coordination of government agencies, companies and
  • 5. 362 Manisha Shekhar individuals may require establishing a temporary administrative domain including components from the different organizations. Dynamic, Adaptive, Time-Varying QoS In a crisis response, bandwidth resources may not match the work load and work loads may vary significantly over time and space. For example, time criticality and video quality requirement may vary depending on whether its supports telemedicine or media are appropriate to the application and network technologies. Discovering Resources and their Locations Establishing and ad hoc infrastructure and for disaster response require resource discovery such as identifying and locating available links and their capacities; information, computational and other resources; and QoS capabilities to support priority information distribution and delivery of telemedical resources. Trust: Security, Privacy and Reliability Issues of trust, encompassing security, privacy and reliability, pervade the disaster scenario. The disaster response resources must provide differing levels of security, assurance and reliability based on the needs of the end user and their applications such as medical data transmission and patient privacy over heterogeneous, ad hoc networks and devices. Research needs to address: • Heterogeneity of parties involved: A major disaster will involve many government agencies (local, state and Federal), companies and individuals. Disaster response networks must be responsive to their diverse security and trust policies that may contain incompatibilities and hinder sharing data and other resources. This issue can be further complicated if other sovereign nations are involved. • Flexibility: Disaster responses may require temporary flexible modification or violation of security and trust policies. For example- an emergency medical team may need to access patient records for which it ordinarily would not have authorization. • Reuse of technologies: Technologies may be designed so they can perform actions in crisis that are not their primary functions. They also need to be designed so they are not then susceptible to third party invasion during normal times of operation using their crisis response capabilities. • False alarms: Research should be conducted on detecting a false alarm by an intruder and being able to identify that intruder. Network Visualization and Network Management Current network visualization and management tools are not able to handle the ad hoc heterogeneous networks needed for disaster response. New network monitoring and measurement tools are needed to support visualization and management. Spectrum Conflicts Spectrum conflicts that arise whenever different technologies (for example, Medium access control (MAC) protocols and cellular standards) share the same portion of the spectrum will need to be overcome. Metrics and Performance Metrics are needed to measure the time to set up a network and the amounts of traffic supported at different levels of QoS. Simulation and analysis tools are needed to deal with time dependent response problems and networks with many orders of magnitude difference in speeds from one part of the
  • 6. Crisis Management- a Case Study on Mumbai Terrorist Attack 363 network to another. Solutions to the time dependent response problem should be evaluated in multiple way including simulation using benchmarks. In addition, training exercises are needed to stress and test different solutions. Crisis Response Public relation plays are critical role in crisis responses by helping to develop the messages that are sent to public various public. Initial crisis response is what Government does and says after the crisis hits. Arpan and Korko-Ewoldren (2005) conducted a study that documented how a quick early response allows an organization to generate greater credibility than a slow response. Crisis management will make it easier for crisis management to respond quickly. Government should be ready to provide stress and trauma counseling to victims of the crisis and their families. Master List of Reputation Repair Strategies 1) Attack the accuser: crisis manager confronts the person or group claiming something is wrong with the organization. 2) Denial: crisis manager asserts that there is no crisis. 3) Scapegoat: crisis manager blames some person or group outside of the organization for the crisis. 4) Excuse: crisis manager minimizes organizational responsibility by denying intent to do harm and/or claiming inability to control the events that triggered the crisis. 5) Provocation: crisis was a result of response to some one else’s actions. 6) Defeasibility: lack of information about events leading to crisis situation. 7) Accidental: lack of control over events leading to crisis situation. 8) Good intentions: organization meant to do well. 9) Justification: crisis manager minimizes the perceived damage caused by the crisis. 10) Reminder: crisis manager tell stakeholder about the past good works of the organization. 11) Intragation: crisis manager praises stakeholders for their actions. 12) Compensation: crisis manager offers money or gifts to victims. 13) Apology: crisis manager indicates the organization takes full responsibility for the crisis and asks stakeholders for forgiveness. Case Study Center for Strategic Analysis and Research (referred here to as CSAR) has taken up this national task and find out a mathematical model for the analysis and evaluation of crisis management. According to the dates of terror attack plotted against the places of attack on INDIAN MAP- a logical trajectory was observed which had a uniform angle of 26 degrees and the hyperbola was lying on Visakhapatnam when the trajectory was extrapolated on wider scale the probable target with linear terrorist operation were found to be LUCKNOW/ KANPUR and GOA/ PANAJI with the striking dates as January 13 and March 26 respectively. The hyperbola falling on Visakhapatnam reveals the bitter truth that a submarine of Pakistani origin was torpedo in the Jet by INDIAN Forces. The submarine PNS GHAZI was located in beneath the Visakhapatnam during the Bangladesh Liberation War and that was destroyed by INS RAJPUT. To avenge the ruthless defeat at the hands of INDIAN forces in 1971, the Pakistani army has developed a well planned trajectory to demonstrate its military might with a clear demonstration of their covering the entire INDIAN area.
  • 7. 364 Manisha Shekhar Kindly look at the pattern below followed by terrorists: S no. Date of Attack City of Attack 1 13 May 2008 Jaipur 2 June- Lean 3 26 July 2008 Ahemdabad 4 August- Lean 5 13 September 2008 Delhi 6 October- Lean 7 26 November 2008 Mumbai 8 December- lean 9 Expected Date-13 Jan 2009 May be Lucknow/Kanpur 10 February- Lean 11 Expected Date- 26 March 2009 May be Goa The INDIAN GOVERNMENT should keep this in mind and hopefully we shall be able to avert the next terrorist attack on the country. On 26 November, 2008, the world experienced the most publicized sudden crisis, which was outbreak of anti social activity against common people of India. Total 183 people lost their lives and 314 were seriously injured in almost three days of terror that unleashed on Mumbai starting 26 November 10 attackers. At the same time Indian Government was blamed by foreign government, international organizations & international press for being reluctant to admit the outbreak of terror attack. Why??...... One criticism was that the police force on the ground had World War II guns and that the bullet-proof jackets of the force were sub-standard. That's why we saw so many casualties in the police force.
  • 8. Crisis Management- a Case Study on Mumbai Terrorist Attack 365 Modernization of the force is the need of the hour and should be at the top priority So we need specialized teams in the police force to deal with such situations. But one must understand that policemen and officers from nearest police stations will be the first ones to reach the spot and will be the first in the firing line. On bullet-proof jackets, I'd like to point out that there is no bullet-proof jacket that can stop a bullet fired from .303 rifles. In the case of modern assault rifles, if one gets hit from 10 metres, then too the bullet can pierce the shield. In the case of ATS chief Hemant Karkare, the bullet hit his throat, which is not protected by any jacket, Additional Commissioner Ashok Kamate was not wearing the jacket as it hampers mobility. Only in the case of Senior Inspector Vijay Salaskar did the bullet pierce his bullet-proof jacket. The Intelligence Bureau has confirmed that the attacks that took place in Mumbai on 26 Nov, 2008 might were an act of terror and aimed at disrupting peace and causing panic among Mumbaikers. The reason for IB to say that the terror attack is due to fact that operation was synchronized also it was a serial firing and apart from security personal only terrorist had access to AK-47 rifles. Also the purpose of this retrospective study is to examine the Indian Government’s role in crisis management during this terror attack. Crisis Management Success Stories Mumbai In 2008, 26 November, 9 terrorists attacked Taj hotel, Oberoi Hotel and Nariman House at Mumbai and killed almost 200 people and about 300 were seriously injured in these three places. It took three days for NSG commandos to overcome these terrorist. In the three days long fight, the commandos were able to kill 8 terrorists and captured one injured. Despite the terror attack, the basic feature of Mumbai as a safe and secure city for everyone, whether he is living in a slum or is the CEO of a corporate giant, has not changed. Parents in the city don't worry about their young professional daughters coming home late at night in public transport. Having said that, there is no guarantee that this -- a better law-and-order situation in the city compared with other metros -- will protect you from a terror attack. Tylenol (Johnson and Johnson) In the fall of 1982, a murderer added 65 milligrams of cyanide to some Tylenol capsules on store shelves, killing seven people, including three in one family. Johnson & Johnson recalled and destroyed 31 million capsules at a cost of $100 million. The affable CEO, James Burke, appeared in television ads and at news conferences informing consumers of the company's actions. Tamper-resistant packaging was rapidly introduced, and Tylenol sales swiftly bounced back to near pre-crisis levels (Dezenhall, 2004). Johnson & Johnson was again struck by a similar crisis in 1986 when a New York woman died on Feb. 8 after taking cyanide-laced Tylenol capsules. Johnson & Johnson was ready. Responding swiftly and smoothly to the new crisis, it immediately and indefinitely canceled all television commercials for Tylenol, established a toll-free telephone hot-line to answer consumer questions and offered refunds or exchanges to customers who had purchased Tylenol capsules. At week's end, when another bottle of tainted Tylenol was discovered in a store, it took only a matter of minutes for the manufacturer to issue a nationwide warning that people should not use the medication in its capsule form (Rudolph, 1986).
  • 9. 366 Manisha Shekhar Odwalla Foods When Odwalla's apple juice was thought to be the cause of an outbreak of E. coli infection, the company lost a third of its market value. In October 1996, an outbreak of E. coli bacteria in Washington State, California, Colorado and British Columbia was traced to unpasteurized apple juice manufactured by natural juice maker Odwalla Inc. Forty-nine cases were reported, including the death of a small child. Within 24 hours, Odwalla conferred with the FDA and Washington state health officials; established a schedule of daily press briefings; sent out press releases which announced the recall; expressed remorse, concern and apology, and took responsibility for anyone harmed by their products; detailed symptoms of E. coli poisoning; and explained what consumers should do with any affected products. Odwalla then developed - through the help of consultants - effective thermal processes that would not harm the products' flavors when production resumed. All of these steps were communicated through close relations with the media and through full-page newspaper ads (Dwyer, 1998). Mattel Mattel Inc., the country's biggest toy maker, has been plagued with more than 28 product recalls and in Summer of 2007, amongst problems with exports from China, faced two product recall in two weeks. The company “did everything it could to get its message out, earning high marks from consumers and retailers. Though upset by the situation, they were appreciative of the company's response. At Mattel, just after the 7 a.m. recall announcement by federal officials, a public relations staff of 16 was set to call reporters at the 40 biggest media outlets. They told each to check their e-mail for a news release outlining the recalls, invited them to a teleconference call with executives and scheduled TV appearances or phone conversations with Mattel's chief executive. The Mattel CEO Robert Eckert did 14 TV interviews on a Tuesday in August and about 20 calls with individual reporters. By the week's end, Mattel had responded to more than 300 media inquiries in the U.S. alone” (Goldman and Reckard, 2007). Lessons Learned in Crisis Management Impact of Catastrophes on Shareholder Value One of the foremost recognized studies conducted on the impact of a catastrophe on the stock value of an organization was completed by Dr Rory Knight and Dr Deborah Pretty, (1995, Templeton College, University of Oxford - commissioned by the Sedgewick Group). This undertook a detailed analysis of the stock price, (post impact), of organizations that had experienced catastrophes. The study identified organizations that recovered and even exceeded pre-catastrophe stock price, (Recoverers), and those that did not recover on stock price, (Non-recoverers). The average cumulative impact on shareholder value for the recoverers was 5% plus on their original stock value. So the net impact on shareholder value by this stage was actually positive. The non-recoverers remained more or less unchanged between days 5 and 50 after the catastrophe, but suffered a net negative cumulative impact of almost 15% on their stock price up to one year afterwards. One of the key conclusions of this study is that "Effective management of the consequences of catastrophes would appear to be a more significant factor than whether catastrophe insurance hedges the economic impact of the catastrophe". While there are technical elements to this report it is highly recommended to those who wish to engage their senior management in the value of crisis management Bhopal The Bhopal disaster in which poor communication before, during, and after the crisis cost thousands of lives, illustrates the importance of incorporating cross-cultural communication in crisis management
  • 10. Crisis Management- a Case Study on Mumbai Terrorist Attack 367 plans. According to American University’s Trade Environmental Database Case Studies (1997), local residents were not sure how to react to warnings of potential threats from the Union Carbide plant. Operating manuals printed only in English is an extreme example of mismanagement but indicative of systemic barriers to information diffusion. According to Union Carbide’s own chronology of the incident (2006), a day after the crisis Union Carbide’s upper management arrived in India but was unable to assist in the relief efforts because they were placed under house arrest by the Indian government. Symbolic intervention can be counter productive; a crisis management strategy can help upper management make more calculated decisions in how they should respond to disaster scenarios. The Bhopal incident illustrates the difficulty in consistently applying management standards to multi- national operations and the blame shifting that often results from the lack of a clear management plan (Shrivastava, 1987). Ford and Firestone Tire and Rubber Company The Ford-Firestone dispute transpired in August 2000. In response to claims that their 15-inch Wilderness AT, radial ATX and ATX II tire treads were separating from the tire core—leading to grisly, spectacular crashes—Bridgestone/Firestone recalled 6.5 million tires. These tires were mostly used on the Ford Explorer, the world's top-selling sport utility vehicle (SUV) (Ackman, 2001). The two companies’ committed three major blunders early on, say crisis experts. First, they blamed consumers for not inflating their tires properly. Then they blamed each other for faulty tires and faulty vehicle design. Then they said very little about what they were doing to solve a problem that had caused more than 100 deaths—until they got called to Washington to testify before Congress (Warner, 2002). Exxon On March 24, 1989, a tanker belonging to the Exxon Corporation ran aground in the Prince William Sound in Alaska. The Exxon Valdez spilled millions of gallons of crude oil into the waters off Valdez, killing thousands of fish, fowl, and sea otters. Hundreds of miles of coastline were polluted and salmon spawning runs disrupted; numerous fishermen, especially Native Americans, lost their livelihoods. Exxon, by contrast, did not react quickly in terms of dealing with the media and the public; the CEO, Lawrence Rawl, did not become an active part of the public relations effort and actually shunned public involvement; the company had neither a communication plan nor a communication team in place to handle the event—in fact, the company did not appoint a public relations manager to its management team until 1993, 4 years after the incident; Exxon established its media center in Valdez, a location too small and too remote to handle the onslaught of media attention; and the company acted defensively in its response to its publics, even laying blame, at times, on other groups such as the Coast Guard. These responses also happened within days of the incident (Pauly and Hutchison, 2005). Public Sector Crisis Management India, America, is not the only community that is vulnerable to the perils of a crisis. Whether a terrorist attack, a school shooting, a public health crisis or that leaves the public seeking comfort in the calm, steady leadership of an elected official, no sector of society is immune to crisis. In response to that reality, crisis management policies, strategies and practices have been developed and adapted across multiple disciplines. Government and Crisis Management Historically, government at all levels – local, state, and national – has played a large role in crisis management. Indeed, many political philosophers have considered this to be one of the primary roles
  • 11. 368 Manisha Shekhar of government. Emergency services, such as fire and police departments at the local level, and the United States National Guard at the federal level, often play integral roles in crisis situations. To help coordinate communication during the response phase of a crisis, the U.S. Federal Emergency Management Agency (FEMA) within the Department of Homeland Security administers the National Response Plan (NRP). Similarly in India. ATS (Anti Terrorist Squad) is there to fight and protect the nation against the terrorism. This plan is intended to integrate public and private response by providing a common language and outlining a chain-of-command when multiple parties are mobilized. It is based on the premise that incidences should be handled at the lowest organizational level possible. FEMA offers free web-based training on the National Response Plan through the Emergency Management Institute. Conclusion It is difficult to distill all that is known about crisis management into one, concise entry. I have tried to identify the best practices and lessons created by crisis management researchers and analysts. While crisis begin as a negative/threat, effective crisis management can minimize the damage and in some case allow an organization to emerge stronger than before the crisis. However, crisis are not the ideal way to improve an organization. But no organization is immune from a crisis so all must do their best to prepare for one. This entry provides a number of ideas that can be incorporated into an effective crisis management program. The world is not undergoing a crisis in the system but a crisis of the system in which the real economy has become subservient to financial economy. All solutions must be based on this underling truth. Nothing less than a Global Round on a Reconstructed Economic Order is required to address an integrated reform and restructuring of the global economy- including finance, trade, investment, production, corporate codes of conduct, labor standards, systemic risk and environmental regulation. The efforts of the G20 are puny compared to the comprehensive and serious process appropriate to the scale of these converging crises of the 21st century. Acknowledgement The author would like to thank all the member of Centre for Strategic Analysis & Research who contributed to the 2000 similar incident report upon which this and other papers in the crisis management series are based. The author would also like to thank Dr. M. C. Saxena and Late Dr. H. M. Srivastava, for their excellent guidance and constant encouragement. The author also give her sincere regards to Er. L. Shekhar, Mr. Vishal Saxena, Er. Priya Bhatnagar, Er. Anand Rai for their untiring co operation all through the way.The author take this opportunity to thank all staff members of Electronics and Communication Department of Dr M.C. Saxena College of Engineering And Technology for providing their moral support.
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