Contents
1 Introduction 5
1.1 Background 5
1.2 Purpose of the Research 6
1.3 Research Objectives 6
1.4 Research Questions 7
1.5 Limitation 7
1.6 Research Structure 7
2 Literature Review 8
2.1 Corporate Reputation 8
2.2 Crisis Management 9
2.3 Importance of Communication in Crisis Management 12
2.4 Crisis Management by Malaysia Airlines 13
3 Methodology 16
3.1 Research Method 16
3.1.1 Inductive Research Method 16
3.1.2 Deductive Research Method 17
3.1.3 Research Method Used in the Current Research 18
3.2 Sampling 18
3.3 Data Collection Method 19
3.3.1 Interviews 19
3.3.2 Survey 19
3.4 Ethical Considerations 20
4 Findings 21
4.1 Survey Analysis 21
4.1.1 Communication with Stakeholders 21
4.1.2 Lack of Transparency 22
4.1.3 Relationship with the Government 23
4.1.4 Preparation to Manage the Crisis 24
4.2 Interview Analysis 25
5 Conclusion & Recommendations 27
6 References 29
7 Appendices 33
7.1 Appendix 1- Survey Questionnaire 33
7.2 Appendix 2- Interview Questions 35
Table of Tables
Table 1: Communication with stakeholders 21
Table 2: Lack of Transparency 22
Table 3: Relationship with the Government 23
Table 4: Preparation to manage the crisis 25
Table of Figures
Figure 1: Communication with stakeholders 21
Figure 2: Lack of Transparency 23
Figure 3: Relationship with the Government 24
Figure 4: Preparation to manage the crisis 25
Description
Organizational sustainability and growth depends on various factors, which includes its reputation. Corporate reputation contributes to a great extent in success of the organization. Reputation of the organization is built by various perceptions held by the stakeholders of the organization. The positive corporate reputation enables it to influence investors to invest in the organization, attract and retain employees by offering them the desired products and services and achieve sustained competitive advantage. Reputation of the organization can be damaged due to various factors, which includes poor approach of organization to manage any crisis. Organizations operate in a complex and competitive environment and hence have to face several risks and crisis and the effectiveness sin managing them enables it to retain its reputation. Crisis management can be effective when an effective crisis management teal is established who have the required skills and knowledge and are provided with required training to handle difficult situations effectively. Organizations have to establish effective communication channels and approaches, have a flexible structure and culture and empower the team members to develop creative ideas and many alternatives to handle certain crisis. Malaysia Airlines failed to manage the crisis it faced due to missing of two of its flight, MH370 and MH 17 in only few months’ time. The company gained a negative reputation not because of the incidents but because of the poor management of the crisis. The airlines was not prepared for handling such unique crisis and failed to realize and develop new strategy to respond to the crisis. Malaysia Airlines by forming a more effective crisis management team, which would include expertise form all departments would be able to respond more effectively. The airline should share more responsibilities with the employees and coordinate with other stakeholders effectively mainly with the government and be flexible in its approaches and decisions. The airlines by providing regular training to the team will enable them to learn new skills and update their knowledge and prepare themselves for unforeseen crisis. The enhancement of its communication approaches and channels will enable it to be more effective in responding to different stakeholders about the crisis and maintain its reputation.