Deck 6: Issues Management and Crisis Management

Question 1

Issues management is a process by which a firm deals with its most important stakeholders' demands.

Answer 1

False

Question 2

The formulation stage of the issues management process involves designing the firm's response to the issues facing it.

Answer 2

True

Question 3

The narrow approach to issues management severely restricts the options available to respond to important issues.

Answer 3

False

Question 4

The issues that companies are having to deal with are becoming widely divergent,making the process of issues management more difficult.

Question 5

In a crisis,the first communication should be with internal stakeholders.

Question 6

Issues development is a very well-defined process that allows managers to understand clearly what stage of the life cycle a particular issue is in.

Question 7

Issues management can be viewed as a type of pre-crisis planning and post-crisis management.

Question 8

Top managers who adopt a more open mindset for the issues that their subordinates consider important are said to be "buying" those issues.

Question 9

An issue is a matter that is in dispute between two or more parties.

Question 10

In most companies,issues management is done in isolation from other departments.

Question 11

The concept of crisis management is relatively new,arising out of the crises of the past two decades.

Question 12

The most effective form of communication during a crisis is one that is reactive.

Question 13

One of the factors that has helped make issues management and crisis management more important to business is instant global communication.

Question 14

An efficient issues management process will analyze issues before ranking them.

Question 15

A crisis is an extreme event that may threaten your very existence.

Question 16

The stages of the issues management process are easily separable;thus each can be assigned to a specialist with the public affairs office.

Question 17

From a managerial point of view,a crisis is common in business.

Question 18

In reality,the conventional and strategic management approaches to issues management have much in common.

Question 19

Issues selling is the process by which stakeholders convince managers to pay attention to the stakeholders' particular interests.

Question 20

The issues development process refers to the transformation of issues from a low-key and flexible stage to the regulation and litigation stage.

Question 21

Which of the following issues has always been part of the business process?

A)legislative
B)ecological
C)financial
D)social welfare

Question 22

The ultimate objective of issues and crisis management is

A)prevention of harm to the firm.
B)avoidance of crises.
C)to increase the organization's social responsiveness to stakeholders.
D)understanding of stakeholders' interests.

Question 23

When managers consider issues that affect their firm,they often ignore

A)ethical considerations.
B)financial concerns.
C)personnel matters.
D)personal stakes.

Question 24

The conventional approach to issues management includes all of the following characteristics except

A)issues originate in social,political,regulatory,or judicial environments.
B)issues fall in the domain of public affairs management.
C)an issue is any trend or event that might affect the company.
D)issues are legitimate and urgent stakeholder concerns.

Question 25

Planning aspects of the issues management process include all of the following except

A)identification.
B)analysis.
C)ranking.
D)monitoring.

Question 26

Which of the following is not an assumption we make when we use issues management?

A)Issues can be identified earlier and more completely than in the past.
B)Early anticipation of issues gives the firm more options.
C)Issues are so complex that firms have little chance to resolve them favorably.
D)The firm will be able to identify stakeholders earlier than in the past.

Question 27

One of the benefits of the portfolio approach is that it helps

A)identify issues.
B)prioritize issues.
C)resolve issues.
D)spread authority among managers to deal with issues.

Question 28

One thing that is common to all techniques used for identification of issues is

A)news clipping services.
B)environmental scanning.
C)subscription to forecasting services.
D)a formal,organized effort to gather information on emerging social trends.

Question 29

The strategic management approach to issues management takes a ____ view of the process.

A)narrow
B)broad
C)futuristic
D)historical

Question 30

Which of the following is not an element of the issues management process?

A)issues identification
B)prioritizing issues
C)eliminating issues
D)monitoring results of responses to issues

Question 31

Once an issue becomes public and subject to debate and media exposure,it becomes more difficult to

A)resolve.
B)hide.
C)identify.
D)define.

Question 32

The issues management process contains two basic functions,

A)planning and implementation.
B)identification and resolution.
C)planning and controlling.
D)leadership and followership.

Question 33

The principal distinction between the conventional and strategic management approaches to issues management is

A)how broadly the idea of issues in conceived to be.
B)how broadly responsibility for issues management is spread.
C)how broadly the firm defines who its stakeholders are.
D)how many issues are being managed at one time.

Question 34

Which of the following is not a feature that distinguishes the conventional approach to issues management from the strategic management approach?

A)how broadly issues are defined
B)whether the function stands alone or is integrated with other functions
C)who within the firm implements the system
D)at what level of the firm issues identification takes place

Question 35

The issues management process and crisis management process are both focused on

A)improving stakeholder management.
B)improving sustainability.
C)improving financial performance.
D)improving management development.

Question 36

Emerging issues have all of the following characteristics except

A)the terms of the debate are not clearly defined.
B)the issue deals with matters of conflicting values and interests.
C)trade-offs are not yet needed.
D)the issue does not lend itself to resolution by expert knowledge.

Question 37

The approach to issues management in which each issue is viewed as separate from all others is the

A)conventional approach.
B)strategic management approach.
C)portfolio approach.
D)changing mix approach.

Question 38

The most dramatic growth in importance of issues has been in ____ issues.

A)financial
B)social,ethical,and political
C)practical
D)military

Question 39

The implementation phase of the issues management process does not include

A)formulation of responses.
B)putting the plan into action.
C)evaluating the results of the response.
D)monitoring the results.

Question 40

Which of the following is not a characteristic of the strategic management approach to issues management?

A)Issues management is the responsibility of senior management.
B)Issues identification is more important than in more narrowly focused approaches.
C)Issues management helps anticipate and manage internal and external challenges.
D)Issues management is narrowly focused on public policy issues.

Question 41

Which of the following is not a stage in the issues development process?

A)felt need
B)resolution
C)media coverage
D)regulation

Question 42

The most important thing in issue identification is

A)selection of the proper sources to scan.
B)assigning the right person to scan the environment.
C)identification of stakeholders with power,legitimacy,and urgency.
D)getting the people who are confronted with new issues in touch with top managers.

Question 43

Companies that adopt issues management processes typically develop

A)better reputations.
B)more expertise in identifying issues.
C)better relationships with internal stakeholders.
D)more ethical behavior among their employees.

Question 44

The case that is generally agreed to have "made" crisis management is the

A)Ford/Firestone tire tread separation case.
B)Johnson & Johnson/Tylenol case.
C)Enron scandal.
D)Exxon Valdez oil spill.

Question 45

The Yankelovich approach to issues identification is

A)well suited to spotting short-term trends.
B)based on spotting and interpreting fads as they become popular.
C)based on extensive interviews and surveys.
D)made available to non-profit organizations free of charge.

Question 46

All of the following are part of the Ten Steps of Crisis Communication except:

A)Identify crisis communication team
B)Train spokesperson
C)Keep arm's length from your audience
D)Be prepared to ride out the storm

Question 47

The next stage of formalization beyond having a single person managing issues is

A)hiring outside consultants to handle the process.
B)organizing a new and independent department specifically to manage issues.
C)appointing an assistant to help with the administrative details of categorizing issues and publishing the in-house newsletter.
D)assigning the issues management function to a team,usually within the public affairs department.

Question 48

Questions and dimensions can be used to rank or prioritize issues.Which of the following is not included?

A)likelihood of occurrence
B)impact on the organization
C)how much impact will it have
D)knowledge of the business

Question 49

Issues often keep

A)their own resolutions.
B)crisis plans living.
C)ethical dilemmas that affect just the company.
D)positive financial impacts.

Question 50

The crisis resolution stage is

A)the first stage of managing a crisis
B)cannot overlap other stages
C)defined in duration
D)the goal of crisis management

Question 51

Key questions proposed to use in analyzing issues includes all of the following except

A)who is affected by the issue?
B)who is in a position to exert influence on the issue?
C)who can best afford to resolve the issue?
D)who ought to care about the issue?

Question 52

The evaluation,monitoring,and control of issues involves

A)continual control of responses to ensure that they remain on track.
B)extensive cost/benefit analyses.
C)deciding what to do about the issues the firm faces.
D)appointing a separate team within the public affairs office to perform the control function.

Question 53

The immediate result of environmental scanning is often

A)identification of emerging issues.
B)publication of an in-house newsletter that is distributed throughout the company.
C)publication of a list of emerging issues for internal and external stakeholders.
D)resolution of some issues.

Question 54

What is the final stage in Business Week's five-step process in managing crises?

A)identifying areas of vulnerability
B)developing a plan for dealing with threats
C)forming crisis teams
D)learning from experience

Question 55

Which of the following is not one of the four stages of a crisis?

A)prodromal stage
B)acute crisis stage
C)chronic crisis stage
D)crisis regulation stage

Question 56

When Tiger Woods crashed his Cadillac Escalade into a fire hydrant and a tree,he made several errors in managing that crisis.Which of the following is not one of his mistakes?

A)waiting too long to issue a statement
B)running from the truth
C)hiding away
D)issuing a statement

Question 57

John Naisbitt's approach to issues identification is

A)based on the belief that trends start with isolated local events.
B)dependent on what people are saying is important to them.
C)recognized as the most accurate of all forecasting services.
D)based on widely accepted methodologies.

Question 58

Which of the following is not one of Molitor's leading forces?

A)leading events
B)leading literature
C)leading economic indicators
D)leading political jurisdictions

Question 59

The most rudimentary form of issue identification entails

A)subscribing to a news clipping service.
B)subscribing to a forecasting service.
C)assigning a member of the organization to continuously scan a variety of publications.
D)relying on the staff of the public affairs office to scan the environment.

Question 60

Issues management today can be considered a subset of the activities of

A)public affairs departments.
B)strategic planning staffs.
C)public relations departments.
D)various ad hoc committees.

Question 61

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Distinguish between issues management and crisis management.

Question 62

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe some of the major differences between issues management and crisis management.

Question 63

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Discuss what personal stakes that managers might have in issues definition.

Question 64

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Using an enterprise-level strategy perspective,evaluate Johnson & Johnson's actions in response to the Tylenol crisis.

Question 65

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Describe and give examples of each of the seven types of crises.

Question 66

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Explain why having a prepared plan for dealing with crises is so important.

Question 67

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Why is it so important to tell the truth in crisis situations?

Question 68

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Discuss some of the relevant considerations when forming a crisis team.

Question 69

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe the issues development process.

Question 70

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Describe what "stakeholder integration techniques" are.

Question 71

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Explain how the ranking and prioritization of issues would occur.

Question 72

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Evaluate the actions taken by Schwan Sales Enterprises,Inc.that allowed it to successfully manage its crisis with the ice cream it produced.

Question 73

Utilize the knowledge you have gained to respond to the following essay questions.Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Compare and evaluate the four crisis management stages and Business Week's five-step model.

Question 74

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Explain how issues management is related to corporate public policy and enterprise-level strategy.

Question 75

Provide a short answer to each of these questions.Be sure to fully explain your answer.
What delineates a crisis from a problem?