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Analysis- Leadership - Case Study Example

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This case study discusses as to how the CEO of the firm and firm itself managed the crisis by remaining away from public and…
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Case analysis- Leadership
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Introduction This case study discusses about Carnival Corp and one of its ships hitting rocks in Italian coast and the resulting deaths of passengersand crew. This case study discusses as to how the CEO of the firm and firm itself managed the crisis by remaining away from public and claiming to manage the situation from behind the scene.
Problem Statement
The overall problem related in this case is based upon the reaction of Carnival Corp and how it avoided the PR issues created due to sinking of one of its ships. The problem indicates that the management and CEO of the firm may not be willing to put a brave face and manage the crisis issue. Case suggests that CEO and the firm has basically failed to come up with right strategy to deal with the public anger in the wake of disaster which happened with one of company’s cruise ships on the coast of Italy.
Detailed Problem Statement
Micky Arison’s management philosophy is largely based upon delegating most of the tasks and allowing regional teams to manage at the regional level. The crisis which happened were regionally handled by the team overseeing Italian operations and as such parent company Carnival Corp practically distanced itself so that bad PR may not hamper other businesses of the firm.
Carnival Corp, as a parent Company, completely avoided to being part of the crisis thus suggesting a relatively unethical business behavior. Despite the loss of lives, firm continued to lie about its efforts and publically never came to present its official response to the event and what it has done so far to ensure that no such events happen in future. The overall problem lies in how the leadership of the firm failed to face the challenge and rather avoided the crisis situation by misleading public.
Alternative Solutions
In order to amicably resolve the issue, Carnival Corp may have undertaken following strategic approaches:
1. Come up openly in public and properly built a rapport with its customers to inform them about the steps taken by the firm so far. (Werder and Holtzhausen). This step may be necessary in order to ensure that the firm is actively engaging all stakeholders in sorting out the issue and publically show that it has taken proper and active rescue efforts.
2. Managing the situation from behind the scene by actively coordinating with its regional partners while maintaining a no reaction in its major market.
3. Do nothing and let the things conclude on their own.
In order to successfully deal with the problem, it is important that Carnival Corp must come up with a viable PR strategy and openly accept the responsibility for the disaster. To avert further reputation damage, firm’s CEO should actively engage with the public and take on-board all stakeholders in order to ensure that everything is done in fair and transparent manner. By actively coordinating with its Italian subsidiary, it should focus on ensuring that every organizational support is provided on –ground to ensure safety of all involved in the incident.
Works Cited
Werder, Kelly Page and Derina Holtzhausen. "An Analysis of the Influence of Public Relations Department Leadership Style on Public Relations Strategy Use and Effectiveness." Journal of Public Relations Research 21.4 (2009): 404-427. Read More
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