Crisis Management Financial Reporting | Finance Assignment Help


Author: Sabithulla Khan
Online Pub Date: January 02, 2019 | Original Pub. Date: 2019
Subject: Crisis Management, Financial Reporting, Business Ethics
Level: | Type: Indirect case | Length: 1225
Copyright: © Sabithulla Khan 2019
Organization: fictional/disguised | Organization size: Large
Region: Western Asia | State:
Industry: Construction of buildings
Publisher: SAGE Publications: SAGE Business Cases Originals
DOI: https://dx.doi.org/10.4135/9781526468284 | Online ISBN: 9781526468284
© Sabithulla Khan 2019

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Abstract

This case provides an overview of the types of communications skills needed in managing an
organization in times of crisis. The case is based on the role of a communications manager as
she advises the CEO and management team of a very large firm on how to manage a crisis that
could have serious consequences for all involved. Based in Doha, Qatar, this case encourages
students to think of the proactive communication style needed to navigate challenging situations
and to manage both internal and external audiences. It also highlights the importance of crisis
management training and prevention. Differences of cultural and business practices are also
highlighted in this case.

Case
Learning Outcomes
By the end of the case study, students will be able to:
• appreciate the need for crisis and communications planning;
• brainstorm a communications strategy;
• develop critical thinking skills about confidentiality, timeliness of information, and communications
management;
• comprehend nuances of geopolitical trade, communications, and how uncertainty prevails in these
contexts; and
• appreciate communications styles based on cultural norms and expectations.

Case

Selma is a seasoned Public Affairs Manager in a large public relations and public affairs firm in Doha, Qatar.
She has grown within the firm; starting as an intern, she now manages a portfolio that includes some of the
largest clients in the region including Hilton Group and Dell, among others.

Her day-to-day tasks include managing media, advising clients on how to position themselves in their
markets, and helping them plan for long-term strategic initiatives and events. These responsibilities mean
that Selma works both at the tactical and strategic levels, incorporating advice from her own team. Selma’s
team consists of members of media planning team, account managers who offer strategic counsel, and senior
management. Thus, her team includes members at all levels, from interns to senior staff members. Selma
has been a rising star for a several years; she has had particular success mitigating and managing risks for
clients.

On a warm summer day, Selma receives a call from James, a reporter with whom she has cultivated a
professional relationship for many years. James inquires if the gossip that he has heard about Shams Qatar
is true. Shams Qatar is one of the largest real estate firms in its category in the region and has a reputation
for aggressive growth across the Middle East and North Africa (MENA) region. The rumor James heard is
that Shams Qatar is closing or declaring bankruptcy due to mismanagement of funds. In the past, Shams
Qatar has also gotten into conflicts (motivated by their expansionistic organizational policy) with other firms
in the region (none of them in Qatar). These conflicts have caused a few tense situations for Selma’s firm,
which she has had to diffuse, using various strategies, including facilitating meetings with their competitors
and also releasing press statements with those competing firms, given that they are part of the larger real
estate ecosystem. Direct confrontation with competitors is considered bad practice in the industry. Everyone
is mindful of respecting the competition and keen on putting a friendly face, at least in public.

The real estate firms in Qatar have traditionally worked with each other to stave off competition from other
countries, forming alliances where needed. This has also rankled other real estate firms in neighboring
countries that see the ambition of the Qatari firms as threateningly expansionist and not conducive to their
businesses. The nationalism of Qatari firms is on display in a subtle way; even though these firms want to
remain “neutral,” they cannot be perceived as such.

The economic blockade by Saudi Arabia and other countries has had a disastrous impact on the businesses
and the Qatari economy, though the government of Qatar does not want to disclose this information. However,
private firms are facing this impact bravely and patiently. They have, for instance, taken losses to continue
projects that have a reputational value for the state of Qatar. Most firms have not laid-off employees, as is the
norm during such situations.

In the past, Selma’s client company—Shams Qatar—has received help from the rulers of Qatar in the form
of cash infusion. Given the proximity of the top management of Shams Qatar with the rulers of Qatar, the
rumors James has heard of financial mismanagement may well be true. Shams Qatar does release its annual
financial statement once a year, but it does not hold a press conference or invite media queries regarding its
finances, a fact that is held against it by financial reporters such as James. James is a U.S. journalist who has
cut his teeth with media outlets such as Financial Times and Middle East Economic Digest (MEED), two of
the most influential media outlets in the region. He values transparency and is known to be fair, even if tough
at times. James is aware of the previous cash infusion into Shams Qatar, totaling about USD 4 billion from
the royal family, and is not too confident in the management’s ability to turn around. His research has shown
that things are not looking too good for Shams Qatar.

James gives Selma 24 hours to respond to his questions. He informs her that if he does not hear from Selma,
or Selma does not provide a quote or any other input from her management team, he would be running the
story with the information that he currently has. He believes this piece of news to be credible and wants to be
the first one in the tiny country, which is known for its freedom of press, to run this story.

Selma has reason to believe that the information that the reporter claims to have may be partially true. The
only way to verify this is to contact the leadership of her client firm and talk to them

The main contact for Selma at the real estate firm, the Director of Communications, is on vacation and the
CEO is the only person with whom she can have such a high-level conversation. She is nervous that bothering
him about a rumor would not be ideal, but at the same time ignoring this call would be disastrous for her client
and perhaps her agency’s relationship with this client. They are a very large account that pays a big retainer
to Selma’s firm.

There are several tensions involved in this situation: Should she give credence to James’ call and alert the
client? Should Selma prioritize transparency, a value that James holds dear, or counsel him to focus on
trusting what she has to share with him, given her strong relationship with him over the years? Additionally,
should she, a mid-level manager in her firm, reach out to the senior management, given that her senior
management is not available, to make this decision? Would her prudence be seen as being out of line, given
her designation in the firm?

What should Selma do?
Discussion Questions
Should Selma treat this call from James as a crisis?

If Selma determines this is a crisis, what steps should she take?
What approach should she take in dealing with both the internal audience (her client, her own firm)
and the external one (media, public)?
How should Selma handle the differing styles of communication between herself (a Middle Eastern
public affairs professional) and James (a U.S. journalist)?

Aleem, Z. (2017). Saudi Arabia’s diplomatic war with Qatar explained. Retrieved from https://www.vox.com/
world/2017/6/6/15739606/saudi-arabia-ties-qatar-trump
Boin, A. , ‘t Hart, P. , Stern, E. , & Sundelius, B. (2005). The politics of crisis management: Public leadership
under pressure. Cambridge, UK: Cambridge University Press.
Center for Biopreparedness Education. (n.d.). Crisis communications planning workbook. University of
Nebraska Medical Center. Retrieved from http://www.comipi.it/library/crisiscommunication-workbook.pdf
Simmons & Simmons. (2015). Doing business in Qatar – 10 key points. Retrieved from http://www.simmonssimmons.com/-/media/files/corporate/factsheet%20pdfs/aaa%20locations/
doing%20business%20in%20qatar.pdf
https://dx.doi.org/10.4135/9781526468284

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