Mitroff and Alpaslan

Management > Crisis Management > Lectures > Independent Research > Mitroff and Alpaslan

Mitroff and Alpaslan (2003)

Companies are fighting new wars with old strategies

Companies are either crisis prepared or crisis prone
Crisis prone companies only deal with problems they’ve suffered in the past
Crisis prepared companies plan for crises outside their realm of experience

Over the last two decades 75-95% of the Fortune 500 companies have been classified as crisis prone.

Crisis prepared companies live about 24% longer than crisis prone firms
Preparedness increases a firm’s reputation, which in turn raises its share price

CPrep firms do not want one person harmed by a crisis and focus on prevention, rather than containment. CPron companies weigh up the costs and benefits of crisis prevention investment, working out how to help the greatest number of people, rather than considering every individual.

Types of accidents

Solutions