analyze and describe the corporate culture of Fantasia Cosmetic Surgery Center based on these facts.

In one or two words each, list the three phases of crisis management.
A distinguishing feature of crisis from other problems is that a crisis has victims.
Match each example of crisis with its type.

Question 3 options:

malice

organizational misconduct

violence

confrontation

natural disaster

technological

financial

1.
Hurricane Sandy

2.
Tylenol murders 1982 (company: Johnson & Johnson, https://www.pbs.org/newshour/health/tylenol-murders-1982)

3.
Denny’s Restaurant discrimination cases

4.
workers’ walkout protesting layoffs of hourly employees

5.
angry employee posts employer trade secret on social media

6.
system wide network failure causes interstate transportation lines freeze for 7 days

7.
Iceland’s bank failure 2008

Crisis management is having the ability to do and say the right things under extraordinary pressure.

O. C. Ferrell emphasizes the importance of customers as stakeholders, but also stresses developing a company ethics program that balances the needs of all stakeholders in the business. To properly develop such a program, Ferrell recommends that a business should do which of the following?

Question 5 options:

Create a suggestion system, like a digital suggestion box, for stakeholders to provide their input about the company.

Establish a social media presence and monitor comments to track stakeholder interests and preferences.

Appoint an employee team to study how competitors are serving customers

Conduct formal research including focus groups and surveys to generate data about stakeholder groups, and distribute research results throughout the firm.
James Haggerty (2015) wrote that all crises are now legal crises, and gives 3 reasons for this. Which of the following are his 3 reasons? (Check 3)

Question 6 options:

Aggressive prosecutors and regulators

There is a higher incidence of corruption and malfeasance in the conduct of business than ever before

Increased laws and regulations

Rise of plaintiffs bar and class action lawsuits

The competitive push to mass produce cheaper products faster has sacrificed quality control

Juries are awarding higher damages in verdicts

Stakeholder theory focuses solely on the legitimate interests of the corporation’s shareholders.

Question 7 options:
True
False

Two emotions closely aligned with the ethic of care are:

Question 8 options:

remorse and guilt

empathy and fear

fear and remorse

empathy and responsiveness

Question 9 (Mandatory) (5 points)
Which of the following is NOT important or essential in an ethic of care approach in a crisis situation?

Question 9 options:

company share dividends

pre-crisis stakeholder relationships with organization

emotions

trust

Question 10 (Mandatory) (5 points)
If the circumstances of a crisis situation causes the organization to be unable to meet its contract with a major customer, which of the following is the ideal remedy to avoid damages for breach of contract?

Question 10 options:

reformation

bankruptcy

rescission

public apology

Question 11 (Mandatory) (5 points)
Unilever is an example of practicing which of the following?

Question 11 options:

utilitarianism

sustainability

Friedman’s free market ethics

shareholder theory

Question 12 (Mandatory) (50 points)
BUSN627 Final Exam Essay Question

YOUR ESSAY IS BASED ON THE FOLLOWING HYPOTHETICAL CRISIS SITUATION:

Fantasia Cosmetic Surgery Center is a well-known, successful, busy, plastic surgery practice. Dr. Goodfellow, the controlling practice owner and lead physician, is often featured with celebrities and is a noted philanthropist in the community. The practice has 6 physicians in total and several supporting clinicians, healthcare, and administrative staff. The practice has a practice administrator.

There are policies on office administration, client and medical practice, and standard employment matters. There is no workplace violence policy. There is no crisis plan. The practice has a website, but is not active in social media. Training is limited to healthcare topics and required legal compliance.

The practice schedule is fast paced. Employees are required to move patients through the schedule timely. Personal conversation is discouraged. Patients are treated professionally, but not personally. There have been some complaints by patients from time to time that their questions are not answered as well as they would like during procedures, but that otherwise they are happy with their results.

There was one malpractice claim filed 3 years ago by a patient dissatisfied with a nose restructure, which was settled privately with a confidentiality agreement and no publicity.

Talula Bascula, a local socialite, is a patient of Dr. Goodfellow. She has had some facial reconstruction work previously and returns for additional work she wishes to have done on her lips and jaw line. Dr. Goodfellow is away at the time and she is seen by Dr. Alexis Candlelight, who advises her against it. Alexis is concerned that due to Talula’s facial structure, combined with previous work already done, the result is not predictable. Talula, as she is, is quite attractive. Alexis fears what Talula thinks she wants could end badly. Talula is unhappy, screams at Alexis that she is an incompetent moron, and storms out of Alexis’ office, slamming the door open against a nurse in the hallway. She stomps down to the reception desk, yells at the people there, picks up stack of brochures on the counter and throws them, and leaves.

Talula tracks down Dr. Goodfellow, whom she knows personally, by phone, and gives him an earful. He calms her down and tells her he will call her to come to see him when he returns.

The office manager later informs Dr. Goodfellow of Talula’s behavior in the office and Dr. Candlelight fills him in on why she thinks the procedure is not a good idea. They both prefer that Talula not come back to the practice given her volatile behavior. Employees complained. Dr. Goodfellow reminds them who the boss is and says he will handle Talula personally. The upshot is, Dr. Goodfellow performs the surgery Talula wants. It does not end well.

As a result of the surgery, Talula’s face is contorted. Dr. Goodfellow attempts to fix it with another procedure. It gets worse. Talula now looks something like a gargoyle.

Talula stalks the office and Dr. Goodfellow’s house, threatens Dr. Goodfellow on the office message system, and sits in the office parking lot in her car. The staff complains. They are afraid of her. The office manager wants to call the police. Because Talula is who she is, and because her husband is even more prominent, Dr. Goodfellow first tries to handle it privately through their lawyers. He tells his staff to just ignore Talula. A week into the parking lot stalking, Talula bursts into the office one morning, shouting and waving a gun, She starts randomly shooting around the waiting room. People dive for cover and one brave person tackles Talula, but not before one of the bullets hits the office receptionist. She is wounded severely, fortunately not mortally. She will recover. Talula is arrested.

QUESTION:

Write an essay in which you address the following:

Identify the type of crisis this scenario presents.

Describe the 3 phases of this crisis situation with at least two issues for each phase. You have the option of presenting this in a table.

In a paragraph, analyze and describe the corporate culture of Fantasia Cosmetic Surgery Center based on these facts.

 

In a paragraph identify and discuss at least one ethical issue AND explain how this ethical issue could have been avoided.

In one paragraph identify and explain what, if anything, you would advise to manage this situation post-crisis after the shooting.

REFERENCES REQUIRED: You MUST include at least 5 references drawn from your Lessons, Course

Readings, and your own relevant research, cited in APA 7th edition format, including in-text citations in your essay as well as a list of full citations at the end of your essay . Hanging indent and double spacing are not required in formatting for purpose of this essay, but accurate APA citation format of the references is required.
Spelling and grammar count.
Please be reminded of the University plagiarism policy in preparing exam essays,