A badly managed crisis can severely damage a company, its reputation and its brand. Handle it badly and one risks losing the company; handle it well and your reputation is enhanced, sales increase and the brand is stronger than ever. As noted in the Introduction, Johnson & Johnson reacted promptly and unequivocally in withdrawing Tylenol when the analgesic was threatened by a blackmailer. And that is how Nike, the sports goods manufacturer, reacted when it was faced with a problem.
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