Finally, this is getting fun.  There has been much ado in the media about Toyota’s recent quality problems and subsequent recalls.  Some pundits have been forecasting Toyota’s demise, while others have predicted that they will use this as an opportunity to turn the business around much like McNeil Labs (Johnson & Johnson) did in the wake of the Tylenol poisonings in 1982.

Regarding the latter of the opposing arguments, I think McNeil was positioned slightly better on two fronts.  First, McNeil’s negligence, if there was any, was in not foreseeing the potential for product tampering and not taking steps to package the product more securely.  That is, McNeil was not directly responsible for the crisis.  Toyota is in a situation of its own making.  The second point is that Tylenol did not have a large competitor with the U.S. government as its biggest stock holder.  Toyota is facing inquiry from the same congressmen and regulatory agencies that have recently purchased loads of General Motors stock.  Hmmm.

So, the question is, how do the two big auto companies play their hands to their advantage?

If GM follows the advice of the famous Chinese General Sun Tsu, it would use its new found weapon (friends in Washington, D.C.) to claim the victory that Toyota has handed to them.  Robert Greene, author of 48 Laws of Power would suggest that GM crush Toyota totally.  Can this be done?  Actually, if congress and other U.S. authorities can keep Toyota off balance by continuing with inquiries that keep Toyota in the news, and GM can come forth with truly superior products, I think they can pull this off.  Should they do it?  I’m not going to wade into a discussion about the American government owning a large corporation, but I think there is a great discussion about the “end result” ethical philosophy here.  I am truly ambivalent on this situation and I look forward to see how GM plays this out.

Toyota, on the other hand needs to stay the course in showing how their focus is the customer and their commitment to supplying high quality products.  Hushing dealers, covering up problems, and complaining about what the boys in Washington are doing, are a distraction and might be Toyota’s undoing.  Also, Toyota needed to apologize and move on, it seems like they may be over apologizing, which will put them in a weaker position then they already are.  I am not saying Toyota will go away, but they could suffer a setback that may take decades to recover from.

This report from NPR’s Marketplace will illustrate some of the tensions I’ve discussed.  What do you think?  I’m looking forward to your comments on this one.
 
 
Professional athletes are known for their strong personalities and occasionally risky behavior.  Combine this with all of the media attention that sports stars receive and you’ve got the potential for some great publicity and some serious PR disasters.  It has been my observation that public relations pros roll pretty well with the good news, but tend to get caught short with the bad.  For example, do you think the Atlanta Falcons or the NFL were expecting Michael Vick to arrested for being a part of a dog fighting ring?   Clearly, some football players are going to get caught doing things that are less than positive, but there is no way to have forecasted something like this.

Reflection:

Michael Vick’s case gives us two strong points for reflection.  The first is about creating a crisis communications plan.  Do you suppose the NFL has such a plan in place?  What would the plan look like? Would it allow the NFL and/or a given team to respond to a broad range of potential crises?

The second point is planning for Vick’s reentry into the league.  Since there is a cloud already over his head, the league, the team, and Vick need to have an MPR plan to make his return smooth, productive and profitable.

Professionals, you can use this example as a thought exercise for framing your own crisis and MPR plans. Professors, this is a great discussion starter and the basis for crisis planning and strategic MPR planning exercises.

Links:

Here are some interesting links regarding marketing and the return of Michael Vick.

American Public Media’s Marketplace story Strong PR could help Vick comeback

American Public Media’s Marketplace story Winning is key to Vick's redemption

From David Zinn’s July 31, 2009, article on the Chicago Tribune’s website Michael Vick's return