CRISIS MANAGEMENT: AN ANALYSIS OF THE FAST FASHION INDUSTRY

Abstract

This dissertation looks at the existing, recent literature in crisis management and tries to outline a plan of actions organizations should undertake to prevent or respond to a crisis. A crisis can be seen from two different perspectives, one is the side of the organization and what actions are required for a company to prevent or react to a crisis, the other is the side of the public, how the public reacts to a crisis and can even trigger and expand crisis. This dissertation analyzes both perspectives. Chapter 1 delineates the different types of crisis and other classifications of crisis based on several different criteria, explains how technological, social and environmental factors can trigger or modify a crisis and suggests the implementation of systems like having a crisis management team and a crisis management plan to be ready when a crisis hits. Chapter 2 highlights the most common strategies that have been used by organizations until now to cope with a crisis. They vary depending on the degree of responsibility of the company. It also delineates the crisis communication tactics that are suggested in a period of crisis. Communication is mainstream in a period of crisis. Chapter 3 looks at the perspectives of the society and explains the dynamics of a crisis within a society, how it spreads, at which speed, and through which means of communication. The Greenpeace detox campaign aimed at fast fashion retail companies is taken as element of analysis. Chapter 4 explores a new area of research, which is called topic modeling and is suited to analyze great amounts of data in the form of text. I propose the analysis of 100 newspaper articles from the Guardian and the New York Times in the fast fashion area to understand the issues that revolve around the theme. The fast fashion industry is booming yet harshly criticized for its unfair labor practices and negative impact on the environment. The final part of the dissertation summarizes some insights on how to cope with a crisis and proposes a fast fashion model to show how fast fashion companies should act.