Crisis Communication
Background
Target Corporation is the second largest discount retailer in the United States and opened its first store in 1962. The first store was located in Roseville, Minnesota and by 1972 there were 46 stores throughout the United States. In 1982 Target Corporation had acquired 33 FedMart stores in Arizona, California and Texas. The company now has 1800 stores across the United States and has extended its operations into Canada since 2013. There were 133 locations across Canada as of 2015 but the company has shut down operations there due to financial difficulties. Wesfarmers began operating an Australian version of Target in 1973 and apart from naming rights, the United States and Australian companies are not affiliated. Target’s headquarters can be found at Nicollet Mall in Minneapolis.
Target Corporation has 347, 000 employees and has serviced millions of customers in the United States and Canada. It offers consumers a full range of consumer goods and services for the individual in the home, garden, outdoors. It also offers goods for leisure and services for personal needs.
Target Corporation is positioned in a very challenging and competitive market that is dependent on customers’ expectations, corporate regulations and media speculation. Mergers and acquisitions are common in the retail industry and the current economic climate makes it even more difficult to avoid the realities of economic rationalism and globalization. Target Corporation’s expansion into Canada has demonstrated the vulnerability of expanding into new and unfamiliar markets without understanding the true realities of the retail market. The retail industry is closely monitored by government regulation and policy due the retail industries high rates of employment and being at the coal face of industrial disputes with unions. The retail industry is also monitored for competition and pricing along with controversies over quality and product defection.
Crisis Inventory for Target Corporation
Crisis Inventory Graph
The rest of this paper will consider two crises: business failure in Minneapolis and a bomb scare also in the same area.
Introduction
Target believes in the stability of our company and considers all stakeholders including the government, consumers, employees, shareholders, unions and sponsors. It is difficult to predict some outcomes in the retail industry because like many industries retail is positioned in such a volatile economic environment. It is possible that some situations can be avoided provided that the correct personnel are aware and confident with the plan given to them. Target Corporation’s attitude towards a crisis is ‘expect the unexpected. We have considered as many stakeholders as possible and understands the importance of actions so that all stakeholders and communities are considered.
This plan has been created in order to give instructions on how to conduct operations during a business failure in Minneapolis, or in a bomb threat or threat to employees. This plan has details of the required steps to take in broadcasting important information to stakeholders. The plan also has the procedure for creating and accepting information for dissemination.
This document must be held and read regularly by staff. It should be revised every four months’ basis, or during disruptive changes to the structure or direction of the organization takes place.
Crisis communication is very serious and all staff have a responsibility to be highly trained and ready for and possible incidents. Being proactive instead of reactive and sufficient crisis planning ensures that the company can continue moving forward in a well organized manner without compromising the positive image of Target Corporation.
Sincerely,
Don Portobello
Purpose
Target’s Crisis Communication Plan outlines the roles, responsibilities and procedures for all staff in during a crisis. A crisis is one that effects the wellbeing or safety of consumers, staff or any of the Company’s stakeholders or suppliers. A crisis is often scrutinized by the media and the public. It has the potential to ruin the reputation of the company if not dealt with in a timely and efficient manner.
Objective
The objective is to provide an up to date Crisis Communication Plan that provides a free flow of information. The objective is to make sure that the safety and wellbeing of all people affected by a crisis related to Target. The plan aims to be as up to date and as truthful as possible but one that can guide staff through the media hearsay that can often arise after a crisis. Target is responsible for the physical safety, finances, privacy, legalities and many other ramifications of a crisis and we must ensure that our staff can reduce all of the potential human and technical failures that relate to a crisis
Rehearsal dates
A rehearsal date will be conducted in our headquarters at Nicollet Mall in Minneapolis. Target Corporation will arrange a rehearsal of this crisis communication plan in June or July of every year.
The team emergency contact list should be updated every four months and this will be communicated by email and phone by the Crisis Communications team. All VPs will ensure that their designated staff will provide and revise the correct information. The information should include home address and other contact information. It should also contain emergency contact names and other details in case that that people from the company are unable to make the first contact. This procedure is of the utmost importance and should be completed diligently and on time.
Key Publics
Crisis Communication Team Members
The crisis communication team members are:
A Roberts, EVP Human Resources & Communications
B. Smith, Director, Media Relations
S. Summers, Vice President, Corporate Communications
The following people should also be free:
Senior Manager, Executive Communications (responsible for CEO communications)
Senior manager of Community Relations and President of Target Foundation
Senior manager of Human Resources
Senior manager of Store Operations
Senior manager of Target.com
All materials have to be evaluated by:
Don Portobello, CEO
A. Chalk, EVP & General Counsel
The senior executive of the area of designated importance
Crisis Communication Method
Internal information for matters of urgency are either informed by email, phone or face to face depending on the importance given to each person from the public. Senior executives will be advised by email quickly. VPs must have personal meetings with their groups or pass down responsibility to Directors/Managers. Others will be informed by phone.
Media Spokesperson
The CEO of Target Corporation (Don Portobello) is authorized to address the media about any crisis. His statement should be created by staff of the Corporate or Media Relations team. These individuals will ensure that important information distributed to the media is relates to the messages given to employees and consumers.
Don Portobello may pass the responsibility onto a someone with the required knowledge if required. In the event of a bomb scare or threat, the EVP that is responsible for security, Janelle Barker might give more reliable information in some circumstances. In the event of a business failure emergency, John McDowall, Chief Financial Officer of Finance and Accounting would be best source of distribution. The EVP for Human Resources & Communications may be a better source for distributing information on behalf of Target Corporation if John McDowall is unable to.
Emergency Personnel and Local Officials
Nicollet Mall in Minneapolis Building Administration & Security, 317-111-2222
Minneapolis Police 317-111-2222
Minneapolis Fire Department 317-111-2222
Minneapolis Medical 317-111-2222
Target Counselling Service 317-111-2222
Mercy Hospital 317-111-2222
Abbott Northwestern Hospital 317-111-2222
Key Media
Newspapers: Print and Online
Business Editor, Star Tribune, Minneapolis
Business Editor, The Minneapolis Daily, Minneapolis
Business Editor, MinnPost.com, Minneapolis
Business Editor, Finance and Commerce, Minneapolis
Business Editor, Twin Cities Daily Planet, Minneapolis
Television
Business Editor, American Broadcasting Corporation (KSTP-TV)
Editor, WCCO-TV, Minneapolis
Editor, Twin Cities Public Television, Minneapolis
Radio
WCCO Radio and Minneapolis
News desk, Minnesota Public Radio, Minneapolis
For a Bomb Scare or threat to Employees
Minneapolis Police 317-111-2222
Minneapolis Fire Department, Bob Randall 317-111-2222
Minneapolis Office of Emergency Management 317-111-2222
Nicollet Mall in Minneapolis, General Manager, Natalie Verity 317-111-2222
For Business Failure
Government department representing pay and union disputes 317-111-2222
GEO Investments 317-111-2222
Crisis Communications Control Centre
Target Corporation has a delegated control center that can be used when a shutdown of one of its stores or offices occurs in a designated area. Teams need to be relocated from a store or office in the event of a public protest or an emergency.
In Minneapolis, the center is located at:
Southern Industrial Park, Bunnings Street Minneapolis (preferred location)
Equipment and Supplies
Crisis centers are equipped with laptops, phones, fax machines, and printers. All individuals in member the crisis communication team should take their corporate phone and laptop. Communication team members should also take their Procedural Manual. It lists contact names, procedures and other information.
Pre-gathered Information
The following information should be kept at the crisis center in hard copy format:
Communication Department Procedural Manual
Target Corporation Executive Directory
Target Corporation Key Messages
List of the team member’s and executives home contact.
Key Messages
For a bomb scare:
The company has ceased operations at our head offices at [location] due to a bomb scare. The safety of our employees and consumers is paramount.
Our head office/store will recommence operations when on the advice of local authorities and as long as buildings and people have not received so much damage that would make entering them unsafe.
The public can go to www.target.com, or follow our Twitter account at @target.com, for updates. Staff will be called, emailed or contacted in person regarding work changes.
During this unfortunate serious events we would urge, customers and staff to also contact or use our call center for updates until this emergency passes.
For a business failure;
Target has closed its offices and/or store/s at [location] due to business failure as requested by our auditors and accountants. The financial future of all of Target’s stakeholders is paramount.
Our office/ store at [location] will recommence operations when it is recommended to do so by our accountants and auditors.
The public can receive updates from www.target.com, or follow Target’s Twitter account at @target.com. Staff will be called, emailed or contacted in person regarding work changes.
During this unfortunate serious events we would urge, customers and staff to also contact or use our call center for updates until this emergency passes.
Website and Social Media
It is of the utmost importance that any shut downs due to a business failure, bomb scare or threat should have a message placed;
on www.target.com
on Target’s company intranet.
on Target’s Twitter account, @target
Trick Questions
Difficult questions from different media outlets related to a bomb scare or threat may ask difficult questions of the scale of the threat, injuries and possible perpetrators. At the beginning of the crisis, the person speaking should state that the threat is under investigation and that Target is doing everything to secure the safety of employees and consumers. Another message can also be distributed:
The safety of our customers and stakeholders is of the utmost importance to Target. We take security seriously to ensure we meet the standards of safety expected as a retailer that has safety at the core of its operations. We take rules and regulations seriously and have implemented our crisis communication plan. We have also made the police, ambulance and fire authorities aware of the threat. We are unable to elaborate of the scale or details of the treat for legal reasons.
Difficult questions related to a business failure or breach would be related to the trustworthiness of our accountants, auditors and CEO. The speaker should inform that the reason for the closure is to protect the company from further losses and that would result in more effects on customers and staff. The speaker should advise that the financial status of the store/s is still being investigated. Other messages include;
The financial future of our stakeholders and employees is paramount to Target. We take our financial situation very seriously.
Prodromes
For a financial failure:
Note: Target Corporation’s investment analysts regularly monitors markets, Target’s profits and market conditions so that the company can be advised of a market failure alert.
Some personnel not taking the finances of the company seriously or manipulating information for their own purposes. Possible problems: employees not giving the correct information to those responsible resulting in confusion and a larger financial loss than expected.
Specialized business information used on phones and laptops carried by accountants, auditors or Emergency Management Team are inaccurate or not working properly. This could stop an accurate business response.
Online protests by groups related to the Occupy movement or Anonymous, who are angry at job losses.
For a bomb scare or security problem:
Other retailers having similar problems and threats.
Reports of any online activities that would be seen as threatening by other retailers.
Termination of employees that have made threats to staff and the company.
Evaluation Form
Form for a review of the crisis communication response.
