Time Warner Cable / CBS Crisis Management Free Essay Example, 5000 words

As a result, dispute between two parties had started. Second Component of Crisis: CBS Broadcasting wanted to retain digital rights of its content and it has planned to sell the content to web-based distributors such as Amazon, Netflix and others. Passing the digital rights of content to web-based distributors would decrease scope for Time Warner Inc to earn revenue by selling media content. Therefore, retention of digital rights of CBS Broadcasting would negatively impact interest of Time Warner Inc. As a result, Time Warner Inc was not ready to accept the decision of CBS Broadcasting to retain the digital rights (Carter, â€Å"CBS Returns, Triumphant, to Cable Box†). Review of the literature regarding crisis management will develop theoretical background of the discussion regarding crisis situation caused by dispute between CBS Broadcasting and Time Warner Inc. Crisis and Crisis Management Crisis is being conceptualized as uncommon event characterized with high level of vagueness, uncertainty and unknown causes. Severity of crisis situation is measured in terms of its ability create threat for survival for respective company or individuals (Sayegh, Anthony and Perrewe 179-199). We will write a custom essay sample on Time Warner Cable / CBS Crisis Management or any topic specifically for you Only $17.96 $11.86/pageorder now Probability of occurrence of crisis is perceived as low and due to vagueness surrounding crisis situation, companies face difficulties to select right crisis management (CM) mechanism. In simple words, CM can be defined as organizational procedures blended with leadership style to counter balance negative impacts of crisis situation (Regester and Larkin 41-73). CM mechanisms include variety of processes such as, 1- internal as well external communication with stakeholders (internal as well as external) and communicate the actions being taken by the company to address the crisis, 2- taking legal support to address the crisis situation, 3- conducting market research to get feedback from external stakeholders regarding process of addressing the crisis situation and 4- integrating transformational leadership styles and management actions to direct organizational actions to address crisis situation (Drew and Kendrick 19). According to Regester and Larkin (41-73), organizations with higher crisis proneness (CP) can handle crisis situation in better manner in comparison to unprepared organizations. Sheaffer and Mano-Negrin (575) defined crisis proneness (CP) as, â€Å"[.. .] a state of corporate readiness to foresee and effectively address internal or exogenous adversary circumstances with the potential to inflict a multidimensional crisis, by consciously and proactively preparing for its inevitable occurrence. † Considering conflict between Time Warner Inc and CBS Broadcasting, it can be said that both the companies need to have CP to address the crisis situation.