Case Study
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Week2B52B--2BDisney_Case_Study_UPDATED2.pptxAlligator Attack
What Happened
June 14th, 2016 : Two-year-old Lane Graves is dragged into the lagoon at the Grand Floridian Resort at Walt Disney World while on the beach with his family
June 15th – Disney shuts down all resort beaches “out of an abundance of caution.”
June 16th – After an 18-hour search, the boy is found dead just 15 miles offshore
VIDEO: Disney gator attack: 2-year-old boy found dead
https://youtu.be/tOsjenuEIB4
VIDEO: Boy is Found
https://youtu.be/JXOZQKzjp4M
Disney’s Response
Disney, understandably, spoke about its sorrow:
“There are no words to convey the profound sorrow we feel for the family and their unimaginable loss,” George A. Kalogridis, President of Walt Disney World Resort, said in a statement.
“As a parent and a grandparent, my heart goes out to the Graves family during this time of devastating loss,” said Bob Iger, chairman and CEO, The Walt Disney Company. “My thoughts and prayers are with them, and I know everyone at Disney joins me in offering our deepest sympathies.”
Disney’s Response
Fence and new signs go up on June 17
Employee Response
Disney intern Shannon Sullivan tweets out the following image:
Employee/Public Response
More videos and stories emerge from employees and Disney visitors demonstrating that alligators have been a problem for some time.
VIDEO: Inside Edition
https://youtu.be/ZONXg4QRSDA
Implications
If Disney had any “prior knowledge” and failed to notify visitors, were they negligent?
“We are installing signage and temporary barriers at our resort beach locations and are working on permanent, long-term solutions at our beaches. We continue to evaluate processes and procedures for our entire property, and, as part of this, we are reinforcing training with our cast for reporting sightings and interactions with wildlife and are expanding communication to guests on this topic” -- Disney
VIDEO: Lawyer Explains Liability
https://youtu.be/9_4ssfqjmJg
VIDEO: NBC News
https://youtu.be/3tGN2FlM6f8
VIDEO: ABC News
https://youtu.be/YwillqDvKFg
Financial Risk
If Disney handles the tragedy insensitively — or fails to quickly reassure families that its other attractions are safe — it is putting one of its most important businesses, theme parks, at risk. The challenge arose at what was supposed to be a triumphant moment for Disney: Its new Shanghai park opened on Thursday, June 16.
Disney’s theme parks make up about 31 percent of overall company revenue annually. Only the company’s media networks — the segment of the company that includes ESPN and ABC — earns more. Theme parks earned $16.62 billion in fiscal 2015 — which was up 7 percent from the comparable prior year.
VIDEO: Family Will Not Sue Disney
https://youtu.be/kL6nSL7N7Wo
VIDEO: One Year Later
https://youtu.be/ahjnF5yD94w
Disney Donates to Orlando Shooting
On June 14, 2016, The Walt Disney Company donated $1 million to help those affected by the Orlando mass shooting.
"We are heartbroken by this tragedy and hope our commitment will help those in the community affected by this senseless act," Bob Chapek, chairman of Walt Disney Parks and Resorts, said in a statement. "With 74,000 cast members who call Orlando home, we mourn the loss of the victims and offer our condolences to their families, friends and loved ones."
Disney added that donations from Disney employees would be matched dollar for dollar.
Questions for Consideration
Did Disney ever accept responsibility? What role did “liability” play in how they responded to this crisis?
Who or what was Disney protecting in its response?
Was the response enough?
Was the Disney brand able to sustain negative impact? Why?
Questions Strategic Steps
What, if any, Strategic Crisis Communications Steps do you think Disney took and which weren’t taken during the Alligator Crisis?
Plan for the unexpected
Decide what you are protecting
Build reputational currency
Form a crisis team/war room
Establish relationships: media, NGOs, thought leaders, etc.
Establish internal communications channels
Be content ready, format agnostic
Questions Guiding Principles
Regret
Say you are sorry the crisis happened even if you aren’t guilty, or responsible; just that you regret the circumstances. Not your lawyers’ favorite comment.
Resolution
Say -- if you can -- what the company plans to do to resolve the issue, e.g. put safety caps on the pills, use double-hulled ships. If you can’t, say you are trying to determine the cause of the problem.
Reform
Tell stakeholders that the company will do everything it can to ensure that the situation will not be repeated.
Restitution
Make those injured whole.
Tell the truth.
Act quickly.
It is what you do that counts!
Which, if any, of the guiding principles are evident in the actions taken by Disney during the Alligator crisis?
