Carefree Cruise Lines Crisis: A Leadership Management Case Study

This case study analyzes the Carefree Cruise Lines crisis, focusing on the public relations and crisis management strategies employed after a sub-brand cruise ship encountered distress off the coast of South Africa. The assignment explores the initial response, identification of key stakeholders (including passengers, owners, competitors, and the PR department), and the organization's communication plan. It further examines how the organization should respond to the crisis, including actions like refunds, medical coverage, and communication with victims' families. Scene B delves into the intensifying crisis with increasing media coverage and social media engagement. The analysis covers adjusting the crisis response, integrating social media to provide accurate information, and managing the organization's brand and image during the crisis. The objectives of crisis communication efforts, including providing accurate information, engaging the public, and managing the brand's image, are also explored. The assignment highlights the importance of proactive communication and the use of social media in managing a crisis situation.

Question 1: Carefree Cruise Line Crisis case study (40 marks)
Scene A
It is Friday, a little after 5 p.m. in Accra, the location of the headquarters for Carefree Cruise
Lines. The majority of your cruise ships have the Carefree brand, but your company also owns a
number of smaller cruise lines, what can be called sub-brands. A call comes in that a cruise ship
in one of the sub-brands is in distress. The ship is off the coast of South Africa, and that is a 6-
hour time difference from your location. The call notes that, a distress call has been issued and
that the ship is being evacuated. You are the public relations personnel assigned to the crisis
management team for Carefree Cruise lines.
i. What are your first thoughts after receiving this call?
Response: in managing this crisis as a public relations person; the first thought will be to calm
the situation as it is happening on the coast off South Africa by assuring those on board that, help
is on the way; this must be done in a very calming manner as panic would be rife in such a
circumstance. Calm must also be exercised internally thus; by not spreading panic and keeping
tabs on the situation in order to prevent leaks that might misinform the public. After this, I will
gather all information available on the particular cruise line to determine the number of people
on board thus, number of crew, guests and so on, which will give a fair idea regarding the
number of experienced and skilled personnel on board. The call noted that, people are being
evacuated which implies that, the contingency measures are working and the situation is under
control. Since it is the close of work on a Friday, it will be difficult to make a 6-hour journey to
the coast off south Africa, so the nearby coast guards (water patrol security services) will be
contacted for assistance in the evacuation process. They will be furnished with all the necessary
information including radar location of the cruise line for quick response. The situation will then
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be communicated to the Carefree Cruise Lines organizational leaders in order to decide what
should be done for the evacuated people. The last thing to be done in this situation will be to
issue a public statement when the situation is completely under control and that adequate
information is available to respond to public questions.
ii. Who are the Key Stakeholders in this situation?
Response: in such a situation such the management of a crisis, the key stakeholders become the
ones who stand a chance of losing something. In this situation, the lives of the people on board
the Cruise Line become the most important stakeholder as casualties recorded will not stand the
organization in good stead. The titanic for instance, had rave reviews but after the accident; the
company responsible for it suffered greatly. Also potential clients could be key stakeholders as
the situation can reduce patronage astronomically. Secondly, the Carefree Cruise Lines owners
are key stakeholders in this situation as they have an interest or are concerned with the
happenings in the business. In the case where, the situation turns into a “PR nightmare” with
information being drafted in from all angles and spreading the situation on the ground; this has
the potential of disrupting the operations of the Carefree Cruise Lines as bad mouthing spreads
faster than good news. If the situation is not managed well, another key stakeholder likely to
benefit from such an unfortunate situation will be the competitors in the Cruise Lines business as
this gives others the opportunity to drum home their products and services, especially in the area
of safety. In addition, the sub-brands of the Carefree Cruise Lines are likely to be worse affected
and this can lead to its collapse given that, the situation could derail the entire Cruise Lines.
Lastly, the PR department are key stakeholders as their management of the situation could
determine the future of the Cruise Lines and this can be positive or negative.
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iii. How should the organization respond to the crisis?
Response: in the midst of the crisis; a statement must be released to the public first of all
apologizing for the unfortunate situation and also assuring them of the safety of all people on
board the cruise, their current location and assure them of new developments as the situation is
being brought under control. In a bid to arrest the situation, the organization must make refunds
to all guests on board and also take responsibility of all medical bills of all on board (guests and
crew) if injuries or some level of casualties were recorded. Also relieve packages must be sent
out immediately to avoid escalations in the situation. Communication with the families of all
victims and the public should be cordial and prompt thus, reassuring them of positive results. the
organization must take advantage of the weekend since the situation happened on a Friday and
resolve everything swiftly so that, calm can be restored before the working week commences.
iv. How should the organization communicate these actions to key Stakeholders?
Response: business success in the millennial era is no longer about turnover, but what the
business can generate and this can be done effectively through communication. There is a
plethora of communication channels available to a PR team but communicating with key
stakeholders must occupy a more formal approach. Communicating with families, friends or
acquaintances of victims must be done face-to-face if applicable. If not, communication through
phone calls will be appropriate. The communication must be two-way in all dealings for the sake
of clarity of facts. This action must be taken before public statements in order not to over exert
the situation. Organizational leaders and business owners must also be informed accordingly so
that, they know exactly what is happening at every given time. this limits an influx of multiple
stories being leaked to the public and also proves that the organization is efficient. Regular
interactions must exist between organizational leaders and the PR team in the form of progress
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reports thereby creating an effective two-way communication system. all publications must be
authorized by the organization as all other forms of unauthorized publications will reek of
unprofessionalism and this would resound negatively in the minds of key stakeholders and also
show that, the organization is not on-top of the situation.
Scene B:
It is 12 hours since the report of a distress call from a ship in one of your sub-brands off the coast
of South Africa. The crisis is already generating a great deal of media coverage on the continent
and, to some extent, the US and Europe. This coverage is found in both traditional and online
news media. The ship hit a rock and sank quickly not too far from shore. The ship was evacuated
but there are passengers and crew who are unaccounted for and authorities have begun to locate
bodies of the crew and passengers who died in the accident. There is not a clear number of
injured or dead yet. Pictures are appearing on television, in print publications, and online of the
cruise ship lying on its side in the water. There are also images of and interviews with passengers
who survived the sinking. Carefree Cruise Lines has a very active Facebook page. The company
regularly posts messages to the site and people comment on posts. There are over 250,000 fans
of the Carefree Cruise Lines Facebook page. The company and the CEO each have a Twitter
account. Neither the company nor the CEO has a blog. While active, the company’s Twitter
account has a little over 50,000 followers. Messages on the Facebook page and Twitter are
coordinated, a basic message is adapted for each channel. Your social media manager oversees
the creation of social media messages and monitors the online discussion about Carefree Cruise
Lines. The increasing media coverage is intensifying the crisis.
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i. How would you adjust your crisis response to fit the picture of the crisis that is now
emerging? Why would you make each of the changes?
Response: in this situation, the damage has already been done so managing the situation
becomes the main response plan. Based on the report gathered from the shore, a statement will
be released first and foremost, through selected television channels and radio stations; detailing
the organization’s apology for the unfortunate accident, in which sympathies and condolences
will be captured in this report as well as next courses of action. These channels were initially
chosen because of their reach and the purposes they serve. Furthermore, in response, the
organization will contact family members, friends and acquaintances of affected victims through
databases available and keep this away from the public light in order to limit the narratives
surrounding the situation. In a bid to limit the commentary surrounding the crisis; the
organization would employ the services of security personnel to barricade the area thereby
limiting the presence of media outlets and only communicating through appropriate channels.
Given that, the situation is already “trending” due to social media; an official statement will be
released through the organization’s social media channels (Facebook and Twitter) in a bid tom
paint a clearer picture of the situation so that the patrons of these sites could differentiate
between the trolls and the facts of the matter. Due to the situation, the granting of interviews will
only be done by the PR personnel in charge so that he/she will serve as the only official
mouthpiece for the organization throughout the crisis and this aims at limiting the spread of false
and misleading information.
ii. How would you integrate the company’s social media into the crisis response?
Response: in the age of technology, social media has become a major source of information as
well as communication. The PR team will make use of the organization’s social media to provide
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accurate information as it pertains to the crisis and also use these platforms debunk all false
publications being perpetuated by the public through the official handles of the organization as
well as informing the public to ignore all other posts suggesting to be from the organization.
Posts will be aligned across these platforms and these will be in relation to current happenings
from the crisis. The operation of these accounts on social media will do so in accordance with all
media ethics thus; avoiding on-line banter with the public and the posting of sensitive images
and videos, so the sole purpose will be to inform the general public on the work being done by
the organization together with other agencies.
iii. What would be the objectives of your crisis communication efforts?
 to provide accurate information: this would be one of the ways in which to control the
situation. Communicating to the public using the organization’s mouthpiece will limit the
spread of false information. For instance, in the case of MTN Ghana, reports were
making rounds in 2020 that, the MTN mobile money (momo) service was about to shut
down due to happenings in MTN south Africa. This was managed significantly when
MTN released an official statement explaining the situation and assuring Ghanaians of
their safety when using MTN mobile money. Therefore, this type of effective
communication becomes beneficial in such a situation.
 To engage the public regularly: the commentary surrounding the crisis is spreading like
a “wild fire” as it has already left the shores of Africa and found its way to the USA and
parts of Europe. This implies that, news outlets be it print, audio-visual, visual and social
media would want news to report to listeners and viewers so engaging them regularly
would ensure the right information and communication is put out there. Also the public in
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general must be enlightened so it is important the organization does not shy away from
the situation but rather be available to communicate regularly with the public.
 To manage the brand and image of the organization: in such situations such as a
crisis; a lot of clutter will surround the organization and this can permanently put a dent
on the reputation of the company. Effective communication through appropriate channels
will be required to protect the image of Carefree Cruise Lines as this would help the
organization survive when the crisis is over.
iv. Which stakeholders would you be targeting with your crisis communication messages
and why?
 The victims (injured): they must know that, they are very important to the organization
and that the organization is ready to support them in every way. Their identities will
remain confidential unless otherwise stated by them to be made public.
 The Families/friend/acquaintances of the deceased and injured: communication to
these stakeholders is necessary as they will be informed on the current situations
regarding their people. The families and acquaintances of crew and staff will be contacted
personally and offered all the support needed and also painting a vivid picture of the
situation in order to avoid a media frenzy where relatives of victims get overly involved
in the media.
 The general public: this will be done to allay the fears of the public regarding the crisis
and at the same time create an efficient image of the organization in the minds of
potential clients. The public commentary will determine whether the organization can
survive the crisis at hand, so if the information in the public domain is not well
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articulated by the PR team of the organization; it will be very unlikely for the company to
operate at existing heights as business will plummet drastically.
v. Would you recommend starting a company blog? If yes, why, if no, why not?
Response: a blog is a social media tool that works in the same vein as a website or web page. It
is very useful in business undertakings but in this situation, I will opt against this action. Reason
being that, in a crisis, it will not be morally right to create a blog as it would only encourage
banters and trolls from the public especially among millennials from which most have no moral
indoctrination and make fun of many serious issues. The crisis is a sensitive one and thus must
not be turned into a conversational style of communication with people on social media.
vi. What other social media channels might you utilize in your crisis communication
efforts, and why might?
Response: apart from using the official Twitter and Facebook pages to inform the public; it will
be prudent to make use of the “WhatsApp” platform as well where a WhatsApp chat group is
created to include all sectional heads at the Carefree Cruise Lines company so that information
can be effectively disseminated to all sections/departments and this will be relayed by these
sectional heads to their subordinates and this will be done to ensure all involved in the
organization adhere to every step taking by the organization in relation to the crisis and this also
reduces the risk of misinformation in the organization.
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Question 2: The Art Center (20 marks)
You are an employee of a PR firm that focuses on raising money for the fine Arts. A large client
of the firm wants to find funding in order to relocate the city’s largest Center for the Arts within
a yet-to-be-built state-of-the-art facility. You meet with your peers and discuss taking on this
large project. There are several key factors to consider; the most important is how the community
will react to such a change. The Center’s current home is legendary, dating back to when the city
was first built. It has held many memorable performances. Parents love to bring their children to
the plays and musicals that are performed there; many enjoy its drama and classical musical
performances. Film festivals and dance performance have also been presented there.
However, the Center is old and in need of repair. Estimates for the needed repairs and for long-
term upkeep are high. This client feels it would be more financially viable to build a new facility
than to spend more money on an old building. The advantages for building a new Center state-
of-the-art acoustics, up-to-date technology, expanded and more comfortable seating, etc.- weigh
greatly against the community’s desire to keep the old building and find finding to repair it in
future years. There is also the matter of convincing the board of directors. Some of the members
are in favour of keeping the old building and feel that, historically it is too valuable to abandon.
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Knowing that you need to sway opinion within the community as well as the board of directors,
how would you begin?
i. What specific stakeholders would you target?
As an employee in a PR firm, establishing professional relationships with clients and members in
a community is the ultimate goal but sharing a cordial relationship goes a step further in opening
doors and opportunities. Firstly, it will be prudent to contact the board of the directors about this
proposal ideally with the client that is prepared to find funding for the project to ensure clarity. If
the board of directors are on board, a collective effort to sway the community leaders will be
more concrete.
In practice, with respect to the stakeholders I would target; this would include; board of
directors, film-makers/entertainers, chiefs and elders, opinion leaders in the community and
concerned youth.
 Board of Directors: these are the human resource in charge of the edifice and as such
they understand the significance of this legendary Center. Courses of action cannot be
implemented without their inputs. it will therefore, be necessary to make contacts with
these people.
 Film-makers/Artists/Entertainers: from history a lot of events in the field of
entertainment and Arts have been held in this Center so such people will also be key
stakeholders to consider.
 Chiefs and Elders: these are the leaders in the community and are accustomed with all
historical sites and establishments in the community hence their importance.
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 Opinion Leaders: these include the scholars, educationists, fathers/mothers who
occasionally take their children and families to the Center and historians who can be
helpful in decision-making processes.
 Youth: they are the beneficiaries of future investments and as such their inputs will be
important given the nature of the situation.
ii. Which stakeholders must you reach first?
Response: it will be very important to reach the board of directors first in this instance, because
they are the main actors who are practically the owners of the Center. With these people on the
side of building a modernized Center, the resistance from the community will be minimized to a
degree. This is necessary also because, a presentation made to the board of directors on all the
advantages to be gained from a new Center as against the old one will make financial sense
coupled with other economic benefits and this would stand the proposal in good stead when
community meetings are arranged.
iii. How do you propose to reach all various audiences?
Response: since the Center is situated in a community; it will be wise to arrange face-to-face
meetings with the various stakeholders and audiences. These meetings must be official where the
team goes in well prepared. The face-to-face meetings will be scheduled between my team and
the board of directors. On the part of chiefs and elders’ meetings will be scheduled through
intermediaries such as Assembly men and here the communication must be official through the
use of letters aside the word of mouth conveyed by the Assembly man. When audience is
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granted; the PR team together with the client prepared to find fund the project will visit the
palace to outline the details of the project. With respect to opinion leaders and the youth,
permission will be sought from the chief and elders to meet them at the Center in a form of
seminar but this would be done at different times so as to enable the PR team understand each
audience adequately as well as drum home the new idea of building a new Center effectively.
iv. How would you use a two-way communication in your plan?
Response: a two-way communication basically means information is sent to one party from
which a response is expected to be received. In relation to the communication employed in the
plan; a two-way communication will be achieved. First of all, face-to-face meetings with the
board of directors will basically be an interaction between parties and in this case information is
transferred and received (feedback) as well. In using or drafting a proposal outlining the plans to
build a new Center; a response will be required from the board of directors and this could be
verbal or written and this constitutes two-way communication. In addition, in conveying a
message via the assembly man to chiefs and elders with respect to being granted an audience will
also constitute a two-way communication since such a request will require a response or
feedback regardless of the answer. Organizing a seminar to be able to interact with opinion
leaders and youth respectively will also generate a two-way communication system so in all, the
interactions chosen in the plan to build a new Center for the community effective communication
will be present in the form of a two-way system (information-feedback and vice versa).
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