Study on Crisis Management from the SK-II Case in China

摘要

In September 2006, it was discovered that SK-II, one of Proctor & Gamble's (P&G) cosmetic products manufactured in Japan and sold in China contained prohibited components. P&G did not respond to this crisis proactively, however, and temporarily withdrew the product only after a series of confrontations with consumers. This paper discusses how a routine government inspection in Shanghai became a crisis in China for a well-recognized American firm. P&G miscalculated the extent to which quality concerns about its SK-II product line could seriously harm its image in China. Suggestions and examples for P&G and firms in similar predicaments are provided.