Preparation for Crisis Management: A Proposed Model and Empirical Evidence

This article explores the forces restricting effective crisis management in a crisis ridden industry. Models of crisis preparedness have typically been developed based upon research in US or Western business. This study is based upon the Egyptian industry which, until the 1990s was state owned and heavily state supported. Changes in government policy, combined with external forces, not in the least the loss of markets in the previous Soviet bloc, had plunged the industry into serious crisis. Crisis is a cultural embarrassment to most Egyptian managers and this, combined with the depth of economic difficulties faced by the industry, makes it extraordinarily difficult for any level of crisis preparedness to be achieved. Based on interview and questionnaire data, this article extends existing models of crisis preparedness to better accommodate conditions in crisis prone industries outside the West. New dimensions in the proposed model are the stress on national culture and how this limits the range of managerial responses. This in turn requires the active development of an organisational culture to counteract these limitations.