The Bakery Shop (TBS) takes the heat: crisis management, social media, and corporate reputation

Abstract

Theoretical basis Businesses of all sizes are susceptible to unforeseen shocks, which could have severe adverse effects on its brand, its reputation and even its survival. This case draws on three main streams of academic business literature and bodies of knowledge that come into play under such circumstances: reputational risk, crisis management and social media. Research methodology The author used primary and secondary sources in the research and development of this case. An interview with one of the cofounders of The Bakery Shop (TBS) provided a primary first-hand account of the events leading to this crisis and the subsequent remedial actions taken. The author supplemented this research with information from TBS’s website, social media accounts and TBS-provided material. Case overview/synopsis In 2015, TBS, a growing Egyptian business specializing in premium baked goods, launched a new fusion dessert “The Croissant Om Ali.” Triggered by social media, the new product was an instant hit, resulting in orders that exceeded TBS’s initial projection. However, the business suffered a sudden turn of events when some consumers showed symptoms of food poisoning. Once again, social media came into play with an aggressive customer backlash toward TBS. Its cofounders devised an appropriate action plan to address the crisis and salvage TBS’s tarnished reputation. Complexity academic level This case is written primarily for an introductory business course for first-year students of business and other closely related disciplines. This case mainly addresses crisis management as a means of restoring corporate reputation. It also highlights the important role of social media in a crisis.