by Hugo Dixon for The New York Times
How should companies manage a crisis? Tesco, the British retailer, is the latest large corporation to go through the wringer after it revealed last month that it had overstated its half-year profit estimate by 250 million pounds, or $400 million. Britain’s Financial Conduct Authority has started an inquiry, and speculation is swirling that Tesco might have to sell more shares.
Tesco’s travails offer a case study about what to do (and what not to do) when disaster strikes. Two other big British corporate crises — the ones that afflicted Barclays following a scandal in 2012 over the manipulation of a key international interest rate and BP after its Deepwater Horizon oil rig blew up in 2010 — back up these lessons. Read more here.