Knight Capital Group Inc. experienced a crisis on Wednesday, August 1, 2012 that cost the organization $440 million, leading to a collapse in its stock. The morning of, the organization sold all of its stocks due to a computer glitch, costing them $10 million a minute. Still to this day, Knight Capital Group is trying to recover from such an impacted lost.
W.T. Coombs’ Reputation Repair Strategy that was acted out during this crisis was an excuse. More specifically, this crisis revolves around the accidental portion of an excuse. From the organization’s press release given on October 17, 2012, it has a lack of control over the glitch that lead to the crisis. According to this Knight Capital Group press release, not once did Tom Joyce, Chairman and Chief Executive Officer of Knight Capital Group, apologize for the computer glitch. The organization acknowledged that the event occurred, but has chosen to focus more so on the recovery process to better itself stating that “the recovery to date speaks to the strength of [the organization’s] offering, the dedication of Knight’s client teams, and deep client relationships”. According to Bloomberg, a site that provides the latest in market news, Joyce says that the organization has to work with its clients to ensure that they are getting exactly what it is that they want out of Knight Capital. He says that other “strategic alternatives” are currently being explored.
CEO Tom Joyce could have done a better job at choosing a Reputation Repair Strategy that his organization could better benefit from. Although he included the publics on the numerical statistics of his organization as a result of the computer glitch crisis, focusing on just the recovery does not make those that have invested money in the organization certain that it will not happen ever again. This could also leave some hesitation to those who have inquired about investing money in Knight Capital Group. He should have discussed in the press release what precautions for future incidents have been taken which would show some sincerity. Such large organizations could never just brush off such a huge event. The publics wants to know possibly what caused the crisis to occur and how it is being (or has been) resolved. A better choice of strategy would have been an apology in which Tom would take responsibility for the crisis, ask for forgiveness, then proceed with the precautions that would prevent the crisis from reoccurring, followed by finally talk about the recovery process.