Astute business decisions play a central role in bringing a business back from the brink, whether that predicament is due to bankruptcy or scandal. Here we’ll look at a few celebrated businesses and brands that were once in serious trouble but have come back to thrive. We’ll conclude with a discussion of the skills necessary to lead a company out of a crisis and how you can develop them. 

Lessons in Crisis Management 

Below are some notable instances of companies confronting dire prospects and then clawing their way back to success. See what they were facing and what they did to change course. 

Starbucks  

It may be difficult to fathom, but Starbucks—yes, that Starbucks—hit hard times in the early 2000s. The ubiquitous, astonishingly popular coffee chain had grown too quickly and made changes that didn’t resonate with customers. After shutting down 600 stores and reestablishing its focus on coffee, the chain pivoted from an immense drop in stock value in 2007 to record profits by 2010. 

Marvel 

Known for decades as a comic book and trading card giant, Marvel went bankrupt in 1996 owing to a variety of factors. The company had long been licensing its characters to movie studios, but its decision to go into movie production changed its fortunes significantly. Marvel has had some major successes (and a few disappointments) as a film and TV studio since its comeback, but the enduring power of its parent brand, The Walt Disney Company, is likely to keep it alive for many years to come. 

Chipotle 

The popular and profitable Tex-Mex restaurant chain took a huge financial and reputational hit in 2020 when the U.S. Justice Department fined Chipotle Mexican Grill $25 million for safety violations—the largest fine to date for a case of its kind. Between 2015 and 2018, more than 1,100 Chipotle customers became ill due to health and safety violations. To avoid criminal charges, the company paid the fine and began a food safety compliance program that included food safety audits and extensive employee training. These efforts must have helped: In 2023 the company saw a 14.3% revenue increase over 2022. 

Lego 

Though its products are loved by children worldwide, the block toy company was saddled with debt by the early 2000s. To turn the situation around, Lego sold off a majority stake in their pricey theme parks; moved production from Denmark to cheaper locales; created specialized Lego sets aligned with major brands such as “Star Wars” and “Harry Potter”; and branched out into movies, TV, and video games. 

Best Buy 

Many big-box stores struggled under competition from online retailers, and Best Buy—for years the go-to store for audiovisual equipment, computers, appliances, and physical media—was no exception. By 2012, the company was losing billions. To compete with Amazon, Best Buy introduced a price-match policy, incorporated in-store showrooms for well-known consumer electronics brands, and started an in-home technology consultation service. 

What These Companies Have in Common 

How did all these companies come back from the brink? In every case, people in leadership positions made strategic and often difficult decisions that helped set a new course for the organization: the very definition of crisis management. Such are the actions of leaders possessing the acumen and vision to reorganize, leverage their organization’s advantages and, when possible, do what the others can’t.  

Where Aspiring Leaders Come to Learn 

Learn to effectively lead any organization through good times and bad. Crisis management, a core capability of effective business leaders, requires strong strategic-thinking skills complemented with broad business knowledge encompassing marketing, management, finance, and accounting concepts. Earning an MBA is a proven way to build this expertise and put it to use in coveted, high-level leadership positions.  

But don’t just choose any MBA program! Here’s why you should consider The University of Texas Permian Basin’s online MBA: 

Affordability 

UTPB’s tuition rates are some of the most affordable among accredited universities. U.S. News & World Report has even ranked UT Permian Basin one of its Best Value Schools. 

AACSB Accreditation 

Our College of Business is AACSB-accredited, a distinguished designation awarded to only 5% of business programs worldwide. 

Prestige 

Our institution is a proud part of the renowned UT System, a distinction highly valued on a resume. 

Recognition 

Convenience 

Our program empowers you to complete your studies on your schedule from nearly anywhere in the world. 

Master’s Degree Holders Make More 

U.S. Bureau of Labor Statistics data makes it clear: Median annual earnings of master’s degree holders are about 16% higher—roughly $11,900—than those of individuals with a bachelor’s degree alone. MBA holders can work in a variety of rewarding roles and industries. See examples, including where UTPB’s MBA graduates are working, right now. 

Master crisis management and other business leadership skill sets. Our online MBA program has what you need. Apply today. 

Sources: 
https://www.cbinsights.com/research/corporate-comeback-stories/