In 2013, US-based sports apparel maker Under Armour (UA) collaborated with defense and advanced technologies company Lockheed Martin to create an aerodynamically superior suit, as the former was the apparel sponsor of the U.S. speedskating team who participated in the Sochi (Russia) Winter Olympics 2014. The result was Mach 39- the speedskating suit which UA claimed as world’s most aerodynamically superior suit. As per UA’s correspondents Mach 39 had given almost an unfair advantage to the US athletes. However, the joy of creating a potentially superior product did not last long. The suit stood nowhere near its tall claims and expected standards. The team did not win any medal.

On February 2014, Wall Street Journal (WSJ) took on UA, accusing the latter of a flaw in the Mach 39’s design. The news alleged that the suits designed by UA had a flaw that led to the disappointing show by the US speed skaters in the Olympics. The news spread swiftly through the social media platforms. This brought UA under immense pressure, and made it accountable to the questions from various corners. UA had two options: Fight or Flight.

Diane Pelkey (Pelkey)- Chief of corporate communications at UA was given the charge to deal with the crisis. Pelkey had a tough task in hand of drawing a crisis management strategy. With the crisis-management exercises like open invitation to media, transparent responses, back to back television interviews Pelkey played an instrumental role in managing the crisis and preventing a major derailment of the UA brand. UA’s Sochi Olympics episode stands as an exemplary approach to manage crisis.

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Issues

The case is structured to achieve the following teaching objectives:

	Identify Crisis management imperatives.
	Outline communication imperatives.
	Appraise the role of the leader during crisis situation

Contents

INTRODUCTION

UA – A BRIEF PROFILE

SPEED THROUGH CHEMISTRY

WINTER OLYMPICS @ SOCHI

THE WINTER OLYMPIC FIASCO

CONFRONT OR AVOID?

THE COMMUNICATION DECK

EXECUTION

THE CEO THROUGH THE CRISIS

Keywords

Crisis management; Communications; Contingency planning; Public relations; Communication strategy; Leadership in crisis; Under Armour, Sochi Winter Olympics, Lockheed Martin, Mach 39; Speedskating; Corporate communications

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