Crisis Management Case Study

Ginger & Co. Members: Caitlin Gorham,

Edward Immel, Raquel Lamal, Amy

Manske, Jena Richter & Chloe Scheller

Crisis Management Plan

This document is

Kohl’s confidential.

Original Plan Creation Date: 03/28/12

Last Modified Date: 04/18/12

K O H L’ S C O R P O R A T I O N

C R I S I S M A N A G E M E N T P L A N

1 04/09/12 Confidential

Table of Contents Summary of Changes………………………………………………………………………………………………………………… 2 Introduction……………………………………………………………………………………………………………………………….3 Acknowledgments……………………………………………………………………………………………………………………..4 Company Overview……………………………………………………………………………………………………………………5 Company Goals………………………………………………………………………………………………………………………….6 Company Objectives………………………………………………………………………………………………………………….7 Crisis Management Plan Overview…………………………………………………………………………………………….9 Intellectual Property and Proprietary Information……………………………………………………………………11 Crisis Rehearsal Dates………………………………………………………………………………………………………………12 Crisis Rehearsal Evaluation Form………………………………………………………………………………………….....13 Crisis Management Team Overview…………………………………………………………………………………………14 Crisis Management Team Members…………………………………………………………………………………………15 Crisis Management Team Contact Information………………………………………………………………………..18 Crisis Control Centers……………………………………………………………………………………………………………….19 Risk Assessment……………………………………………………………………………………………………………………….25 Crisis Impact and Risk Grids……………………………………………………………………………………………………..26 Top Ten Crises………………………………………………………………………………………………………………………….30 Incident Report Log………………………………………………………………………………………………………………….33 Incident Report Form……………………………………………………………………………………………………………….34 Media Kit Template………………………………………………………………………………………………………………….35 Tips for Communicating with Media…………………………………………………………………………………………37 Strategy Worksheet………………………………………………………………………………………….........................39 Kohl’s Crisis Event Response…………………………………………………………………………………………………….40 Basic Stakeholder Analysis……………………………………………………………………………………………………….43 Stakeholder Contact Information…………………………………………………………………………………………….44 Post‐Crisis Survey…………………………………………………………………………………………………………………….47 Post‐Crisis Evaluation Form……………………………………………………………………………………………………..48 Business Continuity Plan………………………………………………………………………………………………………….49 Addendums……………………………………………………………………………………………………………………………..50




Summary of Changes

Date of Change Pages Affected Change Details




March 28th, 2012 To all Recipients,

The following document contains Kohl’s Corporation Crisis Management Plan. The purpose of this plan is to provide guidance for response and recovery in the event of a crisis. It includes potential crises, along with contact information, equipment, and recovery processes. This document also includes report forms and media release templates for documenting incidents and responding effectively and timely in an event of a crisis. The Crisis Management Plan includes tips on signal detection, crisis prevention and crisis preparation. It also provides appropriate strategies for crisis recognition, damage containment and recovery. At the end of a crisis, Kohl’s Corporation must complete a post‐crisis evaluation and revision of plans when in need of improvement. In order to measure the efficiency of the Crisis Management Plan, rehearsals will take place on a regular basis. The rehearsal dates are set up every two months in order to ensure that processes are thoroughly understood and implemented. It is important to note that the Crisis Management Plan is a working document that will be continuously updated in order to improve efforts in preventing and managing conflicts and crises that impact Kohl’s Corporation directly or the retail industry in general. By following the Crisis Management Plan we can continue to improve the way in which Kohl’s prevents and handles crises thereby protecting company reputation and ensuring future success. Sincerely, Chloe Scheller President of Investor Relations, Kohl’s Corporation




Acknowledgments April 9th, 2012

The information contained within this document is solely written for Kohl’s Corporation on a national level. This information is intended as a guideline to be used when responding to a crisis impacting Kohl’s Corporation. This document is to be reviewed on a regular basis to ensure effectiveness is maintained. This review is the responsibility of the Kohl’s Crisis Management Team. Updates to this manual will be immediately distributed if the change is deemed significant. By signing this document, each party signing below acknowledges existence of this plan, is committed to ensuring a procedure is available for the entire corporation, and agrees to provide resources needed to maintain the plan. We, the members of the Kohl’s Crisis Management Team have created, implemented and fully understand the following content of the Crisis Management Plan. The following plan should be used as a guideline in any crisis situation. We are aware of our responsibility to adjust the plan according to the nature of the crisis. The Crisis Management Team strides to uphold the values and expectations of the Kohl’s Corporation while working through any crisis.

______________________________________ ______________________________________

Caitlin Gorham Chloe Scheller

Chief Executive Officer President of Investor Relations

______________________________________ ______________________________________

Amy Manske Jena Richter VP of Public & Community Relations Chief Operations Officer

______________________________________ ______________________________________

Edward Immel Raquel Lamal

Chief Security Officer Victim Control Manager




Company Overview

Kohl’s Corporation was founded by Maxwell Kohl. The first Kohl’s was established in 1962 in

Brookfield, Wisc. Originally, a small grocery store, over time Kohl’s became the largest

supermarket chain in the Milwaukee area. Now, with 1,100 stores and 130,000 associates,

Kohl’s is one of the largest retailers in the United States operating in 49 different states.

The majority of Kohl’s stores operate in the Midwest and West, but Kohl’s continues to expand

into other regions.

Kohl’s appeals to middle‐class consumers by offering a variety of name‐brand and private label

clothing, accessories, and home goods. Kohl’s competitors include discount and mid‐level

department stores such as JCPenney’s and Macy’s. Due to a widespread consumer base and

effective business processes, Kohl’s has become a Fortune 500 company.

The Kohl’s mission is to be to be the leading family‐focused, value‐oriented, specialty

department store offering quality exclusive and national brand merchandise to the customer in

an environment that is convenient, friendly and exciting.

Crises are inevitable. In order for Kohl’s to live up to the Kohl’s mission, crises must be managed

effectively and ethically. Kohl’s has a responsibility to consumers, holding up to company

values, and community cultivation. By living up to the standards of a Fortune 500 company,

following company values and responding appropriately to crises, Kohl’s will continue to be a

success and a company associates can be proud to work for.




Company Goals

Business Goals

To be the leading family‐focused, value‐oriented, specialty department store.

To be a leader throughout the community with donations, resources, talent and time.

To be continually developing through annual growth by both expansion and revenue,

live up to stockholders expectations and surpassing standards of a Fortune 500

company.

Communication Goals

For Kohl’s target audiences and stakeholders to be aware of the family‐focused, value‐

oriented, specialty department stores Kohl’s offers

For Kohl’s to inspire change in the community through donations, resources, and the

talents of its associates.

For Kohl’s to coordinate our consumer’s expectations of quality, convenience and

affordability with our brand image.




Company Objectives

Awareness Objectives

Increase the awareness of the Kohl's Cares program by 15%.

Increase awareness of sustainability efforts by 15%.

Acceptance Objectives

Figure 1 represents the words and phrases that our customers currently associate with the

Kohl’s brand.

Figure 2 represents the words and phrases we would ideally like our customers to associate

with the Kohl’s brand.

The reputation of a brand is crucial to a company’s success and should be considered at all

times, especially in times of crisis. By thinking strategically and communicating effectively Kohl’s

Corporation can maintain their respected reputation.

Action Objectives

Increase net income by 23%. Increase sales by 17%. Open 42 stores in the United States in 2012. Remodel more than 80 stores in 2012. Log 100,000 employee volunteer hours through Kohl’s Cares in 2012. Raise $1.5 million for Kohl’s Cares.




Figure 1

Figure 2




Crisis Management Plan Overview

Description

The Kohl’s Corporation Crisis Management Plan is designed to provide a guideline for

immediate response and post‐crisis recovery from an unplanned business interruption through

a structural, reputational or safety crisis. This plan supplies an overview of potential issues and

the response and recovery actions to be executed by Kohl’s in the event of a crisis.

Purpose

The Crisis Management Plan has been developed to meet these objectives:

Provide a guideline to implement and manage response and recovery of unplanned crisis or business interruption

Supply insight on signal detection, crisis prevention and preparation

Suggest appropriate strategies for crisis recognition and addressing internal and external publics, including the media

Isolate and reduce impact levels of a crisis

Reduce exposure to future crises

Improve response rates and actions for future success

Scope

This following list is a sample of scenarios in the Crisis Management Plan are designed to prepare Kohl’s for potential crises that directly and indirectly involve Kohl’s Corporation and if not handled appropriately could damage the reputation of the Kohl’s brand.

Product recall

Cyber‐attacks

Customer satisfaction

Stakeholder relations

Stock

Natural disasters

Intent to use a weapon

Bad marketing

Information fraud

Ethics




Assumptions

The Crisis Management Plan has been developed based upon the following assumptions:

All Kohl’s Store Safety Plans are up to date, rehearsed and successful in implementation in conjunction to state and federal rules and regulations.

The Crisis Management Plan is consistently reviewed, updated and rehearsed to ensure a viable state of readiness.

All designated alternate locations, including crisis control centers are unaffected by the crisis.

An adequate number of qualified Crisis Management Team Members are available to resume crisis management and recovery responsibilities.

Crises will be handled according to the Crisis Management Plan by using the strategies and resources listed in this document.




Intellectual Property and Proprietary Information

Confidential Information

While working at Kohl’s Corporation you may encounter confidential information. This

information is not to be released to the public for any reason and can only be used for company

purposes.

“Kohl’s respects the right to keep private information for the better of the company.”

Confidential items include:

Marketing plans including product introductions, strategy and release timelines

Trade secrets

Projects in process

Budget and unpublished financial statements

Business plans

Names of employees until verified and families notified (if applicable)

Employee information: compensation, skill level, private information

Intellectual Property

Intellectual property is protected under Kohl’s Corporation’s policy. This information is not to

be released to the public for any reason and can only be used for company purposes.

Intellectual items include:

Inventions

Discoveries

Innovations

Ideas

Agreement

Employees will sign written agreements regarding information sharing. If employment is

terminated all confidential information must be turned over to management before being

released.

To find out more about legal limitations, copyrights, trademarks and terms and conditions

specific for customers, visit:

http://www.kohlscorporation.com/customer_service/SecurityPrivacy/SecurityPrivacyPolicy.html




Crisis Rehearsal Dates Rehearsal dates are established to review our crisis plan. These reviews will be implemented on the 15th of alternating months. Each review will entail the following:

Update contacts and contact information A review of the currently implemented crisis plan An analysis of any new crisis that have occurred Suggestions for crisis events that may be foreseen Implementation of any new changes

Established annual dates for crisis meeting and review:

January 15th 3:30 pm March 15th 3:30 pm May 15th 3:30 pm July 15th 3:30 pm September 15th 3:30 pm November 15th 3:30 pm




Crisis Rehearsal Evaluation Form

Date of Event: _____________ Time notified: _________________ Location: _________________

Your Name

Your Position

Has all the information, contacts, and forms been updated?

What area had the most confusion or unclear directions?

What changes could be made to that area to clear any confusion?

What was most helpful during the rehearsal?

What areas need to be addressed?

Additional Comments:




Crisis Management Team Overview

The Kohl’s Crisis Management Team is a group of qualified, good‐looking personnel who have

the responsibility to create and implement the Crisis Management Plan. This plan is to be used

as guideline in the event of a crisis and adapted based on the nature of the crisis. The Crisis

Management Team’s main purpose is to uphold the values of Kohl’s Corporation and to protect

and restore the reputation of Kohl’s.




Crisis Management Team Members

Caitlin Gorham— Chief Executive Officer

Caitlin Gorham became the CEO of Kohl's in

April 2009 after 11 years with the company.

Prior to joining Kohl's, she served as division

manager of Macy's Department Store. Caitlin

maintains an active involvement in many of the

Kohl's Cares charity organizations and

has received United Way's acclaimed Platinum

Corazon Award for her outstanding generosity.

Caitlin's extensive knowledge of the Kohl's

Corporation and leadership skills make her an

asset to the Crisis Management Team.

Edward Immel—

Chief Security Officer Edward Immel joined the Kohl's Corporation as Chief Security Officer in 2009. His strong background in Information Sciences has kept Kohl's a safe environment in both the physical and digital setting. His risk management skills help him work closely with our business continuity plan.




Amy Manske— VP of Public and Community Relations

Amy Manske became the Vice President of Public and Community Relations in May 2009 after spending six years with Target as part of the Community Relations department. Amy has strategic thinking that is valuable to the Crisis Management Team, along with experience in public relations. Her ability to communicate with the public and appropriate audiences in time of crisis is an important skill brought to the team. She also organizes and participates in many charity events for the Kohl’s Cares program.

Raquel Lamal, MD—

Victim Control Manager

Raquel Lamal became a member of the Kohl’s Crisis Team in June of 2010. She took on the role of Victim Manager after having previously worked as a high school guidance counselor. She has spent many hours helping students deal with loss and grief issues and is well suited to deal with difficult issues.




Jena Richter—

Chief Operations Officer

Jena Richter assumed the role of Chief Operations Officer in April 2010. She previously held a similar position with OfficeMax Inc. and served previously on a crisis management team. She supervises the operations of our retail locations closely. Jena brings valuable knowledge of retail store operations and management of crises at a local and national level to this team. Jena’s detail‐oriented mindset also provides a positive contribution to this corporation and to this team.

Chloe Scheller—

President of Investor Relations

Chloe Scheller joined Kohl’s as President of Investor Relations in July 2008. Her previous experience working in the Investor Relations department at Apple Inc. has provided her with valuable experience in preventing and recovering from local and national crises. Her ability to communicate effectively with stakeholders and external audiences makes her an asset to the Crisis Management Team.




Crisis Management Team Contact Information

Caitlin Gorham Chief Executive Officer

Call/Text: (715) 741‐0878 E‐mail: [email protected]

Edward Immel

Chief Security Officer Call/Text: (920) 713‐4738

Email: [email protected]

Raquel Lamal Victim Control Manager Call/Text: (920) 604‐3167

Email: [email protected]

Amy Manske Vice President of Public and Community Relations

Call/Text: (920) 585‐4198 Email: [email protected]

Jena Richter

Chief Operations Officer Call/Text: (262) 365‐9688 Email: [email protected]

Chloe Scheller

President of Investor Relations Call/Text: (608) 772‐9969 Email: [email protected]




Crisis Control Centers

Crisis Control Center I: Cofrin Library ‐ 605M

Location:

Room 605M

6th Floor Cofrin Library

2420 Nicolet Drive

Green Bay, WI 54311

Available Equipment:

Desktop Computer

Television Screen with hookup

Chairs (6)

Conference Table

White board and dry‐erase markers

Plug Outlets & Surge Protector

High‐speed Wireless Internet

Cell Phones

Laptops (6)




Crisis Control Center I: Cofrin Library ‐ 605M Floor Plan




Crisis Control Center II: Richard Liebl Conference Room

Location:

Richard Liebl Lounge

Richard Liebl Hall

UW‐Green Bay Campus

3304 Thompson Court

Green Bay, WI 54311


Large conference table with chairs

Three couches

Television

Sink unit

Plug Outlets


Cell Phones

Laptops (6)




Crisis Control Center II: Richard Liebl Conference Room Floor Plan




Crisis Control Center III: Mossy Oak Safe Haven

Location:

Pheasant Run Apartments #38

2970 Mossy Oak Circle

Green Bay, WI 54311


Kitchen

Three Couches

Dining Table

Television

Plug Outlets


Cell Phones

Laptops (6)




Crisis Control Center III: Mossy Oak Safe Haven Floor Plan




Risk Assessment

Risk Assessment Analysis:

The Crisis Management Team conducted research on various types of crises that could occur.

The research helped us determine ways to respond to likely crises and give us the ability to stop

the crisis before it escalates. The team then classified the threats into five categories:

1. Personnel

2. Event

3. Industry

4. Reputation

5. Financial

Potential Crisis Ratings Criteria

Likelihood Measure:

1. <Once/5 years

2. < Once/year

3. Once/month to once/year

4. Once/week to Once/month

5. > Once/week

Severity Measure:

1. No exposure

2. Local exposure

3. Region or state exposure

4. National exposure

5. Front page national exposure




Crisis Impact and Risk Grids

Crisis Likelihood Severity Impact

Personnel

Discrimination 3 2 6

Workplace Violence 2 2 4

Health & Safety 1 3 3

Employee Fraud 1 1 1

Misuse of Confidential Information 1 4 4

Sexual Harassment 3 2 6

Employee Posts on Social Media 4 1 4

Corporate Personnel Scandal 1 4 4

Employee Strikes 1 4 4

Layoffs 1 2 2

Industry

Economic State 1

Product Price 3 1 3

Price Manipulation with Competitor 1 5 5

Event

Natural Disasters 2 3 6

Vandalism 3 1 3

Violence 3 1 3

Facility Problems 2 2 4

Hostage Situation 1 4 4

Weapons In Store (Intent with Weapon) 2 3 6

Bomb 1 4 4

Charity 1 4 4

Financial

Embezzlement 1 5 5

Robbery 3 2 6

Bankruptcy 1 5 5

Stock 2 4 8




Crisis Likelihood Severity Impact

Reputation

Brand Management 1 4 4

Stakeholder Relations 2 4 8

Legal Issues 3 1 3

Executive Dismissal 1 3 3

Rumors 3 2 6

Supplier Outsourcing 3 1 3

Bad Marketing 2 3 6

Wasteful Practices 1 4 4

Designer/Endorser Scandal 1 4 4

Hazard of Secondary Products 1 4 4

Product Recall 3 4 12

Cyber‐Attacks 4 2 8

Sweatshop Labor 1 4 4

Information Fraud 2 3 6

Ethics 2 3 6

Customer Satisfaction 4 2 8

Once each potential crisis had a category the likelihood and severity of each crisis was

determined and multiplied to make an overall impact score. The top ten crises are as follows:

1. Product Recall

2. Cyber‐Attacks

3. Customer Satisfaction

4. Stakeholder Relations

5. Stock

6. Natural Disasters

7. Weapons in Store

8. Bad Marketing

9. Information Fraud

10. Ethics After the above analysis was completed risk grids were charted. Figure 3 is the risk grid showing most likely crises Kohl’s Corporation may encounter. Figure 4 is a more specific risk grid, outlining the top 10 most significant crises that could occur.




Figure 3




Figure 4

Top Ten Crises: 1.Product Recall 2.Cyber-Attacks 3.Customer Satisfaction 4.Stakeholder Relations 5.Stock 6.Natural Disasters 7.Weapons In Store (Intent with Weapon) 8.Bad Marketing 9.Information Fraud 10.Ethics




Top Ten Crises

Based on the Crisis Management Team’s analysis of potential crises in the fields of likelihood, severity, and reach, a top ten list of crises has been compiled. The following list contains those top ten crises and guidelines on how to manage them. Each crisis must be assessed as an individual incident; this document provides guidelines to consider.

1. Product Recall

In the instance of a product that is potentially causing harm to consumers, all claims are to be investigated. If the claims found to be true, consumers are to be notified as quickly as possible, and the product is to no longer be sold. The products information is to be published, including: specific serial numbers/model numbers, how to locate these numbers, how to return the item, and reason for the recall. This information can be shared in a variety of manners including: hotlines, metropolitan newspapers, government agency websites, social media, media releases, and the corporate website. When notifying stakeholders, be sure to express concern and ensure how, in the future, the incident will be avoided.

2. Cyber‐Attacks

When confronted with a cyber‐attack, such as a written statement, video, or rouge website, the Crisis Management Team must first consider the severity and scope of the attack. If the incident is not viral or large in scope, it is often times best to withhold and uphold, or ignore the attack, as confronting it may bring unnecessary attention to the matter.

If the decision is made to confront the attack, options include: contacting the webmaster of that specific domain or providing a strategic response on the same social media platform on which the attack occurred, i.e. YouTube or Facebook. Kohl’s legal contacts are to be utilized in any measures taken.

3. Customer Satisfaction

In order to avoid issues with customer satisfaction, Kohl’s as a corporation proactively approaches customers for feedback via online and in‐store channels, monitors social media, and trains associates to sympathize with customers and resolve customer dissatisfaction with a sense of urgency. The action to be taken in a crisis involving customer satisfaction must resolve the issue to the greatest extent possible.




4. Stakeholder Relations

Stakeholder relationships are crucial to Kohl’s Corporation’s success. Again, as a proactive company we spend time and energy building relationships with all parties involved with the Kohl’s brand. In time of crisis it is crucial to maintain these relationships as best as possible by addressing the correct audiences and resolving concerns in a timely, effective and appropriate manner. Determining the reach of the crisis is also a valuable component because it will direct to the proper channels and corrective approach.

5. Stock

In a crisis involving stock, it is vital to be honest, yet not an open book. Information should be shared with the proper stakeholders in a manner that avoids jargon. The Crisis Management Team must be sure to anticipate questions such as who is losing money and who is gaining money.

6. Natural Disasters

In situations of natural disasters, it is important to be as proactive and prepared as possible. If the event is foreseen, contact authorities with any questions to ensure best preparation. The number one concern in instances of natural disaster is safety. If injury occurs, contact emergency personnel and express concern.

7. Weapons In Store (Intent with Weapon)

If an individual enters a Kohl’s building with the intent to use a weapon, employees are instructed to respond by using safety protocols. Employees are expected to contact emergency personnel in a discreet manner as to not alert the assailant. Also if possible, they should evacuate the location to protect potential victims. If any harm occurs to victims, express deep concern post‐crisis when addressing in this order, the victim’s families, stakeholders, and media.




8. Bad Marketing

To avoid misinterpreted messages, the marketing team at Kohl’s is to assess new ideas intently and align communication with audiences and business goals by considering outcomes. In the case that marketing is misconstrued or miscommunication occurs, acknowledge the occurrence and provide reassurance or apology as warranted by the situation.

9. Information Fraud

In the case of information fraud, such as leak of customer personal information, affected parties are to be contacted personally. Highest concern should be expressed to customers and corrective action should be provided, if possible. It is also necessary to deny any intent of harm and to distance the corporation from the event.

10. Ethics

Kohl’s values are to be at the core of all of the actions of the corporation and its representatives. If an occurrence happens to the contrary, perceived damage is to be minimized and an apology is to be issued. Be sure to underscore how this instance will not occur again in the future and distance the corporation from any specific party responsible.




Incident Report Log

Reported Date Parties Involved/Location Description




Incident Report Form

Crises Management Team Member(s):_____________________________________________ Date:________ Time:____________ Media Contact/ Informant:_______________________ Channel Used:______________________ Date of Incident:_________ Time of Incident:_________ Location of Incident:______________________________ Notes:_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Stakeholder(s) of Concern: Contact Information: ______________________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: _________ Date: _________ Time: ________ No: _________ Action Response: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________




Media Kit Template

A media kit has been prepared with current facts, background information other materials that may be relevant to the coverage of Kohl’s.

Right Pocket Media Release Media Relations Request Form Media Contact Information Fact Sheet Complimentary Notepad

Left Pocket Company Profile Crisis Board of Directors Biographies Kohl’s Cares: Charitable Stewardship Kohl’s Green Scene: Environmental Stewardship Business Cards




City, Date

###

Please Note: For Broadcast quality video and audio, photo stills and other media resources, visit the Kohl’s Media Link at

www.kohls.com.

Based in Menomonee Falls, Wisc., Kohl’s (NYSE: KSS) is a family‐focused, value‐oriented specialty department store offering moderately

priced, exclusive and national brand apparel, shoes, accessories, beauty and home products in an exciting shopping environment. With a

commitment to environmental leadership, Kohl’s operates 1,134 stores in 49 states. In support of the communities it serves, Kohl’s has

raised more than $208 million for children’s initiatives nationwide through its Kohl’s Cares® cause merchandise program, which operates

under Kohl's Cares, LLC, a wholly‐owned subsidiary of Kohl's Department Stores, Inc. For a list of store locations and information, or for

the added convenience of shopping online, visit www.Kohls.com, or join the discussion on Facebook http://www.facebook.com/kohls or

Twitter http://twitter.com/Kohls

Kohl’s Newsroom

FOR IMMEDIATE RELEASE Media Contact: Amy Manske (VP)

April 17, 2012 Phone Number: (920) 585‐4198

Release No. 12‐01

INSERT HEADLINE HERE




Tips for Communicating with Media

Media Conference:

Have a prepared media kit.

Anticipate your questions

o Answer the 5 W’s (who, what, when, where and why), how the crises occurred

and why the reporters should care (i.e. So what?)

o How will you prevent this from happening in the future?

Have a core message with three subsets. Repeat it to show confidence, accuracy and to

provide multiple opportunities for the media to gather a clear sound bite.

Choose a good, credible spokesperson and educate them on the crisis.

Practice and analyze what you are going to say. What words can be misinterpreted?

Practice answering questions. The media may not always be nice and you need to

remain calm at all times.

Use visuals when communicating complicated information if it will help with your cause.

Determine the audience(s) ‐ who is affected the most by the crisis?

Be polite and do not argue with the reporters.

Sympathize with your main audience(s).

Avoid jargon.

Hold the conference between 9 a.m. ‐ 11 a.m. if possible. This will allow the most

reporters to attend and meet their deadlines.

Understand the equipment used at a media conference and how it works (Mult‐box,

microphones, cameras, lighting, etc.)

Keep in mind ethics and company values. Own up to mistakes. It is better to be honest

then to lie and get caught.

Decide which strategic option to use, and how much information you are willing to give

out.




Q & A:

Avoid the response “No comment.” It is often associated with taking blame.

If you are surprised by a question and you don’t have the answers, tell reporters that you will investigate and get back to them on the topic.

Your responses should be short and concise. The more you ramble, the more opportunity there is to have your words taken out of context.

Speak in full sentences.

Start the answer with part of the question (as long as the question isn’t loaded).

For example‐ Reporter: “Why did you become a CEO for Kohl’s?” Answer: “I became a CEO because…”

Doing this limits the opportunity for the reporter to use your response to answer a different question.

Make sure you tape the interview as well, so that you can dispute any edited versions and if applicable, ask for a copy of their piece before it is printed or aired.




Strategy Worksheet




Kohl's Crisis Event Response

The diagrams following are a general guideline response for any crisis or disaster event. The

specific response actions will be dependent on the event itself and improvisations will have to

be made.

1. Kohl's Corporation’s first priority in all events is the safety of all people. In actions regarding

a crisis event parties involved should always consider the following: safety of all, reputation and

brand of the Kohl's Corporation and all of its affiliates, financial concerns of Kohl's investors,

and all consumers of Kohl's products.

If anyone is injured or at risk of injury, please make that your top priority.

If reports arrive before you have received what information is proprietary, please tell

the media to contact the Kohl's public relations team for further information. Do not

make any comments for the Kohl's corporation without explicit permission.

2. Contact the Kohl's Crisis Management Team immediately.










Basic Stakeholder Analysis

Stakeholder Concerns Channel Preference Lions

Shareholders ‐Receiving Revenue from their investments ‐Investing in an ethical corporation

‐Media Releases ‐Newsletters ‐Meetings ‐Annual Reports

‐Majority Stockholders ‐Board of Directors

Customers ‐Affordable & Quality Product ‐Convenient & Enjoyable Shopping Experience

‐Social Media ‐Advertising

‐Loyal Customers (“Walking Billboards”)

Suppliers & Business Partners

‐Ethical Practices ‐Financial Gain from Partnership

‐Face‐to‐face Meetings ‐Individual Communication (email, phone)

‐Executives

Media

‐Providing information to viewers truthfully and timely

‐Individual Communication (email, phone) ‐Media Releases ‐Interviews ‐Media Conferences

‐News Directors ‐Print Editors

Internal

‐Remaining Informed ‐Practicing Ethical Behavior ‐Financial Compensation ‐Secure work Environment

‐Meetings ‐Individual Communication (email, phone) ‐Bulletin Board Postings

‐Management ‐Executives




Stakeholder Contact Information

Corporate Headquarters:

Kohl’s Department Stores N56 W17000 Ridgewood Drive Menomonee Falls, WI 53051

Phone: (262) 703‐7000

Kohl’s Executive Staff:

Kevin Mansell, Chairman, President, and Chief Executive Officer

Don Brennan, Chief Merchandising Officer

John Worthington, Chief Administrative Officer

Investor Relations Contact:

Wes McDonald, Senior Executive Vice President and Chief Financial Officer

Phone: (262) 703‐1893

Media Relations Contact:

Vicki Shamion, Senior Vice President of Public Relations

Phone: (262) 703‐1464




Local Contacts:

Local Police, Rescue, and Fire Departments:

Emergency: 911

Menomonee Falls Police Department (Non‐emergency): (262) 532‐8700

Menomonee Falls Fire Department (Non‐emergency): (262) 532‐8823

Waukesha County Sheriff (Non‐emergency): (262) 548‐7117

Local Media Contacts:

Milwaukee Journal Sentinel:

P.O. Box 371

Milwaukee, WI 53201

Phone: (414) 224‐2000

TMJ4:

Phone: (414) 967‐5444




National Contacts:

Associated Press Contact:

Associated Press Headquarters

450 W. 33rd St.

New York, NY 10001

Phone: (212) 621‐1500

Email Media Releases to: [email protected]

OSHA (Occupation Safety & Health Administration)

U.S. Department of Labor

Occupational Safety & Health Administration

200 Constitution Avenue

Washington, D.C. 20210

Emergency Toll Free Line: 1‐800‐321‐6742

U.S. Department of Commerce:

U.S. Department of Commerce

1401 Constitution Ave.,

Washington, D.C. 20230

Phone: (202) 402‐2000

United States Green Building Council:

Phone: 1‐800‐795‐1747




Post‐Crisis Survey

Name of Surveyor (optional):______________________________________________________ Date of Crisis: ________________ Time: ____________ Location: ______________________ Describe the crisis: ____________________________________________________________________________________________________________________________________________________________ How did the crisis impact Kohl’s Corporation? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ What role did you have in the crisis? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ What source informed Kohl’s Corporation of the crisis? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Was the crisis managed ethically and effectively? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ What feedback would you have for the Crisis Management Team regarding this crisis? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________




Post‐Crisis Evaluation Form

CMT Member:_____________________________ Date: _______________ Time: __________ Location of Crisis: ______________________ Crisis Category: __________________________ One a scale of 0 to 10, how well was the Crisis Management Plan followed? Circle One: Not at all Somewhat Completely 0 1 2 3 4 5 6 7 8 9 10 How did you learn of the crisis? ____________________________________________________________________________________________________________________________________________________________ What parts of the Crisis Management Plan were used? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ What was most effective about the Crisis Management Plan? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ What areas provided the most difficulty when using the Crisis Management Plan? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ What are your suggestions to better improve the Crisis Management Plan? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________




Business Continuity Plan

The purpose of this document is to provide Kohl’s and its affiliates with the groundwork for a timely response to any upcoming crisis. This is a general structured document and all communication and strategic moves should be adjusted to fit each crisis individually. The Crisis Management Team should be first parties notified. The team will then inform the correct personnel including; primary stakeholders, both inside and outside of Kohl’s Corporation. This would include emergency personnel, senior officers of Kohl’s, investors, and other stakeholders of Kohl’s and its affiliates. As Kohl’s Corporation is a national organization, we have crisis management contacts in each of the 49 states that our stores operate. This assures that proper communication channels are established in a timely manner in response to any crisis or unexpected disaster. The Crisis Management Team reports to the Kohl’s Corporation headquarters in Menomonee Falls, Wisc. The Crisis Management Team is confident in their ability of effectively respond to a crisis in order to maintain Kohl’s mission statement and company values, along with business and communication goals. This business continuity plan is a working document of procedures and is to be reviewed and updated every two months to ensure effectiveness. Reviews will be conducted every 15th day of alternating months starting January 15th of every year. The information reviewed will include the following: current stakeholders and their contact information, crisis policies and practices. Once the plan has been revised, a Crisis Management Team member's signature is required to certify the updated plan. The updated plan will be kept in its entirety at the crisis management headquarters and any of is provisionary meeting places.




Please attach all addendums after this page.

Ginger & Co. Members: Caitlin Gorham,

Edward Immel, Raquel Lamal, Amy

Manske, Jena Richter & Chloe Scheller

Post‐crisis Review

1

Table of Contents Executive Summary 2

Introduction 3

Crisis Activity Log 5

Research 8

Summary of Crisis Assessment 11

Audience Analysis 14

CEO Gone Wild Crisis 16

Financial Crisis 19

Kohl's Liberation Army Crisis 22

Continuous Improvement 33

Rejected Ideas 36

Conclusion 37

Appendices

100 Facts 38

Survey 43

Survey Results 44

Risk Grid 46

Audience Analyses 47

Basic Stakeholder Analyses 49

Timeline of Events ‐ CEO Crisis 50

Strategic Response Chart 51

Venn Diagram ‐ CEO Crisis 52

Media Release ‐ CEO Crisis 53

Timeline of Events ‐ Financial Crisis 54

Venn Diagram ‐ Financial Crisis 55

Media Release ‐ Financial Crisis 56

Media Conference Blurbs 57

Timeline of Events ‐ KLA Attacks (Pre‐Violence) 59

Timeline of Events ‐ KLA Attacks (Violence) 60

In circle / out circle word choices 61

Media Release ‐ KLA Crisis 62

Venn Diagram ‐ KLA Crisis 63

Incident Report Forms 64

Media Kit 90

Anticipated Questions 94

PowerPoint Presentation 96

Group Meeting Agendas 102

Class Feedback 105

Sources 107

2

Executive Summary

The following document has two main components: 1) an explanation of the timeline of events

that occurred from April 19 to April 24, 2012 and 2) how Kohl’s Crisis Management Team

effectively responded to these events.

In order to understand effective response methods, Kohl’s Corporation developed a Crisis

Management Plan as a guideline previous to the events that occurred during this timeframe.

This Crisis Management Plan was based on conducted research, crisis assessments and a

primary audience analysis, which will be provided in detail in the following pages.

Kohl’s Corporation faced several crises over a five day period that needed to be addressed

quickly and appropriately. In order to do this these crises were categorized into three separate

incidents: 1) Girl’s Gone Wild Crisis, 2) Financial Crisis and 3) Kohl’s Liberation Army (KLA) Crisis.

The KLA crisis was the most impactful on Kohl’s reputation and needed immediate attention

therefore becoming Kohl’s primary crisis to address.

Kohl’s Corporation’s business and communication goals were refined for each individual

incident while continuing to reflect company values. These goals influenced both the strategic

decisions and action responses (tactics) used in order to have Kohl’s Corporation come out on

top after the incidents occurred.

Handling crises is a learning process and improvements are necessary in order to prevent and

manage conflicts better in the future. The Continuous Improvements section of this paper

discusses the changes to both the Crisis Management Plan and the strategies and action

responses (tactics) used if these incidents were to ever occur again.

3

Introduction

With more than 1000 stores in 49 of the 50 states, Kohl’s Corporation is one of the largest

discount department store franchises in the United States. The target audience for Kohl’s

Corporation is middle income shoppers buying for families and homes. Kohl’s maintains its

discount prices through a low cost structure, limited staffing, and progressive management

information systems, as well as the economical application of centralized buying, distribution

and advertising. This “Kohl’s Concept” has been successful in small and large markets, strip

shopping centers, regional malls and in freestanding venues.

The majority of Kohl’s stores operate in the Midwest and West, but Kohl’s continues to expand

into other regions. Due to this widespread customer base and effective business process, Kohl’s

has become a Fortune 500 company.

In the late 1920s, Kohl’s stores originated as grocery stores founded by Max Kohl in the

Milwaukee, WI. In the mid‐1960s, Kohl’s decided to change their style and started to sell

clothes and apparel to a niche that fell between high‐end department stores and discount

markets. This new positioning effort allowed Kohl’s to skyrocket into the major retailer and

presence it is today.

The Kohl’s Corporation mission is: “to be the leading family‐focused, value‐oriented, specialty

department store offering quality exclusive and national brand merchandise to the customer in

an environment that is convenient, friendly and exciting.”

The following documents provide a detailed explanation of Kohl’s Crisis Management Team’s

strategic options and action responses (tactics) among other things in reaction to a string of

4

three crises which had occurred between the dates of April 19, 2012 through April 22, 2012.

Each crisis has its own business goal and communication goal to be upheld throughout the crisis

and post‐crisis return to business continuity. The actions of the Crisis Management Team were

taken in effort to best maintain congruency with Kohl’s Corporation’s mission statement and to

sustain a positive image of our corporation in the present and in the future to all stakeholders.

5

Crisis Activity Log

Reported Date

Parties Notified/Location Description

04/19 09:20 AM CMT in MAC ‐ 107

Manila envelope with black plastic knife and full can of Monster inside

04/19 01:05 PM

Received by Raquel via

email

A report has surfaced on Perez Hilton’s (real name) blog that the current Disney’s, Kohl’s, and Pioneer’s CEOs were part of “Girl’s Gone Wild” video years ago. The report says that the new DVD will be released in the near future titled

“Has Your CEO Gone Wild?”

04/19 09:30 PM Chloe via email

The “CEOs Gone Wild” video was released and gone viral. The You Tube clip of Kohl’s CEO Girl’s Gone Wild clip has more than 1 million hits in a matter of days. While no one can confirm the identity of the CEO, it has a remarkable

likeness to the current CEO.

04/20 12:03 PM Caitlin via email

People are now tweeting about the Girl’s Gone Wild incident.

And this event has made itself in the nightly entertainment

world by hitting David Letterman’s top 10.

04/20 12:54 PM Jena, via email

Rumors are now coming out that Kohl’s may be going under and being bought out by a competitor.

4/20 10:45 PM

Ed, via email There’s been an article in the New York Time’s claiming that JCPenney’s new pricing strategy has been hurting Kohl’s

sales ever since it went into effect.

4/21 9:57 AM Amy, via email

A group called the Kohl’s Liberation Army – dressed in JCPenney’s clothing and hats (JC) – is picketing outside several Kohl’s in the Midwest. The signs say “Liberate

Yourself from Kohl’s Oppression”.

4/21 1:23 PM Chloe, via email

The Kohl’s Liberation Army (KLA) has set up a website where disgruntled employees and customers can post their grievances about Kohl's.

4/21

1:23 PM

Chloe, via email

The KLA website has been overwhelmed with hits and

temporarily shuts down.

4/21 3:07 PM Caitlin, via email

The KLA website is back up and running.

6

4/21 3:07 PM

Caitlin, via email Local Chicago news stations have started covering the picketing at the Kohl’s stores.


Reporters in Green Bay have tried to interview the protesters but all anyone will say on camera is “Kohl’s must stop the oppression of workers and customers. Go to our

website at Kohlsliberationarmy.com” (Note to group: This is not a real site but assume it is.)

4/21 11:25 PM Amy, via email

The KLA manifesto suddenly appears on their website detailing their “grievances” and encouraging every consumer to stop buying their products. The manifesto includes the following demands: 1) Stop lying to consumers, 2) Halt the use of slave labor in Cambodia, 3) Free the Kohl’s worker

slaves, 4) Cease funding anti‐union causes, , 5) End the greed

4/21 11:25 PM Amy, via email

The KLA continues protest at the Westside Green Bay store

for the 2nd day.

4/22 10:24 AM Ed, via email

With cameras rolling around the nation, KLA protesters (wearing clothing from Penney’s) enter the Kohl’s store

(protest signs left outdoors).

4/22 10:24 AM

Ed, via email The KLA member’s mill around stores for about an hour.

4/22 11:02 AM Raquel, via email

At precisely 3 p.m. CST all the protesters strip off their first layer of clothing to reveal a t‐shirt saying, Kohl’s Liberation Army (KLA.org). Cameras are rolling with laughter all around. The protest leader reads a short a statement in the store saying: “The KLA demands that Kohl’s meet our demands” and passes out written copies of the demands from the

website to reporters

4/22 11:59 AM

Amy, via email Kohl’s store managers at various times start asking the protesters to leave. Most do. Some don’t and the police are

called to “escort” the protesters out of the store.

An argument between the Green Bay store manager and protester ensues. All of this is caught on TV cameras. The

situation escalates.

04/22 01:01 PM Chloe, via email

The national Fox News carries the argument in the Green Bay store live. The New York offices of Fox are inundated with press releases, emails, and tweets from “KLA members”

detailing their grievances. Some get reported during the live drama in the Green Bay store.

7


Things continue to escalate in the Green Bay store and more police are rushed to the scene. The protesters re‐enter

the store to protect their leader. Shouting is heard around the store as employees confront the

protesters (wearing KLA tops). A shot is heard. People scurry out of the store or hide behind racks of clothes.

04/22 02:07 PM

Jena, via email Local Green Bay media has reported that Westside Kohl’s has moved to lockdown mode.

04/22 04:09 PM Ed, via email

The Green Bay Store Manager (Tim Meyerisky) has a gun to the head of the KLA protester. He says, “Everyone get out of my store or I’ll kill him”. No one moves. He fires another shot into the air – and inadvertently wounding a hidden KLA protestor. People warily move out of the store including the police. The entire incident was caught on live TV and has gone national.

04/22 04:09 PM

Raquel, via email The Green Bay police now deem this a hostage situation. In fact, Tim Meyerisky, has discovered three other KLA

protesters and has taken them hostage as well. The store is completely empty except for the hostages and the manager.

04/22 05:02 PM Caitlin, via email

Various national news agencies have requested interviews with Kohl’s spokespeople.

04/22 10:02 PM All, via phone call

Shots were heard. A male KLA member staggers out and dies in the arms of a police officer. This is all caught on live TV.

04/24 8:30 All, in person

The hostage situation is over. The hostage‐taker is now in custody. There were no more casualties.

8

Research

To begin our research we compiled a list of 100 facts about Kohl’s Corporation, which you can

find in appendix A. Other research we conducted was a survey and gathering insight on various

companies, television shows or people that we received clues about. Below you will find some

of this research.

Survey

Once we had a mindset about what Kohl’s stands for, we wanted to take a deeper dive into

what Kohl’s customers think of the company. To do this we set up an online survey and sent it

out to people, 73 people ended up completing the survey. For a full list of questions and survey

results see Appendix B & C.

Girls Gone Wild

Girls Gone Wild is an amateur pornographic franchise created by Joe Francis and first debuted

in 1997. Mantra Films is the production company that endorses the films. Films center on

young, attractive females exposing themselves and engaging in sexual activities. Annual sales

for the over 100 videos are approximately $40 million. To protect themselves, the company

requires women to give verbal consent while the camera is running or sign a consent form. The

company was sued for failing to maintain records for the age of its participants in 2006 and has

been sued multiple times for damages from participants.

9

Perez Hilton

PerezHilton.com is the leading celebrity gossip blog averaging 300 million hits a month. Forbes

Magazine named Perez Hilton the number one web‐celebrity three years in a row (2007‐2009).

Perez considers himself a “gossip gangster” and the “queen of all media”. The sources he uses

most often are his friends and although he admits to being wrong about posts every once in a

while he says he has never fabricated any story and is always confident in his posts.

David Lettermen Show

The David Lettermen Show has been on air since 1993. It is a CBS hour‐long, weeknight comedy

and talk‐show based in New York City. The show has won nine Primetime Emmy awards and

was nominated as Favorite Late Night TV Host by the People's Choice Awards in 2012. His

nightly "Top 10" is a fan favorite and also what he is best known for. The "Top 10" is posted in

the newspaper the next day.

New JCPenney’s

Recently, JCPenney’s has gained a new CEO, Ron Johnson. He brought with him innovative

knowledge and a new strategy to reinvent the company. This new strategy includes dropping

promotions and implementing a more simple pricing strategy including renaming clearance

priced items to "best price". The company has also made new designers and products apart of

the JCPenney’s family, including Martha Stewart. With $50 million of Ron Johnson’s own money

invested into this revitalization, expectations are high.

10

CEO Succession

When changing CEO's in a company one of the most important factors to consider is informing

the important stakeholders including: the board, the outgoing CEO, members of the top

management team, shareholders and the incoming CEO. Seventy percent of incoming CEOs are

selected from internally. CEO succession can either create substantial market value or

completely destroy it.

Fortune 500 Company Standards

The list of Fortune 500 companies has been published by Fortune Magazine since 1963. Only

companies that have stock traded on the stock exchange are eligible for the list. These 500

companies are America’s most powerful and profitable– generating billions of dollars in

revenue. Things other than revenue also factor into the list, such as employee treatment,

attitude and their online presence.

11

Summary of Crisis Assessment

The first step in any crisis assessment is scanning. While scanning you must monitor every

outlet that a crisis could develop. During our time of working with Kohl’s we watched many

outlets for any uprising crises that would surface. We carefully watched social media, including

Facebook and Twitter. The importance of keeping up with the conversation on these mediums

is crucial because a crisis could arise from the smallest post or poke. It is also important

because news spreads quickly through these outlets and as a company Kohl’s needs to be a part

of the conversation from the start.

Another medium we monitored was stock, sales and financial reports. We closely watched

these reports to make sure that there were no outlying downfalls that could lead to a crisis. By

reading the current Kohl’s fact book provided on www.kohlcorporation.com, we had the ability

to understand the normal financial situations Kohl’s encounters along with other topics and

concerns.

A tool that was valuable to keep up with the constant movement of the internet was Google

Alerts. Using this allowed us to get updates on the most current and up‐to‐date buzz about the

Kohl’s Corporation.

When looking at all the possible crises that could occur we created a risk grid to plot all possible

categories of crises during our pre‐crisis phase. Located in our Crisis Management Plan, the

possible crisis risk grid has 40 plots, with categories of reputation, event, financial, industry, and

personnel.

Also located in our Crisis Management Plan, is a risk grid of our top 10 possible crises. In order

to find our top ten crises we analyzed each of the 40 by the likeliness multiplied by severity.

12

This chart is located in Appendix D. Upon finishing this chart we easily found our top 10 most

likely and severe crises and plotted them in a risk grid to visually see what quadrants they were

in. From this analysis we found our top ten crises topics were as follows: product recall, cyber‐

attacks, customer satisfaction, stakeholder relations, stock, natural disasters, weapons in store

(with intent to use), bad marketing, information fraud, and ethics.

Product recall is an observable but not controllable situation which is why it is in quadrant IV.

When dealing with a product recall you need to make sure that you give people all the

information they need to understand and know what to do with the product they have and the

concerns with it. To make it controllable a corporation should prepare for product recalls by

knowing how to effectively handle them.

Cyber‐attacks are very observable events but not usually controllable so it is in quadrant IV as

well. With cyber‐attacks it varies on how you should deal with them. Based on what channel

the attack is on you should respond to the attacks on that same channel to control them to the

best of your ability.

Customer satisfaction is a situation that is controllable and is most of the time observable.

While you can train for customer service and have rules regarding it, it may not always follow

the book. Issues can arise and when they do they can be damaging if not cared for properly.

While this could be hurtful to the company this is an occurrence that doesn’t take a toll on

people as much as others which is why it is in quadrant I.

Stakeholder relations are another situation that depends case by case on how it is labeled and

how intense the situation is. Most of the time it will be observable and controllable and

13

because of that it is placed in quadrant I. While stakeholder relations are crucial to a company’s

success, it is also a situation that is easily manageable.

Stock is a topic that was placed in quadrant III because it is not controllable nor is it observable.

When stocks move people are on edge, especially if there are financially involved.

Natural disasters were placed in quadrant IV because they are very observable but never

controllable. Each natural disaster is different and dealing with this as a company is stressful

but doesn’t take a toll on your reputation unless managed inappropriately.

The crisis involving weapons in store with the intent to use was placed in quadrant IV. The

reasoning for this is because it is a crisis that is very observable but not controllable most of the

time. Each case for this crisis would be handled a little bit differently.

Bad marketing is a crisis that is controllable but not always observable which is why it is in

quadrant II. As a business, you control what is being marketed as your message, but you cannot

see right away how it is being interpreted.

Information fraud was placed in quadrant III because it is something that not observable but is

controllable. When dealing with this crisis you are fighting the trust battle because people

cannot physically see anything about it.

Ethics was a very broad crisis for us to place. We placed it in quadrant II because most of the

time an ethic’s crisis was controllable but not observable. We thought it could flex in and out of

the quadrant depending on the specific crisis but this was the case most of the time.

We decided to place these potential crises in this order based on our equation impact

multiplied by severity equals risk level. We chose to analyze these in this way because it is the

best way to define risk.

14

Audience Analysis

In determining which audiences we needed to specifically target during a crisis, we first needed

to know who all of our audiences were. Therefore, we developed an audience analysis chart

detailing the lions within those audiences, the effect those audiences may have on the

company, the channel(s) we should use to contact each audience, the beliefs of each audience

and what we think they already know, resistant points within each group and finally the overall

goals each audience has. (For an overall audience analysis see AA chart in appendix E.)

In further research we looked into five specific audiences. We chose these based on what we

felt were the most influential audiences to the company. First we looked at the shareholders of

the company. We decided they were important because they own part of the company and

help to uphold Kohl’s good name. Our concerns for the stakeholders during this crisis included

receiving revenue off of their investments and making sure they still felt they were investing in

an ethical corporation.

Next we were concerned about the customers because they help to keep Kohl’s stores in

operation. Our concerns with this audience were continuing to carry affordable and quality

products and continue to make the shopping experience at Kohl’s convenient and enjoyable.

Thirdly we were concerned with Kohl’s suppliers and business partners. This was a point of

concern for us because we wanted them to know they were invested in an ethical corporation

while still maintaining that financial gain with the company.

Next, we were concerned about our relationship with the media because they are such an

important part of the way Kohl’s communicates to the public. Media represent gatekeepers;

therefore we rated them high on our list of audiences to be concerned with. Finally we were

15

also concerned with our own internal audience. Kohl’s Corporation wants to keep its employees

informed as well as making them feel that they are working in a safe and friendly environment.

(For a more in depth primary audience analyses see Basic Stakeholder Analysis chart Appendix

F.)

16

CEO Gone Wild Crisis

Summary of Events

We first became aware of this crisis via Perez Hilton blogging that Kohl’s CEO along with other

large corporation’s CEOs were featured in a Girl’s Gone Wild video on April 19, 2012. Later that

evening, the video on YouTube received over 1 million hits and Twitter exploded with the topic.

The following day, due to the popularity, the video is featured on David Letterman’s Top 10.

Refer to Appendix G for a complete timeline of events.

Business & Communication Goal

After becoming aware of this incident, we formulated business and communication goals to

consider as we developed our strategy and action responses. The main business goal was to

maintain the integrity of Kohl’s Corporation and to reiterate that Kohl’s is a family orientated

brand. In order to do this, we created a communication goal for the public, especially the

stockholders to see that leadership roles have been established.

Strategic Options

In order to reduce reputational damage of the Kohl’s Corporation we decided to focus mainly

on the who by isolating the perpetrator and distancing Caitlin from the Kohl’s brand as soon as

possible, since her actions were not in accordance to the Kohl’s mission statement. We also

focused on the what by publicizing our corrective actions that set a corporation standard.

17

This crisis would be considered a misdeed where Kohl’s Corporation took full responsibility.

Kohl’s Corporation was accommodative, providing a full responsibility. (See appendix H) On the

message strategy continuum, our choice for response would be considered identify & reply.

We determined our major audiences for this crisis were stockholders, the general public, Kohl’s

employees and media. To evaluate what the audiences wanted to know and what we were

willing to share with them, we created a Venn diagram (See Appendix I).

While responding to any questions involving the CEO scandal we wanted to strategically avoid

using Caitlin’s name. Instead, we would refer to her as “our former CEO”.

Action Responses

After becoming aware of the CEO Gone Wild Video, our first tactical response was to find out if

the CEO did in fact participate in Girls Gone Wild in the past. Once we found the allegation to

be true, she was asked to resign and accepted. Immediately after her resignation was finalized

an announcement was made to the top management and shareholders.

In order to separate the newly resigned CEO from Kohl’s Corporation, she tweeted an apology

via her personal twitter account. To reiterate how sorry she was she also apologized through a

video uploaded to YouTube, the same channel that made many people aware of the scandal.

This video did not include the Kohl’s logo in the background to strategically distance the CEO

from Kohl’s.

After the video and tweet were released, we made a media release (see Appendix J) and

statement available on the Kohl’s website and directed any reporters to the website for that

18

information. However, once the video was featured on David Letterman’s top 10 we realized

the event was much larger than we anticipated and a media release was emailed to all major

new stations announcing the new Jena as the new CEO.

19

Financial Crisis

Summary of Events

Our first alert of this financial/rumor crisis was a speculation article that appeared in the New

York Times on April 20, 2012 claiming that JCPenney’s new pricing strategy has been negatively

impacting Kohl’s sales since going into effect. This article was quickly followed by rumors

circulating internally and externally that Kohl’s may be bought out by competitors or be going

under. Refer to Appendix K for complete timeline.

Business & Communication Goals

While considering our strategic options and action responses for the financial/rumor crisis,

Kohl’s Corporation kept their business and communication goals in mind during the process of

all decision making. Our business goal for this crisis was to maintain stock value despite rumors

circulating. In order to do this, we enacted a communication goal for stockholders to be

reassured of Kohl’s financial soundness.

Strategic Options

This crisis would consist of weak crisis responsibility, as it was based around rumors. Therefore

our team’s necessary response was one of defense and denial. (See Appendix H) In order to

present the necessary information and maintain stock value by reassuring Kohl’s stockholders,

the Crisis Management team isolated the specific strategic option of focusing on the what of

the issue by denying the allegations. The allegations made in the New York Times in a

speculation article were not based on fact. This article caused rumors to circulate.

20

In our response actions as a corporation and crisis management team, we want to strategically

target two audiences: shareholders and media. Shareholders are going to be most concerned

about the financial standing of our corporation and media is a gateway to sharing the

information with a plethora of audiences. Other audiences include internal audiences

(employees) and business partners (suppliers, etc). To analyze what stakeholders would want to

know, in congruency with what we would want them to know we crafted a Venn diagram (See

Appendix L). The Kohl’s Crisis Management Team strategically chose to identify and reply in this

crisis. Kohl’s Crisis Management Team identified the allegations circulating about Kohl’s

Corporation’s financial state, and then addressed these allegations and concerns with a

strategic reply.

When responding to claims, we also wanted to purposefully avoid any connection to the

competitor mentioned in the article, JCPenney’s. To accomplish this, our action responses

avoided any mention of the corporation by name or as a “competitor”. Instead, we chose to use

the phrase “comparable store”.

Action Response

To best deny the allegations of Kohl’s going‐under or being bought out created in this crisis, our

Crisis Management Team used specific sales data. This specific data released included March’s

sale reports, reports of physical expansion in the month of March, and year to date sales of

both Kohl’s and a comparable store. This information was released via a media release (see

Appendix M) and was also emailed to shareholders.

21

The Crisis Management Team was also equipped with media conference blurbs (see Appendix

N) on this topic and others to reference at the media conference that followed this crisis

addressing the KLA attacks. These blurbs were stand as a quick reference guide of data if media

were to bring up this crisis.

22

Kohl’s Liberation Army Crisis

Summary of Events

Note: The timing of events is not dependent on the times in which Kohl’s Corporation received

clues. In order to make sense of the situation and to react in a timely manner, the timeframe of

events has been independently developed, unless stated otherwise.

The Kohl’s Liberation Army Incident was split into two separate timelines: 1) Pre‐Violence and

2) Violence. The separate timelines mark the turn of events when a peaceful happening became

a hostage situation.

KLA Crisis Pre‐Violence Timeline of Events

On April 21, 2012 a group called the Kohl’s Liberation Army (KLA) begins picketing outside

several Midwest Kohl’s stores with signs that state “Liberate yourself from Kohl’s Oppression.”

Kohl’s contacts their Crisis Management Team to alert them. The KLA sets up several websites,

KLA.org and Kohlsliberationarmy.com, where disgruntled employees and customers post their

grievances about Kohl’s. Kohl’s Crisis Management Team contacts their legal team regarding

taking down the website. The KLA websites shuts down for an hour due to the number of visits

the website receives. Soon after, local Chicago news stations begin to cover the picketing at

the Kohl’s stores. These reporters attempt to interview the KLA protestors but the only

statements they receive are: “Kohl’s must stop the oppression of workers and customers. Go to

our website at Kohlsliberationarmy.com.”

23

The KLA posts a manifesto on their websites with five demands: 1) Stop lying to consumers, 2)

Halt the use of slave labor in Cambodia, 3) Free the Kohl’s worker slaves, 4) Cease funding anti‐

union causes and 5) End the greed.

The protests at west‐side Green Bay store continues for a second day, cameras from all over

the nation are covering the KLA protestors who wear clothes from JC Penney’s. The protestors

enter the store and mill around for an hour. At precisely 3 p.m. CST protestors inside the store

strip off their first layer of clothing in order to reveal t‐shirts stating “Kohl’s Liberation Army

(KLA.org).” The leader of the protestors reads a statement saying, “The KLA demands that

Kohl’s meets our demands.” The protestors then pass out written documents with the

manifesto to reporters. At this point, the KLA have illegally entered the store and passed out

written documents without the consent of employees and disturbing the normal operations of

the business. Kohl’s store managers ask protestors to leave. Most of them do, but several

protestors did not cooperate and the police are then called to address the situation.

An argument between a store manager and an uncooperative protester ensues. This argument

is carried live on Fox News. Fox News offices are flooded with tweets and emails from the KLA

with their Kohl’s grievances. Some of these grievances are reported live on air. (See Appendix O

for complete timeline.)

KLA Violence Timeline of Events

Protestors re‐enter the store in order to protect their leader during the argument. A shot is

heard and the west‐side Green Bay Kohl’s is announced as under lockdown. The Crisis

24

Management Team begins to plan for a media conference. The store manager, Tim Meyerisky,

holds a gun to the head of a KLA protestor and shouts, “Everyone get out of my store or I’ll kill

him.” Everyone clears the store including police officers; all that remain are four hostages,

including one who was inadvertently wounded, and Tim Meyerisky, the hostage taker. The

action has now gone national. The Green Bay Police now deem this as a hostage situation.

Many national news agencies request interviews with Kohl’s Corporation spokespeople.

Shots were heard and a male KLA member staggers out of the store, dying in the arms of a

police officer on national live broadcasting. (See Appendix P for a complete timeline.)

Business and Communication Goals

Kohl’s Corporation provided two main business goals during this incident. The first, to show

that the safety of all parties involved is Kohl’s top priority and second, to express concern for

families and friends of the victim and those still involved in the hostage situation.

Kohl’s Corporation’s business goals are reflected in their communication goals of being honest

in communications to the public and maintaining open feedback channels. By doing this, Kohl’s

can restore stakeholder’s trust in the company which is a vital component to the reputation

and success of a company.

Core Message

A high‐quality core message is an aid to handling any crisis. A high‐quality core message is

memorable and actionable. Kohl’s Corporation core message includes three focal words: safety,

concern and refinement. Kohl’s Corporation accentuates their commitment to the safety of

25

their customers and employees, expresses concern to families involved in the tragedy and

reiterates that they will refine their employee hiring methods and safety procedures to avoid

the event from ever taking place again. This core message was chosen because it is unpack‐

able, meaning that it is easily understandable. Each focal point is linked to the other making it

both enduring and comprehensive. Equally important is the repetition and redundancy of the

core message. By repeating the core message, Kohl’s Corporation can illustrate confidence in

their decisions.

Shaping Memories

Kohl’s Crisis Management Team worked directly with the Green Bay Police Department in this

crisis as a means to have the best outcome of this crisis. This benefited Kohl’s Corporation by

showing the public that Kohl’s Corporation not only cooperates with law enforcement but also

works with them as a team. This displays a sense of safety by both the physical presence of a

public information officer and the setting of the media conference in the police department

headquarters. Word‐association that a police officer often falls under is “safety” or “hero”.

These words are incredibly valuable in the event of a violent crisis such as a hostage situation. It

is important that Kohl’s manages to do more than state that safety is important but to show

that it is. By working along‐side police officers, the value of safety can be reflected in Kohl’s

Corporation’s actions.

The audience reach for this event was very wide due to the KLA incident becoming national live

news. From this, it can be inferred, that the majority of the public eye will shape a memory

from this event. It is important that Kohl’s Corporation handled the crisis effectively by

26

maintaining company values and addressing stakeholder concerns appropriately. By doing so,

Kohl’s Corporation may expect positive media headlines. Kohl’s Corporation hopes to see

headlines such as “Kohl's Makes Safety a Top Priority,” “Kohl's Expresses Concern for Families

Involved in Tragedy,” and “Kohl's Crisis Responses Provide New Guidelines for Fortune 500

Companies.”

Strategic Options

Kohl’s Corporation’s strategies are the organization’s overall plan to achieve business and

communication goals. Strategies have several choices including strategic options, information

disclosure, word choice and the amount of responsibility that an organization takes for a crisis.

Kohl’s Corporation decided to focus on a what strategic option by showing concern for the

tragic loss. This is the primary strategic option because it aligns with company values. Kohl’s

Corporation also focused on a who strategic option by isolating the perpetrator in order to

distance the company from the perpetrator thereby limiting association between the

perpetrator and the company. Kohl’s Corporation also chose a what strategic option by

focusing on the future so as to keep high expectations for all stakeholders including

stockholders, employees and customers. Moreover, Kohl’s Corporation selected a what

strategic option by avoid the use of the KLA organizations name. Doing so reduces the

association of the organization with Kohl’s. This is important because the organization uses

Kohl’s in the title of their name.

Kohl’s Corporation chose to use the identify and reply strategy by identifying key concerns and

addressing them. It places stakeholder concerns as a top priority for Kohl’s Corporation. By

27

using the identify and reply approach, Kohl’s Corporation can legitimize and de‐legitimize

stakeholder concerns including safety, stock value and ethical practices.

Using words strategically is a critical tool when communicating with the media. Words are not

created equally. Word connotation and interpretation can differ even down the very synonym

of a sentence. By providing words that have less negative connotations associated with them,

the message that the public receives is more likely to carry a positive or hopeful outlook. All

words chosen to be utilized/avoided by our crisis management team can be found in Appendix

Q.

During the media conference, Kohl’s Corporation chose to avoid words such as “active

shooter,” which instills fear, and replaced it with the words “hostage taker.” Referring to the

hostage taker as a manager reduces the audience reach and association that the hostage taker

is in a leadership position at Kohl’s corporation.

The Kohl’s Liberation Army (KLA) was referred to at the media conference as an “organized

group” in order to reduce the association between the KLA and Kohl’s, particularly because

Kohl’s Corporation is in the title of the organization’s name.

Emphasizing that the event is a rare and unique circumstance is important so that customers

will feel safe to shop with Kohl’s Corporation. It is vital to avoid the words such as “crazy” or

“snapped” when referring to the hostage taker. It is important to keep in mind that the hostage

taker has the right to a fair trial and is innocent until proven guilty. Jumping to conclusions or

pointing fingers will reflect poorly on Kohl’s Corporation. Instead, it is necessary to distance the

28

perpetrator from the organization in order to protect the company’s reputation. Using the

words “crazy” or “snapped” also suggests that this could happen again at any time because it is

related to emotion. While it is possible that this could occur again, it is incredibly unlikely.

Highlighting the rarity of the situation and rephrasing questions from reporters will protect

Kohl’s Corporation’s reputation and in turn sales and overall success.

In every crisis, an organization has several strategic responses to they can choose (See

Appendix H). The responses range from take full responsibility of a crisis to denying or attacking

a person or group that has exaggerated an organization involvement in a particular issue. In the

KLA crisis, Kohl’s Corporation chose to take strong responsibility of the crisis because the crisis

occurred due to an employee’s misdeed. While limiting the hostage takers association with

Kohl’s Corporation is ideal, some association is bound to occur. Kohl’s Corporation will not take

responsibility of the crisis itself but instead, of the connection between the employee and

Kohl’s Corporation.

Kohl’s Corporation decided to take corrective action so as to mend the damage and to prevent

the crisis from reoccurring in the future. Kohl’s Corporation does this by working directly with

the Green Bay Police Department and reiterating the re‐evaluation of hiring processes and

safety procedures, making it clear to the public that safety is Kohl’s number one concern.

Measuring the reputation of an organization prior to any crisis occurring will help determine

how well an organization will recover from a crisis and how they should respond. Playing to the

goodwill of the public is instrumental when responding to crisis. If a company is viewed

favorably, then they have a much higher likelihood of recovery. How a company reacts to a

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crisis must be done strategically in order to protect the reputation of an organization.

Customers are the lifeline of an organization during crises. Showing that customer safety is a

top priority will encourage the public to step forward in the company’s defense if ever

necessary.

Action Response

The police were contacted by the Crisis Management Team upon the entrance of the KLA

protestors into the west‐side Green Bay, WI location. After becoming aware of the KLA’s first

website, our tactical response was to contact our legal department in order to understand the

legal implications better. Potential outcomes would include ability to demand the site be

removed due to infringement and/or request to the webmaster to remove it. The same steps

were taken after recognition of a second KLA sponsored site became publicized and brought to

our attention.

In order to further combat the negative effects of this site, which was receiving negative

comments, we planned to reinforce and heavily promote the Kohl’s Corporation sponsored

feedback channels available to our customers to voice their grievances. These channels already

in existence to collect responses include Twitter, Facebook, customer service hotlines, email,

and the Kohl’s website. To respond to the negative employee feedback collected on the KLA

sponsored sites, Kohl’s will enact employee intranet on which to express concerns. These

platforms if used can allow betterment of the corporation and reduce negative feedback in

uncontrollable environments.

30

We released a basic statement to the media at 3:30PM after violence occurred in the store.

Releasing a statement at this time allowed the media to air the statement during the 6 p.m.

news. This strategically allowed Kohl’s to provide input for the situation and therefore the

media would not completely relying on other sources, such as the KLA protesters. The

statement read as follows:

“Westside Green Bay Kohl’s store was evacuated at 3:15 p.m. today by police when a gunshot

was heard during an unannounced in‐store protest. The store has now gone into lockdown

mode. Kohl’s has a responsibility to the safety of those inside our buildings and we care about

the well‐being of all parties involved in this incident. Please stand‐by for additional information

regarding a media conference.”

After issuing a statement to the media, Kohl’s Crisis Management team began planning a media

conference to address the on‐going hostage situation. This planning included the sending of a

media release (see Appendix R). This media release included a brief timeline of the events that

had occurred at the west‐side Green Bay store and indicated the additional concerns of the

media would be addressed at the media conference to the best of knowledge of the Crisis

Management Team and as long as the answers would not compromise the safety of those still

in the store.

To prepare for our media conference, in addition to considering responses to the previous

crises and the hostage situation underway, our Crisis Management Team prepared

counterarguments to the manifesto posted to the KLA’s website. We chose to not directly

address this manifesto at the media conference (or in another manner) unless it was explicitly

31

brought up. We chose this strategy because we felt the KLA’s demands were not based in fact.

We prepared blurbs (see Appendix N) to refer to if these false points were to be brought up

during the media conference highlighting information including Kohl’s Social Responsibility

Policy and other information on Kohl’s good deeds.

The media conference took place at the Green Bay Police Department to strategically and

visually represent a partnership with the Green Bay Police Department to portray an image of

safety and trust to our stakeholders. Media in attendance received a copy of a media kit that

included: Crisis management Team Contact information, information on the corporation, and

media rules (See Appendix U).

The media conference was opened and facilitated by Amy Manske, Kohl’s Vice President of

Public and Community Relations, a member of Kohl’s Crisis Management Team. Amy began the

press conference with an outline of the media conference and then introduced Officer Jon

Eckelberg, the Public Information Officer with the Green Bay Police Department and Ed Immel,

Kohl’s Corporation’s Chief Security Officer. These two gentlemen together explained the

timeline of event of that day and then explained the measures being taken to ensure safety.

Amy then transitioned the focus of the conference to Kohl’s Corporation’s new CEO, Jena

Richter who thanked stakeholders, expressed utmost concern, and explained the corporation’s

steps forward from the tragic event. To conclude the media conference, Amy fielded questions

to appropriate Crisis Management Team members.

The goal of the media conference was to address the questions of the media while expressing

the core messages of Kohl’s Corporation during this crisis. To evaluate these components, the

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Crisis Management team analyzed both sides’ needs with a Venn diagram (see appendix S). The

core messages that the Crisis Management Team wished to express included: Concern, Safety,

and Refinement. To shape memories of Kohl’s stakeholders, Kohl’s Crisis Management team

intentionally emphasized those words and concepts and also crafted a document of words to

avoid and words to utilize within the media conference (represented by appendix Q). These

words were chosen to accurately depict the situation, while avoiding negative connotations.

Kohl’s Crisis Management Team created a list of headlines to ideally come from this process to

keep focus on their core message.

Many of Kohl’s valued employees were affected by this rare and unfortunate event. In order to

provide support for these cherished members of our organization, we will be offering optional

counseling for employees at the west‐side Green Bay, Wisconsin store in order move forward

from this tragic event in a positive manner.

Moving forward, Kohl’s Corporation wants to take further measures to best ensure that tragic

occurrences such as this do not occur again. Our corporation will be reevaluating and

revamping hiring processes as well as the Crisis Management Team’s Crisis Management Plan,

including training of employees. Kohl’s Corporation strives for continuous improvement.

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Continuous Improvement

In‐Circle / Out‐Circle

During a crisis situation, it is important to consider the connotations of words. In crafting a

strategic message to your audience there are words that you want your audience to associate

with your corporation and words that you want to distance yourself from. This lets you choose

what images, ideas, and words your audience will associate with certain elements of your

message. In hindsight, we should have visually presented the strategy behind our word choice.

Our choices can be viewed in appendix Q.

Focus on the Who: Traumatized Employees

During our crisis we had many employees that were in the store during the picketing and when

shots were fired. While we incorporated in our action plan to provide grief counseling to

affected employees, we failed to make them a core audience for making Kohl's a safe and

family‐orientated place to shop again.

Addressing our Audience: Traumatized Employees

In addressing the mental state of our employees we would utilize a grief therapist and have

mandatory meetings for employees to discuss their experience. There would be allowance of

follow‐up meetings as long as the employee needed.

The store would not be reopened immediately, as to give affected employees some time off to

regain their composure and use the offered grief counseling. We would also offer some

34

compensatory pay during this down time to those directly affected by the incident. This would

ensure that they can rest, lower their stress levels and upon returning to work be productive.

The safety of the Kohl's employees is our top concern; we would address any security issues at

each of the Kohl's locations. We would implement a mandatory safety training program to

show our employees that their safety is our top concern, but also how to properly handle

stressful situations that may arise.

Separation of the KLA Attack and the Hostage Situation

Originally we had considered the events of April 19, 2012 – April 22, 2012 to be considered

three crises, but after further consideration it is believed that by breaking the events into four

crises, we could better control the situations. This would involve separation of the KLA attacks

via picketers, websites, etc. and the hostage situation.

Crisis Order: Most Important to least important

Our Crisis Management Team had built an internal hierarchy of the importance of each of our

crises. To clarify and improve our message we constructed a numbered list of our crises in order

of importance. This will help our audiences understand our action process and the importance

that we place on each event that occurred.

#1 ‐ KLA ‐ Kohl's Liberation Army

a‐ Employee and Public Safety (Physical and Mental)

b‐ Concern for families and those injured in the event

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c‐ Kohl's Corporation Brand and Reputation

d‐ Refinement and continuous improvement of policies instilled

#2 ‐ Financial Rumors

a‐ Address Stockholders and Stakeholders to ensure financial stability

b‐ Ensure public that we are financially strong

#3 ‐ CEO ethical issue

a‐ Quick internal replacement (Business contingency, reduces loss of stock price)

b‐ Show stockholders and stakeholders that we have a competent replacement

b‐ Show public that we are family focused and an ethical company

Relabeling of Core message: “Future” to “Refinement”

In addressing the future of Kohl's Corporation and its ability to rebound from any crisis, it is

important to instill our core message to our audiences. We specifically chose certain words

that were un‐packable to each event and were action orientated. Originally we chose the word

“future” as a generic conceptual overview of our third component of our core message. We

changed this word to “refinement”. This word choice instills that we are not changing our core

message and values but due to events we are refining our strategies and tactics in dealing with

them.

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Rejected Ideas

In figuring out how to handle each of these clues the Crisis Management Team created a list of

rejected ideas based on our analysis of the Crisis Management Plan. These rejected ideas were

not utilized for various reasons including ethical reasons and a need to separate Kohl’s from

misdeeds, etc.

∙ Naming or Picturing the Victim or the Shooter

∙ Having the Media Conference at Kohl’s West near the scene with the active shooter near by

∙ Having the Media Conference somewhere else where a different brand is promoted i.e. a hotel

∙ Having just the Crisis Management Teams at the Media Conference

∙ Having a real Public Safety officer come in to our mock Media Conference

∙ Including everything on a timeline of events and releasing it while the hostages are still being held

∙ Mentioning a KLA member as the one who had been fatally shot

∙ Having former CEO apologize with Kohl’s logo behind her

∙ Having the original CEO partake in the media conference after the “CEO’s Gone Wild” incident

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Conclusion

The actions taken during these crises by the Kohl’s Corporation and their Crisis Management

Team reflect the values of Kohl’s Corporation and its mission statement. The process utilized

was to maintain the most positive image to stakeholders during the crises and to maintain

business and communication goals for proper business continuity. Each crisis was researched

and analyzed in‐depth and when necessary, a core message and ideal shaped memories were

formulated to strategically lead all decision making. From this process, we received valuable

and feedback and insight to appropriately manage future crises.

38

Appendix A: 100 Facts 1. Business Industry: Retail

2. Slogan: Kohl’s expect great things.

3. Current worth of stock:

KSS (Common Stock)

Exchange NYSE (US Dollar)

Price $49.05

Change (%) 0.83 (1.72%)

Volume 2,097,936

Data as of 03/08/12 4:00 p.m. ET

4. Kohl’s recently opened eight new stores, creating approximately 1,000 jobs in

Menominee Falls, WI.

5. Kohl’s donated $100,000 to the American Red Cross for tornado relief efforts in the

Midwest and Southeast.

6. Kohl’s corporate statement is: “We not only offer the best merchandise at the best

prices, but we’re always working to make your shopping experience enjoyable.”

7. Kohl’s has a Facebook, Twitter and YouTube account.

8. They offer a store survey and store feedback/comment box for customers along with an

email address and phone number to call.

9. Kohl’s appears as number 142 in the 2011 Fortune 500 Company listing.

10. The first Kohl’s opened its doors in 1962 in Brookfield, WI.

11. The company was founded by Maxwell Kohl.

12. The first store was a small grocery business and eventually expanded to a retail

department store.

13. Kohl’s operates stores in three settings: the “Stand Alone,” the “Big Box Mall,” and the

“Lifestyle Center.”

14. Kohl’s Mission Statement: “To be the leading family‐focused, value‐oriented, specialty

department store offering quality exclusive and national brand merchandise to the

customer in an environment that is convenient, friendly and exciting.”

15. Kohl’s Target Market: “A two‐income family with kids at home. They don’t have a lot of

time, and they are looking for a value.” –CEO Lawrence Montgomery

16. 2006 Marketing Mix:

a. 32.6% Women’s

b. 18.6% Men’s

c. 18.4% Home

d. 13.4% Children’s

e. 9.2% Accessories

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17. SWOT Analysis (found online):

a. Strengths

i. Balanced Brand Mix

ii. Robust Distribution Network

iii. Strong Profitability

b. Weaknesses

i. Weak Presence in Key Markets

ii. Low Comparable Store Sales Growth

c. Opportunities

i. Store Expansion

ii. Growth in Private Label Products

d. Threats

i. Industry Consolidation

ii. Increasing Rental Rates

iii. Weakening Consumer Spending

18. Major brands sold in the store include: Lauren Conrad, Simply Vera, ELLE, Hang Ten,

Rosetti, Hanes, Croft& Barrow, Sonoma, Chaps, Hawk, So, Fisher Price, APT 9, Conair

and Dyson.

19. March 2012 promotions include:

a. Spend $50, get $10 in Kohl’s Cash

b. Free Standard shipping after $75 purchase

c. Take an extra 30‐15% off any purchase when using Kohl’s credit card.

20. Kohl’s Cares Scholarship Program rewards students with $10,000 each.

21. Every year, Kohl’s recognizes and rewards young volunteers (ages 6‐18) across the

country for their amazing contributions to their communities.

22. This year, Kohl’s will award more than 2,200 kids with over $440,000 in scholarships and

prizes.

23. In 1978, BATUS, Inc., U.S. division of BAT Industries, (British American Tobacco) PLC

purchases an 80 percent stake in Kohl’s Food and Department stores. They took over

and the Kohl family withdrew from operations.

24. In 1988, they had 39 stores in Wisconsin, Illinois and Indiana.

25. Mid 1980’s – BATUS got rid of retail for the most part.

26. 1986 – Kohl’s was acquired from BATUS by a management‐led group of investors.

27. Kohl’s became a public company in 1992 along with increasing sales to one million

28. On March 17, 2012 there was shooting at a Kohl’s in Arizona.

29. Twitter is used to offer extra discounts and is conversational.

30. JLO launched her brand and there has been buzz about her commercial for it.

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31. Their Facebook serves as a post and response page. They rarely post a status update but

rather wait for people to post and then respond quickly.

32. They have not updated to timeline like most competitors which shows that social media

doesn’t take top priority.

33. The company was named a 2011 Energy star of the year.

34. They have a reusable shopping bag.

35. Kohl’s has raised over $180 million to support kids’ health and education initiatives.

36. They sell merchandise to raise money for this cause.

37. Kohl’s helps fund research, raise awareness, and educate women about breast cancer.

38. They have associate volunteer events for youth‐serving nonprofit, breast cancer

awareness events and environmental initiatives; this is called Associates in Action.

39. They log 1,200,000 volunteer hours at 64,000 volunteer events with 385,000 associate

volunteers.

40. The Kohl’s Corporation is an American department store chain headquartered in

Menomonee Falls, Wisconsin, a suburb of Milwaukee.

41. The company currently operates 1,089 stores in 49 states.

42. They have a Yes We Can policy to satisfy customers.

43. They treat their employees incredibly well offering things like coupons and a You Did It

board where employees can right thank you notes to other employees for doing a good

job or helping out.

44. Kohl’s has a dedicated following of customers.

45. If employees open a Kohl’s charge account while at a register, they get a bonus on their

next pay check.

46. Kohl’s is one of the top retailers for customer satisfaction.

47. The company was ranked #2 by the University of Michigan’s American Customer

Satisfaction Index (ACSI).

48. One of the top retailers for customer service, they were ranked number seven by the

National Retail Federation.

49. Forbes magazine ranked Kohl’s number 61 on their list of most reputable U.S.

Companies.

50. FORTUNE magazine ranked them number four on their list of World’s Most Admired

Companies (General Merchandisers Category).

51. Newsweek magazine ranked them number three for the 100 greenest companies in

America.

52. Kohl’s has a hassle‐free return policy.

53. Kohl’s uses mobile alerts

54. Kohl’s distribution center is located in Ottawa, IL>

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55. They have stores in 49 of 50 states.

56. Hawaii is the only US state without Kohl’s.

57. Kohl’s annual turnover is $15,544,200,000.

58. The company paid their first quarterly dividend of $0.25 per share on March 30, 2011.

59. They expect to pay dividends on the last Wednesday of March, June, September, and

December to their shareholders.

60. In 2001, Kohls.com was launched.

61. In 2011, Kohl’s had a successful slogan of “The More She Knows, The More She Kohl’s.”

62. Kohl’s strategic initiatives are all about inventory management, having the right

inventory, in the right store, at the right time.

63. This inventory management results in Trip Assurance, instilling confidence that our

customer will find what she wants when she wants it.

64. In August 2010, in‐store kiosks were put select Kohl’s stores which allow customers to

purchase items that are not available and have them delivered to their home with no

shipping costs.

65. By the 2012 holiday season it is expected all stores will have these in store kiosks.

66. They believe an important part of the shopping experience is having great and up to

date stores.

67. In 2011, 100 stores were remodeled.

68. The state with the most Kohl’s is California, which has 128.

69. 78% of all waste generated is recycled by Kohl’s.

70. Kohl’s has memberships with: EPA Energy Star, United States Green Building Council,

EPA Green Power Partnership, Business for Social Responsibility, EPA WasteWise,

Wisconsin Partners for Clean Air, and EPA SmartWay Transport Shipper.

71. There are 676 ENERGY STAR labeled stores.

72. Between November 2010 and October 2011, we repurchased 57 million shares of our

common stock.

73. It takes 20 to 32 weeks from the start of the development to the time product is

delivered in stores.

74. Kohl’s breaks down their consumer lifestyles into 3 categories: Classic, Modern Classic

and Contemporary.

75. They place these lifestyles into a “Nine‐Box Merchandising Grid” to provide clear

guidelines for lifestyle and pricing, provide clarity and consistency when defining where

a branch will “live”, effectively manage a growing portfolio of businesses, and identify

opportunities for new businesses.

76. Kohl’s offers their own credit card and a benefit includes receiving extra discounts 12

times a year.

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77. You can become a Kohl’s Most Valued Customer by spending $600 on your charge card

every year.

78. Kohl’s Most Valued Customers also pick a personal sale day six times a year, along with

other special discounts 18 times a year and the MVC Premier Newsletter full of fashion

tips and lifestyle information.

79. Online orders are shipping within 48 business hours and require a signature upon

delivery.

80. Kohl’s became a public company on May 19, 1992 at $14.00 per share.

81. As of January 29, 2011 there were 136,000 employees.

82. Kohl’s annual sales exceed $18 billion.

83. The annual shareholders’ meeting is held in May.

84. Kohl’s has 11 distribution centers in nine states.

85. The distribution centers are located in Wisconsin, Virginia, Ohio, Montana, Texas, New

York, California, Illinois, and Georgia.

86. Every Wednesday is senior citizen discount day, they can save 15%.

87. Online shipments are insured by the carriers that deliver them up to $100, after that

Kohl’s insures the shipment.

88. Kohl’s CEO is Kevin Manel.

89. Kohl’s competitors include Target and JC Penney.

90. Kohl’s matches competitor’s prices if you bring a copy with the current competitor’s ad.

91. Kohl’s offers a great internship program for college students in every business area.

92. Kohl has these core values: result‐orientated, builds teams and partnerships, prepared

and focused, takes an informed approach, develops self and others, and acts with

integrity.

93. Kohl’s really takes care of their employees, they even offer support through their

Adoption Assistance Programs, on‐site dry cleaning and on‐site fitness classes.

94. To work as an hourly employee at Kohls, you must be at least 17 years old and be able

to pass a drug screen.

95. You can apply online, in store or on the Kohl’s Hiring Hotline.

96. Kohl’s has three call centers located in Menomonee Falls, WI, Corsicana, TX and San

Antonio, TX.

97. In 2009, MUDD brand merchandise became available exclusively in Kohl’s department

stores.

98. The region with the most stores is the Midwest.

99. Most stores are located within a Strip Center.

100. Kohl’s is the largest solar power host in North America with 100 activated solar

arrays on store rooftops.

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Appendix B: Survey

1. What three words or phrases do you think of when you hear Kohl’s?

_______________________ ______________________ __________________________

2. What is most important to you when choose a department store?

______________________________________________________________________________

3. One a scale of 1 to 10 (1 being negative, 5 being neutral, 10 being positive), where

would you place your view of Kohl’s?

1 2 3 4 5 6 7 8 9 10

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Appendix C: Survey Results

What three words or phrases do you think of when you hear Kohl’s?

What is most important to you when choose a department store?

45

One a scale of 1 to 10 (1 being negative, 5 being neutral, 10 being positive), where would you

place your view of Kohl’s?

0 5 10 15 20 25

1

2

3

4

5

6

7

8

9

10

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Appendix D: Risk Grid

Stock

Rumor

Stakeholder Relations Weapon Hostage

Situation CEO

Scandal

Activists

Violence

CyberAttacks

Non‐Observable

Controllabl

Uncontrollb

Observable

47

Appendix E: Audience Analyses

48

Appendix E: Audience Analyses, Continued

49

Appendix F: Basic Stakeholder Analyses

Stakeholder Concerns Channel Preference Lions

Shareholders ‐Receiving Revenue from their investments ‐Investing in an ethical corporation

‐Media Releases ‐Newsletters ‐Meetings ‐Annual Reports

‐Majority Stockholders ‐Board of Directors

Customers ‐Affordable & Quality Product ‐Convenient & Enjoyable Shopping Experience

‐Social Media ‐Advertising

‐Loyal Customers (“Walking Billboards”)

Suppliers & Business Partners

‐Ethical Practices ‐Financial Gain from Partnership

‐Face‐to‐face Meetings ‐Individual Communication (email, phone)

‐Executives

Media

‐Providing information to viewers truthfully and timely

‐Individual Communication (email, phone) ‐Media Releases ‐Interviews ‐Media Conferences

‐News Directors ‐Print Editors

Internal

‐Remaining Informed ‐Practicing Ethical Behavior ‐Financial Compensation ‐Secure work Environment

‐Meetings ‐Individual Communication (email, phone) ‐Bulletin Board Postings

‐Management ‐Executives

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Appendix G: Timelines of Events ‐ CEO Crisis

04/19 1:05 PM

Perez Hilton blog leaks about Kohl's CEO Girl's Gone Wild Video

04/19 1:30 PM

CMT Contacted

4/19 9:30 PM

Video of Girls Gone Wild video goes viral and receives over 1 million hits.

04/20 8:00 AM

CEO Caitlin is asked to resign

04/20 10:00 AM

CEO accepts and steps down. Announcement is made to Top Management

& Shareholders

04/20 11:00 AM

CEO apologizes through video uploaded to You Tube

04/20 11:30 AM

CEO tweets apology via personal account

04/20 12:03 PM

Twitter explodes with tweets about CEO

04/20 2PM

Media Release and statement becomes

available on Kohl's Website

04/20 10:30 PM

David Letterman show features CEO video on Top 10

04/21 09:00 AM

Media Release

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Appendix H: Strategic Response Chart

52

Appendix I: Venn Diagram – CEO Crisis

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Appendix J: Media Release – CEO Crisis

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Appendix K: Timelines of Events ‐ Financial Crisis

04/20

Article in New York Times claiming that JC Penney's new pricing

strategy has been hurting Kohl's sales since in effect.

04/20

Media releases stating Fortune 500 and latest financial statements

04/20

Rumors heard that Kohl's may be going under and being bought by

competitors

04/20

Email sent to stockholders with latest reports and addressing concerns

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Appendix L: Venn Diagram – Financial Crisis

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Appendix M: Media Release – Financial Crisis

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Appendix N: Media Conference Blurbs

Kohl’s Company Overview:

more than 1,000 stores in 49 states more than 130,000 employees Fortune 500 company founded in 1920s changed style to current niche market in 1960s Mission: To be the leading family‐focused, value‐oriented, specialty department store

offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting

Kohl’s Social Responsibility Policy:

uphold suppliers, business partners, and vendors to strict social responsibility policies these policies include strict compliance with local labor laws and our expectations

regarding wages, child labor, forced labor, workers’ rights to free association, health and safety issues, and more

monitoring of facilities is completed by independent and professional third‐party more than 26,000 visits performed in 5,000 facilities in 75 countries world‐wide Kohl's is a Founding Circle member of the Sustainable Apparel Coalition ‐ group of

leading apparel and footwear brands, retailers, manufacturers, non‐government organizations (NGO's), academic experts and the U.S. Environmental Protection Agency ‐ The coalition is working on a collaborative approach to reduce the social and environmental impacts of apparel and footwear products sourced and sold worldwide

Kohl's participates in the Better Factories Cambodia (BFC) and Better Work Vietnam (BWV) programs ‐ International Labour Organization programs focused on strengthening labor standards in export garment industries in specified countries

Uzbekistan Cotton ‐ Kohl's does not knowingly carry products that use cotton originating from any country that condones the use of child labor and/or forced labor

our diamonds are in accordance with Clean Diamonds Trade Act and the Kimberly Process Certification we do not use conflict diamonds

March Sales:

Kohl’s March Sales: Up 5.3 percent Kohl’s Year to date sales: 3.6 percent Comparable store year‐to‐date sales: 1.8 March Growth: 9 new stores Now operate 1,134 stores in 49 states

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increase of 37 stores from last year

Kohl’s Cares:

Kohl’s Cares for Kids ‐ supports children’s health and education

Kohl’s Environmental Stewardship:

efforts to leave a smaller footprint use solar panels in stores to reduce energy use More than 700 stores labeled Energy‐Star more than 200 stores LEED certified (meet criteria outlined by U.S. Green Building

Council (USGBC))

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Appendix O: Timeline of Events – KLA Attacks (Pre‐Violence)

4/21 9:57am

A group called Kohl's Libration Army is picketing outside.

4/21 10:00amCMT Contacted

4/21 1:23pmKLA sets up a website where disgruntled employees and

customers post their grievances about Kohl's

4/21 2:00pmContacted legal team about taking down

website.

4/21 2:15pmKLA website shuts down because of

number of visits

4/21 3:07pmKLA website is back up and running

4/21 3:07pmMake police aware of

protesters

4/21 3:07pmLawyers consulted about legal issues regarding the

KLA website

4/21 3:07pmLocal Chicago new stations have

started covering the picketing at the Kohl's stores

4/21 4:41pmReporters try to interview protesters

who only direct them to their website.

4/21 11:25pmKLA posts manifesto on website (5

demands)

4/21 11:25pmKLA continue to protest for the 2nd

day

4/22 10:24amKLA protesters enter Kohl's store wearing JCP clothing, action caught on camera from around the nation

4/22 10:24amKLA members walk around the store

for about an hour

4/22 3:00pmProtesters strip off clothing to reveal shirts with the website on them

4/22 3:05pmManagers asked protesters to leave, some did not. The police were called.

4/22 3:10pmAn argument between a store

manager and protester is caught on TV cameras.

4/22 3:10pmNational Fox News carry the

argument live.

4/22 3:15pmFox News offices are inundated with

tweets and emails from KLA members details their grievances with Kohl's. Some get reported live

on air.

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Appendix P: Timeline of Events – KLA Attacks (Violence)

4/22 3:15pmProtestors re‐enter the store to

protect their leader

4/22 3:20pmA shot was heard and the

Westside Kohl's goes on lockdown

4/22 3:30pmCMT plans for media

conference

4/22 3:35pmThe store manager holds a gun to the head of a protester and tells

every out to get out

4/22 3:37pmThe store manager fires a shot into the air, wounding a KLA

protester

4/22 3:38pmGreen Bay police deems this a

hostage situation

4/22 3:38pmStore is empty besides the manager and hostages

4/22 3:40pmNational news agencies have

requested interviews with Kohl's spokespeople

4/22 3:50pmEmail statement to

media

4/22 4:15pmShots were heard

4/22 4:16pmA male staggered out and dies in the arms of a police officer, all

caught on live TV

4/22 4:30pmEmergency Media

Release with intent of Media Conference at

6:00pm

4/22 6:00pmMedia Conference

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Appendix R: Media Release – KLA Crisis

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Appendix S: Venn Diagram – KLA Crisis

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Appendix T: Incident Report Forms

Incident Report Form (#1) Crises Management Team Member(s):__________Raquel Lamal_________________ Date:___4/19/12_____ Time:___1:05 p.m._ Media Contact/ Informant:_Nicole Miley_____ Channel Used:_______email_______ Date of Incident:___4/19/12______ Time of Incident:___n/a______ Location of Incident:____blog report (internet)____________ Notes:_____A report has surfaced on Perez Hilton’s (real name) blog that the current Disney’s, Kohl’s, and Pioneer’s CEOs were part of “Girl’s Gone Wild” video years ago. The report says that the new DVD will be released in the near future titled “Has Your CEO Gone Wild?”_____ Stakeholder(s) of Concern: Contact Information: _____All shareholders notified.______________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X______ Date: ___4/19/12______ Time: _Late afternoon_______ No: _________ Action Response: _CMT_contacted____________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#2) Crises Management Team Member(s):__________Chloe Scheller_________________ Date:__4/19/12______ Time:___9:30 p.m._ Media Contact/ Informant: _Nicole Miley_____ Channel Used:_____email_________________ Date of Incident:_4/19/12______ Time of Incident:_________ Location of Incident:______YouTube_________________ Notes:_ The “CEOs Gone Wild” video was released and gone viral. The YouTube clip of Kohl’s CEO Girl’s Gone Wild clip has more than 1 million hits in a matter of days. While no one can confirm the identity of the CEO, it has a remarkable likeness to the current CEO.

Stakeholder(s) of Concern: Contact Information: Follow up with all stakeholders____________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ____X_____ Date: ___4/20/12______ Time: __Morning______ No: _________ Action Response: __CMT discusses appropriate measures.______________________________ ____________________________________________________________________________________________________________________________________________________________ Recovery actions: ___Keep stake holders in the loop and updates when more information becomes available._____________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions:

Keep trust of stakeholders.________________________________________________________

______________________________________________________________________________

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Incident Report Form (#3) Crises Management Team Member(s):_______Caitlin Gorham_________________ Date:__4/20/12______ Time:___12:03 p.m.___ Media Contact/ Informant: Nicole Miley_ Channel Used:_email__________ Date of Incident:__4/20/12_______ Time of Incident:___10:30 p.m._ Location of Incident:_CBS and Twitter___________ Notes:__ People are now tweeting about the Girl’s Gone Wild incident. *And this event has made itself in the nightly entertainment world by hitting David Letterman’s top 10.___ _____ Stakeholder(s) of Concern: Contact Information: __ALL_______________________________ ____________________________________ _Media Relations, Executive staff________ ___Vicki Shamion, 262-703-1464______ __Investor Relations___________________ ___Wes McDonald, 262-703-1464_________ Contacted? Yes: ___X______ Date: ___4/20/12______ Time: _10:30 p.m.____ No: _________ Action Response: __CMT working hard on response. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __Conversation started regarding the CEO’s resignation. (CEO resignation video on YouTube) _______________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _Reputation impacted, but semi-maintained. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#4) Crises Management Team Member(s):____Jena Richter_________________ Date:_4/20/12 Time:___12:54 p.m. _____ Media Contact/ Informant: __Nicole Miley______ Channel Used:__email_____________ Date of Incident:_____4/20/12 (started)____ Time of Incident:___--______ Location of Incident:__________--____________________ Notes:_____Rumors are now coming out that Kohl’s may be going under and being bought out by a competitor._______________________________________________________________

Stakeholder(s) of Concern: Contact Information: _Internal (employees)______ ____________________________________ __Shareholders___________ Investor Relations- (262) 703 - 1893_____________________ ______________________________________ ____________________________________ Contacted? Yes: __X______ Date: __4/20____ Time: _1:20 p.m._____ No: _________ Action Response: _CMT contacted. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _n/a_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __n/a____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#5) Crises Management Team Member(s):__________Ed Immel _________________ Date:_4/20/12_______ Time:_4:45 p.m.__ Media Contact/ Informant:_Nicole Miley___ Channel Used:____email__________ Date of Incident:_4/20/12______ Time of Incident:______--___ Location of Incident:___NY Times newspaper______________ Notes:_____There’s been an article in the New York Time’s claiming that JC Penny’s new pricing strategy has been hurting Kohl’s sales ever since it went into effect. Stakeholder(s) of Concern: Contact Information: _public/media relations_________________ ____________________________________ _Financial/Investor relations____________ ____________________________________ _All stakeholders__________________ ____________________________________ Contacted? Yes: ____X____ Date: _4/20/11_____ Time: _Evening_______ No: _________ Action Response: ___Contacted CMT. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _Inform people invested in Kohl’s so they understand these false assessments. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _Save financial status of Kohl’s Corporation. _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#6) Crises Management Team Member(s):_Amy Manske ____________ Date:_4/21/12___ Time:__9:57 a.m. Media Contact/ Informant:_Nicole Miley_______ Channel Used:____email _______________ Date of Incident:_4/21/12____ Time of Incident:_________ Location of Incident:______________________________ Notes:_____A group called the Kohl’s Liberation Army – dressed in J.C. Penny clothing and hats (JC) – is picketing outside several Kohl’s in the Midwest. The signs say “Liberate Yourself from Kohl’s Oppression”. Stakeholder(s) of Concern: Contact Information: _Internal (CMT) and Media Relations_____ _Vicki Shamion (262) 703-1464_________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ____X____ Date: __4/21/12_____ Time: __10:00 a.m.____ No: _________ Action Response: ____CMT contacted. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _CMT will follow up. Media Relations on call and award if situation furthers. ______________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ________n/a_______________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#7) Crises Management Team Member(s):_____Chloe Scheller Date:__4/21/12 Time:_1:23 p.m.___ Media Contact/ Informant:__Nicole Miley______ Channel Used:_____email____________ Date of Incident:4/21/12___ Time of Incident:__1:23 p.m.____ Location of Incident:__Internet __________ Notes:_____The Kohl’s Liberation Army (KLA) has set up a website where disgruntled employees and customers can post their grievances about Kohl's. Stakeholder(s) of Concern: Contact Information: __Media Relations______________________ ____________________________________ __Internal - Executives___________________ _______________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X_____ Date: __4/21/12____ Time: __late afternoon______ No: _________ Action Response: __CMT contacted. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _Find legal rights involved and monitor situation. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ___n/a____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#8) Crises Management Team Member(s):__________Chloe Scheller_________________ Date:_4/21/12_______ Time:___1:23 p.m._ Media Contact/ Informant:Nicole Miley ___ Channel Used:___email_________________ Date of Incident:__4/21/12_______ Time of Incident:____afternoon_____ Location of Incident:___Internet_____________ Notes:_____ The KLA website has been overwhelmed with hits and temporarily shuts down. Stakeholder(s) of Concern: Contact Information: _____Internal_____________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X______ Date: ___4/21/12______ Time: afternoon____ No: _________ Action Response: ___Continue monitoring. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ____n/a___________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ___n/a___________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#9)

Crises Management Team Member(s):__________Caitlin Gorham _________________ Date:_4/21/12_______ Time:____ Media Contact/ Informant:Nicole Miley ___ Channel Used:___email_________________ Date of Incident:__4/21/12_______ Time of Incident:____afternoon_____ Location of Incident:___Internet_____________ Notes:_____ The KLA website is back up and running. Stakeholder(s) of Concern: Contact Information: _____Internal_____________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X______ Date: ___4/21/12______ Time: afternoon____ No: _________ Action Response: ___Continue monitoring. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __Take legal matters if possible. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _________n/a_____________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#10) Crises Management Team Member(s):__________Caitlin Gorham_________________ Date:__4/21/12____ Time:___3:07 p.m. Media Contact/ Informant:__Nicole Miley______ Channel Used:____email___________ Date of Incident:__4/21/12_____ Time of Incident:_________ Location of Incident:__Many channels__________________ Notes:___Local Chicago news stations have started covering the picketing at the Kohl’s stores. Stakeholder(s) of Concern: Contact Information: ______________________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: _________ Date: _________ Time: ________ No: _________ Action Response: _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#11) Crises Management Team Member(s):____Jena Richter______________________ Date:4/21/12____ Time: 4:41 p.m.________ Media Contact/ Informant: Nicole Miley ______ Channel Used:____email__________ Date of Incident:_4/21/12____ Time of Incident:______4:41 p.m._ Location of Incident: Green Bay ____________ Notes: Reporters in Green Bay have tried to interview the protesters but all anyone will say on camera is “Kohl’s must stop the oppression of workers and customers. Go to our website at Kohlsliberationarmy.com” Stakeholder(s) of Concern: Contact Information: __All local Stakeholders________________ ____________________________________ _Media relations_____________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X____ Date: __5:00 p.m.______ Time: ________ No: _________ Action Response: _____CMT take control of situation – research group and understand motive. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _____n/a_________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ____n/a___________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#12) Crises Management Team Member(s):__Amy Manske_________________________ Date: 4/21/12 ____ Time:_11:25 p.m._____ Media Contact/ Informant:___Nicole Miley____ Channel Used:_____email_________ Date of Incident: 4/21/12_____ Time of Incident:_11:25 p.m._____ Location of Incident:__Internet____________ Notes:_____ The KLA manifesto suddenly appears on their website detailing their “grievances” and encouraging every consumer to stop buying their products. The manifesto includes the following demands: 1) Stop lying to consumers, 2) Halt the use of slave labor in Cambodia, 3) Free the Kohl’s worker slaves, 4) Cease funding anti-union causes, 5) End the greed Stakeholder(s) of Concern: Contact Information: ___ALL_Internal_________________ ____________________________________ __________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X______ Date: _4/21/12________ Time: __11:30 p.m.___ No: _________ Action Response: __Contacted CMT – they continue updating internal audiences and researching the group. Refer to crisis management plan. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ___Maintain control. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __N/A____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#13) Crises Management Team Member(s):__________Amy Manske _________________ Date:__4/21/12______ Time:11:25 p.m.______ Media Contact/ Informant:__Nicole Miley Channel Used:email_______________ Date of Incident:__4/22/12_______ Time of Incident:__--_______ Location of Incident: Green Bay____________________ Notes:_____ The KLA continues protest at the Westside Green Bay store for the 2nd day. Stakeholder(s) of Concern: Contact Information: __All stakeholders who were notified before. ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ____X_____ Date: _4/22/12____ Time: _Early morning_______ No: _________ Action Response: __CMT – continues to monitor. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#14) Crises Management Team Member(s):_________Ed Immel_________________ Date:__4/22/12__ Time: 10:24 a.m.____ Media Contact/ Informant: Nicole Miley Channel Used:_email_________ Date of Incident:_4/22/12_____ Time of Incident: 10:24 a.m._____ Location of Incident: Green Bay_____________ Notes:_ With cameras rolling around the nation, KLA protesters (wearing clothing from Pennys) enter the Kohl’s store (protest signs left outdoors) Stakeholder(s) of Concern: Contact Information: _Security - CIO____ ____________________________________ _Stakeholders, local store managers_______________________ Contacted? Yes: ____X____ Date: __4/22/12_____ Time: __10:25 a.m.____ No: _________ Action Response: ___CMT contacted. Managers wait for more information. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _______To maintain control. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _____n/a__________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#15) Crises Management Team Member(s):__________Ed Immel_________________ Date:__4/22/12__ Time:10:24 a.m._____ Media Contact/ Informant: Nicole Miley______ Channel Used:____email________ Date of Incident:4/22/12_____ Time of Incident:_10:24 a.m.____ Location of Incident:__Green Bay__________ Notes:___ The KLA member’s mill around stores for about an hour. Stakeholder(s) of Concern: Contact Information: ____Those listed in Incident Form #14______ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X_____ Date: __4/22/12_____ Time: _11:30 a.m.____ No: _________ Action Response: __n/a_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _n/a______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _n/a______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form(#16) Crises Management Team Member(s):___Raquel Lamal______________________ Date:4/22/12____ Time:__11:02 a.m._ Media Contact/ Informant:__Nicole Miley __ Channel Used:_email_______________ Date of Incident:_4/22/12____ Time of Incident:__3:00 p.m.___ Location of Incident:___Green Bay__________ Notes:__At precisely 3 p.m. CST all the protesters strip off their first layer of clothing to reveal a t-shirt saying, Kohl’s Liberation Army (KLA.org). Cameras are rolling with laughter all around. The protest leader reads a short a statement in the store saying: “The KLA demands that Kohl’s meet our demands” and passes out written copies of the demands from the website to reporters Stakeholder(s) of Concern: Contact Information: _All stakeholders that have been receiving updates on the current situation. _____________________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ____X____ Date: _4/22/12_____ Time: _3:15 p.m._______ No: _________ Action Response: _n/a______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _n/a______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ___n/a____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#17) Crises Management Team Member(s):_______Amy Manske____________________ Date:__4/22/12_____ Time:_11:59a.m. Media Contact/ Informant:___Nicole Miley_ Channel Used:____email____ Date of Incident:__4/22/12_______ Time of Incident:__11:59 a.m._______ Location of Incident:____Green Bay_____________ Notes:___Kohl’s store managers at various times start asking the protesters to leave. Most do. Some don’t and the police are called to “escort” the protesters out of the store.__ Stakeholder(s) of Concern: Contact Information: ______All previously mentioned stakeholders from Incident Report Form #18______________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X_____ Date: __4/22/12_____ Time: _12:05 p.m._____ No: _________ Action Response: _CMT contacted – controlling situation and updating as events are occurring. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ___In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#18) Crises Management Team Member(s):__________Amy Manske _________________ Date:__4/22/12____ Time:____11:59 a.m._ Media Contact/ Informant:__Nicole Miley______ Channel Used:_email____________ Date of Incident:4/22/12_______ Time of Incident:_11:59 a.m.__ Location of Incident:_Green Bay _______________ Notes:____ An argument between the Green Bay store manager and protester ensues. All of this is caught on TV cameras. The situation escalates. Stakeholder(s) of Concern: Contact Information: __All previously mentioned stakeholders in incident report form #17 – related. ____________________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: __X_____ Date: 4/22/12______ Time: _12:10 p.m._____ No: _________ Action Response: _On-going _________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __In-progress.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __In-progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Crises Management Team Member(s):__________Chloe Scheller _________________ Date:_4/22/12___ Time:_1:01p.m._____ Media Contact/ Informant:_Nicole Miley_______ Channel Used:_email ____________ Date of Incident:_4/22/12_____ Time of Incident:_________ Location of Incident:______________________________ Notes:___ The national Fox News carries the argument in the Green Bay store live. The New York offices of Fox are inundated with press releases, emails, and tweets from “KLA members” detailing their grievances. Some get reported during the live drama in the Green Bay store. Stakeholder(s) of Concern: Contact Information: ___All stakeholder mentioned in Incident Report Form #18 – related.__________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X_____ Date: _4/22/12____ Time: _afternoon_______ No: _________ Action Response: _On-going _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: _In progress. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: _In progress. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#20) Crises Management Team Member(s):__________Jena Ritcher _________________ Date:4/22/12___ Time:_2:07 p.m._________ Media Contact/ Informant:_Nicole Miley Channel Used:__email _________ Date of Incident:_4/22/12____ Time of Incident:_2:07 p.m.____ Location of Incident:__Green Bay__________ Notes:__Things continue to escalate in the Green Bay store and more police are rushed to the scene. The protesters re-enter the store to protect their leader. Shouting is heard around the store as employees confront the protesters (wearing KLA tops). A shot is heard. People scurry out of the store or hide behind racks of clothes.

Stakeholder(s) of Concern: Contact Information: _____All the mentioned stakeholders mentioned in Incident Report Form #19 – related. _________________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ____X____ Date: _4/22/12_____ Time: Afternoon No: _________ Action Response: __On-going _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: __In progress. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ___In-progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#21) Crises Management Team Member(s):__________Jena Richter_____ Date:4/22/12__ Time:_2:07 p.m.____ Media Contact/ Informant: Nicole Miley _________ Channel Used:_____email_________ Date of Incident:4/22/12___ Time of Incident:_2:07 p.m._____ Location of Incident:__Green Bay ______________ Notes: Local Green Bay media has reported that Westside Kohl’s has moved to lockdown mode. Stakeholder(s) of Concern: Contact Information: ___All previously mentioned stakeholders (see IRF #22) – related. ___________________________________ ____________________________________ ______________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: ___X_____ Date: _4/22/12_____ Time: 2:15 p.m._____ No: _________ Action Response: On-Going – CMT controlling situation. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ___In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __In progress. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#22) Crises Management Team Member(s):__________Ed Immel__________ Date:_4/22/12_ Time:_4:09 p.m._______ Media Contact/ Informant:__Nicole Miley __ Channel Used:_email_____________ Date of Incident:4/22/12____ Time of Incident:_4/22/12 _____ Location of Incident:__Green Bay _______________ Notes:____The Green Bay Store Manager (Tim Meyerisky) has a gun to the head of the KLA protester. He says, “Everyone get out of my store or I’ll kill him”. No one moves. He fires another shot into the air – and inadvertently wounding a hidden KLA protestor. People warily move out of the store including the police. The entire incident was caught on live TV and has gone national. Stakeholder(s) of Concern: Contact Information: _Same as IRF #21 – related. _________________________ ____________________________________ ____________________________________ ______________________________________ ____________________________________ Contacted? Yes: __X_____ Date: 4/22/12_____ Time: _4:15 p.m.____ No: _________ Action Response: _CMT is controlling – on-going. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ___In progress. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: __In progress. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Crises Management Team Member(s):__________Raquel Lamal_________________ Date:_4/22/12_ Time:_4:09 p.m. ______ Media Contact/ Informant:_Nicole Miley_______ Channel Used:_email_________ Date of Incident:__4/22/12_______ Time of Incident:_4:09 p.m._____ Location of Incident:_Green Bay_______________ Notes:_____ The Green Bay police now deem this a hostage situation. In fact, Tim Meyerisky, has discovered three other KLA protesters and has taken them hostage as well. The store is completely empty except for the hostages and the manager. Stakeholder(s) of Concern: Contact Information: __See previous IRF #22 – related same stockholders apply.___________________________________________________________________ ______________________________________ ____________________________________ Contacted? Yes: __X______ Date:4/22/12____ Time: 4:15 p.m.___ No: _________ Action Response: ___CMT controlling – On-going. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ___In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ___In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form (#24) Crises Management Team Member(s): Caitlin Gorham Date: 04/22/2012 Time: 5:02 PM Media Contact/ Informant: Nicole Miley Channel Used: email Date of Incident:04/22/2012 Time of Incident: 5:02 p.m.___ Location of Incident: headquarters Notes: Various national news agencies have requested interviews with Kohl's spokespeople.

Stakeholder(s) of Concern: Contact Information: PR Team __________________________________________________

CEO__________________________________________________________

CMT__________________________________________________________ Contacted? Yes: __X_____ Date: _________ Time: ________ No: _________ Action Response:

Informed Media of press conference

Recovery actions: Bought time to get congruent core messages

Impact of actions:

Holding press conference

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Incident Report Form (#25) Crises Management Team Member(s):__________Jena Richter__(all)_____________ Date:_4/22/12_ Time:_10:02 p.m. ______ Media Contact/ Informant:_Professor Clampitt

Channel Used:_phone_________ Date of Incident:__4/22/12_______ Time of Incident:_4/22/12__ Location of Incident:_Green Bay_______________ Notes:_____ Shots were heard. A male KLA member staggers out and dies in the arms of a police officer.This is all caught on live TV. Stakeholder(s) of Concern: Contact Information: __See previous IRF #24 – related same stockholders apply.___________________________________________________________________ ______________________________________ ____________________________________ Contacted? Yes: __X______ Date:4/22/12____ Time: ASAP___ No: _________ Action Response: ___CMT controlling – On-going. ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Recovery actions: ___In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Impact of actions: ___In progress. _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Incident Report Form #26 Crises Management Team Member(s): All group members present Date: 04/24/2012 Time:8:30 AM Media Contact/ Informant: Dr. So What Channel Used: Face-to-face Date of Incident: 04/24/2012 Time of Incident:8:30 AM Location of Incident: MAC 107 Notes: The CMT was notified that the hostage taker was in custody, no other injuries took place, and in Dr. So What's exact words "It is done."_________________________________________ Stakeholder(s) of Concern: Contact Information: All CMT members___________________________________________________ Media ______________________________________________________________ Stakeholders - everyone_________________________________________________________ Contacted?

Yes: X Date: _4/24/12_____ Time: _ASAP/during media conference No: _________ Action Response: We were updated about the change of events right before the press conference, we updated the media and all stakeholders at that time.

Recovery actions:

CMT will perform post-crisis requirements. Continue to update all audiences and maintain reputation to the best of our ability. Impact of actions: _By the way our message was delivered and handled us effectively handled the crisis while maintaining our reputation and core values as a company.___________________ ______________________________________________________________________________

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Appendix U: Media Kit

Kohl’s Environmental Stewardship Kohl’s is committed to the environment through our Kohl’s Green Scene ®. Kohl’s takes

the environment very seriously and has made it a constant effort to keep stores as green as possible. Managing energy use and climate emissions are key to sustaining the environment and Kohl’s is taking big steps to ensure we leave a smaller footprint.

Kohl’s is a 100% Green Power partner, which means Kohl’s uses solar panels to help reduce energy use within stores. More than 700 of Kohl’s stores nationwide have been labeled energy‐star stores.

Kohl’s also is helping the green scene through recycling. Kohl’s recycles anything from hangers to light bulbs, carpet to construction materials and much more. All materials recycled by Kohl’s amounts to more than 130,000 tons a year. The materials collected through Kohl’s Environmental Recycling Program are reused, recycled or re‐engineered into new products, including things such as alternative fuel sources, industrial floor cleaners and artisan paints.

With each new store location, Kohl’s Corporation strives to be more environmentally friendly. Kohl’s achieves this long‐term sustainability through improved building design and Leadership in Energy and Environmental Design (LEED). To be LEED® certified a building must meet a set of criteria produced by the U.S. Green Building Council (USGBC), which guides best practices for the design, construction and operation of high‐performance green buildings. With more than 200 stores LEED certified, Kohl’s is consistently looking for new way to go green. For more information regarding Kohl’s Environmental Stewardship please go to: http://www.kohlsgreenscene.com/

Kohl’s Fact Sheet

1) Kohl’s Corporation operates family‐oriented, specialty department stores that feature moderately priced apparel, shoes, accessories, soft home products and housewares.

2) Kohl’s is a Fortune 500 Company, ranked 142 on the list for 2011.

3) Kohl’s headquarters is based in Menominee Falls, WI.

4) Kohl’s Department Stores are nationwide with Kohl’s stores operating in 49 of the 50 states.

5) The Kohl’s Mission statement is as follows:

To be the leading family‐focused, value‐oriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting.

6) Kohl’s department stores were originally started as grocery retailers in 1962, with the first store being opened in Brookfield, WI.

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7) Kohl’s Corporation was owned by the Kohl Family, primarily Allen and Herbert Kohl. In 1979 Herbert Kohl became a US Senator and an owner of the Milwaukee Bucks as well.

8) Kohl’s is involved in a number of local charities within the community and has a Kohl’s Cares System where proceeds earned all go to the charity being supported.

9) Kohl’s supports a wide variety of youth‐serving and community organizations and causes. From the United Way to local parks, children’s hospitals to breast cancer awareness programs, Kohl’s Associates are lending a hand and demonstrating our commitment to helping the communities we serve.

10) The slogan for Kohl’s stores is “Expect great things.”

11) Kohl’s is environmentally friendly through there Kohl’s Green Scene initiative. From large scale projects such as constructing environmentally friendly buildings to everyday practices like recycling hangers, Kohl’s is taking big steps to ensure we leave a smaller footprint.

12) Kohl’s has more than 700 Energy Star Labeled stores all across the U.S.

Kohl’s Company Profile

Kohl’s Corporation is one of the largest discount department store franchises in the United States, with more than 1000 stores in 49 of the 50 states. The target audience for Kohl’s Corporation is middle income shoppers buying for families and homes. Kohl’s maintains its discount prices through a low cost structure, limited staffing, and progressive management information systems, as well as the economical application of centralized buying, distribution and advertising. This “Kohl’s Concept” has been successful in small and large markets, strip shopping centers, regional malls and in freestanding venues.

The majority of Kohl’s stores operate in the Midwest and the West, but Kohl’s continues to expand into other regions. Due to this widespread consumer base and effective business process, Kohl’s has become a Fortune 500 company.

The original Kohl’s stores started off as grocery stores founded by Max Kohl in the late 1920s in Milwaukee WI. In the mid‐1960s Kohl’s decided to change their style and started to sell clothes and apparel to a niche that fell between high‐end department stores and discount markets. This new positioning effort helped Kohl’s skyrocket into the major retailer it is today.

The Kohl’s mission is to be the leading family‐focused, value‐oriented, specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting.

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Kohl’s Cares Charities

Kohl’s Corporations is a strong force within the communities they serve. The Kohl’s Cares program is a one of the many ways that Kohl’s strives to be involved with the community. One of the most well‐known charities is Kohl’s Cares For Kids® which is committed to supporting children’s health and education initiatives nationwide.

The Kohl’s A‐Team is the group of dedicated Kohl’s associates who volunteer their time to these charities. Kohl’s volunteers support a wide variety of youth‐focused organizations such as children’s hospitals and local schools. Some of the things that the A‐Team does through its volunteer efforts include, giving away backpacks filled with school supplies to children, hosting a “day of fun” for the patients at a local children’s hospital, volunteering at a camp for homeless children and fitting children with free bike helmets for safety reasons.

Nationwide Kohl’s stores have participated in many A‐Team events and continue to encourage their associates to volunteer at many local youth oriented nonprofits. Kohl’s then matches the volunteer efforts with $500 grants to the organization.

Kohl’s Contact Information

Investor Relations Chloe Scheller‐President of Investor Relations

Phone: (608) 772‐9969 Email: [email protected]

Crisis Media Relations Amy Manske‐Vice President of Public and Community Relations


Crisis Victim Contact Raquel Lamal‐Victim Control Manager


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Kohl’s Crisis Media Rules

1) Media may not cross police lines for the safety of themselves and those involved in the crisis

and to prevent the any evidence from being altered.

2) Media must assume that the hostage taker has access to news coverage and must therefore

remain sensitive about their influence on the outcome. The use of live‐footage must be

exercised cautiously.

3) Media must stay in the designated “broadcast area” that has been agreed upon by the police.

4) Media may not describe positions of snipers or other positions of the police within the crime

scene.

5) Media is prohibited to give information to the perpetrator and communicating with the suspect

or victim without coordinating with the police.

6) Media must notify the police immediately if they are contacted by the hostage taker.

Communication between the hostage taker may not be published unless given the permission

and advice of the police negotiator.

7) Coverage shall not restrain or halt law enforcement efforts to resolve the situation.

8) The identity to a suspect, prior to arrest, may not be released .

9) The identity of any injured or deceased person prior to the notification of the person’s direct

family members.

10) Media may not become personally involved in the hostage situation.

11) Exercise empathy and understanding when interviewing hostages, families and friends during

and after a crisis.

12) Interviewing employees will not be allowed unless given the consent of Kohl’s Corporation’s

community and relations manager.

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Appendix V: Anticipated Questions

Is it true that Kohl’s is going‐under and being bought‐out by a competitor?

Kohl’s is a very respected and honorable company. Our sales have shown that we are a

successful company and will continue to do what we do best and that is give customers a

great value. We have proven ourselves by being a fortune 500 company and plan to continue

our success.

Has the new pricing‐strategy of JC Penny’s had a negative effect on Kohl’s?




our success.

Have you appeared in a Girl’s Gone Wild video too?

No. (Refer to rumor answer at bottom.)

Why did you hire a skanky hoe?

OUR FORMER CEO was very qualified for her position. She led us to become the company we

are today.Her actions were unprofessional. Jena Ritcher is our CURRENT CEO and knows the

Kohl’s Corporation very well. Jena will do a fantastic job.

How were you unaware of Caitlin’s actions?

OUR FORMER CEO was very qualified for her position. She led us to become the company we

are today.Her actions were unprofessional. Jena Ritcher is our CURRENT CEO and knows the

Kohl’s Corporation very well. Jena will do a fantastic job.

Why have you outsourced jobs to overseas? If you were a patriotic company, wouldn't’ you

keep jobs in the US?

JENA TAKE QUESTIONS regarding ‐

Why does your corporation think it is okay to use in‐humane slave labour and support

sweatshops? In response, use “forced‐labour”‐ Jena

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Who is the replacement for the CEO?

Jena Richter is the current CEO. She has been a part of the Executive board for quite some

times and understands the ins and out of the business world.

Do all of your managers carry guns?

It is not protocal for our employees to carry guns. It is not something that we promote or

allow. This incident is a very isolated and rare situation. The safety of all customers is our first

and foremost concern always.

In the future, how will you prevent this from happening again?

We plan to reevaluate our training on crisis management. While you can not plan for

something like to happen we should need

What effect will these events have on the sales of Kohl’s?




our success.

Other response TO RUMOR QUESTIONS:

Kohl’s is an industry leader and a very successful company. It is obvious that we would be

target for rumors because of this. Kohl’s is a very respected and honorable company. Our

sales have shown that we are a successful company and will continue to do what we do best

and that is give customers a great value. We have proven ourselves by being a fortune 500

company and plan to continue our success.

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Appendix W: PowerPoint Presentation

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Appendix X: Group Meeting Agendas

Monday, March 22 – 10:30am‐12:30pm

23 Days Until Crisis Plan Due

28 Days Until Presentation

23 Days Until Paper Due

Action Plan:

1. Determine audiences

2. Go through 100 facts

Thursday, March 29 – 5:00pm‐6:00pm




Action Plan:

1. Finalize Audiences

2. Business and Communication Goals

3. Assign parts of the Crisis Communication Plan.

a. Introduction

i. Purpose of Crisis Plan

ii. Overview of Kohl’s

b. Rehearsal Dates

c. CMT Members

d. CMT Contact Sheet

e. Crisis Assessment

f. Incident Report Form

g. Proprietary Info List

h. Press Kit

i. Strategy Worksheet

j. Stakeholder Contact Sheet

k. Crisis Control Center Info

l. Post Crisis Evaluation Form

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Next Time:

Top 10 Crises – each person think of 5 for next meeting

Monday, April 2 – 10:30am‐12:30pm




Action Plan:

1. Share Top 5 Crises

2. Categorize Crises into the 5 groups

3. Start Likelihood and Severity Chart

4. Determine Top 10 Crises

Next Time:

Have Individual Parts for the Crisis Plan Finished

Thursday, April 5 – 5pm‐6pm



33 Days Until Final Exam

Action Plan:

1. Begin Discussing Ways to Handle Top 10 Crises

2. Discuss Individual Parts for the Crisis Plan

a. Overview of Kohl’s – Chloe

b. Rehearsal Dates – Ed

c. CMT Contact Sheet – Caitlin

d. Proprietary Info List – Jena & Amy

e. Press Kit – Raquel & Chloe

f. Crisis Control Center Info & Layout – Caitlin

g. Post Crisis Evaluation Form & Survey – Chloe & Raquel

h. Acknowledgements – Caitlin

i. Business Continuity Plan ‐ Ed

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Next Time:

Awareness, Acceptance & Action Objectives

Strategy & Flow Chart

Monday, April 9 ‐ 10:30am‐12:30pm




Action Plan:

1. Take Photos

2. Awareness, Acceptance &Action Objectives

3. Start Flow Chart

Next Time:

Have all information put in one document and emailed out to everyone, we will go

through it step by step and find things that need to be edited and added.

Thursday, April 12 – 5:00pm‐6:00pm




Action Plan:

1. Edit/Add to Crisis Plan

Monday, April 16 – 10:30am‐12:30pm




Action Plan

1. Finish Editing and Print Crisis Plan

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Appendix Y: Class Feedback

This class feedback was taken from case study evaluation forms the class is given during

presentations. Average scores and comments are listed below.

Professional Style Overall (out of 30): 28 Application of Principles Overall (out of 30): 28.1 Analytical Soundness Overall (out of 30): 28 Overall Project (out of 10): 9.1 Final Score (out of 100): 93.2 Comments:

Ed seemed nervous, but it happens

Jena spoke very well

Amy did a great job answering questions

The quadrant was easy to understand and follow

Great goals for each crisis

All dressed very well

Press conference was hard to follow

Could have done better referring back to the core message

Liked the youtube video but why would someone who got fired apologize?

Your police officer isn’t even in the class, couldn’t one of your group members take that

role?

Lots of “ums” and overall hard to follow

Fairly good job answering questions but seemed unprepared for them

Risk grid was hard to follow

Could have been a little more specific and knowledgeable when answering questions

from Phil (don’t waste his time or mine)

The problem was hard to follow

Some of the PowerPoint was hard to read

Kept answers short and didn’t ramble

Good job!

Good job with all the crises

Be careful of “ums”

Everything was very professional, nice job

Jena is an excellent speaker

Could tell the lights bothered Ed

Overall very professional appearance

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Good use of strategy chart

Likes the outside person being the police officer

Jena did a wonderful job as the newly elected CEO

Like the core message it fit perfect

Nice twist on Caitlin stepping down as CEO with the reason why

Very nicely done

Make sure to step up to the microphone when answering questions during press

conference

Thought it was weid to have someone speak who is not in the class

Spoke clearing but lots of “ums”

Seemed scared during the press conference

Likes the clues chart

Liked the video

I honestly didn’t care for the press conference, but the presentation was really good

The cop was a nice touch

Good use of video

Spoke with great confidence

Provided great insight from the crisis

Amazing job, you did awesome and were really well prepared

Loved the layout and the responses to questions

Used a lot of class principles

Straightforward strategy and worked well within the situations

Rebuttals were great

Must have been hard going on the first day but you didn’t show it

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d0ce7c1a‐270c‐4cc5‐8768‐

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Crisis Management Case Study

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