As Tuesday dawned in Southern California, two huge local companies were about to unleash separate public relations firestorms.
Mattel Inc., the country's biggest toy maker, was bracing for its second product recall in two weeks, this time of about 19 million playthings because of lead paint or magnets that could be swallowed and cause serious internal injuries.
Countrywide Financial Corp., the nation's top mortgage lender, was about to disclose that its foreclosures and delinquencies had risen to the highest levels in at least five years.
El Segundo-based Mattel did everything it could to get its message out, earning high marks from consumers and retailers. Though upset by the situation, they were appreciative of the company's response.
Countrywide, on the other hand, all but shuttered the doors at its Calabasas headquarters, offering scant public comment even as news turned worse and customers rushed to its bank branches to close their accounts.
A crisis can happen to any business. But how a company responds offers a glimpse into how executives craft a corporate image and the way they want their firms to move beyond a setback.
"You have two totally different leaders, two totally different companies, two totally different industries, but the responses tell you pretty much everything you need to know," said Paul Argenti, a professor of corporate communications at Dartmouth's Tuck School of Business.
"When you're in a crisis, that's when people really need you most," he said. "You have to be the most visible and the most present, and you have to improvise a little bit from a strong foundation."
Mattel and Countrywide were facing very different problems. Mattel was wrestling with its vendor factories, a problem within its control. Countrywide was facing a business downturn and a market whipsaw.
The other difference, Argenti said, is the two companies' crisis experience.
Mattel, for better or worse, has had plenty of recalls -- 28 since 2000 -- during which to polish its public relations game.
On the other hand, neither Countrywide nor many other financial firms have faced the kind of woes Countrywide did this week, which included rumors of layoffs and bankruptcy amid a global credit crunch.
What both had in common, Argenti and other crisis public relations experts said, was the need for a disaster plan.
