Universal Music is one of the largest music labels in the industry and is always being thrown in the spot light, both positively and negatively. After reviewing my example I posted last week I realized I still has a hazy line between internal and external crisis. I have spent the week learning more about the company and brainstorming different ways crises can arise both internally and externally. An example of an internal crisis Universal Music could face would be if one of their top artists becomes ill and needed to take a break from recording and performing. This would be considered a crisis because the demand for this artist is still high and when tours are canceled and no new music is released, it can greatly affect the expected revenue of the artist when he/she was signed to the label. An example of an external crisis is the downfall of the economy. Universal Music has a large part of their revenue based off concerts, endorsements, and CDs. The more the state of the economy falls the less likely consumers are to spend money on concerts and CDs. This leads to strategic planning of how to keep concerts and CDs alive in the budgeting economy. Product companies may need to lower their budget on endorsements which will cause music artists hired to receive less money and more competition to be chosen over another celebrity.

There are many crisis examples that Universal Music can face and I now understand where to draw the line between internal and external crises. I am keeping tabs on the company so I will be sure to share if one arises in the future!