Question

Crisis management and crisis communications are specialized business disciplines. In times of crisis, companies can act in a number of ways; from ignoring the situation and hoping it passes in the next news cycle to aggressively defending itself after the fact. Smart companies have plans that can be used in any crisis situation.

Using the company McDonald's that was developed in the Unit 4 Individual Project, select a crisis that negatively affects the business from a legal or image standpoint. Develop a series of scenario statements that you write ahead of time that you will present to the management and legal departments so that they may be used swiftly in a time of crisis.

Create a script to accompany the presentation. It should include background on the crisis, how the situation will be handled, and the rationale for the scenario statements.

Answer 1

Business crises are as old as businesses are. However, business crises have been there over the years and the occurrences of business crises incidents have been on the increase from the last two decades. It is evident from the business world that the crises are witnessed across all business sectors and industries around the globe.

The side-effects of crises are very much visible to the organization through losing the organization performance in its productivity, stock, profitability and incurring of unnecessary costs through lawsuits.

The McDonald’s, a giant organization involved in the delivery of a range of food services is not an exception who has faced crises.

When the organization experienced a serious crisis from external environments, the company has ensured in a number of ways to combat such crises through which the organization was able to survive and thrive in its competitive business operations.

Crisis 1 : Using of Beef fat to prepare vegetarian fries controversy

In handling the organization’s crises that arise, the McDonald’s has employed the strategy of denial and/or avoidance to deal with some of its complex issues that have plagued it. Focusing on this particular approach, there are certain incidents in which the McDonald’s executives declined to appear before some inspection or discussion committees appointments. In a polite way, they have always issued apologies of their commitments, which were further accompanied by statements that give guidelines of their actions in future as well.

Crisis 2 : Allegations of using sub-standard product in food preparation

When the organization is faced with the problem of using sub-standards product in their food preparations, the Company promises to change some of these with quality ones. However, when the company promised to use quality oils, it helped the organization to circumvent the issues of crisis with the FDA, but the actual use of quality oils never got implemented, which means that it continued to prepare its foods with trans oils that are of poor quality.

Other than this denial and avoidance approach, the organization has also employed the method of information sharing and gathering. Here, the organization initiated a blogging system. The blogging system offered means for open talk and dialogues.

The message of Chief executive officer has severally showed the need for better communication method on the issues of nutrition and health. By doing so, the organization clears away that all information is false that is released by the media groups and thereby convinces the public, its consumers and shareholders.