Crisis Communications Strategy Analysis - Essay Example

Crisis Communications Strategy Analysis Crisis can influence the credibility, viability, and reputation of a company and communication can protect and preserve the valuable reputation of a firm, through demonstrating an acceptance of responsibility in times of crisis and addressing victim concerns. This paper demonstrates that the crisis communication strategy of McDonald’s fast food company was effectual and in support of its purported organizational values as an organization focused on wines. Effective crisis communication n and risk management relies heavily on strategies that at first instance appear to be common sense. When pressure to present timely and accurate information is high, the tendencies to guard information, reassure the public, and deny responsibility often increases1. This paper highlights reasons as to why it is crucial for organizations to develop and apply a cohesive communication strategy basing its arguments on a successful corporation within the UK. Analysts describe a crisis as a fluid and unstable condition that leads an organization into disrepute and threatens its future survival and growth. A crisis has many variable effects on a corporation that ranges from a drastic fall in the price of the shares of the company to loss of potential customers towards competitors for safer and better product or service2. At times of crisis, a company’s greatest fear is erosion of reputation. Several consumable product crises affected the reputation of this company over some years. They include the Schwan’s ice cram salmonella that broke out in 1994 and most recently, 2007. McDonalds’ depends much on milk products. There were major product recalls that occurred in 2008. One concerned the global recall of the Chinese milk products health officers established that 10 percent of the milk from the two largest dairy manufacturers in the country contained up to 8.4 milligrams of melamine per kilogram. The most devastating challenge posed for this company is the ongoing television advert that is showing the company’s unhealthy products. The firm’s reputation dissipated when it first showed on UK televisions as well as social networks. This event cost company a lot of money due to fallen sales everywhere. Documented evidence reveals that the media has an increasing appetite for food safety disasters. In the case of a food crisis or scare, fast food companies often blame the media for exaggerating the matter by taking it out of context or worse still, distorting the facts. With this respect, it is vital for a corporation to develop sound rapport with the media whose purpose is to use the media as a positive communication instrument for reducing consumer anxiety and firm’s potential reputational damage from negative media scrutiny at times of crisis. Practices of crisis communication have expanded to incorporate both traditional and new media outlets to communicate their key messages to the relevant publics3. Common suggestions show that new media is drastically altering the means in which corporations communicate during a crisis and the digital revolution has led to evolution of crisis communication. The relevant public now need exhaustive, instantaneous, global information require about the crisis by the key public. The way in which a company manages to contain a crisis determines the success of that company and the speed at which it can regain market share for the targeted product or service. Therefore, ensuring that the company’s key messages developed reach the key publics successfully is very crucial for a company to ensure success. Crisis communication refers to the dialogue between a company and its key publics prior to, during, and after the negative event or crisis. Emphasis show that communication does not simply entail being able to convey messages, but also means being able to receive them4. It is vital crisis communication are vastly actionable as typically, the public will at once start looking for trusted and consistent information source. The purpose of a good communication crisis strategy is to maintain public confidence and minimize damage suffered. However, it should be borne in mind that, as companies appeal to mass media to pass their key messages to their potential customers during crisis, the way mass media frame coverage as well as the manner in which those relevant publics interpret the messages can adversely affect the company. A recent study identified that, communication during crisis controlled by the media amounted to 90 percent. This illustrates that liaising with media is critical at times of crisis5. As noted, media has the greatest influence during communication crisis due to increased digital revolution. The methodology used by McDonald’s when dealing with crisis brought about by the contaminated milk was effectual. This is because, the messages conveyed by the company to the key publics indicated that the company cared and care is one of the most congruent factors of crisis communication strategy. Traditionally, the literature of crisis communication focused on practical recommendations for predicting and preparing for a crisis and setting in place crisis management strategies. Nevertheless, this approach is facing challenges from those arguing that a prescriptive approach in crisis communication must incorporate the requirement to create and manage relationships with key stakeholders. Evidence shows that companies with crisis communication programs stay prepared for crisis management, and therefore suffer less damage from experience6. Significantly, McDonald’s was able to manage an agenda in terms of media content of the doctors’ television advert showing the side effects of fast foods crisis. Further, in an analysis of the information released and media coverage done by the McDonald’s, there emerged four key themes of communication. They include government investigation, product safety, corporate reputation, and product reputation. In addition, diligence is a very efficient aspect of effective crisis communication. Crisis communication strategies can only be effective if only a company explores all the available avenues successfully and ensures that all its public relations practitioners stay prepared for the unexpected. The grounds of an effective crisis management base on how rapidly an organization can respond to a crisis7. As such, it requires an organization to react proactively to best manage potentially dangerous issues and situations. When McDonalds spent millions of dollars on containing the television advert, it showed that the company put the public safety and interest above its financial costs of the crisis. Research show that lack of preparedness on the side of the public relations practitioners can increase difficulty to negate negative perceptions. Furthermore, it is vital to understand that a company cannot prevent all crises; hence, organizational members must be ready at all times. Fact-findings indicate that a successful crisis communication strategy employs the following tactics commonly referred to as the 5Cs. Care This particular perspective show that a strategic plan aimed at handling a crisis through communication must indicate that the company cares about the crisis and sympathizes with the victims. From year 2000 to 2011, McDonalds underwent a series of crises ranging from mad cow disease to the supersize me menus. During the peak of the mad cow crisis, the company announced that this was one of the most awful crises since the established of this company many years ago as its brand sales dropped by 30 percent. This paper brings forth that, when a crisis is at its intense, it represents the acute stage of a crisis life cycle model8. However, despite the loss the McDonalds underwent during these times, in January 2009, the company recovered and recorded the highest sales compared to its competitors. McDonalds managed the uncertainty of the crisis and demonstrated intense care by availing the company’s senior management to the public and the media for the full duration of the crisis. Commitment In this perspective, McDonalds presented itself as company to its public and showed that it was ready to do what was right regardless of the expenses incurred. As a result, it regained its status as a leader in the fast food industry within the shortest time possible. The company ventured into safety campaigns that endeavored to communicate information regarding the mad cow disease, super size me effects, and health problems caused by fast foods both online and via traditional sources of media. It encouraged stakeholders, shareholders, as well as consumers to visit their websites frequently for further information9. By launching gifts for kids, mum special campaigns, and taking all the available precautionary strategies necessary for minimizing the risks, McDonalds regained consumer confidence. While unique, these kinds of gestures epitomize McDonalds’ attempt to undertake an above and beyond strategy to recover from the crisis and regain market confidence and market share. Consistence and Coherence McDonalds’ response to the crisis was instant its key messages were consistent at all times. The company, through its management, took responsibility for the crisis by apologizing repeatedly and expressing sympathy for those affected. In so doing, the company demonstrated that it cared and empathized with the public. It expressed commitment by responding instantly and working diligently to identify the cause of the crisis and eventually solving it10. All messages conveyed by McDonalds were consistent and their primary focus was to assure the well-being of their consumers and food safety. In order to maintain a direct and candid conversation with the interested UK citizens, the company employed social media tactics by launching an external company blog. By establishing an external blog, the company illustrated that it assumed responsibility to maintain honesty and open communication on subjects of high interest and importance to everyone. Clarity A successful crisis communication keeps clarity through activities that depicts it was not the company’s intension to have the crisis occur. As such, if there are any victims affected by the crisis, the company should act accordingly by making follow-ups and reach settlement agreements with them. It may choose to compensate the victims as efforts of compensation seek to move beyond crises and assists a company to renew its reputation11. Moreover, after a crisis, a company should launch campaigns aimed at restoring its reputation, public support, and relations by developing a trust worthy foundation. In the wake of 2012, McDonalds introduced vegetarian burgers whereby the management declared its stance of caring for environment since eating meat increases carbon dioxide emissions. Thus, by offering an alternate to meat, the company reduced emissions of CO2. Conclusion This paper established that practitioners and academics put across that, the best practice for crisis management is proactive rather than reactive communication. Health crisis nature limits the extent of proactive management an organization can afford to undertake. As demonstrated in this paper, safety and care of the organization’s customers must be the most important consideration when facing a health crisis. The response mad cow disease illustrates effective practice of a successful crisis communication strategy and is an interesting example of what a corporation should do in order to survive a crisis. Bibliography Anthonissen Peter. Crisis Communication: Practical PR Strategies for Reputation Management, (London: Kogan Page Publishers, 2008), 183-202. Fonz Christian. Strategic Management in Crisis Communication - A Multinational Approach, (Hamburg: Diplomica Verlag, 2011), 33-357. Kyhn Helene. Situational Crisis Communication Theory: Its use in a complex crisis with Scandinavian Airlines’ grounding of Dash 8-Q400 Airlines, Accessed http://pure.au.dk/portal-asb-student/files/3900/Helene_Stavem_Kyhn-_Master_Thesis.pdf on April 13, 2012), 13-16. Miller Rohan. Maple Leaf Foods: Crisis and containment case study. (Accessed http://epress.lib.uts.edu.au/journals/index.php/pcr/article/viewFile/1297/1529 on April 13, 2012), 4-17. Zaremba Alan. Crisis Communication: Theory and Practice, (New York: M.E. Sharpe, 2010), 156-196 Read More