crisis management - chez bob

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Chez Bob Corporation 3067 Jackson St. Robinson, Ill. 62454 1 (800) 371-2498 www.chezbob.com Corporate Profile: Chez Bob Corporation is a top-of-the-line chain of fancy French restaurants, based in Robinson, Ill., with dining locations throughout Illinois and Wisconsin. The corporation is a black tie chain dedicated to magnificent service and elegant Starting as a single four star restaurant, Chez Bob has been focusing on expanding, while also ensuring the same standard of excellence when it comes to each establishment. With valet parking, coat boys at the door, finely crafted furnishing, chandeliers, authentic French cuisine and menus, and various top chefs cooking weekly, Chez Bob is about bringing a classy, luxurious experience to its consumers . Possible Emergencies: A Hepatitis outbreak, such as the one from Chi Chi’s, could result in the deaths of consumers and completely diminish the chain’s existence.

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Page 1: Crisis Management - Chez Bob

Chez Bob Corporation3067 Jackson St.

Robinson, Ill. 624541 (800) 371-2498

www.chezbob.com

Corporate Profile:

Chez Bob Corporation is a top-of-the-line chain of fancy French restaurants,

based in Robinson, Ill., with dining locations throughout Illinois and

Wisconsin. The corporation is a black tie chain dedicated to magnificent

service and elegant

Starting as a single four star restaurant, Chez Bob has been focusing on

expanding, while also ensuring the same standard of excellence when it

comes to each establishment. With valet parking, coat boys at the door,

finely crafted furnishing, chandeliers, authentic French cuisine and menus,

and various top chefs cooking weekly, Chez Bob is about bringing a classy,

luxurious experience to its consumers.

Possible Emergencies:

● A Hepatitis outbreak, such as the one from Chi Chi’s, could result in

the deaths of consumers and completely diminish the chain’s

existence.

● The finding of illegal immigrants working at low rates, in the kitchens

of the restaurants, could result in the ethics of the organization being

questioned, as well as discrimination and equality issues.

● If the CEO of the corporation comes across as being

homophobic or racist in the public eye, the corporation could

have its morals questioned, resulting in the loss of business

Page 2: Crisis Management - Chez Bob

and a possible complete loss of entire publics, if not handled

carefully.

● If hiring practices began to look questionable, such as only

hiring certain races, genders, looks, or sexual orientations, the

morals would also be put into question, with a possible loss of

service, employees, and entire publics.

● A negative review by a credible food critic could result in the loss of

business, as well as the questioning of service and product.

● A failed health inspection could result in the loss of business and trust

among customers, the likelihood of potential customers and publics,

and bad publicity, if not a complete diminish of the organization’s

existence.

● A food poisoning outbreak would have similar outcomes with a failed

health inspection. If serious enough, it could have similar outcomes as

a Hepatitis outbreak.

● An infestation at one of the locations would result in similar outcomes

as a failed health inspection or a Hepatitis outbreak, if not controlled

immediately and kept out of the public eye.

● If it came to the service that Chez Bob was using pre-made or frozen

product, when they promise authentic cuisine, it could result in bad

media coverage, the loss of publics, the loss of trust among current

customers, and negative media coverage.

● A celebrity speaking out negatively on Twitter could result in similar

outcomes of a negative critic review. The chain could lose the service

of publics involved with the celebrity, either short or long term.

● If someone found something extremely unfavorable, such as the

“finger in the chili” incident at Wendy’s, in their food, a large loss of

current and future business, the trust of current consumers, and

negative media coverage could result.

● If the U.S. began having problems with France, depending on the

circumstances, the organization could lose business, employees, and

Page 3: Crisis Management - Chez Bob

future business, if not addressed that Chez Bob does not stand for

whatever issue is at hand.

● In the result of a natural disaster, such as a flood or a tornado, there

could be many different outcomes for the corporation, depending on

the severity and damages.

● A fire at one of the locations would also depend on the severity, cause,

and damages.

● A shooting or death at the restaurant would put Chez Bob in the

public eye negatively. There could be a loss in business, customer

comfort, trust, and future service.

● If problems of theft or questionable activities involving trusted

services, such as coat check and valet park, arose, there could be a

loss in demand for that service, resulting in a lack of business.

● If a special item, such as escargot, was suddenly put on the

endangered species list, certain publics would reach a level of

dissatisfaction, but no long-term problems would arise.

● If a new, similar chain surfaced and began to declare a rivalry with

Chez Bob through advertising, if not handled correctly, the

corporation could lose certain publics, potential publics, employees,

and a possible diminish of existence.

Description of the Emergency Situation:

The CEO of Chez Bob comes under skepticism of being a racist through the

media after an incident at the Illinois Restaurant Association Gala.

According to sources, Kenneth Richardson was overheard referring to his

African American waiter as the “hired help,” and made several racially

discriminatory jokes while intoxicated. Media coverage took off shortly after

the incident happened and reports of questionable hiring practices also

arose.

Page 4: Crisis Management - Chez Bob

The organization put the rumors of questionable hiring practices to rest, as

they released information on their employees, showing diversity among

many racial groups, ethnicities, genders, and sexual orientations. However,

the CEO, and Chez Bob, as a whole, could not write the personal

accusations against Richardson to rest, as they did happen.

A public out roar, along with the circulation of rumors, began to put not

only Richardson in a negative light, but the entire Chez Bob Corporation.

Following the release of the information, Richardson released the following

statement to the media, and on both his personal and the Chez Bob Twitter

accounts, “I am utterly embarrassed and ashamed of my actions. To blame

alcohol or a misunderstanding of events would be cowardly of me. I take full

blame and hope to be forgiven over time to anyone I have offended. I, along

with Chez Bob, do not stand for discrimination or inequality and I will make

it my personal goal to make this right.”

Though Richardson has made an apology, more will have to be done to

reduce negative media coverage and regain trust among publics. Chez Bob

Corporation is facing a loss of entire publics, employees, a question of

ethics and what the organization stands for, and a decrease in the likelihood

of expanding service to potential consumers.

Primary and Secondary Publics:

Current Customers

Current customers are already invested in the business and spend

their hard earned money at the establishment. They have every right

to be upset that their money has been aiding a business that

discriminates against race. This will most likely create a feeling of

distrust in the current customers and cause the relationship between

these individuals and the company to suffer. It will be vital that Chez

Bob does not forget about its current consumers while handling the

Page 5: Crisis Management - Chez Bob

crisis. Current customers should be second priority to the crisis itself.

If they are not, then they will feel left out, even if they are informed

through the media of the positive changes that the Chez Bob is

incorporating. It will be a much smoother transition for Chez Bob to

utilize social media and emails to directly communicate with its

current customers.

Potential Customers

Potential customers there are individuals that make up the latent

publics in this situation and it is important for the Chez Bob

Corporation to reach out to them. This is necessary because every

business desires to increase sales and after a controversy arises, that

becomes a challenge. Chez Bob’s will need to expand to the

consumers that are not as invested in the company. These potential

customers are not aware of the quality of the food or service at Chez

Bobs, therefore, they only know of the negative publicity. With that in

mind, Chez Bob’s must work hard to move past the issue, make the

necessary changes and emphasize the positive elements of the

company. These tactics will assist the latent publics in transferring

into aware publics.

Investors/Stakeholders

Chez Bob will be facing the possibility of losing both individual or

group investors as well as stakeholders that wish to invest their

money in an ethical corporation.

Vendors

The current food, dinnerware, and other vendors that Chez Bob has

been utilizing since its opening, have the option of choosing to end the

partnerships. This possibility could occur as a means of keeping the

Page 6: Crisis Management - Chez Bob

vendor’s name out of the conversation involving the controversy in

order to keep it from being drug through the mud as well.

Employees

Employees want to work for a company that expresses stable morals,

values, and ethics instead of one that discriminates.

Partners of Diversity

Chez Bob will partner with a diversity racial support group in order to

show the regret and sorrow the CEO, as well as everyone else

involved, is experiencing. The partnership will demonstrate that Chez

Bob does not stand for discrimination and put ease to the mind of

publics.

The Media

It will be vital for Chez Bobs to interact and correlate information with

media outlets such as television stations, radio stations, and

newspapers. These outlets are the channel that passes the

information directly to the public. If the media continuously focuses

on the negative controversial issue, instead of drawing attention to

the improvements that are being made, it will affect the existence of

Chez Bobs.

Communication goals:

Since Chez Bob is dealing with an image crisis, it is crucial that the

organization communicates successfully with its publics in order to increase

the possibility of this problem going away.

The first communication goal of the crisis management plan was to put the

rumors of questionable hiring practices to rest and resolve part of the crisis,

right off the bat, helping to keep the positive reputation of Chez Bob. A list

Page 7: Crisis Management - Chez Bob

of quantitative and qualitative data was released to the media to show the

Chez Bob does not discriminate in its hiring practices. Though this did not

completely resolve the crisis, it does communicate to those that feel that

Kenneth Richardson discriminates against races, that the corporation, as a

whole, does not share those same ethics.

Secondly, Richardson released the statement: “I am utterly embarrassed

and ashamed of my actions. To blame alcohol or a misunderstanding of

events would be cowardly of me. I take full blame and hope to be forgiven

over time to anyone I have offended. I, along with Chez Bob, do not stand

for discrimination or inequality and I will make it my personal goal to make

this right.” Apologizing for his actions communicates to the public that

Richardson is completely at blame, not any outside sources. The message

communicates to the public that Chez Bob is still an ethical, trustworthy

establishment.

Following Richardson’s apology, all communication goals will move on from

and stray away from an apology, simply showing the public what

Richardson, along with Chez Bob Corporation, stands for. Through social

media, the Chez Bob website, partnerships and media coverage, the

organization will come back into a positive light. Communication will

demonstrate that the organization, and all those behind it, is ethically and

morally sound.

There will be one steady voice behind all messages released to the public to

make sure there is a level of clarity among all messages. All messages will

be released quickly and decisively, making sure that Chez Bob is on top of

the coverage, first to respond, and to prevent the loss of business and bad

reputation.

Page 8: Crisis Management - Chez Bob

Though the organization will stand by Kenneth Richardson in his apology, it

will be clearly communicated that it does not stand by his actions, nor is it

associated with such actions of beliefs. The main goal of the communication

involved within this crisis is to show employees, current and potential

consumers, the media, and the general public that Chez Bob Corporation

does not stand for discrimination, but rather equality and withholding the

reputation that many know and love.

Messages:

“Chez Bob Corporation is not Kenneth Richardson”

Though the organization will stand by the apology of the CEO in this

time of crisis, it will be made clear through media coverage and press

conferences that the organization does not stand for his actions. The

message will convey that the company does not stand for

discrimination, but is ethical and values equality, helping to

accomplish a goal of instilling consumer trust and support.

“We value all of our consumers equally.”

The message will be used through social media, as well as media

coverage, and conveys the message that Chez Bob does not

discriminate among its diverse consumers, both current and potential.

“Our focus is on the quality of our service and products.”

The message will also be used through both social media and media

coverage of the crisis, conveying that Chez Bob has a main focus on

the quality of its service and product, rather than any type of racial or

ethnical background of any individual working for or being serviced

by the organization.

“A taste of culture”

Page 9: Crisis Management - Chez Bob

The message will represent a new section to the Chez Bob menu,

featuring French-African dishes, as the cultures overlap in various

regions. The message will convey that the organization welcomes and

values diversity and culture of ethnicity and race.

“I am utterly embarrassed and ashamed of my actions. To blame alcohol or

a misunderstanding of events would be cowardly of me. I take full blame

and hope to be forgiven over time to anyone I have offended. I, along with

Chez Bob, do not stand for discrimination or inequality and I will make it my

personal goal to make this right.”

The message, which was released through social media and to the

media, from Chez Bob CEO, Kenneth Richardson, conveys a sincere

apology to all publics and that he, along with the organization, does

not stand for discrimination.

Objectives and Tactics:

Increase public awareness of Kenneth Richardson’s apology by 50 percent

immediately.

● Hold a press conference for national news media releasing a

statement about Kenneth Richardson apologizing for his actions and

Chez Bob’s dedication to equality among its employees and

consumers.

● Post Kenneth Richardson’s apology on Chez Bob’s website and a

statement about their dedication to equality among its employees and

consumers.

● Post Kenneth Richardson’s apology to social media including Twitter,

Instagram and Facebook. Also post a statement about Chez Bob’s

dedication to ethical values and equality among its employees and

consumers.

Page 10: Crisis Management - Chez Bob

Increase public awareness of Kenneth Richardson’s efforts to improve his

character and actions by 50 percent by Nov. 30, 2014.

With the importance of public image in mind, Chez Bob needs to address

that they are taking actions to solve the mistakes Kenneth Richardson has

made. By first having Kenneth Richardson attend AA meetings, Chez Bob

will show their publics that Kenneth Richardson is taking responsibility for

his actions. Also, Kenneth Richardson will attend race and ethnic diversity

seminars to increase his knowledge about the issues within the topic.

● Send news releases to national news media informing them about

Kenneth Richardson’s attendance at AA meetings and race and ethnic

diversity seminars.

● Post information to social media about Kenneth Richardson’s

attendance at AA meetings and race and ethnic diversity seminars.

● Release an advertisement in restaurant and race and ethnic diversity

magazines with a picture of Kenneth Richardson shaking an African

American employee’s hand with a smile on his face and a slogan that

reads, “Together, we can achieve anything”.

Increase employee knowledge of race and ethnic diversity within a working

environment by 30 percent by Dec. 1, 2014.

● Have a professional speaker that specializes in race and ethnic

diversity speak about appropriate ways of communication and how to

recognize signs of racial profiling in a business setting.

● Distribute informational brochures to all employees about race and

ethnic diversity. The brochures will contain information about

appropriate communication techniques that should be used among a

diverse group of employees and when communicating with diverse

consumers, how to identify specific actions and words that can lead to

negative short-term and long-term outcomes, and profiles of emotions

that are tied with different cultural backgrounds.

Page 11: Crisis Management - Chez Bob

● Have each employee participate in a workshop on effective ways of

handling issues that arise within a workplace.

Increase public awareness of Chez Bob’s efforts to create a more ethically

sound franchise, with regards to race and ethnic diversity, that is dedicated

to equality by 50 percent by Dec. 1, 2014.

● Start a race and ethnic diversity tab on Chez Bob’s website that

describes the employees and official’s dedication to working towards

an ethically sound franchise. The tab will include monthly newsletters

that report what employees were taught about race and ethnic

diversity, any workshops that employees participated in and the

actions management is taking to engage in diverse environments. The

tab will also include specials from the newly added French-African

based portion of the menu, "A Taste of Culture."

● Issue statements to social media about the actions Chez Bob is taking

to create a more racially and ethnically aware franchise.

● Hold a press conference for national news media that will address the

actions and steps Chez Bob is taking to become more aware of race

and ethnic diversity and the issues that go along with it.

Partner with two race and ethnic diversity organizations promoting and

educating people about the topic by Nov. 30, 2014.

By partnering with race and ethnic diversity organizations that have goals

of informing the public about the topic, not only will Chez Bob’s staff and

employees gain a better knowledge about race and ethnicities, but publics

will see that they associate with the programs. By engaging with these

relevant organizations, publics will see that Chez Bob is furthering their

knowledge about race and ethnic diversity and that they care about

engaging with various people of different cultural backgrounds. This will

increase trust among multiple publics and send the message that Chez Bob

values equality and is implementing ethical practices.

Page 12: Crisis Management - Chez Bob

● Send news releases to national news media about Chez Bob

partnering with race and ethnic diversity organizations.

● Create a partners tab including the organizations Chez Bob will

partner with on the company’s website and distribute relevant

information.

● Post to social media that Chez Bob will be partnering with two

organizations that focus specifically on race and ethnic diversity and

help and educate people about the issues revolving around it.

Increase diverse consumer base by 20 percent by Dec. 1, 2014.

By gaining more diverse consumers, this will allow Chez Bob to gain

valuable insight on the emotions and actions tied to various cultures. Being

able to adapt to a wide variety of people will leave room for improvement

upon communication skills, social intelligence and judgment among

employees and staff. By gaining more diverse consumers, Chez Bob will also

be seen as a food chain that engages with multiple groups of people. This

will create a trust among consumers that they have ethical values and

practice equality.

● Create a social media hashtag (#ChezBobConnection) that will be for

people to post ways in which they are engaging with diverse groups

throughout their daily lives. Through #ChezBobConnection, when

people post relevant material, they have the opportunity to receive

gift cards and discounts on food at a local Chez Bob chain.

● Post an advertisement in restaurant magazines and race and ethnic

diversity magazines with a group of diverse employees engaging with

diverse consumers while smiling. The title of the advertisement will

be “There’s a Melting Pot of Smiles at Chez Bob.”

Proven Maxims:

Personal, face-to-face contact is more likely to be effective.

Page 13: Crisis Management - Chez Bob

This proven maxim applies to this campaign because the Chez Bob

Corporation’s immediate response to the controversy with a statement from

its owner. Due to the fact that the statement is directly from the owner’s

mouth in print as well as via press conferences, it connects to the publics on

a deeper level. The public is sympathetic and understands that humans

make mistakes and a positive change can come from a terrible situation.

Therefore, since restaurant will make the changes listed above, the public

will most likely forgive and move forward with the corporation.

Major issues and events cause wide swings in public opinion for brief

periods. The degree of lasting change tends to diminish with the passing of

time.

This proven maxim applies in this case due to the fact that the public

responds aggressively to racial issues. In today’s day and age, racism does

in fact still exist; however, the majority feels it is unethical to punish

someone solely for their appearance. The public opinion of Chez Bob

Corporation would suffer immediately but, after times passes, the public

would be able to see the improvements made at the restaurant chains,

forgive the owner, and begin supporting the business again.

An appeal to audience self-interest is most likely to be effective.

This proven maxim applies to this campaign because it is in the publics’

best interest to know exactly what goes on behind closed doors in a

renowned restaurant. People want to spend their money at a place that

displays stable ethics as well as a high degree of transparency within the

corporation. It is unethical to discriminate against an individual's skin tone

or any aspect of their appearance in general. After the apology is made and

changes begin to take place, it will be in the audience's self-interest to show

support for a company that owned up to its mistakes.

Page 14: Crisis Management - Chez Bob

A source of information regarded as trustworthy, expert, or authoritative is

most likely to be believed.

This maxim applies to this case due to the fact that Chez will partner with

racial groups to express its regret and make an effort so that no one is

forced into a similar situation at another corporation. The racial group will

speak out on their own social media accounts in support of Chez Bobs. This

will allow the public to see that Chez Bobs is fully comprehends the mistake

and is serious about making improvements to the brand as well as for racial

groups in the future.

Participation in, or awareness of, the decision process increases the

likelihood of acceptance.

This maxim applies to this campaign because it is extremely important for

Chez Bob to keep the public informed as it makes changes and strives to

create an improved work environment. The public is more likely to be

forgiving if they are kept updated and fully understand what is happening.

Transparency will be key in the process of moving forward.

Self-imposed censorship by the audience in not paying attention or not

feeling involved can vary the degree of opinion or behavior change

substantially.

This proven maxim applies because, as stated above, the potential

customers act as the latent public in this scenario. With that in mind, it is

essential for Chez Bob to reach these individuals in as many avenues as

possible so that they understand the situation and the corporation does not

earn a bad reputation with individuals who have never visited the

restaurant.