Crisis of Kentucky Fried Chicken in China - Case Study Example

Name: Date: Institution Introduction Communication helps create success in the workplace. Business communication is thought of as an activity to solve problems where different questions are addressed. Actually, according to Cardon (2014, p.4) the questions addressed often cover pertinent issues regarding the situation at hand and the possible communication strategies. the best course of action is thus designed in accordance with the chosen message. In light of this, this particular paper addresses key issues regarding communication and communication strategies during an incident/crisis while focusing on the crisis that befell KFC in china two years ago Kentucky Fried Chicken(KFC) is unquestionably one of the most successful multinational businesses around the world running multiple chains globally. While the company has been enjoying robust growth and excellent business performance over the years, it never occurred to the management that a crisis was looming, a crisis that had the potentials of significantly crippling its business performance. KFC suffered enormous damage to its reputation when reports by state-run China central television (CCTV) accused KFC of selling chicken with unapproved antibiotics and growth hormones. On following up on the report in May 2013, it was reported that KFC’s ice in drinks contained more bacteria than that in toilet water (Barris, 2013 p.1) The number of customers in KFC china drastically reduced with the estimated number of avoided restaurants in china being about 4,400. Thus, due to 2013’s long decline in sales, Yum Brands, which is KFC’s parent company that also generates more than 50% of its total revenue, was also seriously affected (Kelso, 2013 p.1). This scenario was indeed quite critical and precarious hence when considered keenly, effective communication was the only key to KFC reducing the impact of the situation by a significant margin. As the opportunity cost of a better communication, KFC’s market performance significantly declined. With a focus on effective communication as pivotal in the whole process, there are significant ways in which the crisis can be communicated effectively, with building the crisis strategy around the social media being the first step. Chinese, just like other consumers, quickly use social media power to pressurize companies. KFC should make good use of social media listening tool. The tool has to work in different languages, translates accurately and should be able to track issues. This is because there are people in china who cannot understand the language. Likewise, shortening the chain of command is often necessary during such times. KFC is supposed to empower its employees to communicate in case of a crisis. This would effectively work by the company training its employees on its key messages. A local employee is chosen to speak to the media about the crisis at hand (Carrol, 2013 p.4). As well, it can be addressed by becoming one’s own media outlet. Owned media is used to show what one is doing to solve the problem. KFC during this crisis could post out videos of programs and procedures of how it’s managing the crisis. They could also use staff as spokespersons to talk about their obligation to putting out safe products. Finally, KFC should effectively communicate about their crisis by owning up to their mistake and apologizing. Initially KFC was not apologizing and this seemed to worsen things. According to (Barris 2013, p.1), an interview in form of a conference call was done between Yum’s CFO and a journalist. Yum insisted that a company admitting to a mistake it committed should not be seen as its biggest problem. Admitting to the mistake and taking the effective measures to correct the mistake is what is right. In the case of KFC they brought in a new team which was actually the new face of the company (Barris 2013, p.1). Verbal communication is based on very many principles that influence everyday communication. Language has rules that use syntax to communicate. They govern the order of words in a sentence. Semantics on the other hand tells one the meaning of the word in the language. The challenge of verbal communication to real world is related to the fact that values, culture and traditions shape the way we communicate. This therefore differentiates people and how they communicate. For instance, Chinese culture calls for one owning up to their mistake and sincerely apologize about it. This was something KFC had to do to avoid losing its customers. On the other hand, the challenge with verbal communication to real world communication is that it can work either for you or against you. Other than communicating to the audience, it also allows miscommunication and misunderstanding. It is frustrating when the same system which we use to express our personal thoughts fails to capture. Part of improving the communication process is by identifying where it breaks down. In case there needs to be some clarification to reduce errors it is important to do so. According to Lester (2014, p.5), the effects of poor communication in business are clear. They include, damaged relationships, conflicts, missed opportunities, loss of productivity, wasted resources and scheduled slippage. KFC in order to avoid all this effects it had to ensure that the words they said to its audience were well communicated and understood. However there are words that KFC would avoid so that their message is clear to their audience. They include clichés, slang, jargons, euphemisms and racism and sexism language. The best way to deal with these words in communicating messages is by recognizing and addressing them right away. The perception of an individual towards another culture, language or value is what counts in any business since it’s a challenge in verbal communication. For instance if one was raised in a culture that values formality, they would pride themselves at work for dressing well. On the other hand, most people in the same organization come from less formal cultures with the preference of casual attire. In this case one can adapt to this culture. This does not mean there values have changed rather their perception. The theory behind verbal communication, as McLuhan & McLuhan (2011, p.1) states, is that people do not share the same paradigms, ideas or words. The best thing to do is for one to always get out of their reference frame and think of the best way to communicate points and ideas to the audience that does not have the same experience of the topic or does not understand it. The challenge is to take into account the experience and background of the audience in order to successfully narrow the gap between you and the audience. If KFC had not looked into effectively communicating its mistakes to its audience but rather continue selling its products then their sales would continue declining. Instead they chose to own up their mistake when they realized their audiences who in this case are the customers were not impressed with their products. They went on further to form a new team that was to bring a new face into the company and bring new ideas to mend the problem. In order to maintain a safety and healthy image of its company KFC held a news conference to announce that its products had been tasted by national food and had safety authority. The customers were assured of the product. In a press release to woo the Chinese, they gave reports of campaigns they had launched to rebuild its china brand. They promise a zero tolerance move towards food safety cruelty. This is after the 37% cent slump in sales after the crisis hit. (Brady, 2013 p.2) The difference in how we all perceive things can be a challenge but it is important. By positively understanding each other improves the degree to which we share and understand cultures, languages and divergent point of view. The reasons as to why people don’t see eye to eye is because they perceive things differently. People select aspects of messages that are important to them. Physical characteristics are one reason why different perceptions occur. They influence how we perceive and respond to information. Another reason could be ones psychological state. Lastly is the culture where one comes from that affect ones perception. One maybe from a culture that values community. To better understand other people one could look at their demographic traits, by recognizing that people, situations and objects change. There also is need to be aware that perception plays a role in communication. Lastly is by observing, acknowledging our perceptions and avoiding assumptions so that one can improve their communication ability across different cultures. Email is the first format of business communication. In business it has replaced print hard copy letters for external correspondence and replaced memos while communicating within the company. This form of communication would help KFC in case it needed to communicate any changes within the company in a fast way. An example of the standard element in a formal email that communicates business agenda is when it pays attention to details, when it reflects the company and when the tone used is professional. Non standard elements in an email are when the email is personal with an informal feel (Gillis, 2011 p.5). The next format of written business communication is memo. Its serves the purpose to inform, persuade or call for an action. According to (Slatkin, 2010 p.6) the standard elements in a memo are represented in the introduction, body and conclusion which are all seen in a memo. Each part usually has a clear purpose. In the opening is a declaration that announces the major topic, in the discussion is a list of main points associated with the topic. Lastly is a summary of the discussion. Last form of written business communication is a letter. There are different types of letters. The non standard element is used when communicating feelings and emotion. However in a formal letter where one introduces himself or herself to the employer, announces either a product or service uses the standard element. This is because of the elements in a letter such as date, reference, recipient note and the return address. In an informal letter all this is not required. KFC could use the above discussed forms of written communication in case they wanted to address their customers in something or wanted to introduce a new product in the market. In the case of them hiring new employees in the company they could use either emails or memos. A presentation is done by Solomon McCown & company which is conducted by their president and crisis communication expert Ashley McCown in analyzing 2013’s top ten PR crisis. Among the companies mentioned include NRA, Emily baking Company, Can you hear me now, McDonalds & burgers and apple. She explains on how the company faced crisis (McCon, 2013). Intrapersonal communication is very important in any business environment. It is defined as communication with one self including self talk, imagination and visualization acts and the recall of a memory. Intrapersonal communication is not only ones internal monologue but entails ones effort to plan how to go about something. From planning on how to solve a problem, personal conflict resolution, evaluations and judgments of oneself and others. Intrapersonal communication is communicating with us. For instance, an employee with a huge workload before him may want to consider to leave work and join his friends at the restaurant. Then he may hear his bosses or parents voice cautioning him about personal duty and responsibility. On the other hand he may hear his friend’s voice saying he deserves some time off. Intrapersonal communication therefore helps to settle at the best decision. Effective communication with people of different cultures is challenging. Use of a particular word may mean differently in a different culture. Workplace communication is among the impacts of cultural differentiation on effective communication. Since words and expressions are viewed differently in different cultures. Employees today need to be careful so that they carefully communicate with the diverse group of co workers (Laster &Stiles, 2010 p.1) International business communication is also another area affected. In the past companies had their own styles of communication for dealing with suppliers, customers and business counterparts. However, today managers are actually encouraged to spare some time to learn their counterpart’s cultural differences before making contact with other countries and subcultures (Brief, 2008 p.7). Verbal communication and body language is considered important than any form of communication especially in international dealings. This is because innocent gestures like hand greetings and posture can cause gap between culturally diverse business partners. Finally is the written communication. Foreign speakers currently are accommodated in written business communication since there are shifts being made. Universal business communication course currently stresses on simplicity and readability of correspondence over wordiness and technical prowess in writing. Currently it is important for one to get his message across to every reader (Wright & Conley, 2011p.3). Coming up with a crisis communication plan is not difficult. The best thing is always to prepare for it in order to reduce on damages. When coming up with the plan the first thing is to always anticipate crisis. The benefits that come with this are that one realizes that some situations are prevented simply by modifying operation methods that are existing (Strategic Vision , 2014 p.1). It also helps to think of how one can respond to case scenarios either best or worst. The crisis response plan created should be one that fits the organization and includes operational and communications mechanisms. According to Booth (2015 p.7) it is important to identify crisis communication team. There is need for a small team that includes senior executives and the CEO as the team leader. Chief advisors for the CEO would be the firm’s top public relations executive and the legal counsel. Other team members are the head the organizations divisions since the crisis affects the entire organization. In case there are conflicts among the team members or between team members and the public they need to solve the conflict. another is to identify and train the spokesperson. The authorized spokes person is the only one that speaks during a crisis. It’s important to pre-screen and train each crisis communication team members. This is to enable them be lead spokesperson in case the spokes person is not there during crisis (Bernstein & Bonafede, 2010 p.1). Right communication skills, right position and the right training is needed for each communication team member. The spokes person should be trained on how to speak to the media. He or she needs to have public speaking skills. This is because crisis communication focuses on preserving the organization. It’s the responsibility of the spokes person to minimize the chance of the organization being misinterpreted or misunderstood. Also in plan should be establishing a notification system. The notification systems help spread out information either to stakeholders in case there has been a crisis that needs to be addressed. Monitoring systems on the other hand is viewed as a component that gathers intelligent information. Sometimes one catches a negative trend that later turns into a crisis when they notice that is said to them on social media, by employees, stakeholders and customers. Monitoring system allows you to adapt tactics and strategies on how to deal with the crisis. In the plan there is need to indentify and know stakeholders and ensure that they receive the news they need to know. The plan should include the development of hold statements. They normally are use immediately after break of crisis. The organizations crisis communication team regularly reviews the holding statements. In the plan the crisis needs to be assessed. The crisis communication team ensures that team members get the right information so that the response from them matches the crisis. After assessing the crisis there is finalization and adaptation of key messages. The communication team develops messages that are needed for any situation. The team is aware of the information needed by the stakeholders. Lastly is the plan for a post crisis analysis (Hu, 2014 p.1). There is a formal analysis of things done right and those done wrong. They strategize on how to approach crisis in a better way and develop formal process to ensure that all this is accomplished. If KFC would adapt such a plan in order to deal with their crisis, then everything will be successful Conclusion In conclusion, it is evident that effective communication is important in any business setup. According to the analysis, the crisis that befell KFC had profound impacts on its market share while also significantly affecting the parent company. A little misstep of ignoring the role of effective communication in the whole process costed KFC dearly. Thus, effective communication is critical during such times and calls for a keen consideration on some issues. Among such include the fact that the spokesperson of the business has to have the right skills when communicating to people and that companies need to come up with a plan on how to handle a crisis. Actually, companies may face a crisis but there should always be a team formed within the company to deal with the crisis. Bibliography Cardon, P. W. (2014). Business communication: developing leaders for a networked world. New York, McGraw-Hill Irwin. Messner, W. (2013). Making the compelling business case decision making techniques for successful business growth. Basingstoke, Palgrave Macmillan. Top of Form Lester, P. M. (2014). Visual communication: images with messages. Boston, Wadsworth/Cengage Learning. Carroll, C. E. (2013). The handbook of communication and corporate reputation. Chichester, West Sussex, Wiley-Blackwell. http://public.eblib.com/choice/publicfullrecord.aspx?p=1158626. 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