Burger King: Crisis Communication Strategy for Reputation Management

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This report examines Burger King's crisis communication strategies within the context of the evolving digital landscape. It identifies the significance of crisis communication for safeguarding corporate reputation, especially considering the rapid dissemination of information via social media. The study explores Burger King's past crisis issues, assesses its current reputation, and proposes strategies for effectively managing and overcoming future corporate crises. Key areas of focus include the development of robust crisis communication plans, leveraging digital platforms, and understanding the potential political and financial implications of implemented strategies. The research employs a deductive approach, utilizing both primary and secondary data collection methods, including surveys and interviews, to provide a comprehensive analysis and actionable recommendations for Burger King.
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Running head: BUSINESS RESEARCH METHODOLGY
Crisis Communication in a Digital Age: A case Study of Burger King
Name of the Student:
Name of the University:
Author’s Note:
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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Problem Statement.....................................................................................................................2
3.0 Research Aims and Research Objectives..................................................................................3
4.0 Research Questions....................................................................................................................3
5.0 Justification and Potential Output of the Research....................................................................4
6.0 Conceptual Framework..............................................................................................................4
6.1 Growing Significance of Crisis Communication...................................................................4
6.2 Changing Landscape of Crisis Communication....................................................................5
6.3 Issues in Crisis Communication............................................................................................6
6.4 Recommendation of Crisis Communication..........................................................................6
7.0 Methodology..............................................................................................................................7
7.1 Research Approach and Sources of Data...............................................................................7
7.2 Proposed Data Collection and Data Analysis Technique......................................................8
7.3 Organization of the Study......................................................................................................8
7.4 Budget, Project Activities and Gantt chart..........................................................................10
References......................................................................................................................................13
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1.0 Introduction
Crisis communication is extremely significant for managing corporate reputation in any
crisis situation. Effective crisis communication can lead to long term business sustainability.
However, in this digitally connected business world, the business organizations are facing huge
challenges in their crisis communication (Coombs, 2015). Moreover, in this digital era, any
corporate issues and scandals are being spread in few seconds among the stakeholders leading to
diminishing corporate image (Eriksson & Olsson, 2016). This research proposal will put
emphasis on the changing landscape of crisis communication with the revolution digital media.
This study will be specifically concerned with the crisis communication issues of Burger King
with the rise of digital age. The research study will formulate proper research question as well as
objectives for collecting most valuable research information.
2.0 Problem Statement
Burger King is the most popular American fast food restaurant chain that operates in
several other countries as well. Over the times, Burger King has faced several scandals regarding
their food items (Timothy Coombs & Jean Holladay, 2014). However, the organization has lack
of proper crisis management system. Moreover, the organization is unable to predict the potential
risks associated with the business. Therefore, they are unable to set preventive strategies for
mitigating the crisis situation. The competitor companies of Burger King like KFC and
McDonalds are unable to predict some of their potential risks and can take preventive measures
for managing corporate crisis (Liu & Fraustino, 2014). However, lack of proper crisis mitigation
strategies can lead to diminishing corporate reputation.
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3.0 Research Aims and Research Objectives
Research Aim
The research is aimed at emphasizing on the changing landscape of crisis communication
with the rise of digital age.
Research Objectives
To recognize the relationship between crisis communication and corporate reputation
To emphasize on the importance of digital era in crisis communication
To assess the impact of social media on crisis communication
To determine the crisis issues associated with Burger King
To determine the current reputation of Burger King
To suggest the strategies to Burger King for overcoming corporate crisis
4.0 Research Questions
How crisis communication is related with corporate reputation?
What is the influence of digital era on crisis communication?
What is the crisis issues associated with Burger King?
How Burger King has maintained its corporate reputation?
How Burger King can overcome its corporate crisis?
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5.0 Justification and Potential Output of the Research
Over the years, several researchers have conducted research on the crisis communication
of the corporate reputation. Most of those scholars have major emphasis on crisis communication
as the most effective tool for managing corporate reputation. However, the empirical evidences
of those scholarly papers have indicated the changing landscape of crisis communication in the
digital era. Moreover, the corporate scandals are more likely to spread among the stakeholders in
few seconds through social media sites. Hence, it is expected that Burger King can also be
affected through such issues associated with crisis communication. The managers of the
organization must be prompt enough to respond to the stakeholders in regards to the corporate
crisis for have sustainable corporate reputation.
6.0 Conceptual Framework
6.1 Growing Significance of Crisis Communication
Managing corporate reputation is the most significant way of managing organizational
competencies in long term (Tao & Kim, 2017). An organization, which can manage its corporate
reputation even during crisis situation, is highly valued by its stakeholders. The prime purpose of
crisis communication is to take initiatives towards protecting corporate reputation and managing
public image for organizations. According to Seeger et al. (2016), crisis communication is the
most valuable tool for managing corporate reputation during any crisis situation leading to long
term business sustainability. It is a transmission view of communication, where information is
disseminated with an intension of minimizing differences in the information interpretation in
regards to the corporate scandals. The effort of crisis communication must be taken on an
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5BUSINESS RESEARCH METHODOLGY
immediate basis for clarifying the unexpected event to the stakeholders and public in effective
way. On the other hand, Ki and Nekmat (2014) opined that crisis communication needs to be
persuaded on an immediate basis for getting information out of all primary audients in
understandable and simple messages.
Selection of appropriate crisis communication channel can facilitate organizations to
develop crisis communication plan successfully. Moreover, crisis communication incorporates
careful management, recognition and response to the crisis event through winning the trust and
confidentiality of the stakeholders. It minimizes the misinterpretation of any crisis situation,
which actually prevents any disruption of any corporate image of the organization (Ma & Zhan,
2016). However, the timeliness of crisis communication is extremely valuable for sustainable
corporate reputation in the market.
6.2 Changing Landscape of Crisis Communication
The practice of crisis communication is facing a significantly changing landscape of
crisis communication (Lehmberg & Hicks, 2018). In this digitally connected business world,
suppression of any corporate scandal is no longer possible. Cheng (2018) opined that the
dynamic growth of social and online media has increased the likeliness of information to be
spread among the key stakeholders more quickly. Furthermore, the new generation people
become highly obsessed with any kind of crisis regarding any business organization. Hence, such
people are more likely to spear the crisis situation among the community people leading to
declined corporate image. Hence, in such era, the corporate reputations of the organizations are
becoming more vulnerable to breakthrough even for any small crisis. Therefore, the
organizations must understand that digital media is continually changing the crisis
communication discipline inextricably. Moreover, Jin et al. (2014) stated that the key
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6BUSINESS RESEARCH METHODOLGY
stakeholders are more likely to misinterpret the corporate crisis on its instant conveyance through
the digital media channel. In this digital world, people are more likely to act against the
organizations through tweeting, posting or liking any corporate scandals and critical commentary
in the social media sites (Austin & Jin, 2015). Hence, the organizations have to be prompt
enough to managing the online corporate reputation risk through continuous monitoring and
immediate response to those risks. The managers of an organization should immediately respond
to the crisis situation for preventing its meaning to be misinterpreted among the public and key
stakeholders. Moreover, crisis communication is an effective way for organizations towards
managing transparency among the key stakeholders and community people.
6.3 Issues in Crisis Communication
Crisis communication is more likely to face the issues like misinterpretation of corporate
crisis among the key stakeholders (Strandberg & Vigsø, 2016). It can hamper the corporate
reputation of the organization severely. In case of Burger King, the hacking of Twitter account of
Burger King led to issues in crisis communication, where the corporate issues were spread in a
few second (Hong & Cameron, 2018). The food-borne illness has occurred in Burger King in
past and it can even happen in future. Hence, the organization can become forced to close some
restaurants temporarily. In this way, sales overall sales volume of the organization went down
drastically. It was all because of the lack of proper crisis communication mechanism. The digital
and social media channels have also spread the corporate crisis that Burger King has limited
control over the restaurant operations of its franchisees (Kim & Krishna, 2017). Digital media
has spread this news among the key stakeholders, which led to decreasing sales volume and
profitability level of the restaurant. On the other hand, unlike the competitor companies like KFC
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7BUSINESS RESEARCH METHODOLGY
and McDonalds, Burger King has no proper crisis communication issue management policy (Jin
et al., 2014).
6.4 Recommendation of Crisis Communication
Robust crisis communication strategy can initiate valuable function in managing crisis
situation through providing specific and accurate information to the stakeholders on an
immediate basis for resolving the crisis (Claeys & Opgenhaffen, 2016). Burger King can hire an
issue management team for conducting an issue audit to recognize the corporate issues in timely
manner. Such audit team would be responsible to identify exact crisis for the organization
towards developing product crisis communication mechanism. On the other hand, the
organization can also enhance the structured crisis communication policy, where all the public
statements regarding the crisis must get approval from the global communication department
(Olsson, 2014). Emphasis of this communication is generally given on delivering expression of
sympathy and concern to the community. The organization should also restructure the crisis team
and every response must be approved by the crisis team for adding more reliability and
credibility to the responses (Lehmberg & Hicks, 2018). Apart from that, Burger King can also
formulate effective post crisis planning, where the crisis team must conduct meeting with all the
organizations staffs for coming up with more effective crisis communication message
(Strandberg & Vigsø, 2016). Such post crisis communication would be helpful in developing the
proper plan of reviving the corporate image after crisis situation has been spread among the key
stakeholders and public.
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7.0 Methodology
7.1 Research Approach and Sources of Data
Research approach is extremely important for gathering most significant research
information. The selection of research approach must be dependent on the types of variables
associated with the research topic (Lewis, 2015). The most commonly used research approach in
research filed are like inductive and deductive approach. In inductive approach, the research has
to form innovative research theories and models for collecting most valuable research
information (Choy, 2014). On the other hand, in deductive approach, existing research theories
and models can be used for collecting most significant research information. This research paper
will select deductive approach for gathering valuable research information, as it can save the
time and budget of the research study. The study will also select exploratory purpose for
gathering factual information regarding the research topic.
Two most commonly used sources of data can be used for collecting highly significant
research information, which are like primary source and secondary source (Dumay & Cai, 2015).
Secondary sources will be useful for collecting secondary data to formulate literature review. On
the other hand, primary sources will be used for collecting first hand data regarding the research
for leading accurate research result. In case of secondary source, the research will collect
secondary information from authentic e-books, websites, journals, magazines and others. On the
other hand, primary source will be the selected respondents in the research study from whom the
primary data will be collected through survey and interview technique.
7.2 Proposed Data Collection and Data Analysis Technique
Proposed Data Collection
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Data collection is the most valuable method of assembling data regarding the research
topic. Two most frequently used data collection methods are like primary method and secondary
method (McCusker & Gunaydin, 2015). In secondary method, the research data is generally
collected through authentic e-books, websites and journals (Dumay & Cai, 2015). In primary
method, qualitative and quantitative method will be applied in data collection process. In
quantitative process, survey will be conducted on 100 customers of Burger King for gathering
their response to the crisis situation of the organization. In qualitative research, 5 managers of
Burger King will be interviewed for gathering information regarding their crisis management
strategies.
Data Analysis Technique
Data analysis extracts exact information collected from the selected respondents (Choy,
2014). Chi-Square test will be applied for assessing the primary data, where the difference
between the observed data and theoretical data will be identified. Chi-square test will be
conducted using SPSS tool for reaching at accurate research result. Furthermore, narrative
analysis will be used for analysis qualitative data. Narrative analysis extract the actual meaning
of the conversation gained from the interview conducted with the organizational managers of
Burger King.
7.3 Organization of the Study
Chapter 1: Introduction: It is the first chapter of research study, which will discuss the
research background and highlight the research problem. Furthermore, this chapter will
formulate the most appropriate objectives and questions relevant to the research topic for
collecting most valuable information.
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Chapter 2: Literature Review: In this second chapter, the research will gather lot of
secondary information regarding the research topic. Moreover, the scholarly information
gathered in this chapter will ultimately lead to high quality research outcome. The base of this
section will be dependent on theoretical underpinning of the research topic. Apart from that, the
chapter will also be related with the empirical data associated with the research for enhancing the
research authenticity.
Chapter 3: Research Methodology: This chapter is extremely significant to choose
most relevant and appropriate research methods for gathering useful research data. This section
will select suitable research approach, design and sample and data analysis method for
conducting overall research. It will help in enhancing the overall quality of the research outcome.
Chapter 4: Findings and Data Analysis: This section will ultimately gather data from
chosen research participants. Furthermore, this section will also be associated with selection of
suitable data analysis method for leading right research result.
Chapter 5: Conclusion and Recommendation: The last chapter of the research will
provide the overall summary of the research. The chapter will also suggest suitable
recommendation with an intension to resolve research problem.
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7.4 Budget, Project Activities and Gantt chart
Budget
Expenses Units Cost Per Unit Total Cost Per Unit
Equipment of Research
Mobile Phones 1 230.00$ 230.00$
Mobile Internet (Modem) 1 35.00$ 35.00$
Laptop 2 150.00$ 300.00$
Hard Drive 1 500.00$ 500.00$
Digital recorder 1 200.00$ 200.00$
Printer (Toner) 1 70.00$ 70.00$
Color Printer 1 200.00$ 200.00$
Research Material
Survey Monkey Subscription Fee 1 35.00$ 35.00$
Software (SPSS ) 1 35.00$ 35.00$
Usage charge (Cell phone) 11 9.00$ 99.00$
Charges for Mobile internet 10 10.00$ 100.00$
PenDrive 2 15.00$ 30.00$
Photocopies 50 1.00$ 50.00$
Anti-virus Software 1 500.00$ 500.00$
Paper/pen/marker 10 2,000.00$ 20,000.00$
Publication and Dissemination
Journal Application Fees 5 600.00$ 3,000.00$
Printing and Binding Thesis 2 200.00$ 400.00$
Printing and Binding Reports 2 300.00$ 600.00$
Total Expense 26,384.00$
Figure 1: Budget of Research
(Source: Created by Author)
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12BUSINESS RESEARCH METHODOLGY
Project Activity
Month 1 Month 2 Month 3
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week
10
Week
11
Week
12
Introduction of Research
Defining Research
Problem
Developing Research
Objectives
Settling on Structure of
Research
Literature Review
Theoretical Underpinning
Critical Analysis of
Scholarly Article
Assessing Empirical
Information
Research Methodology
Research Design
Selecting Research
Technique and Methods
Data Collection
Finding and Analysis
Perusing Data Analysis
Evaluation of Collected
Data
Conclusion and
Recommendation
Writing Summary of
Research
Providing Research
Recommendation
Table 1: project Activity
(Source: Created by Author)
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Gantt Chart
Figure 2: Gantt Chart
(Source: Created by Author)
Month 1 Month 2 Month 3
Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12
Introduction of Research
Defining Research Problem
Developing Research Objectives
Settling on Structure of Research
Literature Review
Theoritical Underpinning
Critical Analysis of Scholarly Article
Assessing Empirical Information
Research Methodology
Research Design
Selecting Research Technique and Methods
Data Collection
Finding and Analysis
Perusing Data Analysis
Evaluation of Collected Data
Conclusion and Recommendation
Writing Summary of Research
Providing Research Recommendation
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BUSINESS RESEARCH METHODOLGY 14
References
Austin, L., & Jin, Y. (2015). Approaching ethical crisis communication with accuracy and
sensitivity: Exploring common ground and gaps between journalism and public
relations. Public Relations Journal, 9(1), 2.
Cheng, Y. (2018). How social media is changing crisis communication strategies: Evidence from
the updated literature. Journal of Contingencies and Crisis Management, 26(1), 58-68.
Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of
Humanities and Social Science, 19(4), 99-104.
Claeys, A. S., & Opgenhaffen, M. (2016). Why practitioners do (not) apply crisis communication
theory in practice. Journal of Public Relations Research, 28(5-6), 232-247.
Coombs, W. T. (2015). The value of communication during a crisis: Insights from strategic
communication research. Business Horizons, 58(2), 141-148.
Dumay, J., & Cai, L. (2015). Using content analysis as a research methodology for investigating
intellectual capital disclosure: a critique. Journal of Intellectual Capital, 16(1), 121-155.
Eriksson, M., & Olsson, E. K. (2016). Facebook and Twitter in crisis communication: A
comparative study of crisis communication professionals and citizens. Journal of
Contingencies and Crisis Management, 24(4), 198-208.
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BUSINESS RESEARCH METHODOLGY 15
Hong, S., & Cameron, G. T. (2018). Will comments change your opinion? The persuasion
effects of online comments and heuristic cues in crisis communication. Journal of
Contingencies and Crisis Management, 26(1), 173-182.
Jin, Y., Liu, B. F., & Austin, L. L. (2014). Examining the role of social media in effective crisis
management: The effects of crisis origin, information form, and source on publics’ crisis
responses. Communication research, 41(1), 74-94.
Ki, E. J., & Nekmat, E. (2014). Situational crisis communication and interactivity: Usage and
effectiveness of Facebook for crisis management by Fortune 500 companies. Computers
in Human Behavior, 35, 140-147.
Kim, S., & Krishna, A. (2017). Bridging strategy versus buffering strategy: enhancing crisis
management capability in public management for relational and reputational
improvement, and conflict avoidance. Asian Journal of Communication, 27(5), 517-535.
Lehmberg, D., & Hicks, J. (2018). A ‘glocalization’approach to the internationalizing of crisis
communication. Business Horizons, 61(3), 357-366.
Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), 473-475.
Liu, B. F., & Fraustino, J. D. (2014). Beyond image repair: Suggestions for crisis communication
theory development. Public Relations Review, 40(3), 543-546.
Ma, L., & Zhan, M. (2016). Effects of attributed responsibility and response strategies on
organizational reputation: A meta-analysis of situational crisis communication theory
research. Journal of Public Relations Research, 28(2), 102-119.
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McCusker, K., & Gunaydin, S. (2015). Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion, 30(7), 537-542.
Olsson, E. K. (2014). Crisis communication in public organisations: Dimensions of crisis
communication revisited. Journal of Contingencies and Crisis management, 22(2), 113-
125.
Seeger, M. W., Sloan, A. G., & Sellnow, T. L. (2016). Crisis Communication Research in the
United States. The Handbook of International Crisis Communication Research, 422-433.
Strandberg, J. M., & Vigsø, O. (2016). Internal crisis communication: An employee perspective
on narrative, culture, and sensemaking. Corporate Communications: An International
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Tao, W., & Kim, S. (2017). Application of two under-researched typologies in crisis
communication: Ethics of justice vs. care and public relations vs. legal strategies. Public
Relations Review, 43(4), 690-699.
Timothy Coombs, W., & Jean Holladay, S. (2014). How publics react to crisis communication
efforts: Comparing crisis response reactions across sub-arenas. Journal of
Communication Management, 18(1), 40-57.
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