Crisis Management and Impact on Global Hospitality Sector

This report provides an in-depth analysis of crisis management within the global hospitality and tourism industry, with a specific focus on the impact of the COVID-19 pandemic on McDonald's. It explores theoretical approaches, including phase models and Faulkner's Tourism Disaster Management Framework, to understand how organizations can navigate unexpected threats. The report examines communication tools and strategies employed to overcome challenges, such as social media and government policies, and evaluates the effectiveness of proactive and reactive management strategies. It also assesses the consequences of effective and ineffective crisis management, offering valuable insights into the sector's resilience and adaptability. The report concludes with a discussion on the importance of crisis management in ensuring the long-term sustainability of the hospitality and tourism industries.

Crisis Management and the impact on the
Global Hospitality and Tourism Industry

EXECUTIVE SUMMARY
Crisis management perform an important role for the organisation and it support the organisation
to overcome from the unexpected threats and uncertainties. There are various task performed by
management and most of them are focused to complete work according to desired goals and
objectives of organisation. The purpose to study global crisis relates with understanding of
current pandemic situation for developing strategy that increase market share in such complex
conditions. With the study of current market conditions organisation formulate purpose that aids
to explain and understand approaches of crisis management. Along with this by analysis of
existing market and situational threat it is easy to encourage person to involve in all situations.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
BACKGROUND ............................................................................................................................4
Theoretical approaches of crisis management among tourism and hospitality...............................5
Analyse of communication tools and strategy to overcome from current challenges............7
Compose arguments around the steps of the “framework of disaster management”.............8
Evaluation of proactive and reactive management strategies for crisis within global
perspective of tourism..........................................................................................................10
Consequences that are related with effective or ineffective management...........................15
CONCLUSION.............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Global hospitality and tourism industry is explicated as an emerging sector that refers to
the combination of food, lodging, culture and travel organisation. Restaurants, amusement park,
event, entertainment and cruises are some administration department that offer services in
hospitality sector (Barnes, 2020). Tourism refers to visit a new place within a local region or
international country. This report is written from perspective of Mc Donald's which is a multi-
national chain of restaurant and it is well-known for their catering and food servcices Moreover,
this report highlights on communication tools as well as strategies to overcome from problems of
crises. Theoretical approach and it’s implement among a practical situation will also be included
in this report. In the last, ineffective or effective management for managing disaster in a tourism
destination is focused in the upcoming report.
BACKGROUND
Mc Donald's is an American fast food company having headquarters in Chicago, illinois,
United States. It was founded in 1940 by Richard and Maurice McDonald as a restaurant. The
brand offer various food items like Hamburger, chicken, French fries, soft drinks, milkshakes,
salad, desserts, coffee etc. It have around 38695 restaurants in different locations of the World.
In the present scenario, Covid-19 are threats or crisis that generates problems for food industry.
It had approx 210000 employees globally. Brexit impacts on local residents of UK (Beirman,
2020). Apart from this, Covid-19 reduces overall activities, transactions and exchange of
products or service due to government strict laws. This result it is complex for organisation and
individuals for managing work to manage monetary perspective.
According to the current situation, Coronavirus generate the status of pandemic at a
worldwide level. Food industry ( restaurants ) face different challenges but major effect which is
related with global tourism level is the financial crisis that makes a sudden downturn and no one
is allowed to move from one place to another. It also results that this is complex for management
as government is mainly motivated towards the safety of individuals. Food industry is a dynamic
part of the economy which is expanding at global level. As this industry leads to generate
expenditures that are managed by forces. This refers global competition, change in customer
expectation and implement of communication technology.
Consequence of effective crisis management on McDonald's.

Sales of UK food industry are reduced during the second half of March with significant
closure of restaurant and restrict movement in market globally. This is impacted by the lockdown
as Coronavirus pandemic and it outlook define changes which relates with industry group. This
also define about global aspect that make changes in organisation for completion of work at a
global level (Burkle, 2019). To protect the health and safety of customers and staff, the
company has taken some preventive measures such as use contact lenses, mask, helmets,
protective equipment for crew and enhanced cleaning and hygiene procedure. In the context of
business management make changes which is used for analysing and managing aspects to control
business aspect as it is used for defining management aspects to complete all task according to
decided destination.
Theoretical approaches of crisis management among Food industry
Crisis situation generate and require a large number of information that is used to fulfil
with individual requirements in an appropriate manner. In the present scenario, this is mandatory
for McDonald to formulate an effective crisis management plan to complete all work according
to decided internal and external aspects. Phase model is implemented by McDonald to perform
all work in an organised manner. Along with this each phase of country generate aspect side and
point view to perform all work as per current situation. Some aspect of situation are mention as
follow:
PHASE MODEL
Phase models are basically based with the idea of designing and making in the exist in three
vital and different ways comprises of formulation of hand-book, definition phase and design
phase for better management and overcoming from a situation of disaster (Motlagh and
Soltanipour, 2017) Further, the phase model accomplished by McDonald also comprises of as a
function structure; a representation of the intended behaviour (the functions) of a product and its
parts. As a solution principle; defines the working principle, or mode of action, of a product or a
part thereof. The description about the three vital aspects of a phase model are discussed and
provided below in context of McDonalds:
 Formulation of hand-book- This is the first phase of an individual report and it define
about objectives and need which is required to manage work as per existing situation of
Pandemic. In simple terms Covid-19 define solutions and opportunity that is written for
managing project plans. Formulation of a hand book that is presenting all required and

vital information and strategies to meet and overcome a disaster forms the first and
foremost part of phase model implicated by the McDonald and it leads to enhanced
planning and better analysis of all expected rules and strategies needed to implicate and
overcome an issue or disaster. McDonald prepares a detailed hand-book for managing
work as per plans that provide effective training to management for evaluation of
proposal. It is used to manage areas relatively to manage and improve number of tourist.
Further, the hand –book prepared by McDonald Comprises of all information regarding
the provisions of social distancing and sanitization to lead better understanding and
knowledge in employees to overcome and meet the current disaster lead out by pandemic
of COVID-19 (Dugmore and Wang, 2018).
 Definition phase- After implement of project plan McDonald ensure that it must be
improved for completion of all task and food safety according to new rules and
regulations (Coombs and Laufer, 2018). Moreover, project team formulate budget and
generate schedule to manage work according to decided resources. It also define project
plan make changes as per aspect that make schedules to manage work according to user
requirements. It is used to manage work by increasing the number of bookings.
 Design phase- Management of McDonald define changes which is used for building and
generating solutions that leads in managing design about changes related with McDonald.
This also results person define about aspects which is used to complete work as per
situation. In context of UK, there are different changes identified by management and it is
used in managing situations. With effective design organisation undertake and commence
economic phase to improve from current situations (Fox, McDonald and Mitchell, 2020).
Thus, an analysis can be made on the basis of above phase model adopted by McDonald to
overcame the disasters of COVID-19 that provides and leads to preparation of hand –book that is
ensuring all needed information fir employees regarding current pandemic. Further, the definition
phase comprises of better training and development programmes for employees to define and
lead better understanding about the pandemic of COVID-19. At last that design phase comprises
of making of actual strategies and building solution to overcome difficult situation or disaster in a
better way (Foss, 2020). The designing phase also comprises of leading out effective strategies
for maintaining proper social distancing and sanitisation within the campus of McDonald to offer

a more safe and secure places for customers to meet and overcome current disaster of COVID-
19.
Faulkner’s Tourism Disaster Management Framework Pre-event phase- Different individuals are engage in organisation and they all are focused
towards the implement of aspects that is beneficial to improve and understand physical
system as a whole. According to believe management generate assumptions to work as a
core for analysing impact of Covid-19. Prodromol phase- UK individuals face challenges which is related with impact of Covid-
19 because there are different phases impacts on system as a whole. It threatens
McDonald challenges as on-going function refer to objective which impacts on individual
on a personal level (Farmaki, 2020). This also consider about changes that make attribute
for persons or buyers to ensure that products are safe and properly packed. Emergency phase- The time period specifically which is related with disaster start in the
month of march and as per this individual require to implement different changes that is
used to complete work in an appropriate manner. This is because patients are not
recovering from the Covid-19 because of no medicine. Therefore, it is also important to
manage changes according to situation of Covid-19. Intermediate phase- Within the context of McDonald it is identified by management that
no transactions are allowed by government of UK to perform work according to decided
teams. This results changes are implemented by management to complete task as per new
strategy because food safety is a major concern and it is used for managing all task within
perspective of team. Long-term recovery phase- This define about changes which is used to manage and
develop infrastructure related with generating and building environment aspect. Their are
different section is implemented by management which is used for identifying and
generating structure that built for managing work by section of 5C.
 Resolution phase- Last, step which is related with existing aspects define the loop and
methods that helps to make assessment according to Covid-19 (Fernandes, 2020). This
section refers that building occur to go with section that is used to overcome from gaps of
company. It defines McDonald make strategy to reduce threats of current situation.

Analyse of communication tools and strategy to overcome from current challenges
Communication perform an important role to transfer essential information among all
departments. This defines there are different task performed by management and most of them
are focused towards completion of work as per new steps and strategy. McDonald define changes
and it is used to manage tools that helps in performing work with improvement of Covid-19.
Some tools to overcome from Covid-19 situation are mention as follow:
 Social media- In the present scenario, individual are more focused to work according to
online tools because it helps to complete work in minimum time-period. By sharing
opinions and services about consumer individual perform work to make changes as per
customer as well as business area. This helps to promote after changes which is
implemented to work as per modification of Covid-19. The main use of social media
refer to the perspective which is used for communicating or interacting with individuals
at a large or mass level. Moreover, social media communication perspective is important
to define areas of persons.
 Government- UK government is stable and they are more focused to complete
organisational work according to market requirements and individual perspective. In
context of McDonald communication tool of government define about different areas.
Further, government provide flexible policy that help to generate work as per brand
perspective (Gössling, Scott and Hall, 2020). Moreover, government leads to implement
effective changes that are used to complete all work with authorities. The government
aspects relates with external factor of business so external communication is an
important perspective that is used for improving
 Word of mouth- WOM marketing define aspect that is used to make perception about
consumer requirements in order to generate interest among organisation products. This
is also used to reflect about daily dialogues in order to advertise customer experience.
Typically word of mouth is most effective perspective and this is used to publish
activities according to the company areas. It helps in managing areas that prefer to work
with technical perspective in order to communicate changes of Covid-19 among internal
and external departments of organisation.

Compose arguments around the steps of the “framework of disaster management”
Disaster Management framework is abbreviated as DRM that is established for disaster
risk management providing a support to structures and mechanisms of organisations to facilitate
with better and improved emergency preparedness, actions and recoveries to be made. The
disaster management framework is sub divided into five phases which are applicable on
McDonald's for analysing the impacts of disaster company is facing due to COVID19 pandemic
caused through a virus names coronavirus.
The hospitality industry is most struck by the pandemic amongst other sectors of business
as people are scared and which is why they are not leaving their houses and norms of social
distancing needs to be maintained for being safe form the virus (Hao, Xiao and Chon, 2020).
The disaster and its impacts on McDonald's of COVID19 in UK are elaborated through the five
phases underneath:

 Pre-event- This is the first phase of disaster management where McDonald's could have
taken some preventive measures for mitigating the impacts of COVID19. In the very
beginning of the outbreak of virus McDonald's made efforts for keeping up with social
distancing norms for keeping customer safe and employees as well.

 Prodromal- The phase arises when the virus started to spread rapidly and in aggressive
manner causing harm to people life and making them helpless. This is a imminent phase
where McDonald's had to make their operational capacity low due to unavailability of
resources and raw materials.
 Emergency- This stage of disaster caused by COVID19 was reached when the President
of UK was infected by the virus after which the country was under lockdown. This means
no businesses other than essential goods provider are allowed to open and people where
strictly asked to not leave their houses. That means McDonald's was entirely closed for
certain number of months (Javaid and et. al., 2020).
 Intermediate- This is the stage of disaster management where the basis needs of people
form the firm could have been fulfilled. McDonald's had to reduce its menu size and
offering basis products which are safe to produce in the premises as raw materials were
short and the country was recovering form the lockdown slowly.
 Long term- This is the phase where McDonald's increased its menu size and started
offering all the products as the barriers of imports and exports were lifted and lockdown
was removed. Now people started to move out and resume their normal life which offered
McDonald's an opportunities to get back into business and adjust to the new normal.
 Resolution- The last stage is of resolution which offers permanent or temporary solution
to the disaster according to its nature. COVID19 resolution which McDonald's UK took
was following social distancing norms, keeping premises sanitised and majorly following
all regulations provided by government before reopening.
Evaluation of proactive and reactive management strategies for crisis within global perspective
of tourism
Covid-19 is one of the most threaten aspects for all individuals who are surviving and
living among the world. Department of UK health declare that Wuhan coronavirus generates a
serious and imminent threat which is rising among overall world. This also define and represent
perspective as there are high number of cases is recorded. The major impact of Covid-19 relates
with economic recession period due to which it is important for management of McDonald to
communicate all information related for managing and sustaining among market for longer
period (Lai and Wong, 2020). There are different task performed by organisation and most of
them make and implement changes for completion of work according to infrastructure.

Strategic forecasting
 Predication based on series of potential situation- This is also used by management for
managing work that makes better results by analysis of situations. In the present scenario,
there are different task managed which is beneficial to make opinion. Along with this
situation of Covid-19 generate specific results in managing aspect as per view.
 Factual and opinion-based view- According to current situation opinion of individual
matter because it relates with facts and figures that are used to complete all task in an
effective manner. With understand of McDonald management make opinion for complete
of all task as per opinion. Understanding of trends- the impact of COVID-19 relates with perspective that is used
to make effective results by involving trends of pandemic conditions. In the present
scenario, there are different task performed and all of them is used to work as per
situation of business. This result person specify task that helps in understanding opinion
of persons about organisation trend (Liu, Lee and Lee, 2020). Open and mass
communication are two important perspective because it is used to complete work with
understand of company trends.
Positive- The positive aspect that is related with strategic forecasting helps in improving the
public safety feature. Another important method that society is open for longer period as
management concern about implement of changes in order to improve their market share.
Negative- Cost and time to develop strategy is high that increase in burden of monetary aspect
for organisation. On other side, negative perspective demonstrate that it is complex to formulate
strategy for an uncertain situation.
Contingency planning
The main focus of agenda and management of McDonald is to complete all work in an
organised manner that is used to perform individual task in order to make response on global
level. Food restaurant such as McDonald perform their work with more efficiency some steps
that is adopted by organisation is mention as follow:
 Coordinate between organisation response- McDonald management formulate an
effective team which report about different team factors. With generating and assessing
about Covid-19 aspect management make ensure for purchase of government aspect.
This is also used to support functions and operations that is related with specific