Exploring Issues, Crises, Risk, and Reputation

Introduction to Issue Management Plan

Issue management is facilitating communication to respond to the issue that has evoked concern among the external environment and the public (Zaremba, 2015). This report highlights the MAdE establishment group founded by celebrity chef George Colombaris underpaying workers by $7.8 million. The staff was underpaid for the period 2011 to 2017 (ABC, 2019). The celebrity chef was found guilty by inspectors for incorrect processes and failure across the payroll system.

Step 1- Monitoring

Analyzing the business environment for the issue by scanning the business environment. Reading organization updates on social media forums, restaurants weekly. The government will exert pressure in the future. The organization's business may see a sharp fall. MADE establishments will lose revenue.

Step 2- Identification

The deals by George Colmabaris will be under scrutiny his business operations and prospective projects will be shelved. The business environment shows a negative outlook towards George Colombaris. The government has planned to take action as per the Fair work Commission Act. Investors are cautioned and look to minimize the next investment. Employees at the MAdE Establishments and suppliers of the business will be directly impacted.

Step 3- Prioritization

Prioritization will establish the far-reaching impact of the issue crisis.

The reputation threat to the company, loss of consumers, celebrity endorsements. The issue is in media coverage and is in stage 2. The awareness of the information has reached interest group and development groups. The company will face penalties and retraction of assets with an impact on the empire's restaurants. The occurrence of the probability is high with the issue developed in the current business environment as new. 

Step 4- Analysis

Mendelow’s matrix

The Mendelow’s matrix shows a power interest comparison for MAdE Establishments. George Colombaris action impact the business and stakeholder bear the major burnt. The matrix has

  • High power, high-interest people- The stakeholder assessment shows high power, and high-interest people are classified as key players. Investors have high investment and need to be aware of company action, whereabouts, and operational decision making.
  • High power, less interest - Government has high power and central to functioning its power to safeguard interest. Managing cordial business relations and maintaining transparency is critical for the business enterprise to function as running the enterprise.
  • Low power, high-interest people (Keep informed) - Union members have high interest and have low power. They are critical as they provide improvements for welfare. This includes NGO, union council that looks for the welfare of their people. Suppliers are external stakeholders who are part of the organization.
  • Low power, less interest- senior partner and restaurant association. They are unlikely to show resistance and does not require high monitoring (Zaremba, 2015). The MAdE establishment can manage them through weekly observation.
  • SWOT Analysis

SWOT analysis is an internal analyzing of business capabilities and assessing company strengths, weaknesses, opportunities, and threats for business planning.

Strength

  •  A strong chain of collection of 18 restaurants. MasterChef George s popularity and previous good conduct.

Opportunity

  • Brand rebranding for the fresh appeal to consumers

Threats

  • Voluntary administration and loss of legal action resulting in liquidity
  • Union boycott and the strike by the workers resulting in non-cooperation.
  • Reputation damage to the organization and loss of trust and sponsorship contracts

Weakness

  • No current cash flow stream other than food operations

Stakeholder Mapping

Interest vs influence

High Interest

· employees

· suppliers

· Consumers

· Current staff employed in the group restaurants

· Media

· Investors

Low Interest

· Suppliers

· Industry restaurant body

· Union council for restaurants 

· Business fraternity

 

Low influence

High Influence

The interest vs influence dictates the influence of media houses on the issue creating panic for the business empire. Influence indicates the ability to reset whereas interest indicates likely concern (Institute for Public Relations, 2008).

Step 5- Strategic Decision

Creating a response is the next step. Developing an appropriate response is critical for the MAdE establishment and George to minimize the damage of the event.

Defining the issue- “We are extremely saddened by current challenges that have transpired in recent times. We at MAdE establishments have decided to investigate the matter internally and are closing operations until the same is rectified.”

Overarching objective- Our objective is to streamline our business process and take necessary action in the case to rectify the damage done unintentionally during the period by re-developing the payroll system for staff and patrons

  • Intended outcome 1-
  • our outcome to ensure the customer that the business is committed to customer service
  • Cooperation with the regulatory body
  • Support from restaurant association and developing trust with staff union and restaurant body.
  • Target audience

Creating a message through the official website on the home screen of MAdE establishments, personal note on official social media handle by George for wrongdoing, and apologize.

Developing FAQ for impacted partners for the query on company functioning and business continuity

Organizing meetings with industry regulatory body for action and meetings to mobilize support for the empire

Topline message – “Our business commitment and importance notice our family of 13 years”

Step 6- Implementation

This is the last stage of the implementation of a business plan for management. The target group analyzed through the structure of influence and power will be communicated through the appropriate channel of communication (Jaques, 2014). The spokesperson will be addressing all official company release to mutation uniformity in the message created

Tactic

Who?

Date Completed

Media release

Public relation and marketing channel

1st Week

Developing infographics and banner for information on restaurants

Public relation and Marketing team

1st Week

Developing and displaying factsheets

Public relation and Marketing team

Ongoing

Spokesperson training and official message communicator

Legal and HR Team

1st week

FAQ on website

Public relation and Marketing team

2nd week

Developing public response

Marketing and Public Relations

2nd week

Business response and internal committee for assessment

Legal and HR Team

March 2020

Voluntary compliance and regulatory meeting with government

Industry body

Ongoing action

Representing the compliance committee

Legal and HR Team

2nd Week

Meetings with staff and union council

Legal and Business head

Ongoing action

Step 7- Evaluation

The actions will be evaluated to assess the impact on combating the issue. The future strategies will be displaying a commitment to business operations through top management on action to run business and 18 restaurant staff as trusted resource and asset. The union council will help to develop a census among members on management acceptance and corrective actions. The composition of the committee is the initial action. The government on a satisfactory response will develop a penalty and restrain George for his doings. This has created damage to George s business and consumer faith.

Step 8- Reflection

The identification of information void by George describes the action and his vision for developing a vision is utmost importance depicts the business commitment. The media pollution creates distance and impacts the brand hence the necessary steps wherein the right direction by accepting crisis and showing care for the workers and concern. According to Regester (2005), people management is the topmost importance in recognizing a crisis and taking action. The actions by George Colmabaris based on the principles are optimal for business to navigate the crisis.

Reference for Issue Management Plan

ABC. (2019). George Calombaris's MAdE Establishment underpaid workers $7.8 million. Retrieved from https://www.abc.net.au/news/2019-07-18/george-calombaris-made-establishment-backpays-underpaid-workers/11320274

Institute of public relation. (2008). Issue management. Retrieved from https://instituteforpr.org/issues-management/

Jaques, T. (2014). Issue and Crisis Management: Exploring Issues, Crises, Risk, and Reputation. Oxford Book

Regester, M, & Larkin, J., (2005). Risk issues and crisis management: A case book of best practice. CIPR

Zaremba, N. (2015). Crisis Communication: Theory and Practice. Taylor & Francis

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