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Xaviers Institute of Business Management Studies
MARKS: 80 ( Each case study for 20 Marks)
Subject – Principles and Practice of Management
Communicating in a Crisis
Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned
by a well respected charitable trust. It overlooks a lake and is a modern building equipped
with state-of-the-art facilities. The total student enrolment is 2000, out of which more than
50% are girls and the rest boys. The students are all from affluent, educated families. The
school has established a good reputation for itself, thanks to the consistently good
performance of students in the public examinations. The school is headed by a lady Principal
and also has a couple of Supervisors and a team of 25 teachers. The teachers have had
extensive experience, are well qualified and are known for their commitment to imparting
quality education to students. Due to the recent heavy monsoons, the school was faced with
the problem of flooding, with water entering the rooms on the ground floor and water seepage
on the terrace. Since repair work had to be done, the school had to be closed for a couple of
weeks. The work was carried out by reputed contractors, but the building still looks a little
run down.
The crisis the school had just reopened after this two week break. The same morning, a fire
suddenly broke out on the third floor and spread to other floors, blocking the stairways. There
was widespread panic, as the children started jumping off the balconies, injuring themselves
in the process. The Principal and staff had a tough time trying to calm down the children and
take control of the situation. Fire engines were called and several of them arrived and began
their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter
the building to speak to the Principal. The phones were ringing continuously. There was total
chaos.
Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in
order to maintain its reputation?

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Case Study 2
Case Study on The power of Non-Verbal Communication
The Power of Nonverbal Communication Soon after I graduated from engineering college, I
accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town
in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the
General Manager and president of this family owned company, although there were many
technical problems, the work was extremely interesting and I soon learnt all about the
foundry business. The foundry workers were mostly older men and were a closely knit team.
Many of them were related and had been in the foundry for several years. Therefore, they felt
that they knew the business in and out and that a technical education had no value. In fact,
Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only
engineer ever to be employed in the foundry. He also let me know that the foundry workers,
although a good group, were very clannish, since they had been working together for several
years. Therefore, it would probably take them some time to accept me. I introduced myself to
the group of foundry workers, a few days after my joining. As I went around in turn, I felt
them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to
each other in low voices and laughing. I found their behavior to be very childish and felt that
it was best to ignore these signs of hostility. I thought that if I ignored them, they would
automatically stop these antics. A few weeks after this incident, I happened to visit the
enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which
water flowed at high pressure. I was aware that it was the practice to clean the shop at least
once a week. I turned my back on the worker and was busy near a dipping tank, when I
suddenly felt the force of a stream of water hitting me. I was almost knocked down by the
pressure and slipped on the wet floor. When I turned around, the worker looked away in the
other direction, as if he had not noticed this happening. However, I was pretty sure that he
had intentionally turned the hose on me.
Question 1 - What message did the foundry workers and the new engineer convey to each
other through their non-verbal behavior?
Question 2 - Mr. Vishwanath, the General Manager and President, was not often present at
the foundry. What could this non-verbal behavior mean to the workers and the new engineer?
Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more
effective, both verbally and nonverbally?

3. Question 4. What do you suggest that the engineer should do, after the hosing incident?
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Case Study 3
BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN
On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi
Mfume, president and CEO of the national association for advancement of colored people
(NAACP), who had joined forces with the Hispanic media coalition, and the American
Indians in film and television to request the CBS help to increase Indians in film and
television to request that CBS help to increase ethnic presence in the television industry. The
agreement stipulated the CBS would increase minority participation both on and off screen
by June 30.
In April 2000, CBS announced the appointment of Josie Thomas to the newly created
position of senior vice president of Diversity at CBS Television. Her job was to improve
outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS.
That fall Moonves announced that 16 of the 21 CBS shows, including news magazines,
would prominently feature minorities. “We think we are a leader in this area,” Moonves said
“We think we are ahead of the curves”
Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to
reflect the public that makes up our viewing audience,” there were many who did not feel the
company was sincere in its efforts to improve hiring practices. The national Hispanic
Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama
about middle – class Hispanic family. Moonves said “American Family” simply did not fit in
CBS’s schedule, since there were already too many strong dramas planned. He said he took
the unusual step of allowing the show’s producer to pitch the CBS-developed networks but
no one picked it up. Meanwhile, the June 30 deadline had come and gone without much
outward sign of change at CBS television.
Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of
CBS’ prime time series will have minorities in permanent roles and other series will have
minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and
welcome to New York have minorities in leading roles.
Since signing the agreement, CBS has established a strong working relationship with national
minority supplier council in order to help minority supplier council and women’s businesses.
The company has bolstered its internship program to include paid internships on the west
coast, pairing up interns with their areas of interest, Such as finance or entertainment. There
are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in

4. employee job performance evaluation. “Each area of the network has developed a detailed
plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity
efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen
Maynard, an Asian American Pacific Islander, had just been promoted form director to vice
president of alternative programming for the entertainment division.
“Will all believe there is a long way to go,” Thomas said. “What I have found is there are
some things that already exist that are positive, such as news magazines having minority
anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre
to low, and we did feel the program was a risk. It says a lot about our commitment”
In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an
agreement) a report card for their efforts to diversity shows on – air and behind the scenes.
CBS got a D-plus.
Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect
progress; we signed for progress” “The numbers in comparison to last year actually look
better” Nogales says. “There have been gains for people of color. There was movement. But
it has to be movement across the board, not just for one group.” He is referring to the fact
that most of the gains have been made by black actors, writes and producers. Black actors
appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics
shows up in only eight, Asians in five and Native Americans in one.
The pressure being put on the networks- including threats of “boycott” and legal action – is
having results. At CBS the number of minority writers and producer has more than tripled,
from four to fourteen, including six executive or co executive producer however, obstacles to
a fully integrated future remain serious-particularly because of misconceptions about the
nature of the television audience and about the way pop culture works. Network executive
worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby
show are “black” enough. Then again, they think that casting too many minorities may drive
white viewers away. Some network executives are afraid to cast minority actors in “negative”
roles because they may be criticized for it minority writers, who have been getting more work
lately, wonder if they are not just “tokens”; and despite some progress it is still almost
impossible for Hispanic actor to get non- Hispanic roles.
Both the NAACP and the coalition have been battling discrimination for years. CBS is just
finding out that a profound change toward pluralism can take place only with true insight on
the part of management. CBS spokesperson Chris Ender says “We have made tremendous
strides to increase diversity on screen, behind the camera and in the executive suites.
However we certainly recognize that more can be done and more will be done.”
As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for
network television prove he is right.

5. Questions
Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?
Question 2:- Where would you have placed CBS on the organizational diversity continuum
and where would you place CBS now? Why?
Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being
developed at CBS? Explain
Question 4:- How do the attitudes of management at CBS as depicted in your case study
affect the company’s progress toward forming a more diverse workforce? Explain.
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Case Study 4
McDonald’s Listening Campaign
At the end of 2002, the world's largest quick service retailer made its first ever
quarterly loss and faced a number of challenges. It responded by launching its Plan
to Win program, part of a global strategy to modernize the business, followed by the
Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives
were linked in the UK, and the impact The Listening Campaign has had on
communication, culture, image and media perception.
In 2003, things were looking bleak for McDonald's. Its share price was the lowest it
had been in a decade and it faced a series of seemingly insurmountable problems: It
was demonized by the UK media in the fierce debate raging over obesity; it faced
huge competition on the high street; and it was suffering under a wave of Anti-
Americanism in the wake of the wars in Afghanistan and Iraq.
Added to this was the fact that the restaurants themselves were beginning to look
dated and UK health lobbyists were determined to push home the message that
McDonald's food was bad for people.
Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: "We had
taken our eye off the customer, we were not customer focused, we were not
customer driven. And so we reorganized and regrouped. We decided we had to stop

6. and take stock of where we were. We had to be better, but we had to change the
way we were running this business."
The Plan to Win
The senior management put their heads together and devised the Plan to Win
program, which went public in the last quarter of 2003. A key part of its focus was a
shift to more choice and variety foods, with salads appearing permanently on the
menu for the first time in the organization's history. Key restaurants began to receive
make over and a supporting advertising campaign with international stars was
planned, all of which were intended to turn the food chain's image around.
But just as things were beginning to look up for the organization, trouble raised its
head again in the shape of the documentary film "Supersize me," which in turn re-
ignited the obesity debate in the media. It was then discovered that one of the salads
McDonald's was marketing contained more calories than one of its hamburgers. The
UK press reacted with predictable glee and once again McDonald's was in the
spotlight for all the wrong reasons.
The Listening Campaign. The company responded promptly. Working with agency
Blue Rubicon, the in-house communication and media relations team devised the
Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford
in July 2004, building on his personal credibility and that of McDonald's with the
Listening Tour. Beresford spoke directly to customers in focus groups, met with
franchise holders and with employees in 12 UK cities over the space of six weeks,
starting at the end of October.
The key ingredient was listening to customers and staff and then showing the results
of this. "Part of the reason [for doing it] was that we had to introduce Peter very
quickly to employees, customers and stakeholders," says head of internal
communications AIi Carruthers. "It was also signaling that he'd continue to work to
change our culture and lead the drive for a real transparency of approach. We've
been building on that work ever since."
Focus groups for stakeholders
The communication team made the most of Beresford's time by booking ahead so
that local franchisees could meet him when he travelled to regional centers for
customer focus groups. Next, Listening Groups were created for the company's
regional offices with corporate rather than restaurant-based employees taking part.
Initial meetings were centered around three classic focus group questions:
* What works?
* What would you change?
* How would you change it?
In each session, six to 10 employees took part and the sessions lasted around two
hours. After the first session, an action plan was drawn up and fed back to the
employees in a second round of focus groups. Then the agreed proposed changes
were put in place by the organization.
Proposed changes put in place
A range of short, medium and long term actions have been instigated as a result of
the focus groups. These include a firm commitment to hold monthly town-hall
sessions to regularly address key issues within the organization. "We've agreed to
use these sessions to feature various departmental heads," says Carruthers.
"That's so people can put names to faces, understand the organizational structure
better and get an understanding of what goes on outside their own departments."
The company has also committed itself to involving a new group of employees every

7. six months, and to being more transparent about its promotion process and how
people are assessed for promotion. It now holds regular Plan to Win meetings, which
are related to the global strategy. "We're using the town-hall sessions to
communicate the global strategy to thebroader office group rather than just senior
management so there's a wider understanding of what we're doing," says
Carruthers.
The company has also committed to a peer-nominated quarterly recognition scheme
for the regional and head offices. It's planned that the town halls will also be used in
the recognition scheme. "People need to say well done to each other and be
acknowledged by the senior team," says Carruthers.
A change in company culture
According to Carruthers, the strategy has been recognized globally - a drive for
greater face-to-face communication, more transparency, a growth in leadership
behavior and accountability. "Basically we've been trying to make people feel they're
able to ask questions," she says. "There's nothing wrong with challenging the status
quo as long as it's done in a constructive and respectful way. If we can use some of
those ideas we can probably make it a more enjoyable place for everyone to work."
There's no doubt that the Listening Campaign has had an impact on the senior team
and general employees alike. Carruthers has had feedback from both groups and
believes the exercise has been an eye-opener for the senior team: "They frequently
mention experiences they've had in those groups. There's nothing quite like hearing
issues for yourself; the good ones and the more awkward ones."
The feedback from focus-group participants has been very good; employees say
they feel listened to and think their feedback is being taken on board. "They feel
confident to ask questions or send e-mails directly to people they thought wouldn't
have listened to their suggestions previously. It's changing the culture. Anything that
builds trust and transparency is good. Now it's about delivering on the changes that
we said we'd make."
A hotline to the CEO
A hotline to the CEO has made the company's drive for transparency and
commitment to employees even more credible. The "Ask Peter" e-mail address was
established when Beresford took up his post and has seen a fair amount of traffic.
"It's word of mouth - people see that it's well responded to," says Carruthers. She
sees it as important to be straight with employees about how e-mails are dealt with
and who sees them. "We're very up-front about the fact that I see all e-mails as well
as Peter, but if we forward them to other departments, they'll be anonymous."
A combination of high and low technology adds to the feeling of personal contact:
Beresford will often answer e-mails with a hand-written reply. In one famous instance
he replied to nearly 100 in one week. "It doesn't always happen that way, but it's
these things that make a difference. People see it's coming from him and it's quite a
personal touch."
Committing to communication, A new round of Listening focus groups with fresh
employees is due to kick off in October. The whole cycle of questions, action-
planning and feedback will be replayed. "We're working with a new group of
employees because we want to keep changing and avoid having a formalized
council of volunteers," says Carruthers. "They'll look at what they think has
happened so far, whether anything could have been done differently and then we'll
hold a review of the proposals."
It's a genuine commitment to keep the focus groups running on an ongoing basis.
Carruthers is also expecting that the flexibility and fresh new faces will ensure that

8. new topics arise: "They're things that inevitably come up along the way and get
added to the agenda for change. We just need to follow them through and then tell
people the results."
The results
Since Beresford's Listening Tour there's been a turnaround in the media coverage of
McDonald's, which has been much more positive. The Listening Campaign is
changing the internal culture of the company and its focus group cycles are
becoming permanent two-way communication channels.
Results back in August this year from the last employee survey showed that internal
communication is now ranked by employees as number four out of 25 departments.
"The communications strategy has helped people become aware of who we are and
what we do," says Carruthers. The Listening Campaign has also helped McDonald's
raise its profile externally, as it was nominated in this year's UK Chartered Institute of
Public Relations Excellence Awards and short-listed for Best Use of Media Relations
in the PR Week Awards.
Questions
Question1. Based on this case, develop guidelines for improving communication with each of
different stakeholders, through better listening.
Question 2:- What are the essentials for the effective communication?
Question 3:- Write about McDonald marketing plan which they have implemented for the
success?
Question 4:- Do the SWOT analysis of following:-
 McDonald
 Food Industry
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