Written Assignment: Answer the following Case study in a short bond paper.

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SUMMARY

Domino’s Pizza was involved in a public relations crisis when two employees
produced and uploaded a vulgar/malicious video on YouTube showing two employees
violating health code standard, particularly, putting cheese on the nose and blowing mucus
on sandwiches. Within a limited time, the video went viral with over a million viewers were
disgusted and the video spread throughout Twitter and Google.

The Company did not take immediate action on the situation hoping that the
attention would subside, not knowing that the controversy would get bigger before they
have responded to the issue by sharing an apology on Youtube, however, the response was
too late and their reputation was already damaged. The perception of the costumer on its
quality went from positive to negative. The two employees were fired and charged with a
felony.
STATEMENT OF THE PROBLEM

Domino’s Pizza faced a communication crisis on social media when a Youtube video
of two employees violating public health law violations went viral. Lack of Company Policy
on Social Media Use and Communication had made the situation bigger.

PRESENTATION OF FACTS

Domino's decided a YouTube response was necessary in order to focus on talking to

the audience that was talking to them. Unlike what other companies would have done,
Domino’s did not issue a formal press release to mainstream press, and they did not open a
Twitter account to deal with consumer inquiries. Instead, Domino’s leveraged the same
media channel, Youtube, used by the two wrongdoers to transparently communicate the
company’s efforts to address the situation.Within 48 hours after the hoax the company
posted a video on Youtube featuring Patrick Doyle, the Domino’s president, making
apologies to customers: “We sincerely apologize for this incident. We thank members of the
online community who quickly alerted us and allowed us to take immediate action. They
took responsibility of the crisis and transmitted an honest, open and candid reaction.
Although, they tried to communicate with passion, concern, and empathy for its customers.
The Domino’s President separated the company from wrongdoers and outlined steps that
Domino’s officials are taking to deal with the issue to make sure it never happens again.
Besides Youtube, they also posted their response on the Domino’s website. In the video,
Patrick Doyle said that the store where the videos were shot has been closed and sanitized,
and that the company will be conducting a review of hiring practices “to make sure that
people like this don’t make it into our stores.

Domino’s released a brilliant official response to the crisis that has been the very
reason they were able to regain control of the crisis the way they did. Sure they suffered
consequences to the brand, but not nearly as much as they could have because three years
later the Domino’s brand is still going strong.

Within the video they:

 Responded to the crisis on the same channel it broke out on

 Optimized the video to be found alongside the offending video
 Showed true sincerity and humanized the brand and the situation
 Explained the measures they were taking to correct the unfortunate situation
 Presented the actions they were taking to assure that this horrific situation would not
have the opportunity to happen again
 Showed by example just how seriously they were taking the crisis – they weren’t just all
talk, they backed their words up with serious actions
 Had their U.S president, Patrick Doyle personally issue the response video

Having a solid plan in advance is key to managing any crisis. In fact, a great plan is the
foundation of great success in all aspects of life. To be successful in a crisis communication
management, the company has to use the same online tool as their customers to deal with
a crisis. If the crisis happens online, it has to be dealt online. It is important to understand
the potential risks social media can bring to any company and should put together a plan
that mitigates that risk. This risk is real, but it can be managed if the company is prepared
before the crisis hits. Regular updates across multiple social media should occur. Online
technology has a big impact on how we live and work. Any forms of online communication
are quick and easy way to communicate but, managers are required to be aware of its
potential problem from inappropriate usage. The best way to deal with the impact of social
media generating crisis like Domino’s is to integrate social media into crisis communication.

Taking responsibility for the crisis, apology,and convey passion and empathy to the audience
was a good thing because it has shown to its customers that they can trust the company.
Thus, gaining their confidence back will be easier.

ALTERNATIVE SOLUTIONS

1. Report information about a crisis on the organization’s online communication channels

2. Address the viewers at the very instant by delivering them the facts.
3. Create a strong social media plan and strategies to implement.

EVALUATION OF SOLUTIONS

 Information regarding the crisis must have reached the organization in the first place for
them to study the problem and come up with a solution as fast as possible before the
problem gets bigger.
 Before the problem gets bigger, the company should act and provide the viewers and
costumers reasons why there is such a mess while evaluating the situation on how to
deal with it appropriately.
 Companies need to have a crisis management plan in place that includes how to
respond in social channels when there is a disaster.

RECOMENDATIONS/CONCLUSION

 There should be a crisis team that will deal with some issues accordingly.

 Communication must be very clear to both top and lower management.

 Implementation of strict policy and regulations when using any form of online
technologies.
 Re-branding the company image and Repackaging of the food products.
 Establish policy on hiring and selection standards and qualifications for new hires
 Create a strong social media plan and strategies to implement.
 Managerial Communication is important for the fact of a two way concept.

PR professionals at Domino’s pizza implemented both the reactive and recovery

phases as well, once the issue became critical. They initiated a crisis management plan by
establishing communication channels with the target audience through social media. They
also implemented reputation management and image restoration when they decided to
reinvent their pizza with a campaign called Pizza Turn around by using an extensive media
coverage, documentaries, promotions, advertising, etc. Once the crisis was overcome, they
started implementing the proactive and strategic phases of establishing constant
communication with customers through social media channels, with a strategy to pay
special attention to customer feedback.

According to analysis of the strategic options for Domino’s, the future of the
company appears to have a greater potential to generate revenue to ease the high leverage
ratio the company holds. Strategic marketing and positioning has been the best strategic
tool that the company can use to maximize its potential of becoming the market leader. The
proposal to introduce a loyalty program with the customers can boost the sales and
customer loyalty to a great extent. Having a strong customer base is the basis for effective
sales that any company strives to achieve. In addition, the less saturated Chinese market
provides a very high sales potential to the company regarding its expansion strategy.

ANSWERS TO QUESTIONS

1. Beyond its being vulgar and disgusting, what do you think of this situation from the
perspective of managing communication?
As far as the Domino's response is concerned, the management was effective in
containing the viral video by addressing the customer's queries and negative comments
through online social media where the crisis happens. There should be new rules regarding
social media about security issues.
2. Why do you think Domino's executives took a wait and see attitude? Why was this
response a problem?
This was a problem since they thought that the video was just a hoax and not
knowing the effects of the problem that had damaged their reputation. There are no
presence of a supervisor or manager who would track down the social media.
3. How could this type of problem be prevented at other Domino Pizza Restaurants?
This type of problem can be prevented by analyzing the effects of the crisis that
should be studied by other franchises and making corrective measures ahead, a strict
implementation of rules and policies with the use of online technologies. Establish
regulation in hiring and selecting new hires. Define a clear response to deal with incidences
implementing a no tolerance policy and taking into considerations the effects and
implications of new media.

4. Do incidents like this one and the possibility of them happening anywhere, anytime, mean
that all forms of social media should be banned from workplace? what are the implications
for policies regarding communication technology? discuss.

The use of online technology such as social media should not be banned in the
workplace since this will have a great impact on production across the global market and it
is the fastest way to communicate and interact with costumers. On the other hand, we
cannot control the actions of the employees and that is when strict policy and rules comes
in. By implementing strict policy this would discourage the employees who wants to abuse
the freedom of using online technology. A strict screening in the hiring process is needed to
insure high quality work performance for employees. It is possible for HR professionals and
employment lawyers to take action against employees who make comments using social
media.