Sunday, June 24, 2007

The Changing Environment for Business

In a rapidly changing business environment, Corporate Communication plays a vital role in the growth of the company. Advancement in technology has helped the companies to grow into multinationals it also had their anti-corporate opponents coordinated campaigns having negative impact on them. So corporations have to communicate strategically to gain competitive advantage over others.

McDonald’s was accused of wrongfully selling its French fries as 100% vegetarian products when they contained beef flavoring. This led to the company's reactions and allegations. There was a settlement of the lawsuit. The company paid the damages to vegetarian groups and accepted that they had gone wrong. In the courtroom McDonald's announced that it would issue a new apology and pay $ 10 million to vegetarians and religious groups as a compensation for the lawsuits. By using the Media, McDonalds overcame this issue creating a trust to the Indian Consumers by posting ads in its outlets which said “We use pure Vegetable Oil”.

Link: http://www.icmr.icfai.org/casestudies/catalogue/Business%20Ethics/Business%20Ethics%20-%20The%20McDonald%20Beef%20Fries%20Controversy.htm

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