Review the videos listed under References and then read the case in our text in Exhibit 19.B, page 429, and also the checklist in Exhibit 19.C on page 430

Review the videos listed under References and then read the case in our text in Exhibit 19.B, page 429, and also the checklist in Exhibit 19.C on page 430.

In reviewing the videos, written case, and the checklist, identify the top three checkpoints  (of the 12 provided) and explain how to address these three checkpoints in efforts to manage the crisis. Assume that you have an international role in senior leadership at Wendy’s.

References

Business and Media. (2008). ABC’s ‘Good Morning America’ on Finger in Chili Again. Retrieved from https://www.youtube.com/watch?v=L6-kxlrwuc8

ABC News. (2013). Woman behind “Finger in Wendy’s Chili’ hoax back in court. Retrieved from https://www.youtube.com/watch?v=KDmcIamx064

 

Exhibit 19.b

Denny Lynch, senior vice president for communications at Wendy’s, one of the country’s largest fast-food restaurant chains, received a shocking and unexpected call. A customer, Anna Ayala, claimed she had bitten down on a severed finger while eating a cup of chili purchased at a Wendy’s restaurant in San Jose, California. Lynch knew that he had to act quickly, since this incident would certainly be the top story in the news within minutes.

Wendy’s immediately assembled its crisis management team in its regional headquarters in Sacramento, California. Lynch prepared a statement for the press, instructed the company’s website to be frequently updated, and began coordinating with the San Jose police department, which was already involved in the case. According to Lynch, “It went nonstop the next two or three days. Even when the Pope passed away, it still got coverage.”

In the wake of the crisis, Wendy’s focused on trying to discover what had really happened. Through an internal investigation, Lynch learned that a 10-year veteran and trusted employee had prepared the chili for Ayala; he assured Lynch there was nothing improper in the food preparation.

While Lynch and his team worked furiously around the clock to discover the truth, Ayala, the woman who had made the accusation, was a guest on numerous morning and late night television shows. Yet, it was soon discovered that Ayala had a litigious history that included a settlement for medical expenses for her daughter, who had claimed she became sick at an El Pollo Loco restaurant in Las Vegas.

The break Lynch and Wendy’s needed occurred exactly one month after the initial incident, when Anna Ayala was arrested in her Las Vegas home for attempted grand larceny, accused of trying to extort $2.5 million from Wendy’s. The finger in her chili was all a hoax. “The true victims are Wendy’s owners and operators,” said San Jose chief of police Rob Davis. Forensic evidence proved that the finger was not cooked at 170 degrees for three hours—the typical preparation of Wendy’s chili. It was later discovered that Ayala acquired the finger through her husband’s workplace, where a fellow worker had lost part of his finger in an industrial accident.

Later that year, Ayala and her husband, Jaime Plascencia, pleaded guilty to attempted grand larceny and conspiring to file a false claim. Ayala was sentenced to 9 years in prison and her husband, who supplied the finger, was sentenced to 12 years and 4 months in prison.

 

Exhibit 19.c

document policies and procedures and circulate them widely.

Know the policies and procedures and follow them.

Be prepared with a continuity plan to provide for continuing operations during the crisis management phase.

Work as a team with assigned responsibilities and a clear leader and practice, practice, practice in mock drills.

Identify and understand the organization’s vulnerabilities; most importantly, correct shortcomings.

Let your conscience be your guide, follow good ethical practice, and remember the “front-page test.” (Or, better yet, consider: What would Grandma say?)

Beware of dangerous and distorted minds and protect coworkers and facilities.

Put all phases of the event under a microscope and track and record activities.

Handle all records, samples, information, materials, and evidence with care.

Know the media and how to handle it. NEVER lie, cover up, or obfuscate.

Keep your eyes on the law and contact legal counsel; don’t make decisions simply to avoid lawsuits.

Provide timely updates to coworkers and provide follow-up meetings and counseling.