Question

Blow to McDonald's in case over its refusal to advertise on black-owned stations

A federal judge has allowed a discrimination lawsuit to proceed that argues that McDonald's refuses to advertise on Black-owned media networks.
Media entrepreneur Byron Allen, who is Black, has accused McDonald's of instituting a "racially discriminatory contracting process" in a lawsuit first filed in May 2021.
As the owner of Entertainment Studios Networks and the Weather Group, which includes the Weather Channel, he sought $10 billion in damages alleging that McDonald's established "a two-tiered, race based system and shut plaintiff out of the general market (i.e. white-owned media) tier."
However, a federal judge dismissed the suit in December, saying that the allegations were not sufficiently supported.
Following a legal back-and-forth, the same judge on Friday denied a request by McDonald's to dismiss the case, thereby allowing it to proceed.
Allen alleged that were his company white-owned it "would have received tens of millions of dollars in advertising revenue from McDonald's on an annual basis."
He also alleged that McDonald's contracts with a separate advertising agency for "African-American media" with an aim of spending a budget that "is de minimis compared to the general market budget."
Allen argues his company had programming geared towards a variety of viewers, especially after its 2018 purchase of the Weather Channel, and that McDonald's has advertised on "similarly situated, white-owned networks."
Loretta Lynch, the former US attorney general who is now a partner at law firm Paul, Weiss representing McDonald's, said Allen's complaint was "about revenue, not race."
The "plaintiffs' groundless allegations ignore both McDonald's legitimate business reasons for not investing more on their channels and the company's long-standing business relationships with many other diverse-owned partners," she said.

Question
Elaborate on the FOUR (4) types of organisational conflict and assess which type of conflict is prevailing between McDonald and the Entertainment Studios Networks. In your opinion, what could be the two most likely sources of the conflict? Support your position.

Answer 1

Step-by-step explanation:

The four types of organizational conflict are as follows:

1. Task Conflict: This type of conflict arises when individuals or groups have differing opinions, ideas, or approaches regarding the tasks or goals of the organization. It typically involves disagreements over work methods, priorities, or resource allocation.

2. Relationship Conflict: Relationship conflict occurs when there is interpersonal friction, tension, or animosity between individuals or groups within an organization. It often stems from personal differences, clashes of personalities, or past conflicts.

3. Process Conflict: Process conflict arises from disagreements regarding the procedures, policies, or decision-making processes within an organization. It involves conflicting viewpoints on how things should be done, who should be involved, or how decisions should be made.

4. Structural Conflict: Structural conflict emerges from issues related to power, authority, and organizational structure. It occurs when there are disagreements over roles, responsibilities, reporting lines, or distribution of resources within the organizational framework.

In the case between McDonald's and Entertainment Studios Networks, it appears that the prevailing type of conflict is primarily task conflict. Byron Allen's discrimination lawsuit alleges that McDonald's has engaged in a racially discriminatory contracting process, specifically regarding advertising on Black-owned media networks. The conflict revolves around the task of advertising and the unequal treatment of Black-owned media networks compared to white-owned networks.

The two most likely sources of the conflict could be:

1. Economic Disparity: One possible source of the conflict is the economic disparity between Black-owned and white-owned media networks. Allen argues that if his company were white-owned, it would have received a significant amount of advertising revenue from McDonald's. The perceived unequal treatment in terms of advertising contracts and budget allocation could stem from economic disparities and historical marginalization of Black-owned businesses.

2. Representation and Inclusion: Another potential source of conflict is the issue of representation and inclusion. Allen claims that McDonald's contracts with a separate advertising agency for "African-American media" with a significantly smaller budget compared to the general market budget. This raises concerns about fair representation and inclusivity in advertising practices, as well as the perceived exclusion of Black-owned media networks from equal opportunities for advertising revenue.

These two sources of conflict, economic disparity and representation/inclusion, likely contribute to the task conflict between McDonald's and Entertainment Studios Networks. The conflict centers around the perceived discriminatory practices and unequal treatment in advertising contracts and budgets, which have implications for the economic viability and representation of Black-owned media networks.