News Corp's Reorganization Announcement

News Corp will split into two separate, public companies: one focused on entertainment and the other on publishing. The company also announced the closing of its tablet newspaper because of low readership.

In a press release, the company announced leadership changes of the publishing company (News Corporation), additional organization changes in the New York office, organizational changes in the London office, and plans for the separation of the publishing company from the entertainment company (Fox Group).

In an internal email, Chairman Rupert Murdoch explained the changes, complimented the employees' work, and shared his personal mission for the company:

"Many of you know that a belief in the power of the written word has been in my bones for my entire life. It began as I listened to my father's stories from his days as a war correspondent and, later, a successful publisher. It deepened when, starting in grammar school, I rolled up my sleeves and worked alongside fellow students to publish school journals. I witnessed the hunger people had for well-written, thoroughly observed stories ... stories that provide not just information, but insight. That hunger is alive and well today; my personal mission is to serve and satisfy the human need for insight as well as I possibly can."

Image source.

Discussion Starters:

• Read the company's press release in detail. How is it organized? What works well about the structure, and what could be improved?
• What is your reaction to Murdoch's email to employees? What are his most important messages, and how do you think employees might react?

New NYT CEO Emails Staff

Mark Thompson, new CEO of The New York Times Company, emailed staff after his first week at work. This is a great example for business communication students to study:

• Content: What are Thompson's main points? What does he want NYT employees to know, and how does he want them to feel?
• Organization: What structure does Thompson use for his message? How does he sequence paragraphs? How does he convey the main point of each paragraph?
• Tone: How would you describe Thompson's tone? What changes, if any, do you see throughout the email? How does he balance positive messages with a sense of urgency?
• Sentence variety: How does Thompson vary sentence structure throughout his email? How many different types of sentences (simple, compound, complex) does he use?
• Punctuation: As we might expect, Thompson uses impeccable puntuation. How does he use m-dashes and semi-colons effectively?

As I finish my first week at The New York Times Company, I would like to thank the many people I've already met. As you'd expect, Times employees come across as super-smart and totally committed to maintaining the values and quality that the company and its newspapers have always stood for. But I've also been struck by how friendly and welcoming you've been to me.

I've been impressed by the work that's already in motion to tackle the structural trends that our industry faces and the products and services we're developing that will drive new growth and profitability, all while securing the brilliant journalism on which everything else depends. The digital subscription story continues to be an exciting one, and we can build on it further. With Invest in the Times and similar projects at the Globe and IHT, our company is already focusing on other growth opportunities. We are looking in the right places for future success: understanding and engaging with our readers and consumers better; developing compelling propositions in video, mobile and social; and figuring out how to drive more revenue from international audiences. The work done so far is really valuable.

But I don't want to underestimate the challenges we face. As our third-quarter results showed, the company is experiencing the same advertising and economic pressures as the rest of our industry. Figuring out how best to respond to these pressures - especially the long-term downward trajectory of print advertising - is also going to be an important part of our work in the coming months.

Thank you for a productive and inspiring first week. To help us get to know each other better, we have scheduled Town Hall meetings with me for Monday, Dec. 17, and Tuesday, Dec. 18, in The Times Center and Wednesday, Dec. 19, at College Point. More details will follow soon. I plan to have Town Hall meetings in Boston and at the IHT as soon as possible.

New Yahoo CEO Starts Hunting

Now that Marissa Mayer, Yahoo's new CEO, is back from maternity leave, she is building her new management team. On her first day back, she has hired Henrique de Castro from Google to be the company's chief operating officer. According to Yahoo's press release,  "de Castro will be responsible for strategic and operational management of Yahoo!'s sales, operations, media and business development worldwide."

Yahoo published the usual feel-good statements from both parties:

"'Henrique is an incredibly accomplished and rigorous business leader, and I'm personally excited to have him join Yahoo!'s strong leadership team,' said Marissa Mayer, CEO of Yahoo!. 'His operational experience in Internet advertising and his proven success in structuring and scaling global organizations make him the perfect fit for Yahoo! as we propel the business to its next phase of growth.'

"'The combination of Yahoo!'s unique properties with high quality content, its renewed focus on outstanding user experience and its massive reach bring tremendous value to users, advertisers and partners,' said de Castro. 'This is a pivotal point in Yahoo!'s history, and I believe strongly in the opportunity ahead. I can't wait to join Marissa and the team and get started.'"

De Castro could earn $60 million: a $600,000 base salary plus Yahoo stock and millions to compensate for lost Google stock.  

Image source with credit to YouTube.

Discussion Starters and Assignment Idea:

• Read Yahoo's press release. How is the statement organized? Do you find it well written?
• Write an email to employees announcing de Castro's appointment. How would you modify the company's press release to an internal audience?

"Worldulike": EU's Spin on Climate Change

"A world you like. With a climate you like." This is the European Union's attempt to rebrand climate change, hoping people will choose a "Worldulike."

The website presents case studies of organizations that have taken saved energy expenses and, in some cases, redirected funds to better use, such as education.

In a press release, Connie Hedegaard, European Commissioner for Climate Action, explains the new approach:

"We have a choice: We can ACT on our knowledge about climate change. Or we can sit idly by and watch as things get worse. Both options come with a price tag. So why not create a world we like, with a climate we like, while we still have time? With this campaign we want to focus the debate on the solutions and find out what is holding us back from applying them."

The name is already getting some ribbing from, for example, Roger Harrabin of BBC:  "The campaign title ‘Worldulike' will doubtless raise eyebrows. The name is uncomfortably reminiscent of the British baked potato restaurant chain Spudulike."

Discussion Starters:

• Do you think the EU's campaign will be successful in getting people to make better decisions about energy use-and in meeting the EU's goal of reducing greenhouse gases by by 80 to 95 percent by 2050? Why or why not?
• Choose one of the case studies on the website. What makes the example effective, and how could it be improved?

Yahoo Selects (Another) New CEO

Let's hope this one sticks around. Marissa Mayer, former Google VP, will be Yahoo's sixth leader in just five years. Mayer follows Scott Thompson, fired for misleading academic information on his resume, and Carol-"I've-just-been-fired-over-the-phone"-Bartz (and two interim CEOs in between).

At 37, Mayer is a relatively young CEO-and she's pregnant. Due to deliver a baby boy in October, Mayer said of the board's decision to hire her, "They showed their evolved thinking."

The company's press release emphasized Mayer's technology and product experience, which analysts say indicates Yahoo's "going back to its Silicon Valley Internet roots."

Yahoo Co-Founder David Filo said, "Marissa is a well-known, visionary leader in user experience and product design and one of Silicon Valley's most exciting strategists in technology development. I look forward to working with her to enhance Yahoo's product offerings for our over 700 million unique monthly visitors."

Not everyone is optimistic that Mayer can make the changes required for Yahoo to succeed, and some dread another round of restructuring and layoffs.

 
 Discussion Starters:

• Read Yahoo's press release about Mayer. Considering the leadership history, did Yahoo do a good job in writing the release?
• What's your view of Yahoo's board hiring a pregnant woman?

High School Group Performs "Wegmans, The Musical"

You can't pay for publicity like this. A high school drama class in Northboro, MA, chose food market Wegmans as their topic for a musical production. Students at Algonquin Regional High School were inspired by the local store opening in October, for which people camped out over night.

The Consumerist describes the history of "Wegmans: The Musical":

"'I was just feeling all around me the excitement and buzz about Wegmans. It seemed like an event, it seemed like a good idea to create a musical about,' their teacher told the Worcester Telegram.

"The show grew out of improv exercises earlier in the school year where students sang about Wegmans. Its plot centers on dueling twin brothers who work at Wegmans and at a competitor, and a spy sent to steal the secrets of Wegmans who instead falls in love with the store."

The local Wegmans store supported the students by donating shirts and sign for the set and by treating the cast to dinner after the show.

But Wegmans Corporate seems quiet. The company has an active Twitter account, but there's no mention of the musical.

Discussion Starters:

• What would be an appropriate tweet for Wegmans to write about the musical?
• If you were the VP of marketing for Wegmans Corporate, what, if anything, would you do to promote the YouTube video?
• What, if anything, should Wegmans Corporate do to recognize the students?

GM Quits Facebook Advertising, But Why?

Ad Age and others are criticizing General Motors, not for quitting Facebook but for failing to get the most from the social network. The timing was unfortunate for Facebook, in the midst of its initial public offering, but there's little evidence that the withdrawal impacted Facebook's IPO success.

Ad Age calls GM's Facebook presence, for which the company spent $30 million, "wrong" and "boring," with the following examples of posts:

• We're excited to announce the return of a V-8 powered, rear-wheel-drive performance sedan to our robust U.S. lineup, the Chevrolet SS!" (Well, of course you are. Maybe you should ask us if we're excited.)
• "Check out this picture of our Chairman and CEO, Dan Akerson." (Don't know about you, but I go to Facebook hoping to see the Chairman of GM's picture.)
• "Just wanted to let our millions of Facebook fans know, we're still here, and we 'like' you back!" (OK, thanks for checking in.)
• "GM is full of history and classic cars that we all know and love." (Uh huh. That's so exciting.)
• "Check out our latest Faces of GM video to find how John uses what he does at the race track to make the cars he works on even better." (Wake me when it's over)
• "Ever wonder what happens with leftover scrap metal from our vehicles?" (Umm, no, can't say that I have)
• "Happy Administrative Professionals Day to the women and men who keep our offices and dealerships running all across the globe! Thanks for all you do each and every day." (I'm sure they felt very rewarded by this post.)
• "We're thrilled to announce that Chevrolet sold 1.18 million vehicles worldwide in the first 3 months of 2012." (Of course you're thrilled. But we don't really give a damn.)
• "Hey GM Fans! Let's have a little fun before the weekend begins... What's your favorite current GM vehicle and why?" (Whose idea of fun is this? And the reason we have to have this fun is that GM is not online during the weekend, even though the Internet is, and always has been, 24/7, 365 days a year. Yes, even weekends. Hint: you want to make some trouble for GM? Post on Facebook and Twitter during the weekend. They won't see it til Monday.)
• "It may be Friday the 13th, but we think of it as just another day for you to drive your GM vehicle." (We live to drive our GM vehicle.)
• "One in four Buick Veranos sold have worn the most colorful hue offered, Crystal Red Tintcoat." (If that's not thrilling, tell me what is.)

For another view, Reuters critized Facebook, saying that the company didn't adequately sell GM on the benefits of paid ads. The article explains GM's decision this way:

"GM dropped its Facebook ads because they were less effective than other options such as Google's AdSense, the sources said. Facebook's ads garner about half the clicks per page view, a measure of effectiveness, compared with the average website.

"Moreover, Facebook's ad prices were expected to rise after the company's IPO. Ad prices are set in auction and vary depending on the target audience."

 Discussion Starters:

• What's your view? Did GM fail to take full advantage of social networking on Facebook, did Facebook fail to deliver, or is there another story here?
• Regardless of the decision, how could GM have done a better job engaging customers on Facebook? Rewrite a few of the company's posts, above.

Kraft Mac & Cheese Thanks Facebook Fans

Kraft Macaroni & Cheese hired an a capella group to show appreciation for the 4,632 fans who "liked" its Facebook page. Sung by The Yellow Jackets from the University of Rochester, the song is a great example of connecting with customers in a creative way.

The video is cute, but so far it has only 11,000 views after a week. Why hasn't it been more popular? Will it go viral still? 

Apple's Impressive Second-Quarter Results

With strong sales of iPads, iPhones, and Macs, Apple reported a 94% increase in year-over-year sales (compared to second-quarter a year ago).

In a company news release, CEO Tim Cook said, "We're thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter. The new iPad is off to a great start, and across the year you're going to see a lot more of the kind of innovation that only Apple can deliver." The news comes within a month of reports that Tim Cook is the highest paid CEO, raking in $278 million last year.

The news sounds good, but a closer look at the data shows that sales are down from the first quarter (click for the PDF).

Discussion Starters and Assignment Ideas:

• Do you believe that Tim Cook's salary is justified? Why or why not?
• Rewrite Apple's news release for employees. How would you adapt this message to an  internal email?
• Imagine that you're presenting the second-quarter results as part of a PowerPoint presentation to shareholders. Convert the table to a few charts to show the results more visually. Which data would you choose to include?

Facebook IPO Letter and Other Communications

As analysts value Facebook in anticipation of the initial public offering, let's look at some of the company's internal and external communications. One interesting message is a poster, distributed around Facebook's offices to keep the employees focused during the IPO. This photo is of Mark Zuckerberg's desk, which he posted on Facebook (and more than 71,000 people found worthy of "liking"). 

Zuckerberg's letter to potential investors describes the vision, mission, and priorities of the company. Mashable compiled ten "standout quotes" including the following:

• "At Facebook, we're inspired by technologies that have revolutionized how people spread and consume information. We often talk about inventions like the printing press and the television - by simply making communication more efficient, they led to a complete transformation of many important parts of society. They gave more people a voice. They encouraged progress. They changed the way society was organized. They brought us closer together."
• "Simply put: we don't build services to make money; we make money to build better services."

Quotes such as the last, according to Mashable, make Facebook "sound like it's set out to deliver presents and free education to underprivileged children." 

James Pennebaker, psychology department chair at the University of Texas, analyzed Zuckerberg's letter and compared it to other CEOs' IPO letters. According to Pennebaker, the letter revealed the following about Zuckerberg, reported by Forbes:

"Zuckerberg's word use 'suggests someone who is driven by very high rates of need for achievement' but low rates for building wealth or social affiliation, Pennebaker concludes. 'Most of the Zuckerberg letter is emotionally distant,' the researcher adds. 'There are very few personal pronouns (which typically signal an emotional cognition to other humans) and virtually no I-words except for a couple of paragraphs in the middle of the letter.' Emotive words such as 'happy' or 'sad' are rare, too."

Pennebaker also found, "The author is very much in the here-and-now, as opposed to deep analysis of the past or even directions for the future."

Discussion Starters:

• Compare Zuckerberg's IPO letter to Zynga's. What differences do you notice, and how do you account for them?
• Is the letter consistent with your view of Facebook? Why or why not?
• Do you buy Pennebaker's analysis of Zuckerberg's letter as "emotionally distant"? 

iPhone 5 (Lost in a Bar...Again) is Thin and Has Holographic Display (Not)

You've heard it before: a guy walks into a bar and loses an iPhone. Apple devotees get a glimpse of the iPhone 5 the same way they heard about iPhone 4: presumably because someone accidentally left one in a bar.

PR strategy side, the new (fake) iPhone is rather stunning: the size, laser keyboard, and holographic display may impress even the most diehard Droid user.

Discussion Starters:

• Do you believe this is a publicity stunt for the new iPhone? If so, why doesn't Apply just issue a press release like other companies?
• Does the product hype make you more or less likely to want the iPhone 5? Will you wait on line overnight for it?

Insurance Companies Communicate Before the Hurricane

Allstate is getting out ahead of the chaos: in an email to customers, the company offers suggestions for preparing for Hurricane Irene. The company's website offers additional advice. (Click to enlarge).

State Farm also offers advice for customers on its website. The "Disaster Response" page lists these tag lines:

• State Farm Has Unmatched Disaster Response and Recovery
• Ready to Respond to Hurricane Irene

Discussion and Assignment Ideas:

• Why would the insurance companies communicate before the hurricane? What do they have to gain?
• Compare the two companies' web communications about the hurricane. Explore both sites and identify differences in approaches and assistance offered. Which do you think works best and why?
• In an email to Allstate or State Farm, offer your advice for improving its communication. Use examples from the competitor's website to support your points.

Will New Facebook App Replace Text Messaging?

Facebook's new smartphone app, Facebook Messenger, allows Facebook users to text each other.  The app continues Facebook's move to replace other communications: Facebook Message, introduced in November, aims to be an email substitute. As Mark Zuckerberg said, "E-mail is too formal. . .Think of the friction of trying to think of the e-mail address and think of a subject line, write 'Hey Mom,' at the top and 'Love, Mark' at the bottom." With its capability for group texting, Facebook Messenger is also an attack on Google+.

Communication convergence may be inevitable -- at least Facebook would like it that way. According to Zuckerberg, "We are trying to make it so that people don't have to think about this stuff," Zuckerberg said. "We are trying to make sure a message doesn't go to five different channels." Facebook would like users to have all messages in one place -- a worthy goal -- but is Facebook the center of it all?

Discussion Starters:

• What are the implications of Facebook Messenger for business? How do you see business people using the tool, if at all? What programs may be developed for business people in the future?
• What is your experience with FB Messages and Messenger? In what ways do these apps save time or make messaging easier?
• How do you assess Facebook's promise to help users avoid sending multiple messages through IM, text, and email? Do the apps help choose the best option for a message (IM, text, or email)? What are the downsides?

Boeing 787 Dreamliner Ready for Service

Boeing's long-awaited 787 Dreamliner is ready for delivery to its first client, All Nippon Airways. At $20 million per plane, the Dreamliner uses 20% less fuel than its competitors, has cleaner cabin air, and debuts new lighting and design elements, such as button-controlled window lighting and touch-screen monitors for entertainment.

As expected, Boeing's press release fails to mention the years of delays. According to a Bloomberg report, the Dreamliner's delivery date had been pushed back seven times. A delay in January was caused by an electrical fire:

The setback follows a Nov. 9 electrical fire on one of the test jets that knocked out some controls and forced an emergency landing. Boeing suspended all Dreamliner flights for six weeks while it investigated the incident and redesigned parts of the plane. The first revised 787 was allowed to start flying again Dec. 23 for the company's purposes only.

Discussion Starters:

• Knowing the history of the Dreamliner, do you believe that Boeing's press release is appropriate? Why or why not?
• If you read believe the lines of the press release, do you detect any apprehension?
• What are the risks to Boeing if the Dreamliner is delayed again? How could the company handle the situation; for example, what rationale could the management team give to explain further delays?

How "Awesome" Is Facebook + Skype?

Last week, in an Apple-style tease, Facebook promised an "awesome" announcement today.

The news is a video calling feature that Facebook users can access without a separate Skype account. The response seems to be excitement, indifference, and a little anger laced with betrayal:

Facebook, you can't do this to us. I have been loyal to you for years because you held out a tantalizing future where my only interaction would be with one-inch-square boxes that vaguely resembled my memory of what people once looked like. You promised me that I would never have to talk to anyone ever again.

According to the Washington Post, CEO Mark Zuckerberg no longer considers growth a metric of social networking. Rather, Facebook will focus on apps and mobile technology. This shift is convenient following some reports that Facebook is losing users.

Discussion Starters:

• What do you think of Facebook's pre-announcement? Is this a clever marketing approach or just annoying?
• In Chapter 1, we discuss the pending convergence of communication technologies. Do you see this announcement as a move towards convergence or something else?

42% of Sarah Palin's Emails Are "Uninteresting"

The buzz seems to be fading. According to the Guardian, 42% of over 6,000 pages of Sarah Palin's emails scanned as of June 14 are "uninteresting." Over 24,000 pages of the former governor of Alaska's emails have been released for public perusal. 

 

Here are a few mildly interesting ones for business communication students:

• December 6, 2008: Apparently, Palin didn't have access to the email account "Governor Sarah Palin."
• March 10, 2008: Palin seems to care about following up with constituents.
• February 17, 2008: Palin compliments her former director of boards and commissions.
• January, 13, 2007: Many emails are redacted, causing a few questions.

Discussion Starters:

• Why do you think Sarah Palin's email is of such interest to the press? Do you find her communications interesting? Why or why not?
• Consider your own email communication. Have you written anything in the past year that you would regret if you saw it on Facebook?

FTC Fines Company for Fake Reviews

The Story

The Federal Trade Commission has fined Legacy Learning, maker of instructional DVDs, $250,000. Legacy's affiliates are paid commission when consumers buy Legacy products. The complaint accuses these affiliates of writing misleading reviews to encourage consumers to buy the products. In these reviews, the affiliates failed to state that they were paid by Legacy. The ruling follows FTC Guides, updated in 2009 to apply to testimonial advertisements and bloggers, particularly for social media outlets. 

 
 Discussion Starters

• To what extent do you currently rely on reviews and other online posts when deciding whether to buy a product?
• How do you decide whether an online post is credible?
• Read the above summary of the FTC complaint (posted by the Bureau of Consumer Protection blog, a government website). After reading the sample reviews in the summary of the complaint, do you believe the FTC Guides are appropriate? Is the fine fair? Why or why not?

Assignment Ideas

• Write a letter to small businesses in your community to warn them about this issue. How will you explain the FTC ruling and encourage business owners to operate within the Guides?
• Working in small groups, identify criteria to determine the credibility of an online review.  How can you assess objectivity? Or, what clues might tell you that a review is not objective?

Gates Foundation Offers Grants for Innovative Technology Tools

The Story

The Bill & Melinda Gates Foundation announced "Next Generation Learning Challenges," grants to improve postsecondary education through technology applications. Organizations can receive between $250,000 and $750,000 for their innovations. The Foundation's white paper describes how technology can achieve educational goals.

 
 
Discussion Starters

• Who is the audience for the Next Generation Learning Challenge? What do we know about them that might help the Gates Foundation communicate this initiative and encourage people to apply for a grant? 
• What communication media could the Foundation use to reach their audiences?
• How are the white paper and request for proposal (RFP) organized (download)? In what ways do these reports match the principles discussed in Chapter 10?

Assignment Ideas

• Write a short article (300-500 words) explaining the grant opportunity. You may use the Foundation's news release as a starting point.
• Write a letter tailored to one organization that might be interested in applying for a grant. The organization could be your college, a not-for-profit that focuses on education, or an entrpreneurial organization. Be sure to include why this organization was selected to receive a customized RFP.
• Write a proposal for a grant. Think of an innovative technology tool that would meet the Foundation's goals. Review the request for proposal (RFP) and address the questions as best you can.

New American CEO Brings Good News for BP

The Story

Bob Dudley finally replaces Tony Hayward, the former CEO of BP.  Hayward has been held responsible for the oil spill in the Gulf -- and for a host of public relations failures, which added embarrassment to the company.  BP shares rose 3% on Friday as Dudley took the company lead and suggested that shareholder dividends, which had been suspended, may be reinstated.

Read more here and here.  Image source.

Discussion Starters

• What is the significance of Dudley, as BP's first American CEO, taking the lead at this point? How do you think this move might be received by people in the Gulf?  How might people within BP react?
• What are Dudley's challenges in rebuilding BP's image? 
• How can Dudley use the positive news of dividends to fuel (sorry) his positive messages?

Assignment Ideas

• Analyze a segment of Dudley's interview on BCC News. As a media consultant, provide your feedback: what did Dudley do well, and what changes do you suggest?  Write a memo summarizing your feedback to him directly.
• Write an article for BP's website announcing Bob Dudley's new role.  How will you position him and address Tony Hayward's departure?  After you finish a draft of your article, review BP's version of the announcement.  How does yours compare?  What, if any, changes would you make to your draft after seeing the official announcement?
• Write an email to employees about the 3% increase in share price. How can you promote this as a first step in BP's recovery?
• Imagine that you're Dudley.  Start a CEO blog and write your first entry.  How will you introduce yourself to the customers, investors, and the public?

Steve Jobs' Email: "Please Leave Us Alone"

The Story

Steve Jobs, CEO of Apple, is known for responding to emails personally.  Although typically short, his responses are often unexpected and appreciated.  But this week, a journalism student at Long Island University received a disappointing reply.  For a school project, she wanted to understand how iPads could be used in academic settings.  After leaving six unanswered voice mails for Apple's PR department, she emailed Steve Jobs.  In a series of emails (download), he explained why he couldn't answer her question individually, ending with, "Please leave us alone."

Read more here.  Image source.

Discussion Starters

• The student's voice mail messages and original email were neutral, but the result didn't turn out too well. What were Apple's missteps in this communication? In what ways was the company's response understandable?
• What are other ways the company -- and Steve Jobs personally -- could have handled the situation?

Assignment Ideas

• Imagine that you're Steve Jobs in this situation. You want to reply to emails personally (this is a good idea!), but you can't address the student's question individually. Instead of Jobs' first email response ("Our goals do not include helping you get a good grade. Sorry."), what could you write instead?
• Review several examples of Steve Jobs' emails on this website.  In small groups, discuss his approach to email. In what ways is his approach effective and ineffective? How does his approach differ from principles discussed in the Chapter 4 of the book?