Toyota Addresses Effects of Japanese Earthquake and Tsunami

The Story

Production at Toyota Motor Company has been affected by the devastating Japanese earthquake and tsunami.  The video, below, shows the toll, and the company has posted updates about the situation. 

Video source.

Discussion Starters

• What content is most important for Toyota when addressing the effects of the Japanese earthquake and tsunami on car production?
• What is at risk for the company's communication about the situation?  What should executives emphasize and avoid in their messages?
• Assess Toyota's press statement.  In what ways is the company's statement effective, and in what ways is it ineffective? 
  

Assignment Ideas

• Complete an audience analysis for internal  and external Toyota audiences. Imagine that you are the VP, marketing, for Toyota and plan to write messages about halting car production for four different audiences: employees, dealers, customers, and the media.  Complete an audience analysis for each group.   
  
• Adapt Toyota's press statement for employees.  Write an email to employees to provide the most up-to-date information.

Steve Jobs Announces Another Medical Leave from Apple

The Story

After pancreatic-cancer surgery and a liver transplant, Steve Jobs is again battling his health.  In a short email to employees, Jobs confirmed that he'll take another medical leave, while continuing as CEO to make "major strategic decisions for the company." 

 

Discussion Starters

• What is your assessment of Jobs' email to employees?  Some analysts thought the email sounded negative, as if Jobs were unsure about when -- or whether -- he would return to the company.  Do you agree?  Why or why not?
• Compare this email to a previous email sent by Jobs.  What, if any, differences do you see?  What could account for these differences?

Assignment Ideas

• Evaluate how Jobs' announcement affected Apple stock in the short-term. The news came on a federal holiday (Martin Luther King, Jr. Day), so the U.S. markets were closed, but how did the rest of the world respond?  And what, if any, impact did the stock see the next day, when the U.S. markets opened?  From this example, what conclusions can you draw about communicating bad news?
• Rewrite Jobs' email to thwart criticism that it sounded too negative. 

1700 Holiday Layoffs, via Conference Call

The Story

Companies make many difficult decisions, but they don't always communicate them well.  To share the "news quickly and consistently," Sanofi-Aventis pharmaceutical company announced 1700 employee layoffs via two conference calls: one for those staying and one for those leaving.  The company's holiday season timing didn't win them any new friends.

 

Discussion Starters

• Conference calls may not have been the best choice, but was the company's unethical?  Where do you see the lines in this situation between unprofessional, insensitive, and unethical?
• Jack Cox, senior director of media relations, explained the decision to The Huffington Post: " 'Rather than cascade these announcements and stretch the notifications over the course of days, we decided to address these colleagues at one time, to explain the rationale for the reductions and express appreciation for the contributions they've made to the organization,' he said. 'We acknowledged in the call that delivering this news on a teleconference wasn't ideal, but given the scope and scale of the reductions, there was no other way to share this news quickly and consistently.' "  

Although the medium caused Sanofi-Aventis bad publicity, can you see Cox's point?  What might be a good compromise solution?  You might want to revisit Communication Media Choices from Chapter 1.

Assignment Ideas

• If an employee who reports to you complained about the conference call, what would you say?  How would you balance explaining the decision and empathizing with the employee about the bad news?  Role play with a partner in class.
• Write an apology email to employees.  Be honest and empathetic, and be careful about getting yourself in legal trouble.

Green = You Have a Job; Red = You're Fired?

The Story

The Daily Telegraph reported that employees at Everything Everywhere, a UK telecommunications company, communicated layoffs to employees publicly -- at a team meeting -- using a system of color coding.  The article describes the communication process: "Up to 1,200 middle managers and back office staff who could lose their jobs by the end of the Christmas holidays were shown a red light and told they were 'at risk.' Other staff saw the light go yellow, which meant they must re-apply for their existing job. Some 30 [percent] of these roles face the axe under current proposals. A blue light indicated their job had been 'mapped' into the new business plan and were being kept on. A green light showed the creation of a limited number of new roles."

An Everything Everywhere company representative called the report "sensationalist and insensitive" and describes a much more humane process.  According to the company, one color-coded slide was used as part of "a range of tools to ensure that our people know exactly what is proposed for their teams and others across the business."  The company also claims that affected employees "should have been seen on a one-on-one basis." 

Discussion Starters

• How could two versions of this story differ so much?  What do you believe is the truth?
• How does the process as reported by the Daily Telegraph match the principles for communicating bad news discussed in Chapter 8?  How does Everything Everywhere's version of the process match up?

Assignment Ideas

• Imagine that you're a consultant working with Everything Everywhere.  Write a report to the senior management team to explain an ideal process for communicating layoffs.  Draw on principles and examples discussed in Chapter 8 to identify steps a company should take to communicate this bad news.
• Write an email to employees about the Daily Telegraph article.  This is challenging!  You'll need to present the facts of the article and, of course, dispute them, while being sensitive to employees  who may believe the article was justified.  (Hint: You will probably want to provide an internal avenue for employees to provide feedback.  This is much better than finding comments on the Internet.)

Craigslist De-lists Adult Services Ads

The Story

Big news this week about Craigslist's decision to censor its adult services ads.  Craigslist has been under fire for allowing not-so-subtle ads for prostitution -- ads that people claim have facilitated human trafficking and assaults against women.  Before this decision, a CNN reporter asked Craig Newmark, the company founder, blunt questions about the ads.  Newmark didn't handle the situation very well, and the company has been criticized for its lack of communication around the censorship decision.

Read more here.

Discussion Starters

• From the company's perspective, what are the arguments for and against excluding adult services ads on Craigslist?  Do you think the company made the best decision?  Why or why not?  Read more from the Wall Street Journal here.
• On Craigslist's website, the company posted the word "censored" with a black background over the former adult services category.  Why did the company choose this way to communicate the decision (with no news statement or press release, at the same time)?

Assignment Ideas

• Watch the CNN video with Craig Newmark and evaluate his response to the reporter's questions.  In small groups, first discuss Newmark's approach.  Why did he react this way and resist her questions?  Second, discuss alternatives.  What could Newmark have done to come across more positively?
• Craigslist has not yet issued a news statement, but is expected to do so.  Before you look at the statement, write your own.  How would you represent the decision to the media?  After the company's statement is issued, compare it to your version.  What differences do you observe?

Egg Recall Scares Some, Brings Opportunities to Others

The Story

Millions of eggs have been recalled since a salmonella outbreak sickened over 1,000 people.  The egg industry is on the defensive, but some local farmers have seen increased interest in their eggs.  Both groups can use communication to their advantage.

Read more.

Discussion Starters

• What is the best approach for the industry to repair its image and rebuild consumer trust?
• What are the communication objectives of the egg industry during the recall?
• How should egg producers communicate their messages? What communication medium would be best in this situation?
• How can independent farmers capitalize on the situation to promote locally produced eggs? What could be some of their key messages?

Asssignment Ideas

• In small groups, discuss a press release about one of the recalls.  What principles of persuasion and communicating bad news are used in the announcement?
• Imagine that you're the owner of Morning Fresh Farms, a local egg producer in Colorado.  Write a letter to consumers promoting your eggs.  Use the opportunity of current egg recalls to educate the public about your products.  Assume that this letter will be published as a full-page ad in the local newspaper. Read this article for background information.
• In small groups, review the website http://www.eggsafety.org/. What are the group's most convincing and least convincing arguments?  Why do these arguments work well or fail to work?
    

GM Issues Recall for Safety Belts

The Story

Right on the heels of communicating good news (profits for a second quarter) and a big management change, General Motors gives us the bad news: 243,000 crossover vehicles are being recalled for a safety belt inspection.  

 

Read more here.

Discussion Starters

• What are the potential consequences -- financial and non-financial -- of this recall to GM?
• What are the potential consequences of not communicating this message well?
• What considerations should GM take in communicating this bad news?  What can it learn from Toyota's recent experience?

Assignment Ideas

• Analyze GM's recall message. Does the statement use the direct or indirect style of communication?  Why do you think the company chose this approach?  What other principles of communicating bad news do you see used in this message?  Discuss your ideas with a partner.
• In small groups, search online for other recall messages.  Have each person review one other recall message.  Then, as a group, compare these messages to GM's.  Which work best and why?
• Imagine that a business associate works for a bicycle manufacturer and has to recall 12,000 bikes because of faulty tires.  Write a memo to your associate with your advice for writing an effective recall statement. 
• Now imagine that you have to write the recall statement for the bicycle manufacturer.  Draft and revise your statement until it's ready for publication.

Shooting at McDonald's in Finland

The Story

Three people died this week during a shooting incident while on line at McDonald's drive-through in southern Finland.  Although McDonald's may not have liability for the situation -- the shooting resulted from an argument between drivers -- this would be considered a crisis situation for the company.

Read the full story.

Discussion Starters

• What is the local McDonald's responsibility during an incident like this?  How should management respond?
• Who are McDonald's internal and external consistuencies?  How should McDonald's communicate with each after this incident?
• What, if any, action should McDonald's Corporate (in the U.S.) take?  How do you see the Finnish store interacting with McDonald's headquarters during this situation?

Assignment Ideas

• Imagine you're the store manager of this McDonald's.  Write an email to your manager (probably a regional director for all McDonald's stores in Finland) describing what happened and your response.  Consider that your manager may forward this on to the Corporate office.
• As the store manager, write an email to your employees.  You'll want to explain what happened, reinforce emergency procedures, and assure employees of store safety.
• As the store manager, imagine that you and Fagerholm, the detective inspector, are planning a news conference about the incident.  What will you say to explain what happened and reassure the public that your McDonald's is safe?  Write a script and deliver the news conference.