07: Persuasive Amy Newman 07: Persuasive Amy Newman

Coca-Cola's New Message: Helping to Fight Obesity

Since the summer, when Mayor Bloomberg limited surgery drinks sold in restaurants, at movies, and by street vendors in NYC to 16 ounces, Coca-Cola has been on the defense. Now, the company is positioning Coca-Cola products as part of an obesity solution.

In a press release titled, "The Coca-Cola Company Reinforces Its Commitment to Help America in the Fight Against Obesity," the company describes a new television commercial that aired on national cable news:

"A two-minute video, titled "Coming Together," debuts tonight on national cable news. The video encourages everyone to be mindful that all calories count in managing your weight, including those in Coca-Cola products and in all foods and beverages. Its purpose is to highlight some of the specifics behind the Company's ongoing commitment to deliver more beverage choices, including low- and no-calorie options, and to clearly communicate the calorie content of all its products."

 

 

In addition to the company's commitment to healthier products, the press release highlights programs and policies to encourage fitness and education about calories.

Another commercial, "Be OK," will air on American Idol. According to the press release, this ad "makes it perfectly clear right up front that a can of Coca-Cola has 140 calories. This spot also encourages people to have some fun burning those calories off."

When ABC News asked the company to comment, Coca-Cola referred the reporter to Russell Pate, a professor with Arnold School of Public Health at the University of South Carolina, who blamed the obesity problem on lack of exercise:

"I think we have millions of Americans trying to eat down to their level of inactivity, and it's not working well. I believe strongly we will have to increase the physical activity level of our population if we want to overcome the obesity epidemic that we are currently challenged by."

Related:
Coca-Cola's New Ad Campaign Desperately Downplays Its Role In The Obesity Epidemic

Discussion Starters:

  • What's your view of Coca-Cola's new positioning? Do you buy the argument that the company is part of an obesity solution? Why or why not?
  • Compare the two commercials. (Find "Be OK" on YouTube.) How do they differ? Why would one air on cable news and the other on network television? What messages is each conveying to what audiences?
  • Review Professor Pate's CV. In what ways is he or isn't he a credible source for the ABC News story?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Samsung Tries Animal-Loving Ad

After an ad that drew the wrath of PETA, Samsung is trying a new approach.

In November, Samsung pulled an advertisement that compared old laptops to unwanted puppies-both presumably deserving to be shot. The commercial, "Don't Give up on Puppy Love," showed people attacking their computers, which had cartoon-faced puppies drawn over them. One of the commercial's creators at Viral Factory ad firm said, "We've made the decision to make the video private because it was clearly upsetting some people."

Samsung's new commercial features the EcoBubble Washing Machine. With its super green power (or something), the machine returns a brown bear into its polar bear roots.

I don't think it's very cute, but I guess it's better than shooting a puppy.

Discussion Starters:

  • How do you think a company decides whether to pull an ad? What factors would contribute to such a difficult decision? 
  • Identify examples of logic, emotional appeal, and credibility in the new Samsung ad. Does the company achieve the right balance and persuade you to buy the washing machine?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Another Airline "Breaks Guitars"

How is it possible for another airline to mishandle a customer's guitar AND the situation? Remember "United Breaks Guitars," the hit YouTube video and song that garnered over 12 million views?

This time, Delta disappointed Dave Schneider, guitarist and singer with the band The LeeVees. Trapping his (according to Schneider) $10,000 guitar between an elevator and a service-dock railing, the airline caused $1,980 in damage. Schneider wanted to carry on his guitar but was told that he had to check it. He described the ordeal in a YouTube video and on his Facebook page.

Although Schneider was offered $1,000, he declined, not knowing how much the repairs would cost. He completed online forms but didn't hear back from the airline until his story became public on Yahoo and other news sources. Then, the airline quickly responded, offering to replace his Gibson guitar.

Not to be outdone-or to miss a publicity opportunity-Gibson offered to replace the guitar with an anniversary issue guitar free of charge. Schneider was impressed: "We all know Gibson guitars rock. But at this moment, the Gibson company is rocking even harder than Pete Townshend's Les Paul."

Schneider mostly was disappointed with Delta's response: "I received quite a few apologies from different folks at Delta, which seemed a bit forced. But I will say that the last email, which I pasted below, was refreshingly genuine."

Mr. Schneider,

I want to further add apologies on behalf of myself and the entire Delta Executive Leadership team for the inconvenience and stress this situation caused. We are reviewing the series of events in full to ensure appropriate steps are taken to prevent future occurrences. Again, my sincerest apologies--please feel free to contact me directly if you would like to discuss further.

Jon Litzenberger

Delta Air Lines

Discussion Starters:

  • What should Delta have done differently in this situation? What should the airline have learned from the United experience?
  • Research Taylor Guitars' response in the United situation. How does Gibson's response compare? Which is more likely to win customers' favor? 
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

KFC: That's No Brain in Your Chicken; It's a Kidney

A 19-year-old musical theater student found what looked like a brain in his Kentucky Fried Chicken Gladiator meal. KFC assured him it was no brain-more likely a kidney.

KFC kidneyIbrahim Langoo took a picture of what he thought was a "wrinkled brain" and reported the incident to KFC:

"I have a habit of picking the chicken off the bone with my fingers, and as I pulled the second piece apart, I saw this horrible wrinkled foreign body.

"I threw it down onto my tray immediately. It looked like a brain. I suddenly felt grim and really sick.

"I couldn't bring myself to pick the lump up, so I went to the serving counter to complain.

"It was about 1pm and pretty hectic in the restaurant and as it was so busy none of the staff helped me."

KFC apologized:

"We always try to ensure the highest standards in all of our restaurants.

"Although we haven't received the product, it appears from a photograph that unfortunately on this occasion a kidney, and not a brain as claimed, was not removed in the preparation process.

"We're very sorry about Mr Langoo's experience and while there was no health risk, we agree it was unsightly."

The company also offered Langoo vouchers for free food in the future. But he says he's done eating at KFC.

Image source.  

Discussion Starters:

  • How do you assess KFC's response? Do you admire the company's honesty, fault its reference to a kidney, or some combination?
  • What else, if anything, could the company have done to handle the situation? 
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Herbalife's Unskilled Response to Criticism

After strong criticism of Herbalife, a multi-level marketing company, the CEO's response is wanting.

Bill Ackman, CEO of Pershing Square Capital Management, called the weight management and nutritional supplement company a "pyramid scheme." In a 334-slide presentation, Ackman explained why his hedge fund is shorting the stock, with a price of 0 and anticipation of the company's demise. Ackman said he felt so ,  "I don't want to make any money from this, 100% will go to the Pershing Square Foundation." 

Herbalife

Calling a company a "pyramid scheme" is a harsh blow. Such companies prey on people who buy into a business with little hope that they'll make any money. More typically, investors who buy in late lose everything.

The LA Times published CEO Michael Johnson's description of the company's reaction to Ackman's presentation:

"About 15 company officials, including Johnson, sat at a conference table in company headquarters and watched Ackman's presentation, growing angrier as he made his case.

"'There were a lot of cat-calls. He's not up to speed on the Herbalife of today,'" Johnson said. "'It was so filled with inaccuracies I haven't got the time. Our distributors get compensated for selling the product, not for recruiting.'"

Although Johnson said that the company would investigate the claims and respond in January, no other explanations or counterclaims were offered.

Discussion Starters:

  • Review Ackman's slide presentation. What principles for visuals for an oral presentation does it follow? What are Ackman's strongest and weakest arguments? 
  • How should Herbalife executives respond now?
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NRA Press Conference Called a "Train Wreck"

Words like "shameful," "disaster," and "mean-spirited, cold, and misguided" have described the National Rifle Association's press conference in response to the Newtown, CT, school shooting that left 26 dead, including 20 children.  

In a tone best left for a boardroom plea to fund a new product, NRA Executive Vice President Wayne LaPierre, as expected, defended guns. His focus, presented early in the conference, was how to "protect our children." The organization's ideas are to have "an active, national database of the mentally ill," armed guards in schools ("a police officer in every school"), and armed teachers and principals.

LaPierre blamed video games, the media's misrepresentation of guns, decreasing prosecutions of violent crime, and the "criminal class: killers, robbers, rapists, and gang members, who have spread like cancer."  Using questionable logic, LaPierre warned that another hurricane or terrorist attack could bring about a "recipe for a national disaster." At one point, LaPierre seemed to blame the Sandy Hook teachers, who tried to intervene but couldn't without guns. He said, "The only thing that stops a bad guy with a gun is a good guy with a gun."

The speech was interrupted by protestors carrying signs and yelling, "The NRA has blood on its hands."

LaPierre said, "While some have tried to exploit tragedy for political gain, we have remained respectfully silent." The NRA had issued a statement to this effect. However, critics say the organization's silence on social media this week was a mistake and point out the contraction of President David Keene's closing line: "This is the beginning of a serious conversation, but we won't be taking questions today." In fairness, he also said that the group will answer questions next week.

Discussion Starters:

  • Who was LaPierre's intended audience? To what extent would the press conference have appealed to that group?
  • What do you think were the NRA's communication objectives for the conference?
  • To avoid criticism, what could have been a better approach for the organization?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Cheerios' Facebook Campaign Fuels Controversy over GMOs

Another social media campaign gone awry: Cheerios' attempt for people to comment on what the cereal means to them turned into a free-for-all about the product. Thousands of posts criticized the use of GMOs (genetically modified organisms) in the cereal. The comments likely are the result of recently defeated Proposition 37, which would have required labeling of GMO products.

Cheerios FB

General Mills had been posting the comments, some via an app that displayed them in the Cheerios font. Since then the company has discontinued the app and stopped posting comments for some time. The company also removed anti-GMO photos from the Facebook page.

Todd Larsen, Green America Corporate Responsibility Programs Director, encourages consumers to understand the product and calls on the company to respond:

"At GMO Inside's Facebook page, people can see which ingredients in Cheerios and other products are likely to be genetically modified. Cheerios needs to label or remove the GMO ingredients. Consumers have a right to know."

The company's response has been minimal. Where the app was on the Facebook page is now this note:

"We consider your comments, and we listen to your point of view. Our community is passionate about food and about Cheerios. There are many varied opinions and they are often very strong. We've created this space to enable robust conversations, and we invite you to share your thoughts on things we're doing well and on areas we can improve. We ask only that you remain respectful and considerate of others as you're posting, in keeping with our community guidelines."

Critics say that General Mills should have known better: the opposition was clear, so the social media campaign was too risky, and the result is not surprising.

Discussion Starters: 

  • What's your view of GMO products? Do they concern you or not? What research are you relying on to shape your opinion? 
  • How else should General Mills respond to the controversy on its Facebook page or elsewhere?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

FreshDirect Updates Customers on Storm Recovery

FreshDirect Co-Founder and CEO Jason Ackerman sent an email to update customers on the company's recovery since Hurricane Sandy. Located in Long Island City, Queens, FreshDirect was hit hard by the storm.

Early in the message, Ackerman writes that FreshDirect is "largely back to pre-storm availability." The main point is clear, but where is it placed, and is "largely" the best word choice? 

 Fresh Direct Storm Recovery

With easy-to-read bullets, Ackerman highlights other key messages for customers about meeting service expectations, replacing lost trucks with greener options, and contributing to relief efforts.

Discussion Starters:

  • What are the other strengths of Ackerman's email, and what other suggestions would you make to improve the message?
  • If you were a customer of FreshDirect, how do you think the email would make you feel? How would it affect your image of the company?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Guy Fieri Gets Mocked and Responds

The New York Times published a scathing review of Guy Fieri's new restaurant, Guy's American Kitchen & Bar in Times Square. Reviewer Pete Wells wrote just a series of questions including the following:

  • Hey, did you try that blue drink, the one that glows like nuclear waste? The watermelon margarita? Any idea why it tastes like some combination of radiator fluid and formaldehyde?
  • How did Louisiana's blackened, Cajun-spiced treatment turn into the ghostly nubs of unblackened, unspiced white meat in your Cajun Chicken Alfredo?
  • What is going on at this new restaurant of yours, really?
  • Does this make it sound as if everything at Guy's American Kitchen & Bar is inedible? I didn't say that, did I?

To respond to the review, Fieri appeared on The Today Show. When asked whether reading the review felt like a "punch in the gut," Fieri said he thought the review was "ridiculous" and "overboard." He took issue with the tone and question style, and implied that the reviewer might have had another agenda:

"It's a great way to make a name for yourself: go after a celebrity chef that's not a New Yorker that is doing big concept, and in the second month [fist punch into his hand]..."

The interviewer also pointed to less-than-stellar Yelp reviews, to which Fieri admitted that the food isn't perfect but noted that it's still early in the restaurant's tenure.

 

Saturday Night Live produced a skit about Fieri, although it didn't appear on air:

Discussion Starters:

  • What's your assessment of the review? Is it probably fair, a personal attack, or something else?
  • How effective is Guy Fieri's response on The Today Show? How could he have taken a different approach?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Statements About Elmo Puppeteer's Resignation

After 28 years as Elmo's puppeteer, Kevin Clash has resigned following accusations of underage sexual relations. Last year, Clash starred in a documentary, "Being Elmo: A Puppeteer's Journey."

On its website, Sesame Street posted this message:

Sesame Street
After Clash's resignation, the website was updated with another statement:

Sesame Street 2
Further, in a statement to the press, Sesame Street noted, "None of us [at Sesame Workshop], especially Kevin, want anything to divert our attention from our focus on serving as a leading educational organization. . . . Unfortunately, the controversy surrounding Kevin's personal life has become a distraction that none of us want, and he has concluded that he can no longer be effective in his job. . . .This is a sad day for ‘Sesame Street.' "

Kevin Clash provided his own statement about the situation: 

"I am resigning from Sesame Workshop with a very heavy heart... I have loved every day of my 28 years working for this exceptional organization. Personal matters have diverted attention away from the important work ‘Sesame Street' is doing and I cannot allow it to go on any longer. I am deeply sorry to be leaving and am looking forward to resolving these personal matters privately."


Discussion Starters:

  • Assess Sesame Street's statements. What is effective, and what could be improved?
  • How, if at all, do you think Elmo's image will be affected?
  • How can Sesame Street preserve the brand at this point?

 

 

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07: Persuasive Amy Newman 07: Persuasive Amy Newman

5-Hour Energy Drink Responds to Death Claims

According to the Food and Drug Administration, 13 deaths over four years may be linked to the caffeine-infused 5-Hour Energy drink. More than 90 filings with the FDA have cited the beverage as a possible cause of heart attacks and other physical problems.

Packaged not as a beverage but as a shot, 5-Hour Energy is marketed as a dietary supplement, which makes regulation challenging for the FDA.

Manoj Bhargava, CEO of Living Essentials, the company that distributes the product, originally told The New York Times, "I am not interested in making any comment." However, the company has since issued a statement defending the product and its warnings to users.

5-Hour Energy

Discussion Starters:

  • Analyze Living Essentials' statement. What are the strongest and weakest arguments?
  • In the statement, the company makes no mention of the deaths potentially associated with the product. Why or why not is this a good decision?
  • What else, if anything, could the company include in its statement?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Yahoo's Server Crashes Before Fantasy Football Game

Yahoo learned a hard lesson when its server went down before kickoff on Sunday. Fantasy Football players turned to Twitter to vent their frustration.

Yahoo Fantasy Football

Yahoo's site is one of the most popular for Fantasy Football game players. When users were able to log into the site, they saw this message:

"We apologize sincerely for the outage on Sunday. We are working on the fix-the site is stabilized-and will update everyone on next steps for how to handle week 10. Currently, data and scores can be viewed on our mobile apps but for now you cannot make transactions or change line-ups from the apps."

Head of Yahoo Sports Ken Fuchs also sent this email to Fantasy Football players:

Dear Yahoo! Fantasy Users,

I want to sincerely apologize to all of you about today's Yahoo! Sports Fantasy outage. As the head of Yahoo! Sports and as a Yahoo! Sports fantasy player myself, I am disappointed that we failed all of our fans today. Our first priority is having the best experience for our users, and today we fell short.

The outage started around Noon ET (awful timing we know) and while our team was on it immediately we are still working on various pieces. Our team is continuing to work on identifying and resolving the root cause. We have restored full functionality on the website, and we're working for a final fix for our mobile apps. Currently data and scores can be viewed but for now you cannot make transactions or change line-ups from the apps.

We will also use today as an opportunity to improve our set-up so that we hopefully never have an outage like this again. Our fantasy commissioners and players are our biggest priority - we pride ourselves in being able to offer our users with the best fantasy sports experience possible and we take our job to deliver that to you very seriously. Rest assured we will work hard to make sure we continue to deliver on that commitment.

Thanks for playing with us and your patience today,

Ken Fuchs
Head of Yahoo! Sports

Discussion Starters:

  • What, if any, impact do you think the outage will have on Yahoo users next season?
  • What's your opinion of Fuchs's email? What works well, and what could be improved?
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Anheuser-Busch to Paramount: Remove Budweiser Logo from "Flight"

In the new movie, "Flight," Denzel Washington's character, a pilot, is drinking a Budweiser beer while he lands a plane. Anheuser-Busch doesn't like the publicity and has asked Paramount to omit its logo from digital and future versions of the film.

  Denzel-Flight

In a statement to the Associated Press, Rod McCarthy, vice president of Budweiser said, "We would never condone the misuse of our products, and have a long history of promoting responsible drinking and preventing drunk driving. We have asked the studio to obscure the Budweiser trademark in current digital copies of the movie and on all subsequent adaptations of the film, including DVD, On Demand, streaming and additional prints not yet distributed to theaters."

A distributor of Stoli vodka, another alcohol represented in the movie, also is unhappy with the depiction of the brand. A representative of William Grant & Sons told the Associated Press, "Considering the subject matter of this film, it is not something in which we would have participated."

These companies may be out of luck. As the Associated Press explains, courts have ruled that movies can use representations of brands without permission:

"Trademark laws 'don't exist to give companies the right to control and censor movies and TV shows that might happen to include real-world items,' said Daniel Nazer, a resident fellow at Stanford Law School's Fair Use Project. 'It is the case that often filmmakers get paid by companies to include their products. I think that's sort of led to a culture where they expect they'll have control. That's not a right the trademark law gives them.'"

Image source.

Discussion Starters:

  • What's your view of how alcohol is depicted in the movie? Do these companies have a right to try to protect their brand in this way?
  • How do you think Paramount decided to use these brands? Did the movie producers not think about the impact on brands, did they consider the consequences and ignore them, or something else?
  • How could this type of situation be prevented in the future? What are the responsibilities of filmmakers and brands?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Car Wash Company Tries to Balance Aid with Promotion

After American Apparel's failed attempt to capitalize on Hurricane Sandy, other companies are trying to do a better job. Splash Car Wash's email at least offers a service to people affected by the storm.

Car Wash Company - Sandy

The subject line, however, sounds like an overstatement: "Public Service Announcement From Splash Car Wash." Is the company offering financial assistance? And, is a car wash necessary following a major hurricane? I would think that people affected are seeking shelter if they're displaced and food if they're hungry.

On the other hand, Business Insider describes streams of people wanting cellphone power and Wi-Fi access. Located in Stamford, CT, Splash could attract the 39% of Connecticut Light & Power customers without power in Connecticut.

Discussion Starters:

  • What's our view of Splash Car Wash's email? Is this a successful advertisement for the company?
  • What improvements could you make to the email? Consider the text and graphics.
  • What emails have you received from companies about Hurricane Sandy? Which have been successful and why?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

American Apparel Capitalizes on Hurricane Sandy

American Apparel has learned a hard lesson after using Hurricane Sandy to promote a sale. With this graphical subject line, the company sent an email to customers:

☁ ☂ ϟ Hurricane Sandy Sale! ϟ ☂ ☁ 20% Off Everything!

The email encourages customers to take advantage of the sale if they are "bored during the storm."

  American Apparel

Backlash on Twitter was fast and fierce, with tweets promising to boycott the stores, telling the brand to "shut up about your #Sandy sale," and speculating that the company "will soon be hiring a new marketing director."

As of this writing, American Apparel has not responded to the complaints.

Gap made a similar but less serious faux pas. The company did respond to critics-sort-of:

Gap Sandy 1
Gap Sandy 2
UPDATE: In an interview with BloombergBusinessweek, American Apparel CEO defends the ad.

Discussion Starters:

  • What's your view of American Apparel's ad campaign: a clever marketing approach, insensitive, or something else?
  • Should American Apparel respond to the criticism, and if so, how?
  • How effective is the Gap's second tweet in explaining the first?
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Chase Emails Customers About Fees During Hurricane Sandy

Chase bank is communicating with customers about Hurricane Sandy. Before the storm hit land, the company emailed customers about plans to waive fees. It's an interesting email and shows the company's kinder side.

Chase Storm Comm
On its website, Chase repeats a version of the open paragraph and provides customers with information about open branches. The branch locator allows customers to search for branches and see the status of each.

As of this writing, neither Bank of America nor HSBC have similar messages on their websites.

Discussion Starter and Assignment Idea: 

  • What is your reaction to Chase's email to customers?
  • Go to the websites of other major banks. Do you find messages similar to that of Chase? How do they compare?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

NYT Article: BlackBerry Is Like an "Embarrassing Relative"

BlackBerryA New York Times article delivers a harsh blow to Research in Motion (RIM), the maker of Blackberrys. Several quotes from users paint a sad picture of the BlackBerry as a public embarrassment:

  • "I'm ashamed of it."
  • "I want to take a bat to it."
  • "You can't do anything with it. You're supposed to, but it's all a big lie."
  • "I feel absolutely helpless."

The article tells stories of people hiding their BlackBerry underneath their iPad, not using their BlackBerry at cocktail parties, and getting "disgusted" looks when asking a hotel concierge for a charger.

These aren't great testimonials for the product that was called "CrackBerry" when first introduced because of its popularity and additive qualities. Now it seems people can't wait to trade it in for an iPhone 5.

The article quotes an investment analyst saying that RIM's recent video, a play on REO Speedwagon's "I'll Just Keep on Loving You," is "a sign of a desperate company."

RIM clearly is not happy with the article. Amy McDowell, senior director of corporate communications at RIM, said that the company wasn't asked for input on the story. In response, CEO Thorsten Heins wrote an opinion letter in The New York Times:

"BlackBerry as Black Sheep in Smartphones" (Business Day, Oct. 16) lacks the balance your readers expect.

With more than 80 million customers globally, BlackBerry is growing and remains one of the world's most popular smartphones. I've just come from visiting carriers and partners in all parts of the world, and they have told me that there are millions of BlackBerry fans out there who not only find great value in their device, but also pride in being a BlackBerry owner.

While any report of dissatisfaction among our users is a cause for concern that I take very seriously, the comments supporting BlackBerry both online and in calls we've received from our customers in response to your article are encouraging to me.

BlackBerry remains the leader in providing security for corporate customers, which is why more than 90 percent of the Fortune 500 rely on BlackBerry. It's true that some companies put restrictions on accessing certain applications for security reasons, but applications like Yelp and OpenTable are, in fact, among the approximately 100,000 apps available in BlackBerry AppWorld.

We've received excellent feedback from carriers, developers and partners for our upcoming BlackBerry 10 platform and are on track to deliver it in the first quarter of 2013. We appreciate the customers who have remained loyal to the BlackBerry platform and look forward to winning back many who have left.

THORSTEN HEINS
President and Chief Executive
Research In Motion
Waterloo, Ontario, Oct. 16, 2012

Image source.

Discussion Starters:

  • Should The New York Times have contacted RIM for comment on the story before publication? Does it have an obligation to do so?
  • What examples of logical argument, emotional appeal, and credibility do you find in Heins's opinion letter?
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Wyclef Jean's Failed Haitian Charity

77_0_Wyclef_Jean_Adopts_a_Haitian__H040050_LHaitian-American rapper Wyclef Jean's charity is now defunct, with questions of impropriety in its wake. A New York Times article, "In Haiti, Little Can Be Found of a Hip-Hop Artist's Charity," cites angry creditors wondering what happened to $16 million in donations and "trail of debts, unfinished projects, and broken promises."

According to the New York Times article, Jean was using funds for his personal benefit: 

"The forensic audit examined $3 million of the charity's 2005 to 2009 expenses and found $256,580 in illegitimate benefits to Mr. Jean and other Yéle board and staff members as well as improper or potentially improper transactions. These included $24,000 for Mr. Jean's chauffeur services and $30,763 for a private jet that transported Lindsay Lohan from New Jersey to a benefit in Chicago that raised only $66,000."

When accused of misdirecting funds, Jean said that he didn't need the money, offering as evidence, "I have a watch collection worth $500,000." This didn't quite endear people to his cause.

In his new book, "Purpose: An Immigrant's Story," Jean denies wrongdoing. Rather, he claims that he is the victim of "crucifixion."

CEO letter that was posted on the charity's now-defunct website refers to "better accountability, more impact and greater financial transparency" and "a more disciplined Yéle Haiti." It's too late for that now. 

Image source.

Discussion Starters:

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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Starbucks Requests Starbarks Name, Logo, and URL Change

StarbarksStarbucks sent a cease and desist letter to Starbarks doggie daycare for having a name, logo, and web domain too similar to the coffee company's. A Starbucks representative defended the action: "...we have a legal obligation to protect our intellectual property . . . in order to retain our exclusive rights to it."

Andrea McCarthy-Grzybek, the owner of Starbarks,  said,  "I love the name. Everyone loves it. It's clever. It's not like we sell coffee or anything they do." With the URL, www.starbarksdog.com, the Algonquin, IL, small business offered to change the sign color to yellow and to use a graphic of paws instead of the stars, but Starbucks didn't bite (sorry).

Starbarks 2

Another company, with the domain starbarksaz.com, had a similar fate. Management explained the situation on its website: 

"Due to a conflict with a very famous coffee company our previous name (which we cannot mention) had to be changed to Canine Village only.  We are the same kennel and Canine Village was always a 'part' of our name.  This website will be shut down shortly  so please go to www.caninevillage.com and see all our wonderful reviews and many pages of information.  You can also email us with specific questions to caninevillage@cox.net.  Thank you for your understanding of this inconvenience."

As expected, public opinion is mixed, with some people blaming Starbucks for bullying and others saying the small business should have known better.

Image source 1.

Image source 2.

Discussion Starters and Assignment Idea:

  • What's your view of the situation? Is Starbucks a bully, or should the small business owner have chosen another name? 
  • Write a draft comment for the owner's Facebook page supporting one side of the argument.
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

In Email to Employees, CEO Threatens Layoffs if Obama Wins

CEO David Siegel of Westgate Resorts wrote an email to his employees warning of dire circumstances if President Obama is re-elected. Excerpts follow, and you can read the entire email here.

Siegel 1

Siegel 2

The email is reminiscent of a chain letter from 2008 from an alleged small business owner. Siegel confirmed with Gawker that his letter is real and was sent to his employees, but he acknowledged using the original as a "guideline" and said, "It speaks the truth, and it gives [employees] something to think about when they go to the polls."

Siegel and his wife were the subject of a documentary, "The Queen of Versailles," about their plans to build the largest home in America-a $100-million-dollar, 28-bedroom, 90,000-square-foot mansion.

Discussion Starters:

  • What are the potential consequences of a CEO's sending such an email to employees?
  • Do you agree with Siegel's arguments? Why or why not?
  • Does knowing about Siegel's extravagant home change your opinion of him or his concerns about his business?
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