Blue Bell Creameries Recall Several Products

Listeria monocytogenes found in Blue Bell products has been linked to 10 illnesses, including three deaths. The company announced a broad, voluntary recall of "all of its products currently on the market made at all of its facilities including ice cream, frozen yogurt, sherbet and frozen snacks . . ."

In a press release on its website, President and CEO Paul Kruse is quoted:

"We're committed to doing the 100 percent right thing, and the best way to do that is to take all of our products off the market until we can be confident that they are all safe. We are heartbroken about this situation and apologize to all of our loyal Blue Bell fans and customers. Our entire history has been about making the very best and highest quality ice cream and we intend to fix this problem. We want enjoying our ice cream to be a source of joy and pleasure, never a cause for concern, so we are committed to getting this right."

He also said,

"At every step, we have made decisions in the best interest of our customers based on the evidence we had available at the time. At this point, we cannot say with certainty how Listeria was introduced to our facilities and so we have taken this unprecedented step. We continue to work with our team of experts to eliminate this problem."

This must be a difficult time for the 108-year-old company: this is the first recall the management team has had to address.

The news follows a recall of Sabra hummus products also because of potential listeria, although no illnesses have been reported.

Discussion Starters:

• Assess Blue Bell's press release. What principles of persuasive communication does it follow? 
• What else, if anything, should be the management communicate at this point?

Waka Flocka Flame Is Running for President

On April 20, the rapper Waka Flock Flame announced his run for president. (420 is a significant number for so-called "cannabis culture.") Rolling Stone magazine got the story and posted his campaign video, which you can watch here, but be warned: he uses the "F-word" seven times. 

His campaign promises are to legalize marijuana, ban dogs in restaurants, and ban people who wear large shoes from walking on the sidewalk. 

I'm not sure his slogan, "A blunt a day will take the pain away," will work with Conservatives-maybe Libertarians. 

Makes me proud to be an American. 

Discussion Starters:

• It's interesting that Rolling Stone ran the story, isn't it? Why do you think the editors would agree to this? 
• How do you think his campaign will play out in the race? 

Baha Mar Mishandles Delay

The Baha Mar resort in the Bahamas has been delayed for months, and critics say the communication isn't going well. According to a Hotel Chatter article, the original opening was scheduled for March 27, and then May 5, and now it looks like reservations will be accepted for July 1 - 3. 

Hotel guests are angry. Some claim they didn't know about the delay until 48 hours before they left for their trip and that they found out on Facebook. 

Hotel Chatter quotes Mike Webster, a hotel consultant: 

"The starting point in dealing with any kind of crisis is good communication. And taking a passive-aggressive stance like posting something on your Facebook page is the opposite of proactive communication. To rely on Facebook to get the message out is just ridiculous."

A Wall Street Journal article questions whether this embarrassing delay will affect China's hopes for new business in the United States and the Caribbean. 

The property did receive some nice comments on its Facebook page, complimenting the staff's help in finding new accommodations. Baha Mar is offering one free night to guests to compensate for the delay.

Image source. 

Discussion Starters: 

• Read comments on the Facebook page. How would you suggest the management team respond at this point? 
• What principles of crisis communication would you recommend the hotel staff follow in the future?  

Target Apologizes for Sold-Out Clothes

First, Target was criticized for offering plus-sized clothing only online. Now the company is apologizing for selling out items from the new Lilly Pulitzer collection within minutes.

Customers thought the site crashed, but Target explained that it tried to manage traffic by closing down the site temporarily and by limiting access to parts of the site.

A Target spokesperson said, "We never want our guests to be disappointed. We share their disappointment with the experience of shopping online. It doesn't match what we aim to provide them, which is an easy, seamless, consistent experience."

Although shoppers were disappointed, some having stayed up all night waiting for the products to be available (which happened at 5 a.m., on a two-hour delay), the results for Target are positive overall. As the spokesperson said, "At this point, Lilly Pulitzer is the most talked about designer collection in our ­history."

Discussion Starters:

• One shopper tweeted, "Next time either 1) don't promote something that most people will never see or 2) significantly increase production #whatafiasco." Do you agree? 
• Can you make an argument that the entire situation was intentional? What do you think? 

Marco Rubio Is Cool but at a Cost

Marco Rubio is differentiating himself with technology and music, but he's not entirely successful. The U.S. Republican from Florida may have a edge in the presidential campaign because he's just 43 years old, considerably younger than Hillary Clinton. 

PR Daily tells us how Rubio is showing his tech-savvy side on social media: 

The Florida senator's youth-focused approach isn't limited to rhetoric, either. Social media is a huge part of his campaign. For instance, staffers live-tweeted his Monday speech. Tweets and Facebook posts counted down the hours to the announcement. One tweet played on young viewers' love of the HBO series "Game of Thrones."

He's also joined Snapchat and created an emoji design in a tweet. 

He's also using contemporary music, such as "Something New," by the Swedish group Axwell ^ Ingrosso, but the band isn't happy about the association: 

"Axwell ^ Ingrosso didn't give their permission for this song to be used and don't want to be affiliated with a particular party during the upcoming presidential race."

Discussion Starters: 

• Someone tweeted: "@marcorubio STOP." Do you agree or do you find this campaign approach effective? 
• What, if anything, should Hillary Clinton do in response?

Google Responds to Antitrust Charges

In a data-filled blog post, Google's senior vice president of search responds to antitrust allegations. The first formal charge comes from the European Union, which claims that the company's own results are favored during searches. According to EU competition commissioner, "If the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe." 

In his response for Google, Amit Singhal includes evidence to the contrary. Google's argument is that its own results fair far worse than other sites' results in a user's search.

Within the post, Singhal offer four charts, including this about German travel sites, as evidence: 

Read the entire post. 

Discussion Starters: 

• Read Google's entire post. Which arguments do you find most and least convincing? 
• How could Singhal have improved his visual displays of data?

Marco Rubio: "Yesterday Is Over"

In a speech at Miami's Freedom Tower, Florida Republican Senator Marco Rubio announced his run for president in 2016.  

Under a banner that reads, "A New American Century," Rubio positioned himself as the young candidate with new ideas. He is 43 years old, while Hillary Clinton, who announced her plan to run yesterday,  is 67.

Rubio is the third Republican to throw his hat in the ring along with U.S. Senators Ted Cruz and Rand Paul. The New York Times identifies nine others as probable Republican candidates.

If nothing else, he learns from his mistakes. His water bottle became a joke after his speech following President Obama's State of the Union Address in February 2013.

Discussion Starters: 

• Assess Rubio's announcement: tone, organization, messages, and delivery skills. If you were  a speech coach, what advice would you give him for the rest of the campaign?
• Which rhetorical devices do you hear in this segment of Rubio's speech?

Hillary Announces Her Campaign for President

In a YouTube video, Hillary Clinton announced she will run for president in 2016.

The video is a fresh approach, but it's getting its share of criticism. A Washington Post article described the strategy:

"Notably, all the people in the video express cautious optimism about the next chapter in their lives. The key here is the tone. Over the weekend, the New York Times reported that Clinton's advisers, after pondering how to handle GOP efforts to link her to Obama, had concluded that her best bet is not to distance herself from Obama's record, but to praise the economic progress he has made, and promise a 'new chapter' designed to build on it, one focused on giving those "everyday Americans" a better shot at getting ahead."

Some see the video as too "corporate" and unclear. Others are surprised that she doesn't mention foreign policy, particularly because she was Secretary of State for five years and has plenty of international experience.

Her logo isn't going unscathed either. Critics say it looks like it was designed by a third-grader or in MS Paint. Others say it's reminiscent of a hospital sign or FedEx's logo.

Comparing her announcement for 2016 to 2008, we see clear differences in style and focus. Some contrast her focus on domestic issues now with the Iraq War in 2008. At the time, she was criticized for initially supporting the Iraq War, and some speculate that caused trouble for her in the race against President Obama. 

Discussion Starters:

• How would you describe the key messages of Clinton's 2016 campaign video?
• What's your view of the video? Assess the content, tone, graphics, and so on?
• What other differences between these two videos do you find relevant?

Days Inn Explains Employee Separation

A Days Inn employee was interviewed by The Washington Post about wages and subsequently left or lost her job. The article was about the pending 25-cent wage increase. Days Inn and other employers, such as Wal-Mart, have promised small increases in hourly wages, particularly following protests from Fight for $15 and other organizations. 

Although Shanna Tippen said the increase would be helpful, but in the long-run, it was "not much difference" except for buying diapers: "The diapers, they're $24.98 at Wal-Mart." The article also quoted the Pine Bluff, Arkansas, Days Inn manager, Herry Patel, about the increase: "[The referendum] was bad.  Bad for Arkansas. Everybody wants free money in Pine Bluff."

After the story was published, Patel called the reporter to dispute the quotation, and Tippen called to say she was fired: "He said I was stupid and dumb for talking to [The Post]. . . . He said it was wrong for me to talk to you."  

Patel denied terminating Tippen. Rather, he said, "She walked out herself. I didn't fire her." Tippen reiterated her story to the Post author.

Wyndham, the Days Inn's operator, gave this statement to the Post:

"...while we do not control or oversee staffing decisions at our franchised locations, we do require that each independently owned and operated hotel comply with all local, state and federal laws, especially as it relates to employment practices. While we can't speak to the specifics of this or any particular situation at a franchised location, please know that ours is an organization which values and respects the contributions of all associates and that we encourage each of our franchisees to do the same."

Image source.

Discussion Starters: 

• Read more about the situation. Which version of the story do you believe?
• Did the employee make the wrong decision by talking to the press? She's out of a job now and desperately needs one. 

Germanwings' Communications About Flight Crash

A New York Times article, although still controversial, surmised the cause of the Germanwings flight crash over the French alps. Black box communications indicate that the plane colot barricaded himself into the cockpit to intentionally destroy the plane.

Updates on the Germanwings website have been steady since the crash was reported, with the most recent statement acknowledging reports of the colot's intention.

 

The home page of the website focuses on the incident. Simple text and no graphics appropriately reflect the severity of the situation.

In a news conference, a French investigator concludes that the colot is to blame. 

Discussion Starters:

• Assess messages from Germanwings. What works well about their statements, and what could be improved?
• The search continues for a second black box. What else, if anything, should the airline communicate at this point?

Announcing the Kraft Heinz Company

H.J. Heinz and Kraft Foods Group will combine into one big company. A press release describes the merger agreement:

PITTSBURGH and NORTHFIELD, Ill., March 25, 2015 /PRNewswire/ -- H.J. Heinz Company and Kraft Foods Group, Inc. (NASDAQ: KRFT) today announced that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America with an unparalleled portfolio of iconic brands.

Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft's Boards of Directors, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10 billion is being fully funded by an equity contribution by Berkshire Hathaway and 3G Capital.

The proposed merger creates substantial value for Kraft shareholders. The special cash dividend payment represents 27% of Kraft's closing price as of March 24, 2015. Also, by continuing to own shares of the new combined company, Kraft shareholders will have the opportunity to participate in the new company's long-term value creation potential.

A Reuters article explains the value of combining the companies: "Food industry experts see Kraft benefiting from Heinz's international presence, which generates more than 60 percent of its sales." The new company will address "sluggish demand" by offering more "organic or less processed" foods.

A Wall Street Journal article describes the cost-cutting plans, including losing "hundreds of management jobs."

The move will put several powerful brands under one umbrella. Of course, the jokes have started, such as the Facebook page, "Putting ketchup on your Mac and Cheese."

Source image.

Discussion Starters:

• Read the press release. How would you describe the key messages?
• What differences do you notice among the press release, Reuters article, and Wall Street Journal article? In other words, how do the companies' messages differ from what the press is reporting about the merger?

Sugarloaf Ski Lift Accident

Seven people were injured on a ski lift at Sugarloaf in Maine. The company has been providing updates on its website. 

The third update revises the number of injured to seven, explains what a "rollback" is (when the chair lift goes backwards), describes the mechanics of the lift, and of course, expresses primary concern for the guests, 204 of whom were evacuated: 

"Our first concern is with the guests who were injured and all of those who were impacted by the incident at the resort today," Sugarloaf spokesman Ethan Austin said. "Our staff is working with the Tramway Board on a thorough investigation, and we are committed to understanding the full cause of today's incident."  

On Twitter, the company posted only the tweet: 

Discussion Starters: 

• Read Sugarloaf's original media release and latest update. I find the tone a bit "boilerplate" and flat. Do you agree? 
• What else, if anything, should Sugarloaf post on social media sites? 

American Airlines Refuses Refund for Parents of Deceased Child

When a family tragically lost their nine-year-old daughter, they wanted to cash in their American Airline tickets for the vacation they had planned. But the airline refused.

The Cantrells' trip was just five months after Madison "Scout" died from an asthma attack. Her 13-year-old sister, Katie, didn't want to travel to their annual beach destination because it would be too painful. They requested a refund through the Airlines' online system and received a denial letter:

"After reviewing the documentation submitted, it has been determined the request does not meet our exception requirements. The ticket purchased is non-refundable so we cannot offer a refund, issue a travel voucher, or transfer this ticket to another person. The ticket will remain valid in our system for one year from the original date of issue, at which time it will expire and all value will be lost. [...] As a one-time courtesy, authorization was documented in your reservation to waive the change fee assessed when a non-refundable ticket is changed. [...] Your new ticket will be subject to any additional collection, if necessary, as governed by the applicable fares and fare rules in effect at that time."

The "Gulliver Business Travel" section of the Economist explains what happened next:

"By now, Gulliver readers will be able to predict with weary certainty what happened next. Which makes it all the more incredible that American failed to spot the inevitable chain of events that would follow. The mother posted the letter on Facebook, social media poured opprobrium on the airline for its heartlessness, and the carrier swiftly backtracked. As soon it started to feel the heat, American announced that it had apologised and would refund the Cantrells. But not before its reputation, such as it is, had already taken a shoeing."

According to The Consumerist, the decision is inconsistent with the airline's own policy:

"Nonrefundable tickets generally cannot be refunded. However, exceptions may be available under the following circumstances: Death of the passenger, immediate family member, or travelling companion."

Eventually, American Airlines came around:

"We extend our deepest sympathies to the Cantrell family on the loss of their daughter. We fully refunded [her] ticket last night and apologized to [the family] for not doing so immediately when she first contacted us."

Image source.

Discussion Starters:

• How do you think the original decision to deny the refund happened, particularly if it's inconsistent with the airlines' own policy? 
• The Cantrell family say they heard about the refund from news sources before they were informed by the airline. Why do you think American would handle the decision in this way? Was it the right move?
• Assess the airlines' apology statement. Should the company say more, or does this suffice?

Cancer PSA Shows Lumps in the Road

Cancer Research UK created a clever public service announcement to show how people ignore potentially cancerous lumps on their bodies. The group hired creative effects company Artem to design and build the lumps, which they managed in just three weeks.  

The video shows people on a busy street walking around and ignoring a lump as it grows in the sidewalk. At the end, we see the text, "It's easy to ignore something, especially when we're busy. But spotting cancer sooner could save your life."

Artem's portfolio chronicles the company's creativity and diverse work. After 12 days, the YouTube video shows about 90,500 views.

Discussion Starters: 

• How would you measure the success of this campaign? What metrics would be appropriate? Consider the costs as well as the benefits. 
• What's your view of the PSA? In what ways do you find it effective and ineffective?

Apple Apologizes for Outage

Apple has apologized for a major outage that lasted several hours. Users couldn't access iTunes or the App Store from 5 a.m. and during most of the day. Outages were reported in the United States, U.K., Switzerland, and Spain. 

Apple issued this statement to CNBC: 

"We apologize to our customers experiencing problems with iTunes and other services this morning. The cause was an internal DNS error at Apple. We're working to make all of the services available to customers as soon as possible, and we thank everyone for their patience."

As of 5:27 p.m., Apple's service status page showed all systems operating normally. 

Discussion Starters: 

• Assess Apple's apology considering principles from Chapters 1 and 5 about slang, jargon, and so on. 
• Initially, people thought the problem was caused by a server outage. How would this, if at all, have affected Apple's statement? 

McDonald's Limits Antibiotic Use in Chickens

Until now, McDonald's approach has been, yes, to offer some healthier menu items, but more so, to promote their current food. John Oliver poked fun at the company's ad campaign, "Our Food, Your Questions":

"There's something a little suspicious about the way that they're celebrating the fact that their food is made out of food."  

This week, McDonald's is taking real action: limiting the antibiotics that are used in chickens. Steve Easterbrook just took over as CEO on March 1 after a 12-year history with McDonald's in the U.K. According to The New York Times, this is Easterbrook's "first major act": 

"Mr. Easterbrook's first major act as C.E.O. was to announce that within two years all the chicken served at its restaurants would be free of antibiotics, or at least those antibiotics also used in humans. It was a big move for McDonald's, which is one of the biggest buyers of chicken, and one that pleased health officials who see overuse of antibiotics in animal husbandry - and the resulting antibiotic-resistant strains of bacteria - as a serious threat to human health."

The company hopes Easterbrook will turn around failing McDonald's restaurants throughout the world as he did in the U.K. This Business Insider chart of same-store sales shows that the company has work to do.

 Image source. Chart source.

Discussion Starters: 

• Assess McDonald's announcement about antibiotics. What effect do you think this will have on suppliers, consumers, and investors? 
• Easterbook declined comment for The New York Times article. Why would he decline, and is this a good move?
• What other communications or actions should the company take to restore the image and increase revenue?

Warren Buffett's Letters

Reuters, The Wall Street Journal, and The Washington Post covered Warren Buffett's most recent letter to shareholders. The Journal's fascination is evident in its annotated version of the letter and its description of the excitement: 

"Warren Buffett's annual letter to shareholders of Berkshire Hathaway, released Saturday, is always pored over for investing smarts, hints at who might succeed him, and folksy wisdom about life and business.

"This year's 50th-anniversary edition didn't disappoint. It offered readers a breezy and informative waltz through the history of conglomerates, and aphorisms such as "never underestimate the man who overestimates himself." It even included advice to get the giant root beer float for dessert at Piccolo's, if you happen to be in Omaha for the annual meeting that marks Buffett's 50th year at the helm. ('Only sissies get the small one,' he wrote.)"

The Journal also summarized a few leadership lessons from the letter, including these:

• Admit your mistakes and stay humble.
• Shower people who work for you with praise.
• Character is crucial. 

Buffett's previous annual letters are logged on Berkshire Hathaway's website.

Discussion Starters: 

• Explain the fascination with Buffett's letters. 
• Read the latest or an older letter. Describe the tone, messages, and organization. What are the communication objectives? Did Buffett achieve them? 

No More Elephants at the Circus

Ringling Brothers and Barnum & Bailey won't include elephants in their circus performances after 2018. The company announced a plan to phase out its 43 animals, some say because of pressure from consumer and animal rights groups, while others point to the increasing costs of maintaining each elephant: $65,000 per year. 

Ingrid Newkirk, president of PETA, People for the Ethical Treatment of Animals said, "These are complex, intelligent animals, and this is a lousy, lousy, dirty, cruel business, and people see that. This was purely a business decision." 

 A press release on the company's website says that the elephants will join other animals at the Elephant Conservation Center: 

"The Feld Family, owners of Feld Entertainment, Inc., the parent company of Ringling Bros. and Barnum & Bailey®, announced plans today to remove Asian elephants from their traveling circus performances. Under the plan, 13 elephants currently traveling with the three Ringling Bros. circus units will be relocated to the Ringling Bros. Center for Elephant for Conservation® in Florida by 2018. There they will join the rest of the Ringling Bros. herd of more than 40 elephants."

Later in the release, the company mentions "changing consumer preferences": 

"'Our family has been the proud steward of the American institution that is Ringling Bros. and Barnum & Bailey, and our elephants, for 45 years. It is a legacy that we hold near and dear to our hearts, and as producers of The Greatest Show On Earth, we feel we have a responsibility to preserve the esteemed traditions that everyone expects from a Ringling Bros. performance while striving to keep the show fresh and contemporary for today's families,' said Nicole Feld and Alana Feld, Ringling Bros. producers and Executive Vice Presidents with Feld Entertainment. 'As the circus evolves, we can maintain our focus on elephant conservation while allowing our business to continue to meet shifting consumer preferences,' they added."

Image source. 

Discussion Starters: 

• How well does the company's press release explain the move? 
• What do you think is the motivation behind the change? 
• What can SeaWorld learn from the news?

American Airlines Loses Lots of Luggage

American Airlines mishandled luggage-and customer complaints. International Business Times joked that MIA is the code for the Miami airport and now lost luggage as well.

The airline blames the mistake on a technical issue: the conveyor belts weren't working properly, so luggage wasn't loaded onto the plane. Passengers weren't notified until flights landed.

At other airports, travelers report being on hold for an hour and waiting in line for 45 minutes before learning about their lost luggage. 

"We waited another 45 minutes to see a customer service agent to file our locator claim. That was the frustrating part -- American Airlines didn't say anything. You think they would tell us so we're not waiting. We wasted a good hour and a half."

American Airlines representative Joshua Freed gave this statement:

"The system was back online this afternoon and we are working to reunite those bags with our passengers. Should a customer have a question about their delayed bag, they can work with the baggage service office at their destination or call 1-800-535-5225."

Discussion Starters: 

• Should American Airlines have told passengers about the missing luggage before they boarded the plane, during the flight, or only when they landed? Consider the consequences of each. 
• What else, if anything, should the company do or say at this point? 

Starwood CEO Leaves the Company

Frits van Paasschen, Starwood CEO since 2007, has resigned. Board Chair Bruce Duncan focused on execution rather than differences over strategy as the main reason for van Paasschen's departure: "This is not about strategy. . . This is all about execution. We want to do better."

"This is not about strategy. … This is all about execution. We want to do better," - See more at: http://www.hotelnewsnow.com/Article/15285/Why-Starwoods-van-Paasschen-resigned#sthash.FXnqSRBr.dpuf

"This is not about strategy. … This is all about execution. We want to do better," - See more at: http://www.hotelnewsnow.com/Article/15285/Why-Starwoods-van-Paasschen-resigned#sthash.FXnqSRBr.dpuf

"This is not about strategy. … This is all about execution. We want to do better," - See more at: http://www.hotelnewsnow.com/Article/15285/Why-Starwoods-van-Paasschen-resigned#sthash.FXnqSRBr.dpuf

"This is not about strategy. … This is all about execution. We want to do better," - See more at: http://www.hotelnewsnow.com/Article/15285/Why-Starwoods-van-Paasschen-resigned#sthash.FXnqSRBr.dpuf

In a news release on Starwood's website, the company announced the decision along with a temporary replacement: Adam Aron.

Starwood Hotels & Resorts Makes CEO Change
February 17, 2015

-- Frits van Paasschen Resigns as President, CEO and Director
-- Starwood Director Adam Aron Appointed CEO on Interim Basis
-- Company to Focus on Accelerating Growth and Improving Performance

STAMFORD, Conn.--(BUSINESS WIRE)-- Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that Frits van Paasschen has resigned by mutual agreement with the Board of Directors as President, Chief Executive Officer and a Director. Adam Aron , a Starwood Director since 2006, has been named Chief Executive Officer on an interim basis while the Board conducts a search for a permanent CEO that will include both internal and external candidates. van Paasschen will continue with Starwood as a consultant to assist in the transition. Read more. 

 On a conference call, Aron emphasized his "bias for action" and outlined four steps he'll take:

• Drive top-line growth through dedicated marketing campaigns;
• "perform with a high degree of focus and with higher operational excellence";
• manage costs aggressively; and
• "(expand) the size of our pipeline and footprints as we seek the objective of higher net rooms growth."

- See more at: http://www.hotelnewsnow.com/Article/15285/Why-Starwoods-van-Paasschen-resigned#sthash.FXnqSRBr.dpuf

•  Drive top-line growth through dedicated marketing campaigns
• "Perform with a high degree of focus and with higher operational excellence"
• Manage costs aggressively
• "[Expand] the size of our pipeline and footprints as we seek the objective of higher net rooms growth."

Image source.

Discussion Starters:

• Assess Starwood's news release. What key messages do you take from the statement? What is not being said?
• Do you think the company appropriately balanced respect for van Paasschen and plans for the future?