11 and 12: Pres and Visuals Amy Newman 11 and 12: Pres and Visuals Amy Newman

Paul Ryan's First Speech as Romney's Running Mate

Paul Ryan, Mitt Romney's choice for vice president on the Republican ticket, gave his first speech in the role.

Ryan had an awkward start: Romney mistakenly introduced him as "the next president of the United States." Romney recovered by rejoining Ryan at the podium saying,

"Every now and then I'm known to make a mistake. I did not make a mistake with this guy. But I can tell you this: he's going to be the next vice president of the United States."

Coincidentially, in 2008, President Obama made the same mistake when introducing Joe Biden, his running mate at the time: "So let me introduce to you the next president-the next vice president of the US of America, Joe Biden." I guess they were both a little nervous.

Much of Ryan's speech touted Romney's qualifications for the job:

"And I believe there is no person in America who is better prepared-because of his experience, because of the principles he holds, and because of his achievements and excellence in so many different arenas-to lead America at this point in its history."

Predictably, he also criticized the Obama Administration:

"President Obama, and too many like him in Washington, have refused to make difficult decisions because they are more worried about their next election than they are about the next generation. We might have been able to get away with that before, but not now. We're in a different, and dangerous, moment. We're running out of time-and we can't afford 4 more years of this."

Read the Romney's and Ryan's speeches here.

Discussion Starters: 

  • What's your view of Ryan's speech? Which are the most and least effective parts?
  • How do you assess his delivery skills? What does he do successfully, and what should he work on leading up to the election?
  • In the excerpt of Ryan's speech, above, what rhetorical device does he use?
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Amy Newman Amy Newman

Alaska Airlines Apologizes to Passenger with Parkinson's

Horizon Air President Glenn Johnson has apologized to a man who many say was mistreated at the gate. According to the company, the man showed up at Horizon's sister airline, Alaska Airlines, late and intoxicated. At the time, it was not clear to gate agents that the man needed special assistance. 

Cameron Clark, also a passenger on the flight, saw the scene and apparently tried to intervene and help the man get on a flight to see his daughter, but he was not successful. Frustrated, Clark sent a Facebook post to some friends, calling Alaska Airlines "the worst of humanity." Clark also wrote,

"what happened to our collective sense of decency, of compassion, of our disposition to help those in need of extra help. alaska airlines. you broke a man's heart today. you maintained your policy, and ignored an opportunity to do the right thing. you broke my heart too."

Over the weekend, Alaksa Airlines has been responding to negative comments on Twitter and Facebook, such as this one:

Alaska Air

In an updated Facebook post, Johnson apologized and explained plans for improvement: 

A Message from Horizon Air President Glenn Johnson

I've seen a lot of concern by our customers about the treatment of the gentleman who flew out of Redmond, Oregon, to see his daughter. Now that we've been able to largely complete our review, which I've been overseeing throughout the weekend, I'd like to share some information with you. First and foremost, we've determined that we could and should have handled this better and I apologize to our passenger on behalf of all of us at Horizon Air and Alaska Airlines.

I'm happy to report the gentleman has been able to visit with his daughter after arriving at his destination before noon on Saturday. We are providing him with complimentary roundtrip flights for this trip and have offered free tickets for another visit down the road. We're also working with Open Doors Organization, a disability advocacy group that focuses on travel issues, to learn from this customer's experience and to help us with our ongoing care for passengers with disabilities. Alaska and Horizon have partnered with various disability organizations for years to help our employees better serve our customers.

This experience has reminded us of the importance of assisting passengers with disabilities and making sure every one of them receives the special care they may need. The information we've gathered during our review will certainly improve our efforts going forward. I'd like to say again that we're sorry for the experience of this customer and thank everyone who has brought this to our attention.

Glenn Johnson

President, Horizon Air

Discussion Starters:

  • Compare Johnson's two Facebook posts (August 4 and 6). What do you notice about the approach, tone, audience focus, content, and organization? 
  • How do you assess Johnson's plans for the airlines, for example, working with a disability organization? Do you see this as genuine, useful, a good PR move, or something else?
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Knight Capital Group CEO Responds to Trading Glitch

Thomas Joyce, CEO of Knight Capital Group, has lost no time in addressing concerns about a trading software problem that almost doomed the company. The error caused price distortions in almost 150 stocks, and Knight lost $440 million in a half-hour. In total, Knight has lost 600 million shares.

Joyce has been vocal on business news programs, trying to rebuild confidence in Knight. Sources say he has been transparent about the error and about the company's decision to accept a cash infusion.

Knight CapitalOn CNBC, Joyce started on a positive note. He said that the industry has responded well to the crisis: "The wildly flattering thing was how our clients responded to us." Joyce then said that the company made clients the priority, admitting, "There was a problem. We took the consequences. None of our clients took the consequences. And, importantly, the industry didn't suffer."

Joyce also explained what happened: "Sadly, it was a very simple breakdown...an issue with trading technology... Right now, we're doing an internal investigation." Joyce was firm about coming up with solutions.

When Joyce was asked about an interaction with SEC chair Mary Shapiro, Joyce addressed the question directly. He admitted contacting her while on vacation to request that the SEC cancel some of the incorrect trades. She refused. 

"She did what she thought was right for the industry... I'm kind of biased, I wish she had made a different decision, but she did what she thought was right..."

Discussion Starters:

  • Watch Joyce's interview on CNBC.What strategies does he use to rebuild confidence in the firm?
  • What non-verbal communication skills does Joyce use during the interview? Which are effective, and which, if any, are not?
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Man Fired for "Berating" Chick-fil-A Employee

Public opinion rages on after Chick-fil-A's CEO said he supported "the biblical definition of the family unit." First, we heard outrage from supporters of gay marriage and saw the company's softened stance on the issue.

The saga continues as one man wanted to tell a Chick-fil-A employee-at a drive-through window-how he felt. Adam Smith, the (former) CFO of Vante, a medical supplies manufacturer, posted a video of the interaction on YouTube. Smith ordered a free water, referred to Chick-fila-A as "a horrible corporation with horrible values," and told the employee, "I don't know how you live with yourself and work here."

Vante didn't appreciate Smith's behavior or the publicity and fired the CFO. In response, Smith posted another video in which he apologizes to the employee; refers to her "beauty," "kindness," and "patience" in dealing with him; and explains that he "lost it." He said, "You should be very proud of how you handled the stressful situation. Great job. Wow."

Vante issued this statement to explain the decision to terminate Smith:

"Vante regrets the unfortunate events that transpired yesterday in Tucson between our former CFO/Treasurer Adam Smith and an employee at Chick-fil-A. Effective immediately, Mr. Smith is no longer an employee of our company.

"The actions of Mr. Smith do not reflect our corporate values in any manner. Vante is an equal opportunity company with a diverse workforce, which holds diverse opinions. We respect the right of our employees and all Americans to hold and express their personal opinions; however, we also expect our company officers to behave in a manner commensurate with their position and in a respectful fashion that conveys these values of civility with others.

"We hope that the general population does not hold Mr. Smith's actions against Vante and its employees."

An article in Bloomberg Businessweek gives us a legal perspective on this situation and others: "Where Free Speech Goes to Die: The Workplace." The author explains:

"In America you can say pretty much whatever you want, wherever you want to say it. Unless, that is, you're at work. Simply put, there is no First Amendment right to 'free speech' in the workplace-potentially perilous for many employees in a polarized political year with a tight presidential race."

Mark Trapp, an employment lawyer further clarifies the limitation of "free speech":

"The First Amendment applies only to employees of the government in certain situations, and all citizens when they're confronted by the government."

Discussion Starters:

  • Did Smith's boss do the right thing? What are the arguments for firing him and for keeping him employed?
  • How do you assess the Chick-fil-A employee's reaction to Smith? Did she handle the situation well?
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Amy Newman Amy Newman

Sharp Reports Job Cuts and Plans

For the first time in 60 years, Sharp has announced 5,000 job cuts this year, which is about 8.8% of its workforce. The company posted a June-quarter loss of $1.2 billion, blaming a difficult economic environment and power outages.

In a PowerPoint presentation, Sharp explained the report and how the company will address declining revenue.

In its quarterly report, Sharp explained its plans for the future including the following: 

Sharp Quarterly

Discussion Starters and Assignment Ideas:

  • Read the entire quarterly report and analyze the audience and structure. How is the report organized for the audience? Do you think this is effective? What, if anything, could improve the organization?
  • Compare the above quarterly report excerpt with slide 9 of Sharp's PowerPoint presentation. What differences do you notice, and how can you account for them?
  • The excerpt could be clearer; revise it to improve clarity, conciseness, and tone. Also correct any errors.
  • Considering that the layoffs will be the first since 1950, how should Sharp communicate these plans to employees? The company will use voluntary and mandatory retirement to achieve the cuts.
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01: Intro to BCom | Character Amy Newman 01: Intro to BCom | Character Amy Newman

Companies' Green Claims Count More than Actions

GreenwashingA recent study concludes that companies' messages about environmental actions have a more positive effect on market value than do positive actions themselves. Or, as one article put it, "...greenwashing is better than being green." 

The study, "Do Actions Speak Louder than Words? The Case of Corporate Social Responsibility (CSR)," analyzed data from 2,261 firms in 43 countries from 2002 to 2008. Authors from Fuqua School of Business and the London Business School explored the conditions under which CSR (corporate social responsibility) affects financial performance. According to Environmental Leader, the study found the following:

"The authors found symbolic actions have a higher impact on market value than substantive actions, when the company has higher CSR-based assets. The study also concluded that a larger gap between symbolic and substantive actions has a higher positive impact on firm performance; and the more companies engage in both symbolic and substantive actions, the higher the value accumulates to the company."

The Environmental Leader further describes the distinction between "symbolic" and "substantive" actions:

"Symbolic actions include any ceremonial conformity or compliance: for example, a company announcing plans to form a sustainability or corporate ethics committee to provide the appearance of an action, without necessarily having any substance. Symbolic actions can be more generally described as 'window dressing' or greenwashing – essentially anything designed to give an appearance of an action while allowing business to proceed as usual.

"Substantive actions are the real actions taken by an organization to meet certain expectations and often require changes in core practices, long-term commitments and investments in corporate culture."

The paper is consistent with a Deloitte report that companies' communication about CSR practices impacts the bottom line.

Image source.

Discussion Starters:

  • What's your view of greenwashing for the purpose of improvement corporate financial performance? Is it ethical? Why or why not?
  • If you were the CEO of a Fortune 500 company, how, if at all, would you use the results of this study?
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Amy Newman Amy Newman

Recent Twitter Fails

In the past few days, we've seen several apologies for tweets that were posted without thought-perhaps too quickly. Here are three examples.

1) A Wall Street Journal editor jabbed women who died in the Aurora, CO, shooting. James Taranto explained his tweet in a longer post. (Image source.)

James-taranto-wsj-tweet-aurora-boyfriends

2. Celeb Boutique jumped on "#Aurora" on Twitter, not realizing the hashtag connection to the theater shootings. The company's explanation was that it outsources its Twitter account overseas.

#Aurora

3. Greek triple jumper Voula Papachristou was expelled from the London Olympics after a tweet some considered racist. The Greek Olympic Committee said that her tweet was "contrary to the values and ideas of the Olympic movement." Apparently, Papchristou has a history of neo-Nazi sympathy. She did respond with this apology: "I would like to express my heartfelt apologies for the unfortunate and tasteless joke I published on my personal Twitter account," she wrote. "I am very sorry and ashamed for the negative responses I triggered, since I never wanted to offend anyone, or to encroach on human rights." (Image source.)

Papachristou
Discussion Starters:

  • How could these mistakes have been avoided?
  • How do you assess each writer's explanation? Which do you find most and least acceptable?
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08: Bad News Amy Newman 08: Bad News Amy Newman

Lacoste Responds to False Coupon Code

Apparently, Lacoste had trouble with a fake coupon cope that was circulated online. Here's the CEO's email to one customer. What do you think of the response?

Dear Jason,

On July 12th, we became aware that an incredible LACOSTE discount code
was making the rounds in social media - a discount code that was not
authorized by LACOSTE. The code was deactivated by the company that
manages our website and fulfills our orders since they determined that the
discount code was procured by fraud, and they decided to cancel all
unshipped orders. You may receive an email notification to that effect
today, and we want to make sure you understand why.

Regardless of whether or not the code was authorized, the cancellation
of your order was not what we wanted, and we're very frustrated with the
situation - though not as much as you probably are.

Although we cannot undo the cancelled orders in our partner's system,
LACOSTE has every intention of honoring the single order you placed with
us. As a result, we would like to offer you a new (and fully
authorized!) $50 discount valid on any single order over $50. Below,
you'll see a unique code that's valid at http://shop.lacoste.com/ between
now and August 31st. Note that it can only be used once, so please
safeguard it.

Your unique code is: [omitted]

Thank you for your understanding and patience, and we apologize for any
inconvenience this has caused you. If you have any further questions or
concerns, please contact me directly at steve@lacoste-usa.com.

Best regards,

Steve Birkhold, President and CEO
LACOSTE USA

Discussion Starters:

  • What principles of communicating bad news does Steve Birkhold use in his email?
  • What is your assessment of the email? If you were the customer who received this, how would you feel?
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04 and 05: Writing | Designing Amy Newman 04 and 05: Writing | Designing Amy Newman

Jack Daniel's: Finally, a Nice Cease-and-Desist Letter

BizCom in the News readers may recall the U.S. Olympics Committee's recent cease-and-desist letter to knitters, which didn't go over too well. This time, we have a much more polite example of a legal attempt to stop a trademark violation.

The Jack Daniel's letter addresses a violation of its whiskey label on this book cover. Comparing the two, we see obvious similarities in color, borders, and some of the text.

 Jack Daniels

The full letter includes this excerpt:

Jd-letter-excerpt-640

The book author acknowledged that the letter was nice:

"...perhaps, the most polite cease and desist ever written. If it wasn't signed by some lawyer, I'd imagine ol' Gentleman Jack penning it himself, twirling his bushy mustache."

 However, he didn't take the company's offer to reprint the book:

"In case you're wondering, no, my publisher, Lazy Fascist Press, will not be taking them up on their offer. We're proudly independent and don't need any of that sweet corporate booze money to redo the cover."

Discussion Starters:

  • What risks does a company such as Jack Daniel's take in writing a non-traditional legal letter?
  • Can you find the modifier problem in the letter excerpt? How can you fix it?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Burger King's Response to Posted Photo

Reminiscent of the Domino's Pizza incident back in 2009, a Burger King employee photographed himself standing in two bins of lettuce. The image, posted in 4Chan, made the news rounds, and the poster was tracked down. Finding the employee wasn't too hard-GPS data was attached to the image, which was traced to a northern Ohio suburb.

Burger King Lettuce
The Board of Health for the Mayfield Heights location confirmed that the restaurant "threw out all of the affected food on Saturday morning" and that the lettuce wasn't served to customers.

Burger King issued this statement in reponse: 

"Burger King Corp. is aware of a photo that shows a BURGER KING® restaurant employee violating the company's stringent food handling procedures. Food safety is a top priority at all BURGER KING® restaurants and the company maintains a zero-tolerance policy against any violations such as the one in question.

"The restaurant where this photo was taken is independently-owned and operated by a BURGER KING® franchisee. The franchisee has taken swift action to investigate this matter and has terminated the three employees involved in the incident."

Discussion Starters:

  • Burger King's statement could use editing. What are the two punctuation errors?
  • What else could Burger King say to reassure customers?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Theaters Respond to Colorado Shooting

After a terrible night at an Aurora, CO, movie house, theaters across the country are responding. Twelve people were killed and 59 were wounded during a midnight showing of "The Dark Knight Rises," the latest Batman movie. The gunman dressed in black and described himself as the Joker to police.

CO Theater

In response, Warner Bros. has cancelled the movie's planned premiere in Paris. The company also said, "Out of respect for the victims and their families, Warner Bros. Pictures will not be reporting box office numbers for 'The Dark Knight Rises' throughout the weekend. Box office numbers will be released on Monday."

AMC Theaters is banning masks and fake weapons in theaters. The company issued this statement:

"AMC Theatres is deeply saddened by the Aurora tragedy. Movie going is part of our social fabric and this senseless act shakes us to our core. We're reinforcing our security procedures with our theatre teams, which we cannot discuss in detail for obvious, safety reasons. Local law enforcement agencies, our landlords and their and our local security teams are stepping up nationwide to ensure we provide the safest environment possible for our guests. We couldn't be more grateful for their collective support. At this time, our show schedules circuit-wide will not change. We will not allow any guests into our theatres in costumes that make other guests feel uncomfortable and we will not permit face-covering masks or fake weapons inside our buildings. If guests wish to exchange or refund any tickets, we will honor our existing policy and do as our guests wish. We are taking necessary precautions to ensure our guests who wish to enjoy a movie this weekend can do so with as much peace of mind as possible in these circumstances."

Regal Cinema also issued a statement about the incident:

"We are profoundly saddened by the tragedy that occurred at a Denver area theatre and are concerned for the victims and their families. The security and safety of our guests and staff is always our number one priority. As is our custom, we will continue to monitor the situation and adjust our security needs as necessary. In the meantime, our thoughts and prayers go out to the victims and their families."

President Obama responded to the tragedy, cancelling a campaign stop in Orlando, FL:

"Michelle and I are shocked and saddened by the horrific and tragic shooting in Colorado. Federal and local law enforcement are still responding, and my Administration will do everything that we can to support the people of Aurora in this extraordinarily difficult time. We are committed to bringing whoever was responsible to justice, ensuring the safety of our people, and caring for those who have been wounded. As we do when confronted by moments of darkness and challenge, we must now come together as one American family. All of us must have the people of Aurora in our thoughts and prayers as they confront the loss of family, friends, and neighbors, and we must stand together with them in the challenging hours and days to come."

Image source.

Discussion Starters:

  • Read several additional statements following the shooting massacre. Which do you find most and least effective?
  • Did President Obama do the right thing in canceling his campaign stop? Why or why not? 
  • What, if anything, should movie theaters change in their security policies? Should all theaters ban costumes?
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02 and 03: Interpersonal Amy Newman 02 and 03: Interpersonal Amy Newman

Chick-fil-A Changes Its Tune on Gay Marriage

A social media storm has erupted in response to Chick-fil-A's anti-gay-marriage stance. When asked by the Baptist Press about the company's position, president Dan Cathy said, "Well, guilty as charged."

Cathy further explained the company's views:

"We are very much supportive of the family-the biblical definition of the family unit. We are a family-owned business, a family-led business, and we are married to our first wives. We give God thanks for that.

"We operate as a family business ... our restaurants are typically led by families; some are single. We want to do anything we possibly can to strengthen families. We are very much committed to that.

"We intend to stay the course. We know that it might not be popular with everyone, but thank the Lord, we live in a country where we can share our values and operate on biblical principles."

Although Chick-fil-A did find some support on Twitter and Facebook, many comments, such as this one, opposed the company's view:

Chick-fil-A tweet

Chef Hilah posted a video of how to make your own "Chick-fil-Gay" sandwich. As she says, "I love fried chicken sandwiches at Chick-fil-A. The problem is, I have a lot of gay friends, and I love them too." A CNN poll in May found that 54% of respondents support gay marriage, while 42% are opposed.

Within three days of the Baptist Press article, the company has taken a different approach:

Chick-fil-A

Discussion Starters:

  • What's your view on whether a company should take a position on an issue such as gay marriage?
  • Does the president's view influence your decision to eat at the restaurant?
  • How do you assess the company's response?
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06: Neutral | Positive Amy Newman 06: Neutral | Positive Amy Newman

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).

Yahoo CEOsAt 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.

  Mayer CEO
 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?
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11 and 12: Pres and Visuals Amy Newman 11 and 12: Pres and Visuals Amy Newman

Jamie Dimond Responds to More Questions

Following JPMorgan Chase's spectacular trading loss, CEO Jamie Dimon is still on the hot seat to explain what happened. Today, on the second-quarter investor conference call, analyst Mike Mayo asked particularly difficult questions.

Mayo asked "if the firm as a whole has reached some sort of tipping point in terms of bigness or complexity that makes it more difficult to manage than in the past." Dimon responded, "No." Mayo followed up by asking whether Dimon has "lost a step," and someone yelled, "Are you getting old?"

Dimon focused on the firm's successes through the recession and in assimiliating Bear Stearns and Washington Mutual. He claimed that the issue is a marketing problem.

However, Dimon did admit, as he had before, "We made the mistake," but also said, "I cannot prove a negative." To regain trust, Dimon emphasized the firm's current structure: "We believe we've got very good controls and very good people in place."

Dimon focused on the bank's results, and Mayo acknowledged the positive returns but said, "But we saw how the sausage is made, and it just makes me wonder if I'm going to get food poisoning in the future."

Discussion Starters:

  • Listen to the exchange between Mayo and Dimon. What's your assessment of Mayo's interview strategy? What are his most and least effective questions?
  • What are Dimon's most and least convincing arguments?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Toshiba Apologizes for "Test Monkey" Ads

A Toshiba ad for the Satellite Ultrabook computer pokes fun of people who participate in clinical trials. The ad claims that Toshiba, unlike other "tech companies," fully tests products and doesn't treat "paying customers like test monkeys." With a similar message, a print ad features a cosmetics tester.

Toshiba_print_adThe ads riled clinical researchers, who struggle to find participants in medical trials. In fact, Toshiba's own medical systems group is currently looking for young people to participate in a trial.

A sokesperson for the Association of Clinical Research Organizations (ACRO) explained the group's concern: "It's dangerous. We don't need any more reasons to discourage people from research. We need to encourage people and not portray them as some kind of freak."

According to PR Daily, "The ad does seem to contradict parts of Toshiba's corporate social responsibility guidelines. According to its standards of conduct for advertising, Toshiba group directors and employees should 'not use advertising to cast third parities in a negative light, in an attempt to make Toshiba Group appear more favorable, or for any other negative purpose.'"

In response to ACRO's criticism, Toshiba's director of marketing communications sent this response:

"Dear Mr. Peddicord,

"Thank you so much for raising your concerns over one of Toshiba's new television commercials showing people in medical testing situations.
 
"Our intent was not to minimize the value of clinical research or insult people participating in clinical trials.
 
"We will absolutely take your objections into consideration as we develop future advertising."

So far, the company has not pulled the ads, which ACRO had requested.

Discussion Starters:

  • What's your interpretation of ACRO's complaint? Is the group right, overreacting, or something in between?
  • Looking at Toshiba's standards of conduct for advertising, do you believe the company violated its own standards?
  • If you led Toshiba's marketing communications group, would you pull the ads? Why or why not?
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08: Bad News Amy Newman 08: Bad News Amy Newman

AMD Reports Weak Revenue

As companies report their second-quarter earnings this week, chip maker Advanced Micro Devices (AMD) communicated its bad news: revenue is expected to drop by 11%. AMD's news release focuses on disappointing sales in China and Europe.

However, a writer for The Street criticizes AMD's analysis: "AMD blames its upcoming drop in revenue on just about everything out there, except its competition, Intel." While Dell and HP use AMD chips, Apple products switched to Intel a few years ago. AMD's news release is below:

"AMD (NYSE:AMD) today announced that revenue for the second quarter ended June 30, 2012 is expected to decrease approximately 11 percent sequentially.  The company previously forecasted second quarter 2012 revenue to increase 3 percent, plus or minus 3 percent sequentially.  The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business.

"The company expects second quarter gross margin to be approximately in line with prior guidance. Operating expenses for the second quarter are expected to improve and to be approximately 8 percent less than prior guidance of approximately $605 million, a result of tightly controlled expenses in the quarter.

"AMD will report second quarter 2012 results after market close on Thursday, July 19, 2012.  AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) that day to discuss second quarter financial results and to provide information regarding expected third quarter results.  AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page at http://www.amd.com.  The webcast will be available for 10 days after the conference call."

Discussion Starters:

  • Find two or three other sources that explain why AMD's earnings report is disappointing. What's your view of the reasons for declining revenue?
  • If you agree with The Street's assessment, should AMD have been more forthcoming? What are the arguments for and against a more straightforward discussion of the Apple and Intel relationship?
Read More
02 and 03: Interpersonal Amy Newman 02 and 03: Interpersonal Amy Newman

"Illegal Immigrant" Missing from Supreme Court Ruling

As the U.S. immigration debate rolls on, a CNN commentator notes the absence of the term "illegal immigrant" in the recent Supreme Court ruling. Charles Garcia further explains why the term-and perhaps worse, "illegals"- is dehumanizing and racist. Illegal term

According to Garcia, calling someone an "illegal immigrant" or "illegal alien" labels that person as being illegal, rather than identifying his or her behavior as illegal. He points out that no one else in this country is considered illegal just because he or she breaks a law. When we get a speeding ticket, our action was illegal, but we are not.

Garcia also argues that the term has racist underpinnings:

"The term 'illegal immigrant' was first used in 1939 as a slur by the British toward Jews who were fleeing the Nazis and entering Palestine without authorization. Holocaust survivor and Nobel Peace Prize winner Elie Wiesel aptly said that 'no human being is illegal.' "

Despite Garcia's argument, the term persists. The Associate Press, for example, still recommends the term in its Stylebook, which Deputy Standards Editor explains:

"Together, the terms describe a person who resides in a country unlawfully by residency or citizenship requirements … Alternatives like undocumented worker, illegal alien or illegals lack precision or may have negative connotations. Illegal immigrant, on the other hand, is accurate and neutral for news stories."

Colorlines, a racial justice organization, agrees with Garcia's assessment and offers different guidelines for journalists. The organization suggests these terms to describe a person's situation more accurately: undocumented immigrant, unauthorized immigrant, and immigrant without papers.

Image source.

Discussion Starters:

  • What's your view of the term "illegal immigrant"? Do you agree with Garcia?
  • How do the recommended terms (undocumented immigrant, unauthorized immigrant, and immigrant without papers) fit with our discussion of "people-first" language?
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01: Intro to BCom | Character Amy Newman 01: Intro to BCom | Character Amy Newman

Judge Rules that Tweets Are Public Speech

A judge has ruled that an Occupy Wall Street protester's tweets must be turned over. Judge Matthew A. Sciarrino Jr. said that tweets are not protected as private speech; rather, they are considered public comments. The judge wrote:

"The Constitution gives you the right to post, but as numerous people have learned, there are still consequences for your public posts. What you give to the public belongs to the public. What you keep to yourself belongs only to you."

The judge also wrote, "If you post a tweet, just like if you scream it out the window, there is no reasonable expectation of privacy."

Occupy Brooklyn

The decision came out of a court case that subpoenaed the protestor's deleted tweets. Both the protestor and Twitter tried to block to subpoena. Twitter issued a statement about the decision, which included this excerpt: 

"Twitter's terms of service have long made it absolutely clear that its users own their content. We continue to have a steadfast commitment to our users and their rights."

Twitter also published its first "Transparency Report," showing the number of government requests for user information and what percentage of those requests were fulfilled. 

Image source. (Protestors arrested on the Brooklyn Bridge in October.)

Discussion Starters: 

  • Does the judge's decision surprise you? Why or why not? 
  • What are the implications of this decision to company communicators? To you personally?
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07: Persuasive Amy Newman 07: Persuasive Amy Newman

Barclays Issues Statements About Resignations

Barclays CEO Bob Diamond has resigned under pressure admist an interest rate rigging scandal. Barclays will pay $453 million to settle a U.K. and U.S. investigation that revealed traders manipulated the Libor to prop up the bank's position and traders' wallets. Diamond said his decision to leave "was the right thing for the bank."

Other departures have already taken place or are expected to soon. Marcus Argius, chairman of Barclays, and Jerry del Missier, chief operating officer, also resigned.

Barclays issued three separate statements so far about the resignations:

The statement about Diamond's resignation included this long quote from the outgoing CEO:

"I joined Barclays 16 years ago because I saw an opportunity to build a world class investment banking business. Since then, I have had the privilege of working with some of the most talented, client-focused and diligent people that I have ever come across. We built world class businesses together and added our own distinctive chapter to the long and proud history of Barclays. My motivation has always been to do what I believed to be in the best interests of Barclays. No decision over that period was as hard as the one that I make now to stand down as chief executive. The external pressure placed on Barclays has reached a level that risks damaging the franchise – I cannot let that happen.

"I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth. I know that each and every one of the people at Barclays works hard every day to serve our customers and clients. That is how we support economic growth and the communities in which we live and work. I look forward to fulfilling my obligation to contribute to the Treasury committee's enquiries related to the settlements that Barclays announced last week without my leadership in question.

"I leave behind an extraordinarily talented management team that I know is well placed to help the business emerge from this difficult period as one of the leaders in the global banking industry."

Discussion Starters

  • Read the Board Changes statement about Diamond. What's the rationale for including the former CEO's long quote? How is this effective or ineffective in conveying the bank's message?
  • Assess the three statements. How do you explain the bank's strategy of issuing these separately? Why did the board do this, and was it the best approach?
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Science: It's a Girl Thing -- Demeaning or Clever?

To attract more female scientists, the European Commission created a video and other promotional videos. With an abundance of pink and a focus on cosmetics, the video has been criticized as demeaning to girls. Some even questioned whether the video was a joke, to which a spokesperson said that the European Commission, "doesn't really do irony."

 

As of today, the video on YouTube was viewed more than 626,000 times and received 974 likes and 6,432 dislikes. 

In fairness, the EC has several videos as part of this campaign that don't focus on girls' high-heeled bodies or show girls blowing kisses. The Irish Times reported the EC's reaction from an interview with spokesperson Michael Jennings:

"'It is intended to catch the attention of the target audience – 13- to 17-year- old girls.'

"Mr. Jennings said that focus groups informed the commission that the video had to 'speak their language to get their attention' and that it was intended to be 'fun, catchy' and strike a chord with young people. 'I would encourage everyone to have a look at the wider campaign and the many videos already online of female researchers talking about their jobs and lives,' he said."

Discussion Starters:

  • What's your view of the video? Do you find it demeaning, clever, or something else?
  • The EC took down the video after the criticism. Was this the right decision?
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