Assignment 1

Style: APA Template: Appendix D, page 387.***please follow the format of the sample memo**** Relevant information from text book: Chapter 1, Chapter 2, Appendix D (Sample Strategy Memo), Page 387 Length: 550 words (follow the sample on Appendix D) Sources: 5 (including the textbook) Case Study: Textbook page 42-48 or you can see it below….Case Study 2-2 Taco Bell Corporation: Public Perception and Brand Protection Other: I have attached a teacher’s manual file, “Taco Bell,” for this case which can help you. Details: After reading case study 2-2 (Taco Bell) about the still hot GMO controversy, draft a communication strategy memo. In preparing the document, identify yourself as a Taco Bell senior manager who has been asked to provide advice to Laurie Gannon regarding the issue she and the company are facing. Address your strategy memo to Ms. Laurie Gannon, Public Relations Director at Taco Bell Corporation. Write clearly and concisely (but not skimpily)! Remember that you must provide your audience with relevant pieces of information. But do not force them to wade through unnecessary information. With respect to content (and as a basis for your memo), use the relevant sections of the case as well as the concepts from the assigned textbook chapters. Remember that communicating strategically means communicating plans that directly support organizational goals. With respect to structure, use the sample strategy memo in your textbook, Appendix D, page 387. Apply the sample thoroughly. Be sure that your discussion section explains and interprets relevant background facts and is the basis for the recommendations. Assignment 2: Style: APA Journal Article: Erickson, S. L., Weber, M., & Segovia, J. (2011). Using communication theory to analyze corporate reporting strategies. Journal of Business Communication, 48, (2), 207-223. Please see attached Length: 550 words References: 5 (including textbook) Other: : I have attached a teacher’s manual file, “Odwalla,” for your assistance. Details: After reading the journal article by Erickson et al., analyze and evaluate the article in 5 succinct paragraphs. Include necessary information. Avoid rambling. Base your responses on the following questions: 1. What are the results of the Erickson et al. study? Concisely summarize the results. How useful do you think are the results for managers and leaders? Explain! 2. Explain Benoit’s theory in light of your textbook author’s approach and description of crisis communication. 3. Can you apply Benoit’s typology to the ODWALLA (Pages 12-17 of text and pasted below) case study? Why? Why not? Explain! 4. Give an example of a company (can be the one you work for) that used one of the non-corrective communication strategies described in the Erickson study. Explain the outcome. Are non-corrective communication strategies unethical? Why or why not? 5. SAMSUNG, the high-end smartphone maker, encounters huge challenges as it tries to respond to consumer questions about its Galaxy Note 7s (see: http://www.npr.org/sections/alltechconsidered/2016/10/18/497949435/in-samsung-s-messy-phone-recall-lack-of-transparency-takes-center-stage). To familiarize yourself with the case, find a YouTube clip or another article on the web that describes the roots of the problem. SAMSUNG's reputation is based on producing unique, critically acclaimed phones. One of the challenges for SAMSUNG is dealing with its plummeting reputation. How can effective crisis communication save its reputation? Can you answer the question by applying Benoit's and/or O'Rourke's approaches to crisis communication? Why or why not? Case Study 2-2 Taco Bell Corporation: Public Perception and Brand Protection Textbook pages 42-48 Our concern, of course, is whether or not this product, which is registered for animal feed, is somehow illegally finding its way into food that people eat.1 Late in the afternoon of Friday, September 15, 2000, Laurie Gannon, Public Relations Director at Taco Bell Corporation, received a phone call from the company’s government Relations team. Gannon typically receives periodic phone calls from this department, bringing her abreast of Taco Bell’s involvement with governmental agencies. When she picked up the phone, Laurie figured it was another update; however, things quickly took a turn for the worse. She was informed that a special interest group in Washington DC would hold a press conference early the next week to discuss Taco Bell-labeled taco shells sold by Kraft Foods, Inc. Inquiring further, Laurie learned that the product in question—Taco Bell taco shells sold in grocery stores—might contain a corn ingredient unapproved for human consumption. Although the report specifically targeted taco shells distributed and sold by Kraft, the media and subsequent consumer reaction could potentially prove damaging to the Taco Bell brand. Details were sketchy. Laurie was informed that the findings of a group known as “Friends of the Earth” would run in the Washington Post in their Monday print edition and that a press conference would follow. She quickly realized Taco Bell could be the subject of negative media exposure. Although the workweek was rapidly coming to a close, Gannon had to prepare a response—the phone call seemed perfectly timed so that Taco Bell would have minimal time to react. Nevertheless, she moved quickly, first notifying several key executives within Taco Bell as well as those at Kraft of this breaking news. Her weekend was spent tracking down all available information on StarLink, the unapproved corn ingredient in question. The Recall In the past several years, there has been much debate surrounding the side effects, if any, of [genetically modified] foods. Since these foods are a relatively recent discovery, there has not been an opportunity to study the comprehensive long-term effects. Accordingly, some countries and organizations have taken a hard stance on these “frankenfoods” and have enacted strict guidelines against their use.2 For instance, in 1999, the European Parliament imposed “tighter restrictions on the use of [genetically modified] products.”3 This debate was the central argument by certain countries and nongovernmental organizations (widely known as NGOs) who publicly rallied against those who support the use of [genetically modified] ingredients. In August 2000, corn-based products became the focal point in this debate, as a series of tests had been conducted on 23 of the leading corn-based foods, including the Taco Bell Home Originals taco shells.4 These tests had concluded that the taco shells contained the “Cry9c” protein, a pesticide that had been deemed unfit for human consumption.5 In less than a week after the group’s findings became public, Kraft announced a voluntary recall of its entire line of Taco Bell Home Originals taco shells and taco kits. The recall consisted of: Taco Bell Home Originals 12 Taco Shells Taco Bell Home Originals 18 Taco Shells Taco Bell Home Originals 12 Taco Dinner (12 shells, sauce and seasoning)6 Kraft’s September 22, 2000, press release read, “Kraft has pledged full cooperation with [the] FDA … [and Kraft] will discontinue production of the taco shell products until … [the] products are in full compliance with all regulatory requirements.”7 In another statement issued by Kraft, the company asserted, “We estimate that approximately 2.5 million to 2.9 million boxes of product containing taco shells are affected by the recall. Kraft’s recall does not include any products sold in Taco Bell restaurants.”8 Taco Bell Corporation Taco Bell was founded in 1962 by Glen Bell in Downey, California. Mr. Bell’s two taco stands quickly grew to become a popular restaurant concept, and in 1969, the company filed for a public offering. Growth continued at an unprecedented rate into the mid-1970s when Mr. Bell sold his 868 restaurants to PepsiCo, Inc., and became a major PepsiCo shareholder.9 Since then, Taco Bell [has grown] both in terms of revenues and units. Currently, there are approximately 7,000 units in the Taco Bell system. Taco Bell is considered a quick-service restaurant (QSR) concept and operates in a very competitive climate, evidenced by the industry’s average annual growth rate of approximately 3 percent. QSRs are, therefore, compelled to grow their market share by stealing share from their competition. In addition, growth is sustained through new product offerings and line extensions. Recent new product launches include the Grilled Stuft Burrito, the Gordita, and the Quesadilla. Examples of line extensions of these recent launches include the Steak Grilled Stuft Burrito, the Cheesy Gordita Crunch, and the Monterey Jack Quesadilla. Operational efficiencies can also be realized. Currently, “multibranding” is a popular method to drive revenue and share. Multibranding exists where two distinct concepts (e.g., Taco Bell and Pizza Hut) are housed under one roof. This is typically a more profitable way to operate two restaurants, as opposed to operating two separate locations. According to Taco Bell’s parent organization, “These [multibranded] restaurants generate more cash flow per unit than [do] single-brand facilities.”10 Unofficially, Taco Bell seeks to position itself as a “left of center” restaurant concept.11 While some competitors cater to primarily to youths or elder generations, Taco Bell prides itself on marketing primarily to the 18- to 24-year-old segment as these consumers help drive a large portion of the company’s revenues.12 In addition to its catchy marketing campaigns over the years, the company continually strives to generate “buzz” through creative advertising such as the April 1, 1996, fictitious purchase of the Liberty Bell and “free taco” giveaways.13-15 Taco Bell serves more than 35 million consumers each week in nearly 6,500 restaurants in the United States. In 2001, the company generated nearly $5 billion in system-wide sales.16 Intrinsic to Taco Bell’s rapid growth was the early establishment of franchises. From the company’s first franchisee in 1964, these business partners and their respective restaurants have grown commensurate with the company, and as a result, the franchisees have developed into a powerful constituent within the Taco Bell system. To become a Taco Bell franchisee, one must first qualify by satisfying a series of financial and operational hurdles and later attend Taco Bell’s “Setting the Pace” training program.17-18 Seeing the need to form a collective voice, the franchisees formed the Franchise Management Advisory Council. FRANMAC maintains a direct link with the Taco Bell executive team and regularly participates in business decisions, which include advertising, market development, and product offerings. In addition to [bimonthly] meetings of the FRANMAC leadership team, periodic “open FRANMAC” gatherings offer the franchisees, key vendors, and the Taco Bell executive team an opportunity to meet, talk, and resolve important issues. During those conferences, stakeholders are able to address issues surrounding the brand. By mid-2003, franchise units comprised approximately 80 percent of the Taco Bell system.’19 Seeking to concentrate on their core business of beverages and snack foods, PepsiCo, Inc., in 1997, divested their ownership of Taco Bell and formed Tricon Global Restaurants, Inc., a separate operating company. Under Tricon, Taco Bell’s president reports directly to the President and CEO of Tricon. In 2002, Tricon changed its name to “YUM Brands, Inc.” after acquiring additional restaurant concepts.20 Yum Brands (NYSE: YUM) handles many of the company’s shared services functions, including investor relations. Yum Brands is headquartered in Louisville, Kentucky. Kraft Foods, Inc Founded in 1903, Kraft Foods, Inc., is the largest food and beverage company in North America and the second largest in the world.21 From its modest beginnings as James L. Kraft’s cheese business, the company has expanded to a global conglomerate, marketing many of the world’s leading brands such as Nabisco crackers, Oscar Mayer meats, and Post cereals. In fact, an examination of Kraft’s history requires a look at the history of the food industry in general.22 Mr. Kraft’s early success was found via his innovative way of producing cheese in 31/2- and 73/4-ounce tins in an effort to meet customers’ demands for Case Study 1-1 Odwalla, Inc. Textbook Pages 12-17 (A) Stephen Williamson’s worst nightmares were about to come true. As chief executive officer of Odwalla, Incorporated, he was at the helm of a company worth nearly $400 million whose products in the premium juice market were widely regarded by customers and competitors alike for quality and freshness. The company’s reputation was solid throughout the Pacific Northwest, but the press release on his desk was filled with nothing but bad news. Williamson had just met with his corporate communication director, reviewed the crisis communication plan, and was now applying the last few corrections to a press release before faxing it to PR Newswire. The date was October 30, 1996, and less than an hour ago, the Seattle-King County Department of Public Health and the Washington State Department of Health had reported an outbreak of E. coli (0157-H7) infections that were “epidemiologically” associated with drinking Odwalla apple juices and mixes. More specifically, the public health physicians had uncovered a direct link between people who had the infection and those who had consumed Odwalla’s product. Some 66 people had become sick from drinking Odwalla juices in recent weeks. E. coli Bacteria Escherichia coli is a species of microscopic bacteria named for the German biologist who discovered it during the early 1900s. Virtually all large animals, including humans, benignly host some form of the bacterium in their large intestinal tracts. But a particularly virulent form of the organism, known specifically as 0157-H7, can sicken and kill those whose immune systems may be compromised. E. coli 0157-H7 can grow quickly in uncooked food products, including meat, cheeses, fruit, dairy products, and juices. The bacteria may be completely destroyed, however, by heat or radiation. If meats are cooked to a temperature of 160 degrees Fahrenheit, or if juices and other potable liquids are pasteurized, the danger posed by such organisms is dramatically reduced or eliminated completely. For example, consumers can assume “frozen concentrate” juices are free from bacteria because their preparation requires heating to 170 degrees. Odwalla’s juice products, however, were not pasteurized. E. coli and other harmful bacteria were kept at bay with a multistep production process that selected only the finest fresh fruit, washed each piece twice, and then refrigerated the squeezings to slow the growth of microorganisms. Deliveries were made to retailers each day in refrigerated trucks, and products were displayed and sold from special Odwalla coolers. The process was repeated each business day, with the previous day’s unsold products gathered up by Odwalla’s drivers and returned to the plant for disposal. Thus, the product customers bought from Odwalla retailers each day was guaranteed to be fresh-squeezed that very day—a feature that loyal customers willingly paid premium prices to obtain. The question remained: How could the lethal strain of E. coli bacteria get into Odwalla juice? How could the careful, meticulous production process have failed? Over the past 16 years, Williamson and the company’s founder, Greg Steltenpohl, and the Odwalla team had worked hard to establish a stellar reputation for the company and their premium, trendy products. Yet, all of their hard work was at this moment on the line. The future of their growing company would depend on how Williamson and his senior team reacted to events over the next few hours. Gathering the papers on his desk, he took a deep breath and began dialing fax numbers. Odwalla, Incorporated Greg Steltenpohl, his wife Bonnie Bassett, and a friend named Gerry Percy founded Odwalla in September of 1980. A backyard shed served as the manufacturing facility for three longtime friends, who used a $200 hand-juicer (purchased with borrowed funds) and one box of oranges to make freshly squeezed orange juice. They distributed the juice to local restaurants in a Volkswagen microbus, earning just enough profits from their first day of business to purchase two more boxes of oranges for the next day’s run. Thus, began this fruit juice empire. Over the years, the Santa Cruz-based company had grown to become the leading Western United States supplier of freshly squeezed fruit juices. Currently, it markets more than 20 flavors of juice, smoothies, and vitamin-packed drinks. “If it’s not fresh squeezed, then it’s not part of Odwalla …” said Steltenpohl. In 1993, Odwalla went public and sales skyrocketed from $9 million in 1991 to $59 million in 1996. Odwalla had experienced approximately 40 percent annual sales growth during those five years. Steltenpohl, Bassett, and Percy’s entrepreneurial inspiration was a suggestion drawn from a paperback tradebook entitled 100 Businesses You Can Start for Under $100. Based on their concerns about social trends and environmental issues, the founders decided to create a company with a social conscience. The name Odwalla came from a musical piece by The Art Ensemble of Chicago, in which the hero Odwalla guides his followers from the gray haze. Similarly, during a hazy gray time in the processed foods business, this company could guide their customers, friends, and neighbors by providing fresh citrus alternatives. The vision of Odwalla encompasses the idea of “nourishing the whole body.” The foundation of the company had been maintained through Odwalla’s dedication to providing superior fresh fruit juices, preserving the product. The environment, and fostering community relationships. This people-centered approach is focused both internally on employees and shareholders as well as externally on customers and the broader community. A Diverse Product Line The diverse product offerings of fruit juices, smoothies, all natural meal replacements, quenchers, and geothermal natural spring water comprise what Odwalla terms Nourishing Beverages. The core competencies of the organization involve the use of minimal production processes to deliver superior taste and nutritional value as compared with concentrate and artificially flavored substitutes. This is accomplished through strict quality production systems, selective agreements with suppliers and vendors, and the continued adaptation to changing consumer tastes and preferences. Moreover, the nutritional value and flavor qualities are complemented by artful packaging. The product line is distributed throughout California, Oregon, Colorado, Washington, New Mexico, Texas, and Nevada. Despite this large seven-state territory, a company goal remains to deliver “day of juicing quality.” Such stringent standards preserve both the nutritional and flavor integrity. Thus, the shelf life of the fruit and vegetable products is limited to between eight and seventeen days after retail purchase. The fruity flavors, outrageous names, and all-natural ingredients have allowed the company to