Airbnb, a rapidly growing peer-to-peer rental property platform, faces scrutiny and backlash for its actions after teenage guest, Jacob Lopez, claims to have been sexually assaulted by his host. The case discusses the struggles associated with a rapidly growing company in the sharing economy. To provide a proper framework for analysis, the case also details a brief history of Airbnb’s responses to similar previous incidents. How does Airbnb protect its guests from harm with little to no control over the behavior of its hosts? (Or, vice versa?) What communication tactics need to be implemented to respond to future hazardous incidents? 15 pp. Case #16-03 (2016)
On January 15, 2012, Zappos, an Amazon subsidiary, was the victim of a purposeful hacking attack. CEO Tony Hsieh sent out a tweet, alerting customers that the systems had been penetrated and directing them to a letter with incident details and recommended customer actions. Given that security breaches have become an increasing concern due to the amount of data stored online, the public immediately criticized Zappos, and a class action lawsuit was filed. Tony Hsieh, and parent company CEO, Jeff Bezos, must decide if any additional payment is due to customers and how to retain brand equity and customer security going forward. Case # 12-01 (2012)
A mid-size manufacturer of electrical equipment buys out a competitor and discovers improperly
disposed polychlorinated biphenyls on the property. Though he is guilty of no wrongdoing, the
CEO must move quickly to deal with the concerns of employees, shareholders, customers,
suppliers, and the neighboring community, which suspects the company of complicity in
contamination of the local water supply. 9 pp. Case #97-01. (1997)
The CEO of a $35-million manufacturing firm in the American Midwest is faced with an
executive’s worst nightmare: a boiler explosion that kills two employees and seriously injures
five others. This crisis management case takes the reader through a series of
information-gathering and decision-making steps as the CEO and his senior team grapple with
human tragedy and calamitous business problems simultaneously. (A) Case, 5 pp. (B) Case, 2 pp.
Case #98-01. (1998)
After the successful 2010 launch of Apple’s iPhone 4, complaints of dropped calls and reduced
signal began to pour in from major tech blogs. Apple’s initial response was to deny it had a
hardware issue. Soon after, Consumer Reports released a review that labeled the device “Not
Recommended.” How can Apple address the problem while being forced to backtrack on several
communications missteps? (A Case, 9 pp; B Case, 3 pp) Case # 10-08 (2010)
In the aftermath of the San Bernardino shooting in December 2015, Apple was required by a federal court order to assist the FBI in unlocking the primary suspect’s iPhone 5c. Apple would need to build a new software program in order to comply with the order, potentially compromising the company’s brand promise regarding the security of customer data. This case examines the importance of customer data privacy to a company’s business model as well as external risk factors related to international politics and terrorism. How can Apple manage the various risks while maintaining the loyalty and trust of its customers? 8 pp. Case #17-07. (2017)
The famed accounting firm Arthur Andersen fights for its very existence after one of its largest
clients, Enron, falls from the top ranks of the Fortune 500 to bankruptcy in a matter of months.
Investigations by the U.S. Department of Justice and the SEC force Andersen to reveal its role in
the destruction of thousands of Enron-related documents. Andersen CEO Joe Berardino must
find a way to regain the public’s trust in the firm and its audits, as well as convince the
Department of Justice that Andersen should not be prosecuted for its actions in the Enron
collapse. (A) Case, 23 pp. (includes 16 pages of attachments). (B) Case, 10 pp. (includes 7 pages
of attachments). Case #02-05. (2002 & 2004)
On August 15th 2013, Moritz Erhardt was found dead at his student housing. The official cause of death was an epileptic seizure possibly caused by the long hours and lack of rest associated to his work, after pulling “all-nighters” and “magic-roundabouts” for three days in a row during his summer internship in the investment banking area at Bank of America-Merrill Lynch. 22 pp. Case # 13-09 (2013)
In the fall of 2011, Bank of America announced a plan to begin charging customers $5 per month on debit card accounts. The announcement met with sharp public outrage. Due to the backlash, Bank of America was faced with a difficult dilemma: proceed as planned and face a public relations nightmare - or cancel the fee program, lose billions, and be forced to answer to shareholders. (Case #13-04)
One of the country’s oldest banks is embroiled in a scandal involving the laundering of seven to
ten billion dollars. Key players include high level executives who used the failing Russian market
and Russian organized crime to move money from Russia to other countries. While there may be
a lack of a strong legal case against the Bank of New York, a crisis still exists. 6 pp. Case
#00-24. (2000)
Maker’s Mark may be part of a premium spirits portfolio but maintaining its authentic history is still important to the brand. When faced with the challenge of growing demand and an insufficient supply of whiskey, the Maker’s Mark management teams needs to decide if diluting their whiskey is the best way to meet demand. (A) Case: 7 pp.; (B) Case: 2 pp. Case #13-10 (2013)
On March 3, 2006, Bausch & Lomb received a phone call from New Jersey ophthalmologist Dr. David S.
Chu regarding three patients afflicted with a serious fungal condition known as fusarium keratitus. These
patients all were contact-lens wearers, and had used Bausch & Lomb’s ReNu with MoistureLoc lens
solution. This telephone call started a chain of events, accusations, and CDC investigations that
eventually led to a recall by Bausch & Lomb in the U.S. and overseas, but not before the crisis had
threatened to damage not only sales of its popular lens solution, but also Bausch & Lomb’s reputation.
18 pp. Case #06-16. (2006)
On March 2, 2006, as work crews shoveled through the heavy snow blanketing the Prudhoe Bay oil fields
of northern Alaska, they spotted a small hole of no more than a quarter of an inch along the pipeline. As
BP America, the company in charge of the oil fields, quickly learned, this tiny hole would prove to be the
source of the worst oil spill ever – some 270,000 gallons of crude oil – on the North Slope of Alaska. BP
America and its parent company, BP, soon discovered that their enormous re-branding efforts and
carefully cultivated image for being environmentally friendly would be challenged by the reality of
extracting petroleum in Alaska’s harsh northern environment. 8 pp. Case #06-14. (2006)
An April 20, 2010 explosion on board the Deepwater Horizon offshore oil-drilling platform killed 11 workers, injured 17 and triggered a leak that spilled more than 206 million gallons of oil over 665 miles of coastline and 4,000 square miles of fishing waters. This case discusses the events that led to the disaster and oil spill in the Gulf of Mexico. It also outlines key figures within BP’s organization and how they factored into the long and difficult corporate communications process. (A) case, 13 pp. (B) case, 2 pp. Case # 11-04 (2011)
British Petroleum (BP) applied for a permit in 2006 to expand its Indiana refinery and increase its
discharge of ammonia and suspended solids into Lake Michigan. The permit was approved by
the state and federal regulatory authorities. What followed was an outcry of public opinion
against this decision culminating in an article in the national media and speeches by presidential
candidate Barack Obama. Though BP had full regulatory approval to proceed with the expansion,
and the scientific consensus was that the increased discharge would not harm the Lake Michigan
ecosystem, BP decided not to use the new discharge permit in the face of intense public scrutiny.
However, this did not quell the negative media coverage regarding its discharge application. 13
pp. Case #08-02. (2008)
As Carat USA was in the process of implementing a restructuring plan, a top HR executive accidentally forwarded the communication plan to the entire company via e-mail. The confidential document included the firm’s messages to employees, clients, vendors and other stakeholders. How can Carat USA recover from the mistake and restore its reputation? (A) Case, 7 pp. (B) Case, 2 pp. Case #09-07. (2009)
In the early morning hours of November 8, 2010, fire broke out in the aft engine room of Carnival Splendor, a 113,300 ton passenger cruise ship carrying over 3,000 guests. Although the fire was quickly suppressed, Cruise Director John Heald and the ship’s crew found themselves stranded in the Pacific Ocean, 200 miles south of San Diego. With no electricity, poor sanitation, and spoiling food supplies, Carnival Cruise Lines must determine how best to manage this unforeseen event and ensure the safety of those onboard. This crisis management case exposes the reader to the decision-making and communication challenges faced by senior leaders in the tumultuous environment following such a crisis. Case, 8 pp. (2011)
On Friday, January 13th, 2012, around 9:40 p.m. local time, the Costa Concordia, a luxury cruise ship carrying 4,200 passengers, punctured its hull off the coast of Italy. What followed the collision was a chaotic evacuation, irresponsible actions from the ship’s captain, and a lack of communication from the parent company, Carnival, all leading to a public relations disaster. 14 pp. Case # 12-05
While conducting an internal audit, David Cruickshank, the newly-hired publisher of the Chicago Sun-Times, was faced with a chilling reality about how his newspaper was operating. Cruickshank uncovered data proving that the Sun-Times circulation figures – the lifeline of the paper’s advertising revenues – had been inflated for nine years. The credibility of one of the nation’s top publications was on the line, and Cruickshank needed to decide how to communicate this to his staff and, more importantly, to the world.
In the summer of 2012, Chick-fil-A President and COO Dan Cathy sparked controversy by sharing his biblical views on family and marriage with the Ken Coleman radio show and the Baptist Press. At one point, he asked for God’s mercy on a generation that holds “such a prideful, arrogant attitude” with “the audacity to define what marriage is all about.” Advocates of same sex marriage responded with a boycott, which then drew reactions from supporters of Cathy and traditional marriage. This case study explores the fallout after a corporate leader publicly speaks his mind on a contentious social issue. 16 pp. Case #12-11 (2012)
Following Chipotle’s meteoric rise to prominence in the Quick Service Restaurant sector,
management now faces a threat to their longstanding brand of “food with integrity.” Executives
must decide how to respond to government probes into their hiring of undocumented workers as
well as customer protests of those workers being fired. 9 pp. Case # 12-04 (2012)
In late 2015, Chipotle Mexican Grill experienced a large-scale food safety crisis. The company’s restaurants were identified as the source of an E. Coli outbreak that affected 14 states and led to more than 20 hospitalizations. Known for its Food With Integrity initiative, and having experienced a decade of explosive growth, the company’s livelihood was being threatened by the design of its own supply chain. Customers were scared, and the issue had attracted the attention of investors, regulators, and the national news media; Chipotle needed to respond. (A) 14 pp. (B) 3 pp. Case #16-05 (2016)
A product recall in the fall of 2013 sends Chobani, Inc. scrambling to fix the manufacturing problem, and address a flood of customer concerns. While the company successfully identifies the problem, recalls the product, and fields customers’ concerns within weeks, the adverse incident calls Chobani’s foundational strategy into question. The company must decide if product quality and word-of-mouth marketing are enough to spur continued growth, combat increased competition and manage future threats associated with product quality. 14 pp. Case #13-11. (2013)
The world-leader in soft drinks confronts accusations of contamination in Coca-Cola products in
Belgium during the spring and summer of 1999. By failing to respond quickly and directly, CEO
Douglas Ivester risks consumer and investor confidence in his products and his company. Worse,
by failing to address cultural and political issues, Ivester calls into question his own leadership.
10 pp. Case #00-01. (2000)
In July 2016, the U.S. Department of Justice announced that it would pursue Deutsche Bank for its role in the creation and sale of mortgage-backed securities in the years leading up to the financial crisis of 2008-2009. By September, press reports indicated the Department of Justice was seeking a $14 billion fine from Deutsche Bank. Business media began speculating on whether this amount could affect the bank’s solvency. Deutsche Bank had paid enormous fines for other transgressions and this $14 billion litigation could potentially threaten the financial condition of the company. Additionally, given Deutsche Bank’s position as a “globally systemic bank,” the fine could affect the economic environment of the entire world. To combat growing speculation surrounding the bank’s survival, Deutsche Bank leaders launched different communication initiatives. This case concentrates on the communication strategies taken by Deutsche Bank’s leadership. 16 pp. Case #17-08. (2017)
On April 13, 2009, Tim McIntyre, VP of Corporate Communications at Domino’s Pizza, received notification of the existence of a number of damaging videos that had been posted online. The videos showed Domino’s employees taking inappropriate and illegal actions while preparing food that was allegedly being served to customers. McIntyre knew that amateur videos filmed in one store could seriously damage the entire Domino’s brand, not to mention put the company at legal risk. The question for McIntyre is how to ensure that Domino’s responds in the best way possible to mitigate the negative impact of this social media crisis. (A) Case, 9 pp. (B) Case, 11 pp. Case #09-13. (2009)
The world’s largest producers of fiber channel host adapters is the victim of a stock price
manipulation hoax. In the course of just a few hours, share price falls from $113 to less than $50,
as more than $2 billion in market valuation evaporates. A fictitious press release to Internet Wire,
quickly re-transmitted by Bloomberg News, CNBC, and others, claims that key executives have
resigned and that fourth-quarter earnings will be drastically revised and restated. CEO Paul
Folino must act quickly to prevent the total collapse of his stock on the NASDAQ. (A) Case, 6
pp. (B) Case, 5 pp. Case #02-01. (2002)
Consumer credit reporting company Equifax announced on September 7, 2017, that cyber criminals accessed its databases to obtain private information of 143 million US consumers. CEO Richard Smith faces public scrutiny and ponders his next move to effectively manage the crisis at his company. 12 pp. Case #18-03 (2018)
In 2014, the National Academy of Sciences published a study about an emotional contagion experiment that Facebook conducted on almost 700,000 of its members. Unbeknownst to test subjects, Facebook manipulated the newsfeeds certain members received and studied their reactions. This led to media coverage that called into question Facebook's ethics and corporate procedures. This case examines media and network user backlash to the experiment, and looks at Facebook’s policy on behavioral studies. 8 pp. Case #16-02. (2015)
On December 1, 2009, Facebook CEO Mark Zuckerberg announced sweeping changes to the site’s privacy controls. The result was strong criticism from advocacy groups, but general ambivalence from end users. The question for Facebook is how to manage these different stakeholders and remain at the forefront of society’s privacy norms. 10 pp. Case #10-02 (2010)
The world’s largest sports organization, FIFA, is caught in a corruption scandal as the U.S. Department of Justice leads a criminal investigation that indicts 14 of its top officials from North, Central and South America and the Caribbean on charges of racketeering, wire fraud and money laundering. How can FIFA regain the public trust? Should international organizations be more transparent? (A) Case 15 pp. (B) Case 2 pp. Case #16-06 (2016)
On January 12, 2010, Google posted a message on its Official Blog announcing that the company would no longer cooperate with the Chinese government’s demands for limited censorship of Internet searches on its Google.cn portal and that it may withdraw from the Chinese market entirely. Has Google reversed its corporate position following its controversial 2006 entry into the country? How do Google’s actions reconcile with its corporate motto, “Don’t Be Evil?” What are the implications for Google’s future profitability? 10 pp. Case #10-03 (2010)
On August 6, 2012, HCA Holdings, Inc., one of the largest for-profit hospital management companies in America, revealed to investors that the U.S. Attorney’s Office in Miami had requested documents related to unnecessary cardiac procedures at ten of its hospitals. HCA’s announcement coincided with an article published by The New York Times on the investigation. HCA is the largest hospital management company in America and has had a history of legal issues ranging from Medicare fraud to unnecessary heart procedures. 12 pp. Case #12-10. (2010)
On August 29, 2018 Eric Bauman, Chairman of the Democratic Party of California sent out a midnight tweet exposing In-N-Out Burger’s donation of $25,000 to the Republican party and called for a nation-wide boycott. How In-N-Out responds to the viral sensation could affect their reputation in their home state of California and alter their corporate political donation policy. 11 pp. Case #19-06 (2019)
Jefferies & Company, the most rapidly growing medium sized investment bank, quickly became the focus of many ratings agencies upon the collapse of MF Global. While many of the ratings agencies found no need for concern, Egan-Jones concluded the contrary. The little known rating agency published a report downgrading Jefferies’s outlook, sending Jefferies’s stock plummeting downward with no end in sight. (A) case, 7 pp. (B) case, 8 pp. Case #12-06, (2012).
On September 16, 2010, amidst a congressional inquiry into numerous product recalls over the
past 15 months, Johnson & Johnson’s Chairman of the Consumer Group, Colleen Goggins,
announced her retirement. With the bulk of the recall focused on their flagship product, Tylenol,
the tendency was to compare these with the famous recall in 1982, which cemented the public’s
trust in the company. Unfortunately, that trust has eroded because of their reaction to the
numerous current product issues. When it was revealed that subcontractors had secretly bought
back Motrin off the shelves without notifying the public that something was wrong with it, J&J
found itself with a much larger issue than just public dismay. This phantom recall had compelled
FDA regulators to call upon its crime unit to investigate whether or not these actions by Johnson
& Johnson constitute criminal behavior. 15 pp. Case #10-11
Johnson & Johnson experienced the rapid spread of negative backlash through social media channels in response to an online Motrin advertisement. The incident raises a discussion on the opportunities and risks of using social media in marketing and communications outreach, as well as how social media efforts should align with the company’s overall business objectives. 9 pp. Case # 10-10 (2010)
After launching as a new brand in 2015, JUUL products quickly became a part of the “cool” image amongst the teenage crowd. On July 30, 2018, The Washington Post published an article quoting attorney Esfand Nafisi regarding a nationwide class action lawsuit he was preparing against JUUL Labs. This case discusses the marketing strategy of the JUUL product that has directly affected a nationwide teenage use and addiction epidemic. Case #19-09 (12 pp.)
Maria Sharapova, the world’s highest-paid female athlete for 11-straight years and five-time Grand Slam tennis champion, admitted testing positive for the banned drug Meldonium during the 2016 Australian Open. Following her admission, sponsors such as Nike, Porsche, and Tag Heurer quickly distanced themselves from Sharapova as she began her two-year suspension. This case examines the consequences on Sharapova and her multi-million-dollar brand, the value of celebrity endorsements and their associated risks, and the effects of social media reactions during a crisis. 11 pp. (2017)
In July 2007, a European toy retailer discovered lead paint on a Mattel toy manufactured in
China. The incident forced Mattel to shut down production at the plant responsible for making
the toy and issue a recall of nearly 1.5 million toys contaminated with lead paint. Just weeks
later, Mattel was forced to issue a second recall of Chinese-manufactured toys, this time
involving over 18 million toys. The Chinese contractors that manufactured the recalled toys
were among Mattel’s most trusted. Both manufacturers, however, used paint from suppliers that
Mattel had not certified as safe. In addressing the backlash that the recalls caused, Mattel was
faced with the task of informing customers and notifying the media about the recalls. Now
Mattel must weigh the costs and benefits of manufacturing in China. 11 pp. Case #08-09. (2008)
Foot-and-Mouth Disease, Mad Cow Disease, and related headlines create a hostile environment
for meat in Europe. The first case appears in 1996, with others following in late 2000 and early
2001. While McDonald’s has impeccable quality and safety standards, a blow from the publicity
of these catastrophes is inevitable. Crisis management teams must try to alleviate public fears
about eating at McDonald’s in order to offset the financial impact on their European division. To
manage the situation effectively they must prepare to face the press, consumers, shareholders and
anti-meat activists. 13 pp. Case #01-11. (2001)
Infant formula producer Mead Johnson Nutrition Company needs to determine what its response should be when its flagship product, Enfamil, is linked to an infant’s death from Cronobacter sakazakii. Despite no hard evidence of contamination, retailers voluntarily pulled the item off the shelves as a precaution. Case # 12-07 (2012)
When two airplanes struck the World Trade Center on September 11, 2001, more than 3,000
Morgan Stanley employees sprang into action. Following an earlier terrorist attack on the Center
in 1993, the company developed an emergency evacuation plan to ensure employees could safely
and quickly exit the building. With all the chaos following the attacks, CEO Phil Purcell had
difficulty in determining if all of the company’s employees had made it out. News was also
traveling around the world that Morgan Stanley was completely destroyed from the bombing.
Purcell must quickly determine how many employees survived and how to inform the world that
Morgan Stanley was still in business. (A) Case, 4 pp. (B) Case, 5 pp. Case #02-04. (2002)
Motorola, the producer of some of the most popular phones on the market, has recently fallen in the public estimation. With their last success dating back to 2004, the company’s future may hinge on its newest product, the Android smartphone. With the right outlook and communication, could it be the company’s savior? 13 pp. #10-05 (2010)
In August of 2016, Mylan Pharmaceutical came under public scrutiny for its highly priced EpiPen, a drug used to treat life threatening allergic reactions. “EpiGate” erupted almost overnight, as EpiPen customers took to social media to voice their frustrations. Mylan was accused of using “greedy robber baron” tactics against a helpless customer base. Mylan issued several price-related reparations to its customers (increased rebates, generic product offerings). A month later, Mylan was still struggling to silence its critics. Why did Mylan’s responses fail to address their concerns? What was missing in Mylan’s strategy? This case illustrates (a) the influence of social media on corporate reputation (b) the difficulties of balancing business strategy and public approval and (c) the principles of successfully responding to negative news media. (A) Case, 7 pp. Case #17-04. (2017)
A class-action lawsuit, in addition to high-profile suicides of former players, cause many to believe that the National Football League is not moving fast enough to ensure player safety. As football’s governing body, the NFL must find a way to mitigate future safety issues while safeguarding the future of the sport. 22 pp. Case #14-09 (2014)
The pet food poisoning scare of 2007, in which numerous pet food products were contaminated with melamine sourced from China, seriously damaged many of the afflicted firms’ reputations for safety and customer concern. Pet food industry leader Nestlé Purina released two unapologetic statements revealing limited information about the source of the problem and its impact on consumers. Purina must recover its customers’ collective faith; a difficult task after causing thousands of “deaths in the family.” It is also essential that Purina restructure its supply chain to ensure that history does not repeat itself. 8 pp. Case #09-11. (2009)
After ten years of meteoric rises in revenue and subscription customers, a series of
communication blunders has put Netflix in a perilous position. Netflix has mishandled
key communications regarding account and fee changes affecting its customers. In three
months, Netflix has since seen its company’s stock price plummet more than 60 percent.
Case # 12-08 (2012).
A successful west coast producer of all-natural juice drinks confronts disaster when customers
are poisoned by E. coli bacteria in its unpasteurized products. CEO Greg Steltenpohl must decide
not only what to say to customers, shareholders, suppliers, and business partners, but whether to
change his company’s fundamental business practices. (A) Case, 11 pp. (B) Case, 2 pp. Case
#99-01. (1999)
In 2012, a former employee filed a lawsuit against Deen and her brother for racial discrimination. Deen later confessed to using racial slurs in a deposition transcript that was leaked in 2013. Deen issued a public apology, but several companies, including the Food Network, elected to end their partnership with her. Can Paula Deen recover? (A) 15 pp. (B) 2 pp. Case #15-04
Samsung Electronics Company, Ltd. experienced the most serious business problem in its history following reports that lithium ion batteries in the company’s Galaxy Note 7 smartphone were exploding and catching fire in 2016. This case examines technical malfunctions associated with the product failure, as well as Samsung’s and the mobile industry’s reaction to the crisis. This case further explores the financial and brand reputation damage to Samsung Electronics, along with other contemporary issues that affected the South Korean industrial giant. 10 pp. Case #17-10. (2017).
On August 24, 2012, a jury in the U.S. District Court for the Northern District of California found that Samsung mobile devices infringed six Apple patents, awarding Apple $1.05 billion in damages. The lawsuit was a battle of the largest smartphone manufacturer, Samsung, and the world’s largest company, Apple. Samsung must decide what actions they should take in response to the outcome reached by the jurors. Decisions at hand include trial proceedings, public communications, and research and development philosophy changes. 13 pp. Case #12-12 (2012)
Sara Lee Corporation’s Bil Mar Food Plant was already under intense scrutiny for health
violations when an outbreak of listeriosis, an infection caused by eating food contaminated by the
bacteria Listeria monocytogenes, was linked to the plant. How should Sara Lee handle the crisis?
7 pp. Case #00-16. (2000)
This case explores a crisis that emerged following the highly publicized death of Dawn Brancheau, a senior SeaWorld trainer, who was killed by an orca named Tilikum in 2010. Ms. Brancheau was attacked during a live show at the Orlando Marine SeaWorld Park. The audience watched in horror as the attack resulted in her death. Soon thereafter, in August 2010, the Occupational Safety and Health Administration (OSHA), a governmental agency in the United States, cited SeaWorld for placing profits above employee safety after investigating the circumstances of Ms. Brancheau’s death. OSHA’s new legislation made it nearly impossible for orcas and humans to interact with each other during shows, disrupting SeaWorld’s business model. The court case received significant media attention. Further, in 2012, a documentary called Blackfish was released in response to her death, and it ignited debates about the ethical dimensions of keeping orcas in captivity for entertainment purposes. (A)11 pp. (B)5 pp. Case #14-04 (2014)
On November 24, 2014, Sony Pictures Entertainment, a subsidiary of Sony Inc., was the victim
of an unprecedented cybersecurity attack launched by North Korean hackers. The attack was a
result of the upcoming premiere of Sony’s film The Interview, a comedy based on a fictional
attempted assassination of North Korean dictator Kim Jong-un. The group responsible
subsequently threatened an attack on theaters choosing to show the film. Sony Pictures CEO
Michael Lynton must decide whether or not to stop the movie’s release, while also protecting
Sony’s public image, maintaining distributor relations, minimizing revenue loss, and
safeguarding employees’ data from further risk. (A) 13 pp (B) 2 pp (C) 2 pp Case #15-05
(2015)
On January 20, 2014 The Huffington Post published an article about research into possible health risks associated with Spanx, the market leading shapewear company. A few weeks later, the company made an announcement that the CEO was stepping down amidst rumors of a potential Initial Public Offering (IPO). Spanx must decide how to respond to mounting media attention. Case #14-03. 15 pp.
On November 30, 2006, Taco Bell closed one of its restaurants in South Plainfield, New Jersey,
in response to nine individuals who allegedly contracted the potentially deadly E. coli bacteria
from the Taco Bell restaurant. As time went on, more and more cases of E. coli related to Taco
Bell were unveiled. Taco Bell continued to lose revenue as consumer confidence in its food
quality and safety was significantly affected as a result of the E. coli outbreak. Ultimately, the
source of the E. coli was linked to Taco Bell’s lettuce and was determined to be infected with the
bacteria prior to its distribution to Taco Bell’s some 5,800 restaurants nationwide. Thus, the crux
of the business problem is imbedded within Taco Bell’s supply chain. Now Taco Bell must deal
with restoring its image, rebuilding trust with its consumers, and preventing future outbreaks.
13 pp. Case #07-04. (2007). Revised: 2009.
A father complains about pregnancy related coupons addressed to his teenage daughter. Target’s predictive analytics had determined his daughter was pregnant and targeted her as a customer before she broke the news to her father. Target must react in the face of a largely publicized article about the incident. 12 pp. (Case # 13-02)
On December 18, 2013, a specialty blog site released an article alleging that Target had fallen victim to a serious data breach, exposing forty million customers’ credit card information. This case explores the circumstances leading up to the breach and how Target will manage its reputation in the aftermath. 8 pp. (Case 14-01)
In spite of similar formulation, Swiss pharmaceuticals giant Roche has always positioned its two products Avastin and Lucentis separately, as treatments for cancer and for age-related macular degeneration (AMD) respectively. However, doctors have been prescribing Avastin for AMD treatments because of the huge price differential between the two drugs. With contamination of Avastin due to repackaging by a Florida pharmacy leading to 21 cases of patient blindness in Q3 2011, Roche faces a serious threat to its reputation and finances.
On January 16, 2013, Boeing had its newest and most advanced aircraft, the 787 Dreamliner, grounded worldwide due to fires that started in the airplane's batteries. The Lithium-Ion technology used in the 787 aircraft was a new feature used in commercial aircraft as a solution to save weight. Several prior delays had already affected the introduction of the Dreamliner 787, one of the most revolutionary planes to date. Boeing is faced with high demand, costs, and pressure to respond quickly, while responding to both safety concerns and general industry concerns and loss of revenue. (Case #13-01)
This paper highlights the history of the development of the carbonated beverage industry in India
by the Coca-Cola Corporation and recent allegations made by the non-governmental
organization, Center for Science and Environment, of pesticides found in Coca-Cola’s soft
drinks. The purpose of this paper is to encourage discussion on how the key players in this event
used communication and the media to further their interests on the local and international levels
and what Coca-Cola should do to elevate the situation now and in the future.
21 pp. #06-22. (2006)
This case focuses on the issues surrounding a tiger attack that occurred at the San Francisco Zoo on Christmas Day 2007. A tiger managed to escape its enclosure and attack zoo visitors, killing one and injuring two others, before it was shot and killed by police officers. Management must decide how to address the public after the crisis. Beyond this, they must ensure that they meet proper safety requirements and have effective controls in place to handle crises. Also, they must deal with the injured persons. (A) Case, 6 pp. (B) Case, 3 pp. Case #09-03. (2009)
On Thanksgiving Weekend 2009, professional golfer Tiger Woods crashed his Cadillac Escalade outside his Florida home. The incident led to the accusation and subsequent admission that Woods had been carrying on extramarital affairs for years. As a result, Woods’s reputation was severely damaged and now stands in direct contrast to the values of the Tiger Woods Foundation, a charitable organization that he founded. The Foundation must now manage to carry out its mission while its founder and namesake remains out of the public sphere. 10 pp. Case #10-07 (2010)
Larry Nassar’s conviction of first-degree sexual misconduct with young girls in USA Gymnastics raised important questions about the efforts of the USOC and affiliated organizations to keep their athletes safe. The scope and duration of his abuse brings into question the execution of the International Olympic Committee’s values. 15 pp. (A) Case; 10 pp. (B) Case. Case #18-05 (2018)
Theranos became one of the most exciting start-ups in Silicon Valley when it introduced a simplified blood testing method that had the potential to help countless people. However, a 2015 Wall Street Journal article changed everything. Suddenly, Theranos went from being viewed with praise to suspicion. Will regular, transparent communication save this once-promising biotech firm from extinction? 16 pp. Case # 17-11. (2017)
On January 31, 2007, several unknown, electronic “bomb-like” devices were discovered in Boston,
Massachusetts, causing chaos and posing a threat to national security. These devices were later found to
be part of a guerrilla marketing campaign gone awry. The campaign was endorsing a cartoon, Aqua Teen
Hunger Force, which airs on Turner Broadcasting’s Cartoon Network. This incident has questioned the
ethics and boundaries of guerrilla marketing as well as the need for companies to complete their due
diligence when hiring outside contractors. Turner is now faced with significant fines and needs to
communicate its apologies to both a terror-struck Boston and to the nation as a whole. 10 pp. Case #07-
06. (2007)
ValuJet, targeting cost-conscious consumers, was growing, proving that value can mean profits.
Tragically, the success ValuJet was enjoying was stripped away when a DC-9 jet crashed in
Florida killing 110 people. ValuJet, while seemingly sabotaged by its maintenance contractor
SabreTech, denied culpability in the accident. 8 pp. Case #00-26. (2000)
Fraudulent customer account management at Wells Fargo has left the company with $185 million in fees and numerous stakeholders demanding answers from top executives. Newly promoted CEO Timothy Sloan is tasked with transforming a poisonous company culture, rebuilding a tarnished brand, and assuring investors of the financial security moving forward. (A) Case, 15 pp. (B) Case, 3 pp. Case #17-12 (2017)
On March 22, 2005, a woman discovers a human finger in her chili while dining at a Wendy’s restaurant
in San Jose, California. As widespread and strongly negative media coverage surrounds the event, sales
figures begin to plummet. Wendy’s executives are under intense pressure to discover what really
happened in their restaurant while they try to repair the damage done to their once well-respected brand.
6 pp. Case #06-01. (2006)
On June 25, 2015, Whole Foods finds itself embroiled in controversy when the New York Department of Consumer Affairs releases a report alleging the company systematically overcharged on their packaged goods and inflated prices for the customer. This further damages Whole Foods reputation as a “Whole Paycheck,” overpriced retailer that the company’s leadership must respond to. (A) 16 pp. (B) 3 pp. Case #16-08 (2016)
In August of 2009, the founder and CEO of the successful natural and organic food company Whole Foods Market published an op-ed in the Wall Street Journal espousing a position on the highly contested national health care debate that many perceived to be at odds with the company’s core customers. In the midst of a slow news month, the media seized on the apparent contradiction, and many diverse interests used the ensuing attention to further their own agendas. 14 pp. Case # 10-01 (2010)
YouTube, the most popular Internet-based video-sharing platform, offers prolific content creators an opportunity to monetize videos for advertising revenue. While YouTube has published policies regarding what content is permissible, recent controversial videos have advertisers abandoning from the platform. YouTube must decide whose interests to prioritize: its content creators, viewers, or advertisers. 14 pp. Case #18-07. (2018)
In October 2019, the Houston Rockets General Manager tweeted in support of the Hong Kong
Protests. The tweet was met with outrage by the Chinese government and many Chinese fans.
After calling the tweet “regrettable” the NBA then found itself under fire in the United States for
seeming to have bowed to Chinese censorship demands. NBA Commissioner Adam Silver must
now decide how to balance the league’s business interests in the Chinese market with support for
free expression. 11 pp. Case #20-01 (2020).
The Coronavirus / COVID-19 crisis of 2020 resulted government restrictions on travel, accompanied by a public loss of confidence in the safety of air transport, all of which led quickly to a decline in revenue for airline companies. American Airlines has implemented a number of important changes, but their survival in an unstable environment and unpredictable consumer market depends on whether these changes are sufficient to ensure safe travel and encourage the flying public to take to the air again. Case #20-02
After a terrorist attack at the Pensacola Naval Air Station, Apple received immense public pressure to comply with the FBI’s request to assist in unlocking the encrypted iPhone of the attacker. Apple’s evolving technology will open the company up to further concerns about user privacy that will need to be addressed. 10 pp. Case #20-03
On June 10, 2020, the editor-in-chief of Conde Nast magazine Bon Appétit resigned amid allegations of racial discrimination. The publisher faces criticism from the public as well as its own employees over racially biased pay inequality involving the brand’s YouTube channel. A number of employees resign. All new content production has ceased while the matter is being resolved. Conde Nast must hire a new editor-in-chief. What other actions should the magazine take to rebuild trust with readers and staff? 14 pp. Case #20-04
In August 2020 – in the midst of a hotly contested U.S. presidential election – Donald J. Trump used the online Twitter platform to criticize Goodyear Tire & Rubber Company’s policy banning “Make America Great Again” apparel, creating a firestorm of politicized press and public outrage that lowered Goodyear’s share price. This case examines the company’s political expression policy, the fractious nature of American politics, and limits of political expression in the workplace. (A) Case, 11 pp. (B) Case, 4 pp. Case #20-06
In preparation for the holiday shopping season, Peloton, a home exercise equipment manufacturer and workout streaming service, created controversy with one of its advertisements in 2019. A number of reactions accused the company of reinforcing sexist stereotypes. The aftermath included a loss of more than $1 billion in market value, social media outcry, and the creation of a number of parodies mocking the Peloton commercial. The company now hopes to rebound from its financial and reputational damage, just before the holiday season. 16 pp. Case #20-08
The death of George Floyd sparked a cry for racial justice that infiltrated every aspect of American life in the summer of 2020, including business marketing and product branding. The racist history surrounding the Aunt Jemima pancake mix and syrup line compelled Quaker Oats Company to review their product portfolio. While Quaker wants to protect the reputation of the brand and comply with social change, re-branding presents serious complications for a categoryleading product. 12 pp. Case #20-09 (2020).
The Washington Redskins professional football team face a new social climate with the sudden rise of power and influence of the Black Lives Matter Movement. The team, its owners, sponsors and fans confront a momentous shift in American tolerance for racially charged brands following the death George Floyd in 2020. Sponsorship arrangements, logotypes, even the team’s name are under fire. 8 pp. Case #20-10 (2020).
Starbucks Corporation is facing a dilemma with a group of employees in Buffalo, New York attempting to form a union in response to compensation and working conditions. Starbucks faces this labor organization effort in the context of a global pandemic and distinctive challenges facing the entire service industry. 10 pp. Case #21-09
In February 2021, Storm Uri devastated an unprepared Texas which resulted in mass power outages across the state. Texans faced low temperatures, food shortages, water shortages, and power outages during the storm and high electricity bills after. When electricity demand exceeded supply, electricity prices per kilowatt-hour soared, leaving many Texans with monthly electricity bills in the thousands. ERCOT is responsible for ensuring the reliability of electric service for 90 percent of the state, despite not owning the Texas grid or setting prices, and has been highly criticized for its decision making during the event by Texas politicians, residents, and the media. 15 pp. Case # 21-02 (2021)
Robinhood, an online trading platform, has revolutionized the trading industry by the incorporation of payment for order flow (PFOF). The platform has drawn many amateur investors to start investing, especially in cryptocurrencies. Controversies have arisen with the widespread use of the PFOF business model that have called for regulators to step in and possibly make changes. 12 pp. Case #21-08 (2021)
On January 6, 2021 insurrectionists rioted at the capitol building in Washington, D.C., claiming they wanted to stop certification of the electoral ballots naming Joseph R. Biden as 46th President of the United States. Investigations by independent news gathering organizations and Twitter, Inc. revealed a purposeful and continuing series of actions on the part of Donald J. Trump, 45th President of the United States. To assist in restoring order and to prevent further damage, Twitter, Inc. indefinitely suspended Mr. Trump’s Twitter account. A loud, vocal exchange ensued and the rapidly growing California start-up was faced with reputational and legal challenges of several sorts. 10 pp. Case #21-05 (2021).
Anheuser-Busch InBev: Dylan Mulvaney and the World oflnfluencers Brady, B.; Wallick, J.; and O'Rourke, J. S. (editor)
This case examines the interaction of corporate communication, brand influencers, and social media. In 2023, Anheuser-Busch InBev agreed to a professional promotional relationship with trans-advocate Dylan Mulvaney. As a result, backlash from anti-trans critics has substantially damaged the Bud Light brand Additionally, this case explores the increasing consumer demand for companies to become corporate advocates on behalf of social issues. 12 pp. Case #23-09 (2023)
Categories/Keywords: Anheuser-Busch InBev, Bud Light, Dylan Mulvaney, Celebrity Endorsements, Corporate Communication, Corporate Advocacy, Social Media, Social Issues, Brand Management.
Norfolk Southern Railway: A Disastrous Train Derailment in East Palestine, Ohio Coil, I.; Upadrasta, S.; Skukla, Y.; and O’Rourke, J. S. (editor)
A Norfolk Southern Railway train derailed in the small town of East Palestine, Ohio, releasing a large volume of hazard chemicals into the surrounding environment. Norfolk Southern CEO Alan Shaw has just become aware of the disaster and must decide how to respond, as intense criticism mounts. 13 pp. Case #23-03 (2023)
Key Words: Railroad Safety, Norfolk Southern, Disaster Response, Hazardous Materials, Crisis Communication
Adidas AG: Kanye West and Corporate Brand Ambassadors Carmolingo, T.; Ingram, B.; Love, A.; and O’Rourke, J. S. (editor)
This case examines the termination of the nine-year partnership between Adidas AG and music artist Kanye West, following West’s antisemitic comments on social media. The case explores the immediate public reaction, the subsequent actions of Adidas, and the financial implications for Adidas. The case also explores the risks and rewards associated with celebrity endorsements in the athletic footwear industry and analyzes the effect of such endorsements on brand reputation. The case concludes by discussing the company’s efforts to recover from the fallout and the ongoing challenges the company faces from shareholders and sneaker buyers. 13 pp.
Case #23-08 (2023).
Keywords: Adidas AG, Kanye West, Yeezy, Celebrity Endorsements, Athletic Footwear Industry, Brand Reputation.
Target Corporation: Pride Merchandise and Consumer Reaction Bao, L.; Swanson, A.; Mubvuma, S.; and O’Rourke, J. S. (editor)
As discussions on LGBTQIA+ inclusivity persist, the public debate continues about whether publicly traded organizations should voice their opinions through public advocacy. This case study spotlights Target Corporation and its twelfth annual Pride Collection launch. Target faced unforeseen financial and safety consequences in response, prompting merchandise removal.
Their future involvement in the LGBTQIA+ community remains uncertain. 9 pp. Case #23-07 (2023)
Key Words: Inclusivity, Business Strategy, LGBTQIA+, Crisis Management