America’s second-largest retailer tries to bolster profits in its credit card division by aggressively
pursuing delinquent customers. Unknown to CEO Arthur Martinez and his senior team at Sears
is the company’s action against more than half-a-million credit card holders who had filed for –
and been granted – protection in bankruptcy court. Martinez ponders what to do as Federal
attorneys file criminal charges against the company. 4 pp. Case #00-05. (2000)
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)