In 2013, Immigration and Customs Enforcement raided 14 7-Eleven stores that subjected about 50 undocumented immigrants to negligent human rights violations. In 2018, ICE conducted a raid of separately owned franchises that resulted in 21 additional arrests. The franchises were held liable. How can tension be resolved between franchises and the parent company? 9 pp. Case #19-01 (2019)
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)
Founded by Henry Sands Brooks in 1818, Brooks Brothers' business was built on relationships
maintained over generations with employees, suppliers, and customers. Once the most admired retailer
in the country, Brooks Brothers lost its corporate identity and consequently, broke the trust of one of
America’s most loyal base of customers. During the 1980s and 1990s, three companies took ownership
of the nation’s oldest, and for much of its history, most profitable men’s retailer. In 2001, Brooks
Brothers was sold to Retail Brand Alliance for $225 million. RBA CEO Claudio Del Vecchio was
determined to save Brooks Brothers. Mr. Del Vecchio tailored a turnaround plan stitched with a
communication strategy for Brooks Brothers’ stakeholders. (A) Case, 8 pp. (B) Case, 7 pp. Case #06-09.
(2006)
In November of 2005, just prior to the Christmas shopping season, the Pro-Life Action League and the
American Family Association announced a boycott of the popular doll line American Girl®, citing outrage
at American Girl’s® charitable support of Girls, Inc., which they accuse of supporting abortion and
promoting lesbianism. The two special interest groups staged the boycott after failed attempts during the
month preceding it to influence American Girl® to cut the “I CAN” promotion. The groups felt that the
company would respond to the challenge of the campaign because they claimed to be representative of the
primary consumer segments of the American Girl® dolls, with which they historically held shared family
values. The boycott lasted through the Christmas season, and the “I CAN” promotion ended the day after
Christmas, as scheduled. 6 pp. Case #06-15 (2006)
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)
On September 5, 2007, Apple, Inc.’s Steve Jobs announced a 33% price decrease in his company’s
newest gadget, the iPhone. The announcement came only ten weeks after the phone’s initial introduction
in late June. Billed as a revolutionary product that would change the mobile communications industry,
the iPhone retailed at $599 in Apple and AT&T Wireless stores throughout the country. Unfortunately,
the initiative set off a wave of backlash as early iPhone adopters flooded internet chatrooms and sent
scathing emails to company executives exclaiming their distaste for the company’s actions. Analysts and
investors shared similar concerns as Apple’s stock price dropped 6.1% on the date of the announcement
amidst fears that the price reduction was fueled by weakening demand for the company’s newest
"blockbuster" product. Going forward, Steve Jobs and his executive management team must develop a
strategy that will effectively respond to consumer complaints and simultaneously suppress investor
concerns. (A) Case, 14 pp. (B) Case, 3 pp. Case #08-05. (2008)
On July 3, 2018, bookseller Barnes & Noble released a statement saying that their CEO, Demos Parneros, was terminated, effective immediately, for “violating the company’s policies.” In this abrupt firing, Barnes & Noble did not specify the policies that were violated, but did mention that it was not related to any disagreement with the company regarding its financial performance. Suspicion quickly grew that Parneros was just the latest executive caught up in a #MeToo moment. 15 pp. Case #19-02 (2019)
In late 2013, Barneys New York quickly found itself embroiled in controversy. Within
the span of a few days, Barneys CEO Mark Lee’s attention shifted from ensuring recordbreaking
holiday sales to a lawsuit, an Attorney General’s investigation, a potential
boycott, and his company’s biggest holiday contract hanging in the balance. News media
and political activists labeled Barneys a racist brand, and Lee needed to find a way to
regain the trust of customers and the public at large. 14 pp. Case #15-01 (2015)
This case study focuses on Raelyn Campbell, a former Best Buy customer, who is suing the company for $54 million. Campbell states Best Buy lost her laptop - while being serviced for repairs - and tried to cover up its disappearance for more than five months. Additionally, Best Buy failed to address her concerns about identity theft when she acknowledged that years worth of tax returns were still on the missing laptop. The company must now decide how it will manage its image in response to this allegation and devise a communication strategy to further address customer concerns and privacy issues. 14 pp. Case #09-01. (2009)
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)
Campbell’s Soup Company released a statement on January 7, 2016 announcing its support of mandatory national labeling of products that may contain genetically modified organisms (GMOs), and became the first major food company to begin disclosing G.M.O. ingredients in its products. How will this affect sales, and what strategies should the company use in future to communicate its position in the GMO debate? 20 pp. Case #16-04 (2016)
First Act, Inc. & Brook Mays Music are two very different competitors fighting for a piece of the
school band instrument market. Brook Mays, in business for over 100 years, is a specialty
musical instrument retailer with over 60 locations, while upstart First Act designs and
manufactures instruments for sale in “big-box” retailers. First Act’s Concert Series instruments
have been built to provide a low-cost alternative to higher-priced band instruments commonly
found in stores like Brook Mays. In response to brisk sales of the Concert Series instruments,
Brook Mays has issued a letter to 8,000 music educators across the country, instructing them to
advise parents and students to avoid purchasing these instruments. Just months after the letter’s
issue, Concert Series sales have fallen, customers returns have skyrocketed, and First Act must
now decide how to respond and recover its lost business. 11 pp. Case #07-08. (2007)
The world’s largest home improvement retailer is under fire. A number of fatalities at Home
Depot stores across the nation since 1992 have finally come to the public’s attention. The parents
of a 3-year-old girl refuse to sell their silence about what they consider to be poor safety rules in
the stores. The family stops negotiations with the company on the issue, and Home Depot
management must decide how to react to the allegations of poor safety standards while under
intense public scrutiny. 8 pp. Case #01-12. (2001)
For over 100 years, J&J and the ARC had had a working agreement that gave J&J the right to use
the Red Cross symbol for commercial and for-profit products, while the ARC was allowed to use
the symbol in any way it wanted so long as it promoted its humanitarian and non-profit mission
given to the ARC by Congress. This all changed in 2004 when the ARC began licensing the
symbol out to manufactures to produce for-profit goods to be sold in big box retailers and other
stores. After attempts at mediation failed, J&J was left with no choice but to sue. The case will
promote discussion of how companies and organizations should react to lawsuits and what
communication channels need to be addressed by these groups under such circumstances. 7 pp.
Case #08-04. (2008)
Jim Adamson, the man responsible for turning around Burger King and Advantica Restaurants, the parentcompany of Denny’s Restaurants, has a new challenge. He has been hired to save Kmart, who in recentyears has failed to remain competitive with the likes of Target and Wal-Mart. Despite three CEOs in asmany years, the downward trend has continued for the big-box retailer. Investors are counting onAdamson to find a way to convince the market that Kmart can recover. (A) Case, 10 pp. (B) Case, 4 pp. Case #02-12. (2002)
During a tumultuous time that began at the end of 2009, Perry Yeatman of Kraft Foods led her corporate communication team through two multi-billion dollar deals, including the hostile takeover attempt of the iconic British confectioner, Cadbury. The complexities of managing two cross-cultural deals, while television commentator Jim Cramer places your CEO on his “Wall of Shame” and the world’s best-known investor, Warren Buffett, releases personal statements against a possible merger, could water down your message and take focus away from the main audience, the shareholders. 12 pp. Case #10-04. (2010)
When a L’Oreal executive walks through a West Coast department store and demands that a
sales representative be dismissed solely because of her appearance, lower-ranking managers
resist. After the dismissal of a manager who defended the productive, but apparently
unglamorous sales clerk, L’Oreal executives face charges of improper termination and
employment discrimination. Title VII of the U.S. Civil Rights Act comes into play as
Communications EVP Rebecca Caruso works to defend the image of the world’s largest
cosmetics retailer. 7 pp. Case #04-01. (2004)
Macy’s controversial conversion of Chicago’s State Street Marshall Field’s store is just one of
many branding and customer loyalty challenges facing Macy’s Inc. today. After converting over
800 stores nationwide, Macy’s focus is to remain relevant and competitive by managing
customer perception of quality as well as reinvigorating the department store experience. 12 pp.
Case #08-08. (2008)
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)
The nation’s largest retailer of maternity wear is accused of employment discrimination over the
dismissal of a manager attempting to return from maternity leave. President and COO Rebecca
Matthias and Communications Chief Mona Liss find themselves confronted with charges of
discriminating against a young mother and press reaction ranging from shock to disbelief. A
thorough review of the Family Medical Leave Act (FMLA) and Pregnancy Discrimination Act
(PDA) of 1978 are included. 7 pp. Case #04-04. (2004)
Following a period of instability in the executive leadership of RadioShack Corporation, Julian
Day was brought on board as chief executive in July of 2006 to turn the electronics retailing giant
around and restore profitability. Day quickly announced a turnaround plan designed to increase
average unit volume, lower overhead costs and grow profitable square footage. As a part of that
plan, RadioShack reduced its support staff in the headquarters by 450 positions. What bothered
employees and critics alike was not the force reduction, but the fact that those who lost their jobs
were notified by e-mail. 5 pp. Case #07-02. (2007)
The leading U.S. retailer, Sears, partnered with the Italian fashion house of Benetton to bring the
edgy, casual label into the Sears stores. In February of 2000, the strategic alliance became
strained when Benetton put out a controversial ad campaign which featured inmates on death
row. The “We on Death Row” campaign was met with protest by Sears’ employees and the
public alike. (A) Case, 7 pp. (B) Case, 4 pp. Case #00-17. (2000)
Tom Stemberg, CEO of a discount office supply chain, prepares to address the press and public
at a media conference in California. Stemberg’s aim is to show why a Boston-based firm should
put its name on a new sports arena in Los Angeles. 3 pp. Case #00-03. (2000)
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 2004, Mike Kowalski, chief executive officer of Tiffany & Co., faced a major decision for the future
of the Tiffany brand and franchise. After three rounds of price hikes, the highly profitable silver jewelry
line, “Return to Tiffany,” witnessed price increases of 200% , which finally resulted in a reduction in the
demand for Tiffany silver by the upper-middle-class consumer. The popular silver line had increased
sales as well as equity for the shareholders, but at the same time, it was eroding the brand in the eyes of
the core luxury consumer. Tiffany is left with the juxtaposition between increased profits and a tarnished
brand image. 10 pp. Case #07-05. (2007)
Federal immigration agents’ raids on Wal-Mart stores, referred to simply as “Operation
Rollback,” raises some concerns for the world’s largest retailer, especially in light of the negative
media exposure the company receives largely due to its massive size and expansionist efforts
throughout the globe. Criticisms of Wal-Mart’s non-union stance and its controlling relationship
with suppliers continue to surround the publicity of “Operation Rollback,” transforming the raids
into a symbol of the effects of the company’s low cost business model and unbeatable low prices.
12 pp. Case #04-08. (2004)
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)
Fast Fashion companies, including H&M, have grown considerably since the 1990s by satisfying consumers’ insatiable appetite for the latest fashionable trends at low prices. H&M’s newest CEO, however, must rethink the company’s business model and sustainability initiatives following recent global awareness and protest of fast fashion’s unfavorable environmental and social impact. 11 pp. Case #20-07
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