Answered: How to develop a PR statement that…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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How to develop a PR statement that would be appropriately delivered within 48 hours in the aftermath of the event?

Transcribed Image Text:Learning from a PR CATastrophe ON THE very day supposedly filled with love, several cats were reportedly taken out of the park they call home, in the dead of the night. The unfortunate inci- dent broke the hearts of many and started a series of backlash on a luxury hotel and a pest exterminator company, prompted by the unified action of pet lovers. Valentine's day wasn't exactly a good day for Shangri-La at the Fort, PestBusters, Cats of BGC and the thousands of pet lovers who learned about the story. When the news broke out on Facebook that the four-legged members of BGC com- munity were collected and removed by PestBusters upon the order of Shangri-La, the news spread fast. By the end of the week, the FB pages of both companies were inundated with one-star reviews and hateful comments, demanding for the whereabouts of the cats. It did not help that the hotel is- sued vague, half-hearted PR statements that only fueled the anger of the people. When those who put a negative review were blocked from accessing their accounts, rage grew even more, accusing the hotel of using its resources to block these people from their page. The power of social media Social media has an obvious power now in making or breaking a brand. From a 4.8-star rating on FB, Shangri-la Hotel's rating dropped to 1.1 star with over 11,000 negative reviews. The original post of Marcelle Marcelino which trig- gered the outcry was shared over 12,000 times, along with individual posts expressing their sentiments over the incident. Connectedness and ease of communication in social media makes spreading information (and un- fortunately in some cases, misinformation) a largely public phenomenon now. Companies benefit from this through positive user-generated content, most of the time amplified by the use of brand-owned hashtags. We've all seen brand content, particularly videos, that have gone viral in the past, and these brands have definitely enjoyed the extra media mile- age that their efforts have reaped. However, social media's dark side reveals itself when something scandalous or controversial happens, and control- ling its spread is almost next to impossible. When the first news of the missing cats broke out, Shangri- La issued a PR statement only after a few days- which people found insincere, cold and lacking clar- ity. PestBusters was unreachable, and only agreed on meeting with Shangri-La and other stakeholders when the issue has magnified in the following week. By then, traditional media have picked up the story, and TV programs, newspapers and news sites con- tributed to an even wider reach. PR crisis lessons A case study research led by Larissa Ott and Petra Theunissen in 2015 looked into the effectiveness of different strategies during a PR crisis, and shared the following important points: 1. Be sincere and authentic-Sometimes, straight- forward forward corporate statements are not always well- received by the public, as they may be perceived as "talking down." A sincere apology and a more per- sonal approach in the official statements should have been used by the hotel which they did, issued by the general manager- but only after three different state- ments failed to pacify the anger of the people. 2. Be transparent-In a situation when an issue has already been blown beyond control, denial or dimin- ishing tactics will only fuel more negativity. Several mistakes were committed by the hotel during this in- cident: the hotel gave wrong information on where the cats were released, and the company claimed that some of the cats were adopted by its employees, but upon verification, these are not the same ones that are missing. Conflicting and untrue statements to cover up for the wrongdoing only leave room for more doubts on the credibility of the company. 3. Do not censor negative posts-What irked most people is that after leaving a negative review on Shangri-La's page, they were logged out of their accounts and had to undergo security checks to get their accounts back. They saw this as censorship, and a way to get back at the people who only expressed their disappointment. The hotel denied doing any of this in their official statement but admitted in a news article that they "do report it [negative comments] on Facebook." JONNA BAQUILLAS GREEN LIGHT Stakeholder management The cats were a regular source of joy in the park. People expressed how these furry creatures took their stress away, or made the concrete jungle feel like home. One person even shared how the cats prevented her from committing suicide. What Shan- gri-la failed to recognize is that the cats are part of its stakeholders, as cared-for members by the BGC community. People invested money, time, effort and emotion to keep the cats safe and healthy, and the hotel's actions breached the public's confidence and trust in the brand. The cats are still not found, and sadly, may never be. In the eyes of the public, Shangri-La is no longer synony- mous to paradise. While the hotel is still operating its business as usual, only time will tell, and later on, financial reports and reputation analysis, how badly the company is hurt by their irresponsible action. The luxury hotel, along with other brands silently watch- ing how this story unfolded, surely learned a thing or two from this unfortunate incident. One thing stands out: animal welfare is thankfully starting to gain a strong foothold in our country. Also, do not forget that cats rule the internet (or the interwebz for that matter). Jonna Baquillas is a Doctor of Business Administration student at the De La Salle University. She teaches market- ing, brand, business, and retail management classes in Asia Pacific College. She has marketing and public relations ex- perience in the retail industry and has written textbooks in marketing and business ethics. Her rescued cats are celebri- ties and brand ambassadors, and has appeared in various TV, print, and online campaign materials. She can be reached at meow@pawsomecats.com. 1. The Department of Health (DOH), through the General Appropriations Act of 2018 intends to procure the following projects listed below: 4. IB No. 2018-076 2018-077 Name of Contract Procurement of Tamoxifen 20mg Tablet Procurement of Filigrastin 300mcg Injection Procurement of Docetaxel Procurement of Ceftime Procurement of Albendazole 2018-078 2018-091 2018-087 2018-083 Procurement of Progestin Only Pll (POP) Procurement of Depot Medroxy Progesterone 2018-084 Acetate (DMPA) Injectable 2018-172 Procurement of Simvastatin 20mg Tablet 5 Republic of the Philippines Department of Health CENTRAL OFFICE BIDS AND AWARDS COMMITTEE INVITATION TO BID PROCUREMENT OF VARIOUS DRUGS AND MEDICINES IB No. 2 The DOH now invites Bids from eligible Bidders for the procurement of the above-caption projects. Delivery of the Goods is required as specified in Section VI. Schedule of Requirements. Bidders should have completed contracts similar to the cited projects as stated in the ITB. The description of an eligible bidder is contained in the Bidding Documents, particularly, in Section II. Instructions to Bidders. 3. Bidding will be conducted through open competitive bidding procedures using a non- discretionary "pass/fail" criterion as specified in the 2016 Revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184, otherwise known as the "Government Procurement Reform Act". 2018-076 2018-077 2018-078 2018-091 2018-067 2018-083 2018-084 2018-172 Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or organizations with at least sixty percent (60%) interest or outstanding capital stock belonging to citizens of the Philippines, and to citizens or organizations of a country the laws or regulations of which grant similar rights or privileges to Filipino citizens, pursuant to RA 5183. Interested bidders may obtain further information from the COBAC Secretariat, Ground Floor, Building 6, DOH, San Lazaro Compound, Rizal Avenue, Sta. Cruz, Manila and inspect the Bidding Documents at 8:00 AM to 5:00 PM, Monday to Friday. Name of Contract ABC (PHP) Cost of Bidding Documents (Php) 11,153,312.00 14,457,080.00 29,079,390.00 10,082,325.00 It may also be downloaded free of charge from the website of the Philippine Government Electronic Procurement System (PhilGEPS), provided that Bidders who interested to participate shall pay the applicable fee for the Bidding Documents not later than the submission of their bids. Tentation 106,982,302.00 120,000,000.00 79,560,000.00 84,082,000.00 The DOH will hold a Pre-bidding Conference and the Submission and Opening of Bids at COBAC Conference Room, G/F, Bldg. 6, DOH, San Lazaro Cmpd., Rizal Ave., Sta. Cruz, Manila on the schedule given below. Procurement of Procurement of Filigrastin 300mcg Procurement of Docetaxel Procurement of Ceftime Procurement of Albendazole Procurement of Progestin Only PII (POP) Procurement of Depot Medroxy Progesterone Acetate (OMPA) Injectable Procurement of Simvastatin 20mg Tablet (MS-MAR 5, 20181 Form of Bld Security (a) Cash or cashiers/manager's check issued by a Universal or Commercial Bank 25,000.00 25,000.00 (b) Bank draftiguarantee or Irrevocable letter of credit Issued by a Universal or Commercial Bank Provided, however, that it shall be confirmed or authenticated by a Universal or Commercial Bank, If issued by a foreigh bank. 25,000.00 25.000.00 (c) Surety bond callable upon demand issued by a surety or Insurance company duty certified by the insurance Commission as authorized to issue such security. (d) Bid Securing Declaration 50,000.00 50.000.00 50,000.00 50.000.00 Pre-bidding Conference 13 March 2018, 10:00 A.M. Activity (Date & Time) 6. Bid must be duly received by the BAC Secretariat at the address below on or before the date given above. All Bids must be accompanied by a bid security in any of the acceptable forms and in the amount stated below. Submission and Opening of Bids 27 March 2018; 9:00 A.M. Amount of Bld Security (Not less than the required percentage of the ABC) Two percent (2%) Five percent (5%) No percentage required Bid opening shall be at COBAC Conference Room, G/F, Bldg. 6, DOH, San Lazaro Cmpd., Rizal Ave., Sta. Cruz, Manila. Bids will be opened in the presence of the Bidders representatives who choose to attend at the address above. Late bids shall not be accepted. 7. The DOH reserves the right to reject any and all Bids, declare a failure of bidding, or not award the contract at any time prior to contract award in accordance with Section 41 of RA 9184 and its IRR, without thereby incurring any liability to the affected bidder or bidders. 8. For further information, please refer to: COBAC-A Secretariat Building 6 Department of Health San Lazaro Compound, Rizal Avenue, Sta. Cruz, Manila Tel. Nos. 651-7800 local 1625 to 1627; 1650 to 52 Facsimile No.: 711-6061/740-6830 (SGD) ROGER P. TONG-AN, DMPA, MAN, RN Undersecretary of Health COBAC-A Chairperson

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