Sunday, November 14, 2010
Chapter 8: Investor Relations
Investor relations affected my summer job extremely, it caused people to quit and/or get fired. Investor's started losing interest with all of the money and downfall of the recession the past year. The enviroment that the business was in wasn't affected a lot but it was enough to have a "ripple" affect on some of the businesses. My job basically recieved it's money from investors and state grants. With the economy in a downfall grants weren't being distributed and investors were pulling their money out of the company. Four supervisors quit and the business was just in a "slump." The business just started getting back on track this past year after the economic recession. The company found new investors and is really doing great.
Thursday, November 11, 2010
Ch.8 Investor Relations (IR)
Investor Relations (IR)has become an essential and indispensible arm for any company that is trying to raise capital in order to sustain its operations and maintain profitability in the extremely competitive website. No longer are the days when investors had to hold on the phone line or wait for a letter in the mail in order to get hold of or obtain a reply from an IR representative to get the information on their stock holding. With the increase in usage and innovation in the communications tools, investors are looking to get instantaneous information from companies in order to maintain their holdings or just spin them off their portfolios at the slightest change in their performance. Moreover, with the current economic crisis firms have to constantly communicate and engage their investors in order to get their attention and get their much needed financial support. Companies are realizing the importance of reaching out to investors and are making every effort to get their attention by using the latest platforms of engagement such as blogs, website, email lists, and other social network sites like Facebook, Twitter etc. which have gained such immense popularity that companies have started maintaining a dedicated team to actually update contents and reply to blogposts within minimum timeframe. This also affirms among the investors; a trust that the company is speaking to them just like a real person.
Another key tool used by companies is the increased use of webcasts, which record the actual meeting between the management, analysts, investors and stockholders and is uploaded on the company’s website so as to provide the latest buzz about the company from the CEO or Chairman (i.e. right from the horse’s mouth.)
One of the examples of corporations making their detailed financial information available to existing and potential investors is Goldman Sachs, a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services.
It has a detailed and updated information about its financials including the 10-Ks and the 10-Qs and their filings with the Securities and Exchanges Commission (SEC) from time to time highlighting its transparency of its funds and its operations. This has helped Goldman Sachs immensely in maintaining its stock price steady even when some other firms within the same industry are struggling for much needed funds from the open markets.
Its investor information is accessible at: http://www2.goldmansachs.com/our-firm/investors/index.html
Another key tool used by companies is the increased use of webcasts, which record the actual meeting between the management, analysts, investors and stockholders and is uploaded on the company’s website so as to provide the latest buzz about the company from the CEO or Chairman (i.e. right from the horse’s mouth.)
One of the examples of corporations making their detailed financial information available to existing and potential investors is Goldman Sachs, a global investment banking and securities firm which engages in investment banking, securities, investment management, and other financial services.
It has a detailed and updated information about its financials including the 10-Ks and the 10-Qs and their filings with the Securities and Exchanges Commission (SEC) from time to time highlighting its transparency of its funds and its operations. This has helped Goldman Sachs immensely in maintaining its stock price steady even when some other firms within the same industry are struggling for much needed funds from the open markets.
Its investor information is accessible at: http://www2.goldmansachs.com/our-firm/investors/index.html
Sunday, November 7, 2010
Chapter 8: Investor Relations - Ryan Kirsch
My previous company had corporate personnel responsible for investor relations (IR); however information was rarely, if ever, provided to staff employees. As far as I could tell, there were some employees (i.e. executives, VP’s) who owned shares of the company but essentially the company was owned by a private equity firm. First-hand, I do not know the role our investor relations personnel played in the company, but I would assume their roles were similar in function to those of publicly traded companies.
The following is advice quoted from a blog from Tom “Toronto” Reidt, Title: Potential Roles for PR in a recession, February 1, 2008:
“If your stock is falling, or your business isn’t getting the returns it used to, the investors are going to want some serious reassurance. Investor relations should be a crucial facet of any business in a recession. If your ROI is coming back red, and your company remains silent, investors will be dropping out faster than Rudy Giuliani [referring to the 2008 presidential election]. If you employ some excellent IR, you can maintain their trust and hopefully keep them on board.”
“Productivity and profit are directly linked to how engaged, enabled and happy the employees are. Nothing puts more strain on employee relations than a recession. Potential layoffs, salary increases and bonuses getting the axe, terms like “restructuring” being tossed around, it’s a time of high anxiety for everyone. A good internal communications plan can diffuse the tension, reassure doubts, or at the very least, keep people in the loop about what’s happening.
To read this blog and comments left by others, please use thefollowing link : http://tomtoronto.wordpress.com/2008/02/01/potential-roles-for-pr-in-a-recession/
There are many videos on the web showcasing the global fear and panic investors felt during the recent recession and stock market collapse. If you want to share your experiences or provide a suitable video please leave your comments below. Thank you.
The following is advice quoted from a blog from Tom “Toronto” Reidt, Title: Potential Roles for PR in a recession, February 1, 2008:
“If your stock is falling, or your business isn’t getting the returns it used to, the investors are going to want some serious reassurance. Investor relations should be a crucial facet of any business in a recession. If your ROI is coming back red, and your company remains silent, investors will be dropping out faster than Rudy Giuliani [referring to the 2008 presidential election]. If you employ some excellent IR, you can maintain their trust and hopefully keep them on board.”
“Productivity and profit are directly linked to how engaged, enabled and happy the employees are. Nothing puts more strain on employee relations than a recession. Potential layoffs, salary increases and bonuses getting the axe, terms like “restructuring” being tossed around, it’s a time of high anxiety for everyone. A good internal communications plan can diffuse the tension, reassure doubts, or at the very least, keep people in the loop about what’s happening.
To read this blog and comments left by others, please use thefollowing link : http://tomtoronto.wordpress.com/2008/02/01/potential-roles-for-pr-in-a-recession/
There are many videos on the web showcasing the global fear and panic investors felt during the recent recession and stock market collapse. If you want to share your experiences or provide a suitable video please leave your comments below. Thank you.
Chapter 8: Investor Relations - Cynthia Wolfel
At first I thought relating the impact of investor relations (IR) to my current work environment would be difficult; conversely, after a little more contemplation the realization that it was very pertinent occurred. I am presently not working in a business environment, per say. I am attending IUP as fulltime graduate student with an assistantship and work study position that are state and federally funded. Investment has affected school budgets, since there has been a lack of return on funds previously endowed. I personally have watched my 401K take a nose dive, but it was a company contribution plan; so, I was not terribly upset by the loss. There is a renewed sense of fear in investments for many individuals since the ‘recession’.
Additionally, since I am obtaining my K-12 BCIT PA teaching certification, my possible future retirement plan is being changed as you read. See the following site for some background information: http://www.pittsburghlive.com/x/pittsburghtrib/s_623405.html
There are several issues surrounding teacher retirement funding and many teachers that leave positions are not being replaced. Both of these issues will definitely affect my future. These sites also contain relevant information:
http://www.psea.org/general.aspx?id=2626
http://www.caldercenter.org/PDF/1001071_Teacher_Pensions.pdf
There are funding issues for both the University of Pittsburgh and IUP due to the recession and lack of investment revenue. Part of the reason I am at IUP is that companies are not providing workforce development due to budget cuts, which was a good portion of my previous teaching. The recession seems to have sent more people back to post secondary school. Corporations are not the only ones competing for investment dollars. Post secondary education is a business that focuses on enrollment numbers and utilizes advertising to increase those numbers. Many of the same strategies used for corporate investment are used to increase enrollment, such as a clear vision and mission, which have been revised in the past few years by many institutions.
http://www.iup.edu/upper.aspx?id=2065
http://www.ir.pitt.edu/factbook/fbweb05/general/MISSION.PDF
There have been logo, motto and mission statement changes made so post secondary schools can appeal to the current market. Board meetings are held to ensure expectations are appropriate for future expansion plans and monetary funding. Volatility is reduced by trying to predict and appeal to constituencies, such as: investors, alumni, parents and students. Like a business many constituencies must be placated and investors can be grouped to address their particular concerns. Student retention rates are a major center of attention due to continued enrollment dollars. Since there are numerous investors in post secondary education, it requires the use of diverse communication channels due to age, socioeconomic status and local demographics just to name a few.
Furthermore, proactive planning is necessary to quell the negative publicity that can occur. For example Penn State was negatively impacted for several alcohol related incidents and racial issues in the not so distant past. Virginia Tech. is a true crisis example. It is important for post secondary institutions to have more than just a reaction to adverse media attention to ensure future investment and enrollment. Rating agencies are important intermediary constituencies for post secondary institutions, which can be beneficial or not depending on an achieved ranking. Several ranking listings are available and a few are provided here:
http://www.usatoday.com/news/education/best-value-colleges.htm
http://www.usnews.com/sections/rankings
http://www.4icu.org/topNorth-America/
Globalization has helped to expand the market for post secondary revenue adding an international constituency base; however, there was a global recession. IR is a primary center of attention for post secondary institutions that may spread to secondary schools due to budget restraints and the existence of cyber schools and technology centers – personal choice. Competition for investment funds in the form of students, parents and investors is becoming increasingly more important at the secondary level. An example of positive image advertising for cyber schools in Pennsylvania follows. Please view the advertisement before the video.
Advertisement: http://www.pacyber.org/newsroom/article_results.aspx?ArtID=148
http://www.youtube.com/watch?v=RKQJ8oZpykY&feature=player_embedded#!
Additionally, since I am obtaining my K-12 BCIT PA teaching certification, my possible future retirement plan is being changed as you read. See the following site for some background information: http://www.pittsburghlive.com/x/pittsburghtrib/s_623405.html
There are several issues surrounding teacher retirement funding and many teachers that leave positions are not being replaced. Both of these issues will definitely affect my future. These sites also contain relevant information:
http://www.psea.org/general.aspx?id=2626
http://www.caldercenter.org/PDF/1001071_Teacher_Pensions.pdf
There are funding issues for both the University of Pittsburgh and IUP due to the recession and lack of investment revenue. Part of the reason I am at IUP is that companies are not providing workforce development due to budget cuts, which was a good portion of my previous teaching. The recession seems to have sent more people back to post secondary school. Corporations are not the only ones competing for investment dollars. Post secondary education is a business that focuses on enrollment numbers and utilizes advertising to increase those numbers. Many of the same strategies used for corporate investment are used to increase enrollment, such as a clear vision and mission, which have been revised in the past few years by many institutions.
http://www.iup.edu/upper.aspx?id=2065
http://www.ir.pitt.edu/factbook/fbweb05/general/MISSION.PDF
There have been logo, motto and mission statement changes made so post secondary schools can appeal to the current market. Board meetings are held to ensure expectations are appropriate for future expansion plans and monetary funding. Volatility is reduced by trying to predict and appeal to constituencies, such as: investors, alumni, parents and students. Like a business many constituencies must be placated and investors can be grouped to address their particular concerns. Student retention rates are a major center of attention due to continued enrollment dollars. Since there are numerous investors in post secondary education, it requires the use of diverse communication channels due to age, socioeconomic status and local demographics just to name a few.
Furthermore, proactive planning is necessary to quell the negative publicity that can occur. For example Penn State was negatively impacted for several alcohol related incidents and racial issues in the not so distant past. Virginia Tech. is a true crisis example. It is important for post secondary institutions to have more than just a reaction to adverse media attention to ensure future investment and enrollment. Rating agencies are important intermediary constituencies for post secondary institutions, which can be beneficial or not depending on an achieved ranking. Several ranking listings are available and a few are provided here:
http://www.usatoday.com/news/education/best-value-colleges.htm
http://www.usnews.com/sections/rankings
http://www.4icu.org/topNorth-America/
Globalization has helped to expand the market for post secondary revenue adding an international constituency base; however, there was a global recession. IR is a primary center of attention for post secondary institutions that may spread to secondary schools due to budget restraints and the existence of cyber schools and technology centers – personal choice. Competition for investment funds in the form of students, parents and investors is becoming increasingly more important at the secondary level. An example of positive image advertising for cyber schools in Pennsylvania follows. Please view the advertisement before the video.
Advertisement: http://www.pacyber.org/newsroom/article_results.aspx?ArtID=148
http://www.youtube.com/watch?v=RKQJ8oZpykY&feature=player_embedded#!
Sunday, October 10, 2010
Chapter 6: Media Relations – Ryan Kirsch
I would like to briefly discuss the media blackout associated with the Deepwater Horizon oil spill and the resentment BP and the U.S. Government have faced during this event. The spill occurred on April 20, 2010 and was eventually capped on July 15, 2010. During this time news reports suggest the media was restricted in covering certain aspects of the cleanup effort. The video below is from CCN’s Anderson Cooper explaining some of the restrictions the government and BP had imposed on the media.
The following video from CNN shows some of the wildlife cleanup work in the Gulf and how the National Guard and BP security personnel have refused media access to these efforts. One volunteer explained to CNN (off camera) that he signed a document stating he would not talk to the media. Another rescuer told CNN he would be fired if he spoke up about their activities. A BP contract that was initially used to hire rescue and cleanup workers appears to ban any comments to the media. The contract states “Vessel owners and employees will not make news releases, marketing presentations or any other statements…” A BP spokesman told CNN that the company has not enforced this provision in the agreement. However, CNN reports that the workers they talked to have failed to receive that message.
Certainly the lack of information and restriction has drawn much attention from various BP and government constituents. Some of the questions I have concerning the media blackout are: Why the lack of transparency from BP and the government? How is this going to affect future BP relations with its constituencies? Will there be more or less transparency of information and restriction in future incidents of this type? How will this incident affect potential regulations concerning the disseminating of information and media access?
The following video from CNN shows some of the wildlife cleanup work in the Gulf and how the National Guard and BP security personnel have refused media access to these efforts. One volunteer explained to CNN (off camera) that he signed a document stating he would not talk to the media. Another rescuer told CNN he would be fired if he spoke up about their activities. A BP contract that was initially used to hire rescue and cleanup workers appears to ban any comments to the media. The contract states “Vessel owners and employees will not make news releases, marketing presentations or any other statements…” A BP spokesman told CNN that the company has not enforced this provision in the agreement. However, CNN reports that the workers they talked to have failed to receive that message.
Certainly the lack of information and restriction has drawn much attention from various BP and government constituents. Some of the questions I have concerning the media blackout are: Why the lack of transparency from BP and the government? How is this going to affect future BP relations with its constituencies? Will there be more or less transparency of information and restriction in future incidents of this type? How will this incident affect potential regulations concerning the disseminating of information and media access?
Chapter 6: Media Relations - Cynthia Wolfel
This is a difficult question for me, since most of the companies I have worked for have not had communications departments. I also have never been directly involved in any form of media relations. The closest experience to this, which I have personally witnessed, is with the gas and oil drilling company for whom I previously worked. The company had a pair of people that were supposed to address general issues with the public. They regularly attended meetings, conventions, dinners etc… to represent the company in a positive light. There was not any negative publicity at the time to cause a great deal of concern or to make the company focus more attention on establishing an actual media relations / communications department. Random interviews were done without any real input from a communications professional. This particular company assumed the old view of trying to avoid publicity.
The inner workings of the company were very hush-hush. Employees were told not to divulge information about the company to anyone. The gas and oil industry is a very cut throat business, so employees did not question the do not tell policy. In retrospect the company should have invested in some media research that could have established a connection with a reporter that would spin things in their favor. Shortly before I left the company a television reporter used only certain parts of a conversation with an employee and portrayed the company in a very negative light.
The company then established a very generic website that included a link for constituents to email the company. Unfortunately, this link did not send email to a trained media relations or even a communications professional. A better done website could have provided this company with a sounding board against various media attacks. Other media venues should also have been identified, so appropriate positive contacts would be in place, when and if needed, during media crisis interventions. The company never considered which communications venues might have posed the most benefit or how they compared to others in the industry from a communication’s perspective. In the end the corporate reputation suffered.
The inner workings of the company were very hush-hush. Employees were told not to divulge information about the company to anyone. The gas and oil industry is a very cut throat business, so employees did not question the do not tell policy. In retrospect the company should have invested in some media research that could have established a connection with a reporter that would spin things in their favor. Shortly before I left the company a television reporter used only certain parts of a conversation with an employee and portrayed the company in a very negative light.
The company then established a very generic website that included a link for constituents to email the company. Unfortunately, this link did not send email to a trained media relations or even a communications professional. A better done website could have provided this company with a sounding board against various media attacks. Other media venues should also have been identified, so appropriate positive contacts would be in place, when and if needed, during media crisis interventions. The company never considered which communications venues might have posed the most benefit or how they compared to others in the industry from a communication’s perspective. In the end the corporate reputation suffered.
Ch.6: Media Relations
With the increased scrutiny in the internal workings of corporations among the general public primarily due to their being an intrinsic part of virtually every aspect of an individual's life, it has become essential for the top management to communicate frequently and effectively to its constituents through the existing and emerging media channels of communication.
No longer are the days when companies used to provide goods and services with little or no answerability or accountability about their operations to its customers or the public. The changes have been influenced by various corporate scandals, bankruptcies etc. causing severe financial and emotional losses forcing governments to enforce stringent regulations on companies about publishing the details of their workings from time to time. Also, a key factor in increased public awareness is the increased levels of exposure to various print and electronic media providing a plethora of information. People are beginning to realize the importance of being educated about a company's products or services in order to make informed choices about using them and differentiating them from those offered by competitors.
This has tremendously increased the role of media relations in the overall corporate strategy framework. Companies are beginning to realize the importance of having a robust media relations team equipped with seasoned and outgoing personnel empowered with the latest communication technologies to ensure clear, prompt and speedy flow of communication to the right target constituencies. Also, at the same time encouraging constituencies with user-friendly means to provide feedback and respond positively or negatively to company's decisions and fostering innovation and improvisation in their product and service offerings.
However, due to the immense size of the various constituencies, corporations have to work continuously and communicate seamlessly and effectively with various electronic and print media that provide content for mass consumption in the form of newspapers, documentaries, advertisements, blogs, forums, websites, television shows, videos etc. They also have to rely heavily on these media networks to communicate any important events within the organization or perform damage control in the event of any operational or service failure/s as these networks have immense power to sway public opinion based on their methods and styles of presenting information to various constituencies. This can only be successful if corporations and media networks build long term relationships and work towards understanding each others' roles within the communities and how their interactions with each other decide on the quality of the content being provided to the constituencies served by the corporations. These changing times also require the senior leadership of the companies to take on a more proactive role in communication to the various constituencies rather than a defensive or passive one. It also mandates the need for awareness and adaptability of the latest forms of communication media tools among the top management.
One of the examples that comes to mind for making an effective use of the latest media communications technology is Pepsi. The company's website http://www.pepsi.com/ has been designed to cater to its key constituents, mostly consumers who are in their teens, young adults and adults. It has a very user-friendly interface and makes an effective use of the latest media platforms like Facebook, Twitter, YouTube etc. Pepsi not only provides the updated corporate information through these platforms but also build loyalty and repeat site visits among its constituents. It also allows website users to volunteer and participate in its community activities and interacts with constituencies beyond its immediate customer base. With a youthful feel to its website, it launches and funds various projects in the communities through "Pepsi Refresh Project" (http://www.refresheverything.com/) it serves by letting its website users vote for specific projects which Pepsi can fund to make a meaningful difference. It also encourages user participation by means of website blogs and facilitates discussions over a new product launch, its quality or any corporate news. It also collects data from customers through these channels which helps in providing inputs in the form of market research data at a fractional cost than those of traditional market research sources.
No longer are the days when companies used to provide goods and services with little or no answerability or accountability about their operations to its customers or the public. The changes have been influenced by various corporate scandals, bankruptcies etc. causing severe financial and emotional losses forcing governments to enforce stringent regulations on companies about publishing the details of their workings from time to time. Also, a key factor in increased public awareness is the increased levels of exposure to various print and electronic media providing a plethora of information. People are beginning to realize the importance of being educated about a company's products or services in order to make informed choices about using them and differentiating them from those offered by competitors.
This has tremendously increased the role of media relations in the overall corporate strategy framework. Companies are beginning to realize the importance of having a robust media relations team equipped with seasoned and outgoing personnel empowered with the latest communication technologies to ensure clear, prompt and speedy flow of communication to the right target constituencies. Also, at the same time encouraging constituencies with user-friendly means to provide feedback and respond positively or negatively to company's decisions and fostering innovation and improvisation in their product and service offerings.
However, due to the immense size of the various constituencies, corporations have to work continuously and communicate seamlessly and effectively with various electronic and print media that provide content for mass consumption in the form of newspapers, documentaries, advertisements, blogs, forums, websites, television shows, videos etc. They also have to rely heavily on these media networks to communicate any important events within the organization or perform damage control in the event of any operational or service failure/s as these networks have immense power to sway public opinion based on their methods and styles of presenting information to various constituencies. This can only be successful if corporations and media networks build long term relationships and work towards understanding each others' roles within the communities and how their interactions with each other decide on the quality of the content being provided to the constituencies served by the corporations. These changing times also require the senior leadership of the companies to take on a more proactive role in communication to the various constituencies rather than a defensive or passive one. It also mandates the need for awareness and adaptability of the latest forms of communication media tools among the top management.
One of the examples that comes to mind for making an effective use of the latest media communications technology is Pepsi. The company's website http://www.pepsi.com/ has been designed to cater to its key constituents, mostly consumers who are in their teens, young adults and adults. It has a very user-friendly interface and makes an effective use of the latest media platforms like Facebook, Twitter, YouTube etc. Pepsi not only provides the updated corporate information through these platforms but also build loyalty and repeat site visits among its constituents. It also allows website users to volunteer and participate in its community activities and interacts with constituencies beyond its immediate customer base. With a youthful feel to its website, it launches and funds various projects in the communities through "Pepsi Refresh Project" (http://www.refresheverything.com/) it serves by letting its website users vote for specific projects which Pepsi can fund to make a meaningful difference. It also encourages user participation by means of website blogs and facilitates discussions over a new product launch, its quality or any corporate news. It also collects data from customers through these channels which helps in providing inputs in the form of market research data at a fractional cost than those of traditional market research sources.
Subscribe to:
Comments (Atom)