Houston Rockets general manager Daryl Morey apologized on Twitter over a now-deleted tweet that spoke in support of Hong Kong protesters. Dean Crutchfield, CEO of crisis advisory firm Crutchfield and Partners, and CNBC’s Eric Chemi join the “Power Lunch” team to discuss. Here’s the link.
When major corporations have done something to anger Chinese authorities in recent years, the playbook has called for one thing: an apology…
“Dean Crutchfield, CEO of the crisis management firm Crutchfield + Partners, said Morey’s tweet, well-intentioned as it was, could cost the NBA billions. He wondered if a parting of the ways between Morey and the Rockets would appease China.
“You need to fire him and you need to fire him fast,” Crutchfield said. “China needs a statement, and for him to still be in his job is remarkable. I think Silver did a remarkable job with his statement, but this is a senior official, well aware of the importance of the Chinese market. One man, one tweet.” Here’s a link to the article.
Financial Times reports on a new perspective on NBA v. China spat…Few western companies have more at stake than Nike in the fallout from an American basketball executive’s tweet about Hong Kong.
Here’s a link to the article. My POV is that “despite demands from the likes of Mr Rubio, he would advise the company to stay quiet. “Nike didn’t create this war,” he said. “Any crisis manager would say the same: avoid, avoid, avoid.” The episode could yet work to the company’s advantage, he added. “If they play it right, they’re going to sell a lot more merchandise.”
The question is, do CGI models hold true value for such businesses, or is this just a fad? Is such a move merely about gaining from some of the hype such models currently present? Or can it in fact drive ROI for the brands making use of them long term?
Following on from the Fashion shows in NYLON I spoke with CGTN’s Rachelle Akuffo about growing popularity of CGI models. Here’s the link.
Bloomberg News “As chief executive officer of Unilever, Paul Polman transformed the sprawling maker of Dove soap, Knorr stock cubes, Cif cleaning sprays, and Hellmann’s mayonnaise into a test bed for the idea that companies can benefit from affiliation with social causes, such as improved hygiene or better access to toilets. While investors and analysts were initially skeptical, Polman was ultimately lauded for redefining the corporation as something more benign than a purely profit-driven enterprise, even as margins edged up slightly from the midteens to almost 20% during his tenure. Now, Alan Jope, the Scotsman who succeeded Polman in January, is amping up the strategy. Article here.
Was pulling the sneaker the right thing to do? For some, it was a racist sneaker for others an icon of history. Did Nike do the right thing? Why did they get there in the first place? So many questions and so many media impressions. Here’s what I shared on CNBC Squawk Box.
Read more with Yahoo Financial.
From Yahoo Financial:
Dean Crutchfield, a New York-based branding specialist, struck an even more dire tone than Kerris.
“The first thing they have to recognize is that brands, like people, get sick,” Crutchfield explained. “Uber needs to admit it’s slightly broken. This was a cool, game-changing brand, and now it’s an arrogant behemoth. It sort of lost itself in its success. One has to respect customer and driver’s emotions, and I think they’ve forgotten about that. It’s a problem not just of their business, it’s a problem of the leadership. That leadership reflects poorly on the brand.”
Crutchfield pointed to United Airlines’ (UAL) recent controversy, in which a passenger was forcibly removed from a flight. United CEO Oscar Munoz exacerbated the public backlash by initially blaming the passenger for the brouhaha. United subsequently issued several apologies and promised a sweeping review of policies, particularly around crew behavior and passenger incentives.
“[T]here was a real arrogance where the CEO did not recognize their weaknesses and faults,” Crutchfield said.
Uber, for its part, knows it has a serious problem on its hands. Kalanick told employees in March he planned on hiring a COO “who can partner with me to write the next chapter in our journey.” Uber board member Arianna Huffington, meanwhile, is helping lead an “urgent” investigation into one engineer’s sexual harassment claims against the company.
But while that’s certainly a start, it’s clear company-wide changes to Uber must go far deeper. Full article.
…The protest alluded to “emotional events and very significant issues that affect the core of American society,” brand consultant Dean Crutchfield told BuzzFeed News. “They piggybacked on a crusade and didn’t have permission to do so. People found it tasteless and crass. It was trivializing grief.”For Pepsi, the debacle adds to a much bigger and more existential problem: Its core product is getting less popular by the day. Soda has become one of the main targets of public health advocates, and cities are starting to pass
For Pepsi, the debacle adds to a much bigger and more existential problem: Its core product is getting less popular by the day. Soda has become one of the main targets of public health advocates, and cities are starting to pass taxes on sugary drinks. Even diet sodas are in decline.
“This is the last thing they need. Their business is pretty fragile now,” said Crutchfield. “This is very embarrassing for the brand.”…