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Using porter’s “five forces driving industry competition’’ describe who a firm should deal with or what direction it should take?
A public relations practitioner of a company is supposed to identify the strategy with whom the company should have relationships. Using Porter’s “five forces driving competition” in industry analysis (Porter 79), we can come up with the following issues, such as threat from potential entrants, threat from existing competitors, threat from substitute products, buyers purchasing power and suppliers purchasing power. Threat of potential entrants creates barriers to entry (Crunig 287). It includes factors like economies of scale, differentiating products, capital, cost disadvantages and switching costs. These factors limit the entrance of new companies into the market.
Consumers purchasing power is determined by the performance of the business, price (consumers are price sensitive) and alternative products. Consumers also have information on demand, supplier costs and market prices which enhance the bargaining power of a consumer (Lenz 336). Another factor which acts as a significant force in the competition is the bargaining power of the suppliers. Suppliers dealing with different buyers’ have more influence on the terms, quality and prices of the products.
Chemco manufactures the evergreen laminated floor system with a 30 years warrant. How does public relations practitioner enhance marketing of the product?
Public relations department is an important factor for companies and corporations. Chemco, a firm which manufactures laminated floor system, needs to work on its relationship with public in order to market its products. Considering the fact that its products have a warrant of 30 years, effective public relations will play an important role in marketing of its goods. Public relations department has a managerial function and should ensure that it informs its clients of the products in a smart and effective way. The department should be clear and precise regarding the products. In case a client needs extra information, then the practitioner should explain everything in a polite way (Crunig 10). The public relation managers should be patient and attentive to the clients. The personnel at public relations department should be confident to ensure that clients are confident of the skills of the organization and its ability to accomplish what it says. The public relations practitioner should also welcome opinions raised by clients to create a sense of belonging (Crunig 10). The personnel should be able to communicate Chemo’s commitment to maintain a long-term relationship with its clients.
A public promotion made by Sunrise, Royal Garden and Lakeview real estate developers contradicts the warranty period for flooring system. How does public relations department address the problem?
Chemo should ensure that its public relations make important clarifications to its clients. Evergreen flooring system gives its clients a warrant of 30 years, while the developers mention 25 years. The department of public relations should assure the clients that Evergreen flooring system is committed to 30 years warrant (Crunig 25). The practitioner should also involve the developers in a comprehensive talk to make the Evergreen’s point well known. Effective communication is important for Chemo and the apartment developers. The two parties should come to an agreement (Brownlie 110). They can choose a similar period of time. However, Chemo should ensure that the developers point out an extension of five years warrant for the flooring system. This fact should be made clear and explained comprehensively to the clients (Brownlie 34).
The public relations department is charged with the duty of winning clients’ trust. It is done through one way communication where the company clears all the contradicting information.
What is the role of public relations department in easing the pressure real estate developers’ face?
The real estate developers should involve public relations department in easing the pressure they have from banks and Chemo Company. The practitioner should create a lasting relationship with Chemo and the banks (Crunig 27). The reason is that public relations should establish and maintain mutual understanding and good will between an organization or the company and its publics. Developers should assure both parties that it will repay its dues as soon as the estates get clients. Communication should be done on regular basis to avoid cases of mistrust (Crunig 30).
The public relations should establish formal meetings with the banks and Chemo in order to keep the parties informed. Public relations practitioners are supposed to collaborate with managers from both companies, in order to come up with solutions of problems that the company faces (Brownlie 247). Transparency and openness are the very factors in ensuring understanding and reduced pressure. It is important for all parties to acknowledge that all sides are of great importance to the market. Public relations practitioners in all the agencies or parties involved should work together towards achieving a common goal.
The news of presence of cancer causing element in Chemo’s product has a negative impact on its sales. It is also a public concern. How does public relations practitioner address the issue?
Public relations manager acts as a communication technician and is supposed to deal with the media. Presence of chemical causing cancer in the flooring system has negative impacts on the image of the company (Brownlie 255). The public relations practitioner should come out to the public and address the issue clearly. Chemo’s public relations department should write a press release explaining its concern in the public health. It should also show the public its willingness to work on the contents which are used in the manufacturing of flooring products (Crunig 295).
Every step Chemo takes in order to improve constituents should be communicated to the public through preparing and editing newsletters which will be made available to the customers for them to be informed (Crunig, 30). The relationship between Chemo and its publics should not be affected by the news. Producing the press release and newsletters should protect the profile of the company (Lenz 330). It is also necessary to create awareness and acquire a continuous flow of positive coverage by media regarding its (Chemo’s) products. The media and consumer will have a positive perception of Chemo as a result.
How does public relations department address the fears and concerns of buyers of the apartments regarding the news of the presence of chemical?
The concern of the buyers should be given the first priority. As the public relations practitioner, one should advise the CEO well. The CEO should be sincere with the public or the buyers on the materials used. The CEO should promise the public that he/she is addressing the situation. As a public relation practitioner, I would advise the CEO to have a meeting with its stakeholders, particularly buyers, potential buyers and developers. In the meeting, the CEO should answer all the questions they have. He should also promise to release press materials on the progress made towards addressing the issue. I would advice the manager to assure the public that there is no harm in the mean time (Crunig 301).
On the other hand, phone consultations should be available for the concerned persons to call in and make enquiries. In order to avoid congestion, the callers should be called to attend the meeting which gives a brief of the situation (Broom & Smith 17). The CEO should be patient with the stakeholders. While dealing with a client through a phone call, politeness and patience are essential. As the public relations practitioner, I would advice the CEO to develop and implement programs which address the fears of the clients. The most effective one is the production of newsletters which are used by the media to address the issues concerning the product. As a result, the company will get a positive coverage from the media (Broom & Smith 20).
What would you do and advise your CEO with the facts aforementioned?
As the public relations practitioner, I would take my managerial function, information facilitator and technician duties well. Managerial function involves passing of information to clients regarding the Evergreen flooring system. I would inform the in a smart, precise and comprehensive way (Lenz 229). The most important is to build trust and a long-lasting relationship with clients. On cases of propaganda and the presence of cancer causing products in Chemo’s product, I would employ professionalism. I would facilitate the company with the information needed in order to create mutual understanding between chemo and developers. The main reason is to avoid passing contradicting information. I would request for a meeting between the public relations departments of the two companies in order to ensure understanding (Broom & Smith 18). I would also make press release materials and newsletters to keep client informed about the company’s progress.
I would advise the CEO to support the public relations department in order to market and solve all the issues arising. I would advise him to assure our clients the commitment of the firm to deliver and build a long lasting relationship with them. I would also advise the CEO to remain calm and objective when issues arise in regard to our products (Crunig 300). I would also advise him to be polite and patient when addressing the concerns of our clients. The CEO should be positive by assuring the clients the best from the company. I would also advise him to keep our clients informed through newsletters and press release materials. I would advise the CEO to trust the public relations department to address the concerns of clients (Crunig 296).
List the necessary elements that would ne qualified for being accused for defamation.
Defamation refers to a negative statement made regarding a person, company or a product, which is untrue. The statement by developers on warranty of floor system is defamation. It is a false statement which contradicts the warranty of 30 years offered by the company. Another case of defamation is that of government inspectors who make a negative and false statement about Chemo’s flooring product. The information is misleading and impacts negatively on the product (Broom 49). Lastly, the report revealed by media of possibility of cancer illness through exposure is defamation. Moreover, it causes fear among the buyers, thus influencing negatively the product and the company as a result.
Works Cited
Broom, Glen M. “A comparison of sex roles in public relations.” Public Relations Reviews 8.3(1982):17-22. Print.
Broom, Glen M. and George D. Smith. “Testing the practitioner’s impact on clients.” Public Relations Reviews 5.3(1979): 47-59. Print.
Brownlie, Douglas T. “Environmental Scanning.” The Marketing Book, Third Edition. Ed. Michael John Baker. Oxford: Butterworth-Heinemann, 1994. 81-109. Print.
Brownlie, Douglas T. Rethinking Marketing: Towards Critical Marketing Accountings. London: SAGE, 1999. Print.
Crunig, James E. “Organizations and public relations: Testing a communications theory.” Journalism Monographs 46(1976): 5-63. Print.
Crunig, James E. “Organizations, environments and models of public relations.” Public Relations, Research and Education 1983: 6-29. Print.
Crunig, James E. and Lillian A. Grunig. “Models of public relations and communication.” Excellence in Public Relations and Communication Management. Ed. James E. Grunig. Hillsdale, NJ: Lawrence Erlbaum Associates, Inc, 1992. 285-326. Print.
Harlow, Rex F. “Building public relations definition.” Public Relations Review 2.4(1976): 34-42. Print.
Lenz, Richard and Jack L. Engledow. “Environmental analysis: The applicability of current theory.” Strategic Management Journal 7.4(1986): 329-346. Web.
Porter, Michael E. “The Five Competitive Forces That Shape Strategy.” Harvard Business Review. 2008: 79-93. Web.
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