Exam January 2014, questions PDF

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This question paper consists of 9 printed pages, each of which is identified by the Code Number LUBS5435M

LUBS5435M Only calculators from the following list of approved models can be used in this examination: Casio fx-83, fx-85, fx-350 series Sharp EL-531 series

MCQ answer sheet UNIVERSITY

OF LEEDS (Semester 1, 2013/2014)

Examination for the degree of MA Advertising & Marketing Module LUBS5435M Public Relations & Corporate Communications TIME ALLOWED: 2 HOURS This paper is split into 2 sections. Section A is compulsory (section weighted at 33%) In Section B answer TWO questions (section weighted at 67%) It is recommended that you spend 30 minutes on Section A and 1 hour 30 minutes on Section B. Answer Section A on the MCQ answer sheet provided. Answer Section B in the examination booklet provided.

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Section A 30% of the total mark for the exam is available for this section

(30 Minutes) Answer ALL questions

Read the following instructions carefully before answering. Please remember – if there is any ambiguity regarding what answer you have given, the question must be marked wrong. This paper consists of 10 multi-choice questions. You must answer all 10 questions. You must record your answers using the multi-choice answer sheet provided. DO NOT write your answers in an exam booklet. Each question has ONE correct answer. You must mark the ONE answer you think is best. Each correct answer will score one mark. No marks are deducted for incorrect answers. Indicate your answer on the answer sheet provided by COMPLETELY blackening the appropriate oval. DO NOT use ticks or crosses. Use only PENCIL on the answer sheet. If you wish to change an answer, do so by COMPLETELY erasing the mark you wish to change with an eraser before blackening the new oval. DO NOT use correcting fluid (SUCH AS “TIPPEX”) anywhere on the answer sheet. Enter your name and examination room where indicated on the answer sheet. You must also enter your 9-digit student number on the answer sheet where indicated by blackening the appropriate ovals. You must also enter your seat number on the answer sheet where indicated by blackening the appropriate ovals. NOTE: if your seat number has only two digits, you should enter the number with a leading zero, for example, seat 23 must be entered as “023”. LUBS5435M

Similarly, if your seat number has only one digit, it should be entered with two leading zeros, for example, seat 8 should be entered as “008”. Apart from writing in your name and exam room where indicated, and blackening the ovals as appropriate, DO NOT write on or mark the answer sheet in any way. DO NOT write on the back of the answer sheet. DO NOT fold, crease or pierce the answer sheet.

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1. An organisation’s reputation can be defined as ________________ a. Overriding purpose in line with the values or expectations of stakeholders b. A formalised and authoritative description of an organisation c. Everything and organisation says or does d. The immediate set of associations of an individual in response to one or more signals or messages from or about a particular organization at a single point in time 2. Which of the following models for the relationship between Marketing and Public Relations is most favoured by Kotler and Mindak?

3. Which of the following is not a driver for integrating communication? a. Audience fragmentation b. Complementarity of the media and media cost inflation c. Increased accountability d. Public perception 4. An intentional and internal crisis is called a___________________? a. Faux Pas b. Transgression c. Terrorism d. Accident 5. Which of the following is not a nonexistence crisis communication strategy? a. Denial b. Clarification c. Rectification d. Attack and intimidation 6. The stakeholder salience model classifies stakeholders based on their possession of one or more of the following attributes: power, legitimacy and urgency. Which stakeholder group possesses legitimacy and none of the other two? a. Definitive stakeholder b. Discretionary stakeholder c. Demanding stakeholder d. Dangerous stakeholder 7. What is ‘Marketing Public Relations’ or MPR? a. direct communication via post, telephone or e-mail to customers and prospects b. public relations activities towards ‘corporate’ stakeholders c. the use of what are traditionally seen as public relations tools within marketing programs d. advertising aimed at increasing awareness, favour or sales of a company’s products or services Please turn over LUBS5435M

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8. In stakeholder communication, which of the following tactics is used to raise awareness among stakeholders? a. News letters b. Meetings c. Debate d. Consultation 9. Which of the following change communication strategies has the highest communication effectiveness? a. Underscore and explore b. Spray and pray c. Identify and reply d. Withhold and uphold 10. The attempt by organisations to deceptively portray themselves as environmentally friendly is called _______________________ a. Whitewashing b. Redwashing c. Greenwashing d. Brownwashing

All questions carry equal marks

END of Section A

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Section B 67% of the total mark of the exam is available for this section

(1 hour 30 minutes)

Answer any 2 questions 1. Identify Domino’s stakeholders affected by and involved in the events described in the case. Using the position-importance matrix, classify these stakeholders and describe their role in the crisis. 2. With reference to theory, outline the way in which the events described in the case developed into a crisis for Dominos including a description of the various stages of development. Using the crisis type matrix , classify the crisis accordingly. Explain your choice. 3. With reference to specific crisis response strategies, discuss the failings and successes of Domino’s in handling this developing issue and the consequent crisis. In what way could they have improved their approach? Explain your suggestions.

All questions carry equal marks

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Dominos Pizza ‘Vulgar’ Video Background Dominos Pizza was formed in 1960 by Tom Monaghan and his brother James, in Michigan USA. The two called the new business ‘DomiNick’s’ until 1965, when Tom renamed it after James had sold his share of the company to him. In 1967, the first franchise opened, with many more quickly following suit. By 1983, there were over 1000 stores with 1985 seeing the opening of the first UK store in Luton. As the franchising format gained popularity, Dominos Pizza gradually expanded to become the world’s leading pizza delivery company. There are currently “…over 10,000 Domino’s Pizza stores worldwide in more than 75 countries, employing over 180,000 team members and involving over 2,000 franchisees. Globally, dominos delivers more than one million pizzas every day.” (Domino’s Corporate Website, 2013). Besides pizza delivery, Domino’s also has a robust Research and Design department which has been at the forefront of pioneering innovations in the industry. For instance, in 1999, Domino’s became the first pizza delivery company in the world to offer nationwide pizza ordering. A pizza tracker also made it easier for customers to keep track of their order in real time. In August 2010, the company introduced an iPhone app, later followed by an Android and a Windows Phone 7 app. These apps are linked to the real-time order tracking system and can also be used to provide suggestions for toppings amongst other related uses. Dominos has also been keen to keep up with changing food industry standards, trends and stakeholder expectations. For instance, Domino’s claim to be the only pizza company to offer fat reduced cheese in their pizzas, in the form of their Delight Mozzarella, which has 33% less fat than ordinary Mozzarella. In November 2012, Domino’s became the UK’s first major pizza delivery company to offer a gluten-free pizza base, which is accredited by Coeliac UK, the national charity for people suffering with coeliac disease. Other innovations include the UK’s first double-decker pizza, Double Decadence, and Domino’s stuffed crust. The Prank Video On Easter Sunday 2009, at about 5pm or 6pm “…in a small mountain town, the intentionally playful actions of two employees quickly became a worldwide marketing nightmare for a large company franchise. A slow workday at Domino’s Pizza in Conover, N.C. prompted this duo to create videos showing a male sticking cheese up his nose and then putting it on a sandwich that was to be delivered to a customer. His cohort also filmed him partaking in other unsanitary acts with the food and uploaded the videos to YouTube”. (Jacques, A., PRSA, 2009). The following account of events is based on an interview with Tim McIntyre, vice-president th communications for Domino’s, which appeared on August 17 2009 in the PRSA publication, ‘The Strategist’.

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Initial Reaction Tim McIntyre was made aware of the video by a website that decided that it was in the public’s best interest to carry the video on their website and to post it on YouTube. The alert came within 45 minutes of the video first appearing on YouTube. Angry at the seemingly reckless behaviour of the two employees, McIntyre immediately sent the link to a core group within the organisation, including the head of security, the in-house social media department and members of top-management. Their initial thoughts were that this was a hoax. These initial thoughts were however soon dispelled once the team realised that the employees were in full uniform, in the kitchen of one of their restaurants. The team went into action – they captured still pictures of the employees' faces from the video, and distributed them nationwide within their internal network in a bid to identify the perpetrators. This was done within 2 hours of the video being posted. Members of the public provided clues as to where the store was located, with one of them sending an email to McIntyre which indicated that the store was in North Carolina. By 11 pm on Monday, the Domino’s team were able to confirm the store location and by Tuesday morning, they had identified the employees, contacted the independent store owner, the local police and the health department. The decision was made to handle the now developing issue by the newly founded social media team. The team had been in existence for only two months and plans were underway to launch Domino’s on Facebook, Twitter and other relevant social media sights. However, none of the plans had been implemented. In spite of this, Domino’s decided to sign up on these sites and respond to the now growing public interest using these social media tools. By 7:30 pm on Tuesday night, the social media team who had been monitoring the situation reported that there was some chatter on Twitter about the video. The initial chatter was, “Oh, my gosh. Look at this horrible thing.” The Domino’s social media team started communicating on Twitter, saying, “Yeah, we know. Domino’s has found them. It’s a hoax.” But most of the chatter on Twitter was less about the actual video and more about “Does Domino’s know this? What is Domino’s doing about it? How come they’re not talking to anybody?” By this time, Domino’s were communicating with those in what they considered to be ‘the core audience group’ but clearly their messages were not reaching a wider audience. According to Domino’s, the momentum of the ensuing issue was slowed down by the fact that this was Easter week and many people and their families were on vacation. That said, by Wednesday the video had received 1 million hits on YouTube, prompting the President of the company, Patrick Doyle, to fully come on board after being briefed about the events. In the meantime, the senior leadership was kept abreast of the response strategy and key decisions via telephone and email. Patrick Doyle then released a YouTube video in response. In the video message, he began by offering a ‘sincere apology’ for the actions of the two employees. He thanked members of the online community who alerted the company about the video which allowed Domino’s “…to take immediate action”. He emphasised that the company was taking this event very seriously, in spite of the two employees claiming it to be a hoax. According to Doyle, this was an isolated case - the two employees involved had been dismissed and there were warrants out for their arrests. The store had been closed by the health department and was being thoroughly sanitised. In addition, the company was re-examining all their hiring practices to make sure this would not reoccur. He put into perspective the losses incurred by the independent business owners and the damage to the Domino’s brand due to the actions of two individuals out of the thousands of Domino’s employees.

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He reminded the audience that Domino’s has a large employee base and a huge network of independent business owners and it was hence ‘sickening’ to see their businesses come into disrepute in this way. He also drew attention to the normal Domino’s procedures which ensured high quality foods and sanitary conditions. He ended the message by thanking all those who had sent in messages of support for ‘hanging in there’ with them, having emphatically announced: “There’s nothing more important or sacred to us than our customer’s trust”. On the same day, the Domino’s response team learnt that ‘Domino’s’ as a search word had overtaken ‘Paris Hilton’ for the first time ever. The team chose to take solace in the fact that there were 306 million out of the 307 million people in America who had not seen the video, which to them, made it seem manageable. Thus, they chose to concentrate on engaging with only the audience that was talking to them. Meanwhile, the mainstream media started to take an interest in the story and media reports on TV, radio and the press began to grow. The video response and other messages appeared on Domino’s website although the team decided to focus their communication on YouTube. “For the company, the main thing was identifying the individuals, contacting customers, making sure that nobody [received] tainted food — to make sure that there was no honest-to-goodness crime committed.” The team also mounted pressure on the police to arrest the two culprits. McIntyre explained this approach by saying, “We wanted to make that point, and we wanted to make it strong, that we don’t tolerate this. If these were teenagers, we would have been treating this differently. But these were two people in their 30s. It’s just mind-boggling to us.” The two employees were eventually arrested and charged. The two maintained that this was a hoax and that no food had left the store or been served to customers. In the video, one of the employees is captured saying of the tainted food: “In about five minutes it’ll be sent out on delivery where somebody will be eating these, yes, eating them, and little did they know that cheese was in his nose and that there was some lethal gas that ended up on their salami. Now that’s how we roll at Domino’s.” She later sent an apology to the company via email in which she said: “It was fake and I wish that everyone knew that!!!! I AM SOO SORRY!” In retrospect, McIntyre remarks: “This all happened on a Monday, and think about this town — it’s a small town in North Carolina. It was Easter Sunday; it was about five or six o’clock. There weren’t any orders coming into the store at that particular time. They were just bored. The phones weren’t ringing, which is why we now know that the food never reached consumers. We went back through the computer system and saw that there had been no orders taking place at the time that this video had been shot. We didn’t know that at the time.” The prank videos were taken down from YouTube based on copyright claims by one of the employees but remained available elsewhere and continued to attract viewership. At one time, figures indicated that the prank video had been watched 2 million times, whilst the official YouTube apology from Domino’s had been watched 650,000 times. Ultimately, according the research firm YouGov, Domino’s brand had moved from positive to negative in the eyes of the consumers in the days following the incident. th

According to reports in the New York Times appearing on April 15 2009, global managing director for YouGov’s BrandIndex, Ted Marzilli is quoted saying: “It’s graphic enough in the video, and it’s created enough of a stir, that it gives people a little bit of pause”. Paul Gallagher, managing director and a head of the United States crisis practice at the public relations firm Burson-Marsteller, added: “The Domino’s experience is a nightmare. It’s the toughest situation for a company to face in terms of a digital crisis.” The company also faced some criticism for their ‘slow response’ in the first 24 hours, to which McIntyre responded “We realized that when many of the comments and questions in Twitter were, ‘What is Domino’s doing about it’”. He added that “What we missed was the perpetual mushroom effect of viral sensations.” Please turn over LUBS5435M

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McIntyre also complained that “We got blindsided by two idiots with a video camera and an awful idea. Even people who’ve been with us as loyal customers for 10, 15, 20 years, people are second-guessing their relationship with Domino’s, and that’s not fair.” Eventually, Dominos embarked on an effort to turn this situation around by inviting customers to share their suggestion for the way forward on Twitter, Facebook and YouTube. Based on these suggestions, Domino’s introduced key changes to their recipes, made improvements to their websites, improved the design of their pizza boxes and introduced the tracker system, among other strategic changes. The company also has a dedicated website, ‘Pizza Turnaround’. The core message on the site reads: “Did we actually face our critics and reinvent our pizza from the crust upwards? OH YES WE DID.”

Sources: Domino’s Pizza Turnaround: http://pizzaturnaround.com/ th

Public Relations Society of America, ‘The Public Relations Strategist’ August 17 2009: http://www.prsa.org/Intelligence/TheStrategist/Articles/view/8226/102/Domino_s_delivers_duri ng_crisis_The_company_s_step#.UnEvyVPWD84 Patrick Doyle Apology video: http://www.youtube.com/watch?v=xvg4-E2C8UE th

New York Times, April 15 2009: http://www.nytimes.com/2009/04/16/business/media/16dominos.html?_r=0&adxnnl=1&adxnnl x=1383158881-yUMzFbqBQB3Wth0FhFYhGQ NBC report: http://www.youtube.com/watch?v=xaNuE3DsJHM&list=RD02OhBmWxQpedI

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