Bad PR happens all of the time and is something that is usually out of the hands of the company or individual it is effecting. Crisis PR is used when a “crisis” breaks out, which is something unexpected that affects the company or the individual itself. Crisis PR is used more avidly within corporations and celebrity scandals.
Apple is one the fastest growing companies in the world. According to Steve Cheney of Business Insider, “It’s pretty clear that Apple is in a league of its own in terms of capital efficiency. Competitors are spending staggering sums on both M&A and R&D with limited results. Meanwhile Apple is innovating internally at a fraction of the cost, while cherry-picking strategic investments, which tightly complement its core platforms.”
With all of the success Apple has had they do encounter the occasional crisis which in turn has been seen to effect Apple’s shares in the stock market. In October of 2008 CNN released a false report that Apple’s CEO, Steve Jobs had experienced a heart attack. The rumor was announced in the morning and resolved by the afternoon but within this short time span Apple’s shares had dropped 9.5 percent. The stock was back up to one hundred and four dollars by the end of the day.
In 2008 Steve Jobs announced that he was taking a leave of absence in order to examine his health. The day the news broke, shares dropped 7 percent. Charlie Wolf, a financial analyst with Needham & Co., said the "Steve Jobs health" factor could cause the stock to fall an additional 10% to 15%. Wolf was correct, pre-crisis price was $92.70 and a post crisis price of $82.33, which was a drop of 11.19 percent.
It's insane how one false move can affect a company's day-to-day stock prices.
ReplyDeleteSteve Jobs is the face of Apple. He is an absolute genius when it comes to marketing easy-to-use electronic devices. The Iphone has revolutionized the way people communicate worldwide. We no longer listen to the radio... we have Itunes.
ReplyDeleteIn a sense, Steve Jobs is an integral part of almost everyone's daily routine. Thus, it's really not that hard to fathom how big of an impact/ detriment that his health could have on the well-being of the company.
For everyone's sake- let's just hope his ticker keeps on ticking for a good while. :)