Harvard Case - Facebook Folly at Northeast BMW (A)
"Facebook Folly at Northeast BMW (A)" Harvard business case study is written by Gabrielle R. Lopiano, Mary A. Watson. It deals with the challenges in the field of Human Resource Management. The case study is 5 page(s) long and it was first published on : May 1, 2015
At Fern Fort University, we recommend a multi-pronged approach to address Northeast BMW's Facebook folly, focusing on talent management, organizational culture, and strategic communication. This involves a comprehensive review of the company's current hiring and recruitment practices, implementing a robust employee training program, and developing a clear social media policy. This will enable Northeast BMW to regain control of its online presence, enhance its brand reputation, and foster a more positive and inclusive work environment.
2. Background
This case study focuses on Northeast BMW, a successful car dealership facing a crisis stemming from an employee's inappropriate Facebook post. The post, which contained offensive language and derogatory remarks about customers, went viral, causing significant damage to the dealership's reputation. The incident highlights the challenges of managing employee behavior in the digital age, particularly in relation to social media.
The main protagonists are:
- Mike: The dealership owner, responsible for managing the business and its reputation.
- The employee: The individual who posted the offensive content on Facebook.
- The customers: The target audience of the dealership, whose perception of the brand was negatively impacted by the incident.
3. Analysis of the Case Study
Organizational Culture & Leadership: The incident reveals a lack of awareness and training regarding appropriate social media conduct among employees. This points to a potential weakness in the company's organizational culture and leadership. The absence of a clear social media policy and inadequate employee training on ethical online behavior contributed to the crisis.
Talent Management: The case highlights the importance of robust hiring and recruitment practices. The dealership's failure to adequately assess the employee's suitability and potential for inappropriate behavior underscores the need for thorough background checks and personality assessments during the hiring process.
Communication & Crisis Management: Northeast BMW's initial response to the crisis was reactive and ineffective. The lack of a clear communication strategy and a delayed response further escalated the situation.
Strategic Framework: The case can be analyzed using the SWOT framework:
- Strengths: Strong brand reputation, established customer base, experienced management team.
- Weaknesses: Lack of clear social media policy, inadequate employee training, ineffective crisis management.
- Opportunities: Enhance brand reputation through positive online engagement, strengthen employee training, develop a robust social media strategy.
- Threats: Negative online publicity, potential loss of customers, damage to brand image.
4. Recommendations
1. Implement a Comprehensive Social Media Policy:
- Develop a clear and concise social media policy outlining acceptable and unacceptable online behavior for employees.
- Include guidelines on representing the company online, using appropriate language, and avoiding discriminatory or offensive content.
- Communicate the policy effectively to all employees through training sessions and regular reminders.
2. Enhance Employee Training:
- Conduct mandatory training sessions on social media etiquette, ethical online behavior, and digital citizenship.
- Emphasize the importance of representing the company professionally online and the potential consequences of inappropriate behavior.
- Include practical exercises and case studies to reinforce learning and encourage critical thinking.
3. Improve Hiring and Recruitment Practices:
- Implement a more rigorous screening process for new hires, including background checks and personality assessments.
- Conduct interviews that focus on assessing candidates' social media literacy, ethical values, and professional conduct.
- Develop a clear code of conduct that emphasizes respect, diversity, and ethical behavior.
4. Foster a Culture of Open Communication:
- Encourage open communication between management and employees, creating a safe space for employees to raise concerns and share feedback.
- Establish clear channels for reporting inappropriate behavior, ensuring prompt and fair investigation and resolution.
- Promote a positive and inclusive work environment that values diversity and respect.
5. Develop a Robust Crisis Management Plan:
- Create a comprehensive crisis management plan outlining procedures for responding to online incidents and managing public perception.
- Identify key stakeholders and communication channels for disseminating information during a crisis.
- Train employees on crisis communication protocols and ensure a swift and effective response.
6. Leverage Social Media for Positive Engagement:
- Develop a proactive social media strategy that focuses on positive customer interactions, building brand loyalty, and showcasing the company's values.
- Utilize social media platforms to share positive news, customer testimonials, and community involvement initiatives.
- Monitor online conversations and respond promptly to customer inquiries and feedback.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Northeast BMW's core values of customer service, ethical conduct, and community involvement.
- External customers and internal clients: The recommendations address the concerns of both external customers who were negatively impacted by the incident and internal employees who need clear guidelines and training.
- Competitors: The recommendations aim to enhance Northeast BMW's competitive advantage by fostering a positive online presence and building trust with customers.
- Attractiveness: The recommendations are cost-effective and achievable, considering the company's resources and existing infrastructure.
6. Conclusion
Northeast BMW's Facebook folly serves as a valuable lesson for businesses operating in the digital age. By implementing the recommended strategies, the dealership can effectively address the crisis, rebuild its reputation, and create a more positive and inclusive work environment.
7. Discussion
Alternatives:
- Ignoring the incident: This would be a highly irresponsible approach, likely resulting in further reputational damage and loss of customers.
- Firing the employee without further action: While this might seem like a quick fix, it fails to address the underlying issues of organizational culture, lack of training, and ineffective crisis management.
Risks:
- Employee resistance to change: Some employees may resist the implementation of new policies and training programs.
- Lack of commitment from management: The success of the recommendations depends on the commitment and support of senior management.
- Negative online sentiment: Despite efforts to rebuild reputation, negative online sentiment may persist.
Key Assumptions:
- The dealership is committed to implementing the recommended changes.
- Employees are willing to embrace the new social media policy and training.
- The company has the resources to effectively implement the recommendations.
8. Next Steps
Timeline:
- Month 1: Develop and implement a comprehensive social media policy.
- Month 2: Conduct mandatory employee training on social media etiquette and ethical online behavior.
- Month 3: Review and enhance hiring and recruitment practices.
- Month 4: Implement a robust crisis management plan and communication strategy.
- Month 5: Begin leveraging social media for positive engagement and building brand loyalty.
Key Milestones:
- Completion of social media policy and employee training.
- Implementation of new hiring and recruitment procedures.
- Successful response to a simulated crisis scenario.
- Positive online engagement and increased customer satisfaction.
By taking these steps, Northeast BMW can turn this crisis into an opportunity to strengthen its brand, enhance its reputation, and create a more positive and sustainable future for the dealership.
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Case Description
The Vice President and General Manager of Northeast BMW, a family-owned car dealership, must determine what disciplinary actions to take against an employee who posted defamatory comments and photos to his Facebook page referencing two instances at the dealership. The first involved a launch event of the redesigned BMW 5 Series model for which the sales staff was dissatisfied with the quality of refreshments offered to potential customers. The employee also posted pictures and disparaging captions about an accident that occurred at the company's adjacent LandRover dealership later that week. The Vice President learned of the Facebook postings through phone calls from neighboring dealers.
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