Here's a short video for my last JGR post! Enjoy!
Wednesday, April 28, 2010
Thursday, April 15, 2010
Ethics are Important, No Matter what the Industry
Ethics are a highly discussed topic across all industries. In the simplest form, ethics concern what is right and what is wrong. This can differ from what is legal at times. Sometimes, just because something is legal does not mean that it is ethical and vice versa.
Being ethical is not only important to keep an organization out of trouble, but it is also important to keep a good reputation overall. People feel good about themselves if they consider themselves to be ethical and therefore would not want to be a supporter of an organization who makes unethical decisions.
So, how can this relate to a NASCAR team? The goals of Joe Gibbs Racing discussed in earlier posts were centered around racing well and maintaining sponsorships and a loyal fan base. To be ethical, drivers and team members need to be following the rules and regulations of NASCAR. No cheating can ever occur, because it would permanently tarnish the reputation of JGR.
Here we can see where some things might be allowed but are unethical at the same time. For example, bump-drafting is allowed. It is a more aggressive form of racing, but permissible. However, if a JGR driver does bump-draft and wrecks a fellow competitor, taking them out of the race, is it ethical? They are following the rules: They have not cheated, they were clearly racing following the rules and they are furthering their goal of finishing in a better position. However, this does not make that decision ethical. Furthermore, NASCAR fans will not think that it is ethical, so that decision can end up hindering their goal of having a loyal fan base.
Our book makes some suggestions to help uphold ethical practices in Chapter 10 (Crandall 206). One idea is to have a code of ethics. All employees need to be familiar with this code in order for it to work. In JGR's situation, it could be possible to have everyone be familiar with the entire document. But, each area of the team should have a section of ethics that deal with their own expertise. Mechanics should have a section about what is allowed in the engine. Account managers for the different sponsors should have ethical rules about how to get new accounts and maintain existing accounts.
Having an ethical record can go a long way in any industry, so it is important to keep up with the organization's ethical standards and altering them as needed.
Being ethical is not only important to keep an organization out of trouble, but it is also important to keep a good reputation overall. People feel good about themselves if they consider themselves to be ethical and therefore would not want to be a supporter of an organization who makes unethical decisions.
So, how can this relate to a NASCAR team? The goals of Joe Gibbs Racing discussed in earlier posts were centered around racing well and maintaining sponsorships and a loyal fan base. To be ethical, drivers and team members need to be following the rules and regulations of NASCAR. No cheating can ever occur, because it would permanently tarnish the reputation of JGR.
Here we can see where some things might be allowed but are unethical at the same time. For example, bump-drafting is allowed. It is a more aggressive form of racing, but permissible. However, if a JGR driver does bump-draft and wrecks a fellow competitor, taking them out of the race, is it ethical? They are following the rules: They have not cheated, they were clearly racing following the rules and they are furthering their goal of finishing in a better position. However, this does not make that decision ethical. Furthermore, NASCAR fans will not think that it is ethical, so that decision can end up hindering their goal of having a loyal fan base.
Our book makes some suggestions to help uphold ethical practices in Chapter 10 (Crandall 206). One idea is to have a code of ethics. All employees need to be familiar with this code in order for it to work. In JGR's situation, it could be possible to have everyone be familiar with the entire document. But, each area of the team should have a section of ethics that deal with their own expertise. Mechanics should have a section about what is allowed in the engine. Account managers for the different sponsors should have ethical rules about how to get new accounts and maintain existing accounts.
Having an ethical record can go a long way in any industry, so it is important to keep up with the organization's ethical standards and altering them as needed.
Tuesday, April 13, 2010
The Internet...Beneficial or Detrimental?
Chapter 12 in our text book discusses future trends in crisis management practices. Possible trends were given for both the internal and external landscape for each of the four steps of crisis management provided by the book.
One trend that has a an increasing prominence in the future is the use of the Internet. Internally, "the organization's website will become the chief communications tool during the crisis" (Crnadell 240). Externally, the Internet will become increasingly "more powerful in its ability to influence the outcome of a crisis" (Crandell 240).
So, how can this effect Joe Gibbs Racing? Firstly, the use of the Internet can be broken down similarly to the book's explanation, with both an internal and an external use. Starting with internal, the Internet could be quite beneficial to JGR should a crisis occur.
As described by the book above as the "chief communications tool during a crisis" the website must function as the messenger in many instances. Although important publics will still be contacted directly, the website could provide information to publics who are curious or slightly affected by the crisis.
For example, you can currently get information about all of the teams, sponsors, drivers, personnel, crews, top news stories, drivers' blogs, and so much more off of the website, which is www.joegibbsracing.com. However, during a crisis they can post constant updates about what is happening, and what the team is doing to remedy the situation. In a crisis situation, it would be more likely that a person or team would be assigned only to the task of maintaining the website.
Now let's look on the opposite end of the spectrum, which is the external landscape. Here, there is much less, if any, organizational control of what is being said. For example, if a blogger is upset with something JGR does, they can post almost whatever they like. Unless it is clearly libelous, it is out of the scope of anyone's authority. By constantly surveying the Internet and reading what has been posted about the organization, JGR can be proactive and ready to counter any possible problems in the future.
Overall, the Internet is beneficial and detrimental, depending on the situation. It can help to mitigate crisis but can also help to spark them if the organization is not paying enough attention or taking the Internet seriously.
One trend that has a an increasing prominence in the future is the use of the Internet. Internally, "the organization's website will become the chief communications tool during the crisis" (Crnadell 240). Externally, the Internet will become increasingly "more powerful in its ability to influence the outcome of a crisis" (Crandell 240).
So, how can this effect Joe Gibbs Racing? Firstly, the use of the Internet can be broken down similarly to the book's explanation, with both an internal and an external use. Starting with internal, the Internet could be quite beneficial to JGR should a crisis occur.
As described by the book above as the "chief communications tool during a crisis" the website must function as the messenger in many instances. Although important publics will still be contacted directly, the website could provide information to publics who are curious or slightly affected by the crisis.
For example, you can currently get information about all of the teams, sponsors, drivers, personnel, crews, top news stories, drivers' blogs, and so much more off of the website, which is www.joegibbsracing.com. However, during a crisis they can post constant updates about what is happening, and what the team is doing to remedy the situation. In a crisis situation, it would be more likely that a person or team would be assigned only to the task of maintaining the website.
Now let's look on the opposite end of the spectrum, which is the external landscape. Here, there is much less, if any, organizational control of what is being said. For example, if a blogger is upset with something JGR does, they can post almost whatever they like. Unless it is clearly libelous, it is out of the scope of anyone's authority. By constantly surveying the Internet and reading what has been posted about the organization, JGR can be proactive and ready to counter any possible problems in the future.
Overall, the Internet is beneficial and detrimental, depending on the situation. It can help to mitigate crisis but can also help to spark them if the organization is not paying enough attention or taking the Internet seriously.
Monday, March 29, 2010
CSR Goes a Long Way
One of the areas heavily discussed with regards to public relations is Corporate Social Responsibility (CSR). CSR has to do with economic profitability for the corporation as well as social actions that benefit society as a whole. Chapter 10 in our book discusses four components of CSR: Economic profitability, legality, ethics, and philanthropy (Crandall 196). Here we'll look at the last component and see what the Joe Gibbs Racing Team drivers do to "give back".
CSR can go a long way, and can mean a lot to consumers who might purchase or support a particular brand or product. For example, if an environmentally-conscious consumer was trying to choose between brands and found out that one brand planted over one million trees, they might choose that brand simply because of that action.
With NASCAR, many of the drivers do charity work. I personally think that this helps fans like the drivers because they feel good about giving them their support. For example, Tony Stewart has been in trouble in the past for showing unsportsmanlike behavior. However, he makes frequent large charitable donations, which sometimes can actually make up for the bad behavior in a way.
On the other hand, the Joe Gibbs Racing Team is usually positively reflected, except for actual racing techniques on the track, which will always be criticized by some. However, each of the three drivers participates in activities that help improve and maintain an image of 'caring' about others.
The website joegibbsracing.com highlights some of the recent philanthropic work that the drivers have done. For example, Joey Logano is involved with the U.S. Paralympic Hockey Team, who recently won the gold at Vancouver. Joey Logano partnered with the Extreme Ice Center to provide the sleds for the players. He has hopes that winning will help spread more awareness and support for the team members. For the full article, check this out.
Denny Hamlin is involved with the March of Dimes, which raises money so that babies can be born healthy. According to Denny, "I want to do everything I can to help raise awareness for the amazing work the March of Dimes does so that more babies are born healthy." For the past three years at Phoenix, he has raced a special March of Dimes race car that helps to raise awareness on a national level. For the full article, check this out!
Kyle Busch, who is often said to be too aggressive on the race track, actually has his own foundation! Formed in 2006, The Kyle Busch Foundation provides money and assets to organizations that foster children, providing them with what they need to successfully give children a safe and nurturing place to live. To see the website for his foundation, check this out!
CSR can go a long way, and can mean a lot to consumers who might purchase or support a particular brand or product. For example, if an environmentally-conscious consumer was trying to choose between brands and found out that one brand planted over one million trees, they might choose that brand simply because of that action.
With NASCAR, many of the drivers do charity work. I personally think that this helps fans like the drivers because they feel good about giving them their support. For example, Tony Stewart has been in trouble in the past for showing unsportsmanlike behavior. However, he makes frequent large charitable donations, which sometimes can actually make up for the bad behavior in a way.
On the other hand, the Joe Gibbs Racing Team is usually positively reflected, except for actual racing techniques on the track, which will always be criticized by some. However, each of the three drivers participates in activities that help improve and maintain an image of 'caring' about others.
The website joegibbsracing.com highlights some of the recent philanthropic work that the drivers have done. For example, Joey Logano is involved with the U.S. Paralympic Hockey Team, who recently won the gold at Vancouver. Joey Logano partnered with the Extreme Ice Center to provide the sleds for the players. He has hopes that winning will help spread more awareness and support for the team members. For the full article, check this out.
Denny Hamlin is involved with the March of Dimes, which raises money so that babies can be born healthy. According to Denny, "I want to do everything I can to help raise awareness for the amazing work the March of Dimes does so that more babies are born healthy." For the past three years at Phoenix, he has raced a special March of Dimes race car that helps to raise awareness on a national level. For the full article, check this out!
Kyle Busch, who is often said to be too aggressive on the race track, actually has his own foundation! Formed in 2006, The Kyle Busch Foundation provides money and assets to organizations that foster children, providing them with what they need to successfully give children a safe and nurturing place to live. To see the website for his foundation, check this out!
Different Strategies for Different Crises
Chapter 8 of our textbook is dedicated to crisis communication or the actions and messages organizations should convey during the actual crisis.
The magnitude of the crisis can help to determine how much communication is needed and who it needs to be directed to. For example, a larger problem could require more communication to most or all of the publics while smaller problems might only require communication to some of the publics.
So, the crisis management team must continually assess the situation in order to determine how much is enough. According to our book, “ Setting a [communications] strategy can determine the difference between a quickly resolved crisis and one that remains a management problem for a number of days-or longer (Crandell 157).
W. Coombs outlined four potential strategies for communicating to publics during a crisis in 2006, which can be applied to any organization. We will look at two that a NASCAR team might utilize at one point.
The first is called the denial posture, where the organization will not accept blame for the situation. To apply this to the Joe Gibbs Racing Team (or really any NASCAR team), we will act as if they had just received notice that another team told officials and the media that they were breaking the rules by using an illegal part. As mentioned earlier in this blog, this would create a crisis for JGR because it attacks the credibility and reputation of the organization as a whole.
To use the denial posture, Joe Gibbs and his team could take three different actions. First they could attack the accuser back and claim that in fact they are the ones cheating. Second, they could simply state that it is untrue. Third, they could use a scapegoat tactic and shift the blame to a manufacturer or supplier.
Second is called the diminishing posture, where the organization will give others the impression that it had little or no control over the situation at all. This strategy works better if the organization has a positive reputation and no past crisis history. For this strategy, we will act as if a crew member was injured during a race. Since JGR has not had a history of big accidents, it would be appropriate to use this strategy.
To use the diminishing posture, they could take an excusing action, where the blame for the injury would fall on the circumstances happening at that moment in the race. They could also use justification, which tries to make the situation seem less serious.
Again, these are both examples of crises that could be prevented, as outlined in previous blogs.
The magnitude of the crisis can help to determine how much communication is needed and who it needs to be directed to. For example, a larger problem could require more communication to most or all of the publics while smaller problems might only require communication to some of the publics.
So, the crisis management team must continually assess the situation in order to determine how much is enough. According to our book, “ Setting a [communications] strategy can determine the difference between a quickly resolved crisis and one that remains a management problem for a number of days-or longer (Crandell 157).
W. Coombs outlined four potential strategies for communicating to publics during a crisis in 2006, which can be applied to any organization. We will look at two that a NASCAR team might utilize at one point.
The first is called the denial posture, where the organization will not accept blame for the situation. To apply this to the Joe Gibbs Racing Team (or really any NASCAR team), we will act as if they had just received notice that another team told officials and the media that they were breaking the rules by using an illegal part. As mentioned earlier in this blog, this would create a crisis for JGR because it attacks the credibility and reputation of the organization as a whole.
To use the denial posture, Joe Gibbs and his team could take three different actions. First they could attack the accuser back and claim that in fact they are the ones cheating. Second, they could simply state that it is untrue. Third, they could use a scapegoat tactic and shift the blame to a manufacturer or supplier.
Second is called the diminishing posture, where the organization will give others the impression that it had little or no control over the situation at all. This strategy works better if the organization has a positive reputation and no past crisis history. For this strategy, we will act as if a crew member was injured during a race. Since JGR has not had a history of big accidents, it would be appropriate to use this strategy.
To use the diminishing posture, they could take an excusing action, where the blame for the injury would fall on the circumstances happening at that moment in the race. They could also use justification, which tries to make the situation seem less serious.
Again, these are both examples of crises that could be prevented, as outlined in previous blogs.
Wednesday, March 24, 2010
Thursday, March 11, 2010
Who's Talking Now?
Chapter 7 of our book in class briefly mentions one very important point to consider when making all crisis management plans and crisis prevention tactics: The assignment of one spokesperson. For Joe Gibbs Racing, the main spokesperson would be Joe Gibbs himself, because he is the owner of the team and has the final say in all decisions. However, one of the drivers, Denny Hamlin, Kyle Busch, or Joey Logano, may also have to speak if the situation clearly involves them.
To prepare for a crisis, all four team members should have crisis management training, if they do not already. Although they all speak to and deal with many different media outlets on a regular basis, it is important that they can handle the pressure of a crisis when in the public eye.
Another consideration to go along with the speaker is the audiences that he will be speaking to. Internal audiences for Joe Gibbs Racing will include their own team members. So, owners, mechanics, drivers, crew chiefs, crew members, assistants, sales personnel, marketing personnel, etc. It is imperative that the team maintains one voice during a crisis, no secrets are kept and that all team members have all of the imformation they need.
External audiences include fans, NASCAR officials, spectators, sponsors, investors and retailers who might purchase merchandise with the Joe Gibbs Racing Team name on it. All of these publics, both external and internal, are of great importance and need to be addressed correctly and promply in the event of a major crisis.
To prepare for a crisis, all four team members should have crisis management training, if they do not already. Although they all speak to and deal with many different media outlets on a regular basis, it is important that they can handle the pressure of a crisis when in the public eye.
Another consideration to go along with the speaker is the audiences that he will be speaking to. Internal audiences for Joe Gibbs Racing will include their own team members. So, owners, mechanics, drivers, crew chiefs, crew members, assistants, sales personnel, marketing personnel, etc. It is imperative that the team maintains one voice during a crisis, no secrets are kept and that all team members have all of the imformation they need.
External audiences include fans, NASCAR officials, spectators, sponsors, investors and retailers who might purchase merchandise with the Joe Gibbs Racing Team name on it. All of these publics, both external and internal, are of great importance and need to be addressed correctly and promply in the event of a major crisis.
Tuesday, March 2, 2010
SWOT for Joe Gibbs Race Team
In the beginning of all communications plans, much internal and external research needs to be done. One idea that is common (in some form) in advertising, marketing and public relations is a type of analysis, often called a SWOT analysis.
These analyses look at strengths and weaknesses of the organization, which are internal. The organization has more strategic control over these two factors.
They also look at two external factors, opportunities and threats, which are external. The organization does not have much control over these two factors.
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
These analyses look at strengths and weaknesses of the organization, which are internal. The organization has more strategic control over these two factors.
They also look at two external factors, opportunities and threats, which are external. The organization does not have much control over these two factors.
STRENGTHS
- Experienced personnel
- Now that Joey Logano is no longer a rookie, all three JGR drivers in the Sprint Cup Series have experience and are ready to take serious strides forward in order to be top contenders for the cup.
- Team members are also experienced
- Winning records
- Denny Hamlin has 8 career wins, Kyle Busch has 16 career wins, and Joey Logano already has 1 career win from New Hampshire last year.
- High awareness of teams
- Most fans have heard of all 3 drivers, as well as JGR as a whole.
WEAKNESSES
- Busy schedule
- With three different drivers both racing and owning other teams, and different series running simultaneously, it can be a lot to keep up with!
- Luckily for Joe Gibbs and his team, they are all very dedicated and would not have their schedules any other way
OPPORTUNITIES
- Much opportunity for media attention
- JGR is constantly making headlines! With 3 talented drivers, they receive much media attention.
- Media attention is important for fans because it helps to keep their loyalty if they are constantly reminded of their favorite team or driver(s).
THREATS
- NASCAR's Rules
- Although it is mostly out of each race team's control, every time the rules change, it affects them. Teams need to anticipate changes and be prepare to adapt to them.
- Recession
- In times of economic recession, it is more difficult for fans to spend money on race tickets and merchandise. Also, sponsors may not have as much to give.
Wednesday, February 24, 2010
While in the pits, let's think about strategic control...
According to Chapter 6 of our book, strategic control can lead to the prevention of crises, as well as soften their impact should they occur. One thing that managers can do to drive and direct strategic control is to identify certain factors. It is important to recognize "internal factors that can serve as effective measures for the success or failure of a strategy, as well as outside factors that could trigger responses from the organization" (Crandell 120). It is important to assess the firm's missions and goals and see how these determinants line up with them.
So first, it would be necessary to acknowledge the overall mission of Joe Gibbs Racing Team. The mission for JGR, like most racing teams, is to win! However, also included in the mission would be the safety of both drivers and teams, a good reputation, and the furthering of the NASCAR mission and sport in general.
Now it's on to some influencing factors. Internally, what factors can determine the success or failure of the organization? If the strategy is to be a competitive racing team, one factor could be the talent of the drivers. If JGR wants to be sucessful overall, then Hamlin, Busch and Logano all need to be successful individually.
Another influencing factor can be the amount of sponsors that the team has. More sponsors mean more money, which means more strategic control in the long run. So, the strategy will be to have enough sponsors to race effectively. The measure of success will be how many sponsors that the team can obtain and then retain.
So first, it would be necessary to acknowledge the overall mission of Joe Gibbs Racing Team. The mission for JGR, like most racing teams, is to win! However, also included in the mission would be the safety of both drivers and teams, a good reputation, and the furthering of the NASCAR mission and sport in general.
Now it's on to some influencing factors. Internally, what factors can determine the success or failure of the organization? If the strategy is to be a competitive racing team, one factor could be the talent of the drivers. If JGR wants to be sucessful overall, then Hamlin, Busch and Logano all need to be successful individually.
Another influencing factor can be the amount of sponsors that the team has. More sponsors mean more money, which means more strategic control in the long run. So, the strategy will be to have enough sponsors to race effectively. The measure of success will be how many sponsors that the team can obtain and then retain.
Tuesday, February 16, 2010
CMPS & CMTS in NASCAR
Chapter 5 in Crisis Management in the New Strategy Landscape emphasizes the important of having both a crisis management team (CMT) and a crisis management plan (CMP) in place. The CMT members have the duty of thinking of all possible threats that the organization could potentially face. The CMP is a document that lists the guidelines that the organization will follow should a crisis occur.
I have already mentioned some potential crises for Joe Gibbs Racing (JGR), which range from crises on the track to crises with different members of the race team. According to our book, “A crisis is more than just an event; it is an attack on a specific stakeholder or institution, whether inside or outside an organization” (Crandall 92). Stakeholders for race teams include internal personnel, such as owners, drivers, mechanics, crew chief and crew, spotters, and all others that work for the team. External stakeholders might include fans, NASCAR officials, and sponsors.
A possible “attack on a specific stakeholder” might be an accusation of cheating from another team or an official. This has happened before. For example, Robby Gordon, (Owner and Driver in Sprint Cup) was accused of cheating in 2009 in the Baja 250 in Mexico. Owners, drivers and mechanics, along with the crew chief should be on a crisis management team for crises of this type.
Possible steps to outline in the crisis management plan might be detailed accounts of what has been done to the cars and to the motors. Purchase records should be kept carefully and a complete and constantly updated list of parts and brands used should be readily available, should it be requested. Steps should also be outlined to keep the reputation of the team positive once the crisis is over. Rumors can damage reputations and it is important to keep the organization in a positive light.
Another relevant issue brought up in the book is that of ensuring the crisis plan is kept up-to-date. To do this, JGR needs to make sure that they are always aware of changes in rules and regulations and that their cars meet the necessary specifications. Also, they need to constantly scan the environment to see if other teams are having problems or if there are controversies concerning the parts that others are using. If awareness levels are high and all JGR cars are constantly being checked over, a crisis of this type will be very preventable.
Tuesday, February 9, 2010
Environmental Scanning...On & Off the Track
As the Daytona 500 and the true start of the racing season grow closer, Joe Gibbs Team Racing has much to do. In addition to all of the preparation for racing and discussions with sponsors and team members, it is necessary to prepare for potential problems in the future.
According to our class textbook, environmental scanning is a technique used by many organizations to help prepare for or prevent crises caused by external sources. According to the authors of the book, "A systematic environmental scanning process reduces uncertainty and organizes the flow of current information relevant to organizational decisions" (Crandell 71).
Environmental scanning for Joe Gibbs Team Racing can include many potential situations. One recent regulatory situation was NASCAR's decision to allow bump-drafting on restrictor-plate tracks. Because of this rule, one could have foreseen more wrecks than usual for many reasons. For example, it's a new rule that needs to be tested. Also, bump-drafting is considered an aggressive move. From a crisis management perspective, it was necessary to plan for the possibility of more crashing, and prepare the back up car in the event that the regular car can't race.
This is a crisis that 7 NASCAR drivers are indeed facing now, because of this problem. Last Thursday night during practice, Hamlin got into the back of Martin's car, causing a wreck (see article for full story and interviews). Because of experimenting with this new rule, most of the drivers involved will be using their backup cars this weekend.
With continued environmental scanning, Joe Gibbs Team Racing, can prepare for the negative repercussions because of this crash. Already, negative blogs and comments on articles are appearing. They need to be proactive and show Hamlin in a positive light as much as possible. Although negative blogs do not directly affect the outcome of a race, they do affect a team's reputation.
According to our class textbook, environmental scanning is a technique used by many organizations to help prepare for or prevent crises caused by external sources. According to the authors of the book, "A systematic environmental scanning process reduces uncertainty and organizes the flow of current information relevant to organizational decisions" (Crandell 71).
Environmental scanning for Joe Gibbs Team Racing can include many potential situations. One recent regulatory situation was NASCAR's decision to allow bump-drafting on restrictor-plate tracks. Because of this rule, one could have foreseen more wrecks than usual for many reasons. For example, it's a new rule that needs to be tested. Also, bump-drafting is considered an aggressive move. From a crisis management perspective, it was necessary to plan for the possibility of more crashing, and prepare the back up car in the event that the regular car can't race.
This is a crisis that 7 NASCAR drivers are indeed facing now, because of this problem. Last Thursday night during practice, Hamlin got into the back of Martin's car, causing a wreck (see article for full story and interviews). Because of experimenting with this new rule, most of the drivers involved will be using their backup cars this weekend.
With continued environmental scanning, Joe Gibbs Team Racing, can prepare for the negative repercussions because of this crash. Already, negative blogs and comments on articles are appearing. They need to be proactive and show Hamlin in a positive light as much as possible. Although negative blogs do not directly affect the outcome of a race, they do affect a team's reputation.
Tuesday, February 2, 2010
Even NASCAR has its crises...
I recently read Chapter 3 of the textbook for our class, Crisis Management in the New Strategy Landscape by William Crandell, John Parnell, and John Spillan, along with the 2010 Season Preview (for NASCAR), powered by Racing Milestones. Chapter 3 deals with potential causes for an organization to have a crisis and mentions political/legal causes, economic causes, social causes and technological causes (Crandell 43). With the current economic recession and bailout plans, even NASCAR is feeling the pressure to cut back.
In an article by Deb Williams in the 2010 Season Preview, co-owner for the Earnhardt Ganassi Racing with Felix Sabates team, Felix Sabates was quoted saying, "If any own tells you they're not worried, they're lying because we're all worried to death" (2010 35).
Because of the bailouts in the automotive industry and bankruptcies, many team mergers and continued layoffs are occurring. In addition, NASCAR is restructuring many of its policies to help deal with troubled economic times. By racing certain brands, like Joe Gibbs using Toyotas for all three drivers, it adds to the marketing effort of that brand. Creating team brand loyalty has proved to benefit both the manufacturer and the team. However, there are rules and regulations. In the past, an automotive manufacturer would have to produce 500 of the cars it would be racing in the Sprint Cup series in order to use them, but this rule has been abolished (2010 37). This will help other brands, especially those outside of the United States like Toyota, to succeed.
Williams concluded her article by stating that "With America's restructured auto industries operating much leaner, the same can be expected of NASCAR teams in 2010" (2010 37).
So, what does this mean for the Joe Gibbs Racing Team and NASCAR in general? The source of this crisis is one from economic forces. The textbook suggests two steps for dealing with economic crises like this, although they will be easier to accomplish in some situations and much more difficult in others. Step 1 would be to realize what caused the crisis and see if it can be learned from and Step 2 is to take action quickly to minimize the intensity of the situation (Crandell 48). As stated in the text, these steps call for " difficult decisions in uncertain times" (Crandell 48).
From what the preview of the upcoming season has shown us, the Joe Gibbs Team seems to be in good shape. Other teams have had to stop racing one or more cars because of a lack of sponsorship. However, Joey Logano has Home Depot, Denny Hamlin has FedEx, and Kyle Busch has M&M's. A possible PR recommendation, from what we learned in class and through the text, would be to ensure that there are back-up plans in place, should the unfortunate situation of losing a sponsor arise in the future.
In an article by Deb Williams in the 2010 Season Preview, co-owner for the Earnhardt Ganassi Racing with Felix Sabates team, Felix Sabates was quoted saying, "If any own tells you they're not worried, they're lying because we're all worried to death" (2010 35).
Because of the bailouts in the automotive industry and bankruptcies, many team mergers and continued layoffs are occurring. In addition, NASCAR is restructuring many of its policies to help deal with troubled economic times. By racing certain brands, like Joe Gibbs using Toyotas for all three drivers, it adds to the marketing effort of that brand. Creating team brand loyalty has proved to benefit both the manufacturer and the team. However, there are rules and regulations. In the past, an automotive manufacturer would have to produce 500 of the cars it would be racing in the Sprint Cup series in order to use them, but this rule has been abolished (2010 37). This will help other brands, especially those outside of the United States like Toyota, to succeed.
Williams concluded her article by stating that "With America's restructured auto industries operating much leaner, the same can be expected of NASCAR teams in 2010" (2010 37).
So, what does this mean for the Joe Gibbs Racing Team and NASCAR in general? The source of this crisis is one from economic forces. The textbook suggests two steps for dealing with economic crises like this, although they will be easier to accomplish in some situations and much more difficult in others. Step 1 would be to realize what caused the crisis and see if it can be learned from and Step 2 is to take action quickly to minimize the intensity of the situation (Crandell 48). As stated in the text, these steps call for " difficult decisions in uncertain times" (Crandell 48).
From what the preview of the upcoming season has shown us, the Joe Gibbs Team seems to be in good shape. Other teams have had to stop racing one or more cars because of a lack of sponsorship. However, Joey Logano has Home Depot, Denny Hamlin has FedEx, and Kyle Busch has M&M's. A possible PR recommendation, from what we learned in class and through the text, would be to ensure that there are back-up plans in place, should the unfortunate situation of losing a sponsor arise in the future.
Wednesday, January 27, 2010
Senior Seminar, Meet NASCAR!
In this blog, I will be focusing on the Joe Gibbs Racing NASCAR Team (JGRT). The team is comprised of the owner, Joe Gibbs, and drivers Denny Hamlin, Joey Logano, and Kyle Busch.
I will try to apply the information I learn from the textbook and in-class discussion to developing crisis communication strategies for Joe Gibbs Racing NASCAR Team . For example, Professor Laskin explained that crisis can be caused by an outside or inside error (deliberate or not). JGRT, for example, can potentially face crises from such inside causes as race team members switching to another owner, wrecking cars or blowing engines during practice or racing, or injuries to the drivers or team owner. External cases could be issues like other drivers accusing the team of doing something wrong with the mechanics of the car(s), NASCAR changing the rules and indirectly hurting the popularity of the sport, or NASCAR changing the team rules to prevent a smooth flow of operation for the team. Other competitors can always be considered an outside threat, too!
A recent example of an internal crisis was Denny Hamlin tearing his ACL last week while playing basketball. Thankfully, he will put off surgery until after the season and is planning on running a normal season. However, since he is getting championship nods for this year, it could have been catastrophic if he couldn't race! A post-injury interview shows that the incident actually motivated him instead
Another internal problem could be if Kyle Busch wants to run a full Nationwide Series schedule on top of the Sprint Cup schedule, which is what he races for JGRT. Doing both could be too much. Adding a full season instead of a limited season increases time away from the #18 car, as he would be doing more races outside of it.
An external problem could be NASCAR changing rules again. Many were critical of the "Lucky Dog" rule that came out 7 years ago and still debate if it should still be in effect. Anything that directly or indirectly decreases the popularity of NASCAR could be a potential problem for any team that races today.
I will try to apply the information I learn from the textbook and in-class discussion to developing crisis communication strategies for Joe Gibbs Racing NASCAR Team . For example, Professor Laskin explained that crisis can be caused by an outside or inside error (deliberate or not). JGRT, for example, can potentially face crises from such inside causes as race team members switching to another owner, wrecking cars or blowing engines during practice or racing, or injuries to the drivers or team owner. External cases could be issues like other drivers accusing the team of doing something wrong with the mechanics of the car(s), NASCAR changing the rules and indirectly hurting the popularity of the sport, or NASCAR changing the team rules to prevent a smooth flow of operation for the team. Other competitors can always be considered an outside threat, too!
A recent example of an internal crisis was Denny Hamlin tearing his ACL last week while playing basketball. Thankfully, he will put off surgery until after the season and is planning on running a normal season. However, since he is getting championship nods for this year, it could have been catastrophic if he couldn't race! A post-injury interview shows that the incident actually motivated him instead
Another internal problem could be if Kyle Busch wants to run a full Nationwide Series schedule on top of the Sprint Cup schedule, which is what he races for JGRT. Doing both could be too much. Adding a full season instead of a limited season increases time away from the #18 car, as he would be doing more races outside of it.
An external problem could be NASCAR changing rules again. Many were critical of the "Lucky Dog" rule that came out 7 years ago and still debate if it should still be in effect. Anything that directly or indirectly decreases the popularity of NASCAR could be a potential problem for any team that races today.
Thursday, January 21, 2010
Disclaimer
This is a student's blog for Crisis Communication class at Quinnipiac University. As such, I as the author of this blog make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Opinions expressed on this blog are Christine Gertsch's personal opinions and do not represent opinion of the Quinnipiac University or opinion of the instructor of the class.
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