Mireille Aubrey Kathryn MandyChapuis Gooden Hutchinson Yeh

Apple Inc. Crisis Management

What if Steve Jobs died?

Agenda

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• Organization Background

• Crisis Situation | SWOT analysis

• Communication Plan

Goal & Objectives Target Audiences | Key Messages Strategies & Tactics

• Timeline

• Desired Outcomes

• Budget

Background• Apple Inc. (Apple): NASDAQ: AAPL / NYSE: AAPL

• Headquarters: Cupertino, California

• 2 Subsidiaries: Braeburn Capital & FileMaker Inc.

• Revenue: US $65.23 billion

• Profit: US $14.01 billion

• Equity: US $47.79 billion 3

Our Crisis Situation • Steve Jobs passes away at 3 a.m. in his home

• Iconic, highly regarded CEO: Jobs is Apple

• Each health scare: stocks dropped a few percentage points

• Stock currently undervalued due to lack of transparency about Jobs health & company succession plan

• Jobs last founder working at Apple• Steve Wozniak & Ronald Wayne

• Currently Tim Cook is acting CEO

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STRENGHTS WEAKNESSES

OPPORTUNITES

THREATS

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SWOT Excellent brand image

Solid reputation & strong brand equity

Loyal customers One of the world’s

best & highly regarded CEOs

Market leader Innovative Worldwide reach

Apple power trip: dominate its market

Steve Jobs & Apple are synonymous.

Brand reputation too dependent on CEO

CEO health scare = stock drops

“the one to beat” lack of

transparency

Shareholder Expectations

Increased Competition

(PC & Android) Fast paced technology

development Effects of natural

disasters Mistreatment of

supply chain laborers Failed products

Engage in CSR Highlight professional

& education product use

Build relationships w/ current consumers & prospective consumers from emerging markets

Apple stand on its own Improve production

process

GoalTo control the impacts of the crisis on Apple’s reputation and fortify the Apple brand in the absence of Steve Jobs.

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Objectives1. To control the information reported to the

public.

2. To maintain customer loyalty and preserve the public’s confidence in the Apple brand.

3. To sustain shareholder value and demonstrate careful consideration of the matter.

Target Audiences

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Shareholders

EmployeesCustomers

Key Messages

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FIRST KEY MESSAGES:

1. Steve Jobs unexpectedly passed away from pancreatic cancer at home at 3 a.m.

2. Apple is saddened by its loss; but prepared to implement its succession plan and carry out the legacy Steve Jobs built.

SECOND KEY MESSAGES:

3. Apple’s Tim Cook will provide continuity of Apple’s vision and execute Apple’s current and future objectives.

4. Apple is a steadfast company & sound investment.

5. Apple will uphold its reputation as an innovator offering superior products and excellent customer service.

OBJECTIVE #1:

To control the information reported to the public.

METRICS:

• Monitor traditional & online media- Number of Apple website hits| page views|- Percentage of media reports with key messages- Percentage of media reports updated once

misinformation is corrected

• Monitor public opinion (perception)− Consumer comments via email| phone| online posts &

conversations− Google Analytics| Social Mention| CTR

(“impressions”)| RSS feeds 9

Strategy #1.To establish a clear and consistent voice for Apple.

TACTICS

• Contact & request presence of key personnel− Verify family member notification − Alert & assemble board members & key staff

• Setup media CHQ (Crisis Head Quarters) − Direct all media inquiries to CHQ− Decide media involvement of family− One spokesperson− Monitor, write & review media responses

• Confirm & Distribute− Key messages − Standby statement − Q & A/ Talking points

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Strategy #2.Distribute facts and key messages to influencers in a timely manner.

TACTICS

• Announce passing of Steve Jobs− 1st Key Messages− Push news release across the wire− Secure first national morning news coverage

• T.V.| Radio | Print | Influential Websites

• Launch dark website − Post news release− Create “Apple Community Support” page

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TACTICS continued:

• Press Conference: Bill Campbell to announce new CEO, Tim Cook

• Apple, Cupertino, CA• 2nd Key Messages • Local & national television, news & radio stations

− CNBC| Fox Business| MSNBC| Bloomberg − Wall Street Journal (Kara Swisher)− AllThingsDigital (Swisher)− Fortune (Philip Elmer-DeWitt)− New York Times− GigaOm (Om Malik)− BITS (Damon Darlin)− Cupertino Courier− Silicon Valley Community Newspapers− LA Times− FastCompany| Mashable| Techcrunch| Engadget| − CNET News (Jim Dalrymple)

• Provide 8-K form (material information) to SEC, investors, & public

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Strategy #3.Ensure coverage stays on message.

TACTICS

• Provide regular news updates: − Media influencers: Broadcast| Print| Radio| Internet| Analysts− Apple Website− Access databases: Bloomberg| Reuters| Dow Jones| First Call|

Zacks| IBES

• Monitor traditional & online media− Respond to rumors & speculation − Reinforce key messages & facts

• Be available to media & influencers13

OBJECTIVE #2:

To maintain customer loyalty and preserve the public’s confidence in the Apple brand.

METRICS:

• Survey consumer response to determine their perception of Apple after the death of Steve Jobs

• Monitor conversations on social media

• Track hits to Apple Website

• Measure sales on Apple products14

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Strategy #1. To build awareness about the new CEO as a thought leader

committed to maintaining and elevating the Apple brand. TACTICS

• Satellite Media Tour: Local & National-CEO interview-Top executives appearances: get word out & support CEO

vision

• CEO by-lines & op-eds in trade, local, national media

• National morning shows:-The Today show (interview with Matt Lauer)

• SiriusXM Radio interviews-MSNBC (Martin Bashir)

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TACTICS continued:

• Arrange keynote speaking opportunities at industry events− All Things Digital Conference: May 31- June 2− South by South West (SXSW): March 2012− Apple Worldwide Developers Conference: June 6

• Invite key media influencers

• Online thought leadership platform-CEO podcast for iTunes users-CEO videos on Apple website| YouTube channel

• Arrange TED TV interview & guest speaking opportunity

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Strategy #2. Target traditional and online media to publicize new product

lines.

TACTICS

• Highlight launch of iPhone 5

• Press conference with Tim Cook from CA• Standby statement and Q&A• News Releases• Interviews• Radio Spots• Fact Sheets• Pitch Letters

• Consumer hotline team: answer questions & dispel rumors

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Strategy #3. Launch Apple social media platform to better engage with

publics.

TACTICS Listen to publics, answer questions & push out key messages

• Create:− Twitter handle & hashtags− Facebook fan site− Apple YouTube channel

− Highlight: future ideas, how-to, cool features− Crosslink all social media− Webcast: embed into website & iTunes

• Monitor social media:− Organize team to respond to online engagement

• QR codes to link digital & print presence

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Financial Influencers ExplainedApple Inc.

Existing Shareholder

sWall Street

Finance & Business

Media

Sell-side Buy-side

S.

S.S

.S.

S. S

.

S.

S.

Retail

InstitutionInstitution

Institution

Clients = Shareholders

OBJECTIVE #3:To ensure strong loyalty and proper understanding of Apple’s current situation among investors (existing and prospects), and reinforce the credibility of the new CEO as a business leader.

METRICS:

• Track and analyze analysts’ reports, and projections (pos./neg. – short/long term)

• Track and analyze business/finance trade media & national media coverage (pos./neg. – short/long term)

• Monitor the purchase and retention of Apple’s stock (impact on stock price)

• Track and analyze comments, feedbacks of major /important shareholders to evaluate how satisfactory our communications are.

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Strategy #1.Define and communicate Apple’s current corporate/equity

story to ensure it is transparent and adequately understood

TACTICS • Develop concise investor materials such as presentations, fact

sheets, press releases

• Simultaneously provide material information to the authorities, the investors & the public (8k Forms)

• Implement efficient & easy means to contact Apple’s IR department, & ensure investors and analysts/journalists data/information requests get high quality answers

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Strategy #2.Provide continual information to investors via influencers that emphasizes Apple’s key investment appeals and communicates its long-term growth prospects.

TACTICS

• Host analysts meetings – Senior portfolio managers of top investment firms and banks (in person or video-conference)

- CEO, CFO & CCO need to be present.

• Organize meeting opportunity with the largest shareholders (in person - luncheon, or video-conference)

- CEO, CFO & CCO need to be present.

• Organize presentations to stockbroker clubs – 1 club per major money center in the U.S.

- New York| San Francisco| Boston| Chicago| Houston

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Strategy #3.Nurture the rising online investing community.

TACTICS

• Organize presentations to investment clubs – 1 club per major money center in the U.S.

-New York| San Francisco| Boston| Chicago| Houston

• Create a video podcast of the first presentation − Make it available on Apple website, Facebook page & post

link to Twitter. − Post video on YouTube and forward to Google & Yahoo news.

• Provide press releases to investor chat rooms & post links on Apple’s Facebook page and Twitter account

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NATIONAL MEDIA

Influencers – Media OutletsDIGITAL MEDIA

(ONLY)TRADE MEDIA

Influencers – Industry AnalystsFINANCETECHNOLOGY

Timeline: Short-term April 26 (PST)

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April 26 – 3:00 amSteve Jobs Dies

4:30 amSet up Crisis Headquarters

5:00 amMeet with board

members

6:00 amReach out to

financial analysts pre opening bell

6:00 amRelease statement

to media and announce press

conference

5:55 amLaunch crisis

communication website

7:30 amSet up media

interviews for after the press

conference

10:00 am Press conference

Post press conference-

monitor response, submit 8K, execute

long term plan

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April, May

• Steve Jobs Dies• Initial Response-

“short term timeline”

• Announce future plans and new CEO

• Reach out to all media

• Start introducing Tim Cook to the media & public

June, July

• CEO positioned as a thought leader

• Host analyst meeting

• Host investor luncheon

• Begin company and CEO media/digital campaign

Aug. Sept. Oct.

• Evaluate Success

• Continue campaign

• Continue product launches as scheduled

• Have Tim Cook launch iPhone 5

Timeline: Long-term

Budget

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Communication Plan Budget

Crisis Headquarters (Staff, equipment, etc.) $650,000

Newswire fees $2,000Emergency Board meeting $5,000

Social and digital media development $150,000

Press conference $75,000Rush media kits $40,000

Investor and analyst meetings and luncheons $200,000

New CEO Media Tour $900,000Media monitoring $150,000Consumer research $175,000Analyst research $200,000Other expenses $150,000Allowance for extra expenses $500,000Total Cost $3,197,000

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Thank You…