Article Summary

500-1000 Words

Article Summary # ___ “Article Title” Article Source

Article Date (Articles should be dated within the last 6 months) Article Link: Good: https://www.bloomberg.com/features/2016-walmart-crime/ Bad: http://www.bloomberg.com/ Company Profile: Include a brief profile of the company, including (but not limited to):

 Subsidiary of another (parent) organization  Main products/services  Relative number of employees  CEO/President’sName  Headquarters  Revenue  Any other information that may be pertinent based on the article

Book Topic: What book topic does the article highlight? Include Chapter and Page Number, Article Summary & Analysis: Summarize the article, integrating the book topic with the article. Also mention how this applies to management. Don’t copy straight from the article for full paragraphs Use news articles, not blog posts Use credible sources (New York Times, Bloomberg Businessweek, Forbes, Wall Street Journal, etc)

Student examples from previous semesters are provided below.

Article Summary #3

“Facebook replaces lobbying executive amid regulatory scrutiny” NY Times

April 24, 2018 Article Link: https://www.nytimes.com/2018/04/24/technology/facebook-shakeup-regulatory- scrutiny.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentC ollection=business&region=rank&module=package&version=highlights&contentPlacem ent=2&pgtype=sectionfront Company Profile:

● Facebook is a social media network that is about building community by staying connected with family and friends, and also bringing the world closer together via internet.

● CEO is Mark Zuckerberg ● Chief Operating Officer is Sheryl Sandberg ● Chief Technology Officer is Mike Schroepfer ● 1.45 billion daily active users on average for March 2018 ● Headquarters in Men Park, California ● 27,742 total employees ● Has over 20 international offices around the world

Article Topic/Issue Facebook is facing scrutiny from federal regulators and lawmakers after millions of users personal information and data was compromised by a third party out of the UK. The company has violated their promise to protect the data of its users. Book Topic: Social Responsiveness: A company’s strategy to respond to stakeholders economic, legal, ethical, or discretionary expectations concerning social responsibility. Management, 10th edition, 2017, page 87. Summary and Analysis Facebook is under intense scrutiny for violating their privacy policy by not protecting members information. The head of policy for the company, Erin Egan, is being replaced for being the main one responsible for this issue. She was responsible for lobbying and governmental relations for this specific position. Recent reports show that data of millions of users was compromised by the “British political research firm Cambridge Analytica”. This made users very upset as they felt Facebook has broken their 2011 promises made to them to protect their privacy. The main promise made is that Facebook would protect members privacy from third parties. This was obviously broken. A company that can’t be reliable with what they are promoting or promising users, won’t be used after a while. With the new types of social media networks being used and created,

Facebook can’t afford messing up people’s privacy. That is one of the biggest concerns for why people choose to use a certain network or not. In response to this issue, Facebook is looking into new privacy laws like “the General Data Protection Regulation” that is being used by several countries networks already. Even with the big issue Facebook is facing, their social responsiveness is optimistic. They are acting fast on how to better there system to limit this problem from happening again. Facebook is accomodating to its users by “accept[ing] responsibility for a problem and tak[ing] a progressive approach by doing all that could be expected to solve the problem.” Management, 10th edition, 2017, page 88.

Article Summary #1 “Uber blasted by investors for toxic culture”

USA TODAY February 23, 2017

Article Link: http://www.usatoday.com/story/tech/news/2017/02/23/uber-blasted-for-toxic- culture-by-two-investors/98318186/ Company Profile:

 Uber Technologies Inc., is a privately owned multinational transportation network company

 Uber develops, markets and operates the Uber software application which connects customers with drivers for transportation and package/food delivery

 Approximately 6700 employees  Travis Kalanick, Founder and CEO  Thuan Pham, CTO  Ryan Graves, COO  Headquarters located in San Francisco, CA with operations in 528 cities

worldwide

 Revenue (2016) 5.5 Billion

Topic/Issue: Investors pen open letter chastising Uber for hiring insiders to investigate sexual harassment claims by a former company engineer, Susan Fowler, after a blog she wrote about her experience working for the company went viral. Book Topic: “Social responsiveness refers to a company’s strategy to respond to stakeholders’ economic, legal, ethical or discretionary expectations concerning social responsibility.” Principles of Management 9th Edition, 2017, 2016 page 84. Summary and Analysis: Uber CEO Travis Kalanick opened an internal investigation into claims of sexual harassment by former engineer Susan Fowler. Ms. Fowler alleges that she was sexually harassed by her direct supervisor and that when she reported the issue Uber’s human resources department did nothing. In an open letter investors Mitch Kapor and Freada Kapor Klein have chastised the company for hiring company “insiders” to investigate the claims. Leading the investigation are Liane Hornsey, chief of human resources and former attorney general Eric Holder who has been working for Uber in their battle against fingerprint background checks for drivers. They believe this move is another example of the unwillingness of Uber to be open, transparent and direct regarding their “toxic” business culture and will enable them to sweep the matter under the rug and continue business as usual. Lawyers

for Uber have countered saying that their investigation will be “thorough impartial and objective.” “A social responsiveness issue exists when company actions do not meet stakeholder expectations.” Principles of Management 9th edition page 84. I believe that Uber has chosen the wrong course of action in their social responsiveness to this issue for several reasons. First, there is a direct conflict of interest in choosing employees to investigate other employees at the same firm especially when the company’s reputation is at stake. The investigating employees who owe their livelihood to the company will be predisposed to skew findings in the company’s best interest. Secondly, investors and customers are already jaded by Uber’s history of bad business practices and half-hearted responses. The Kapors cite in their open letter that when called out by the media Uber holds all hands meetings, apologizes, vows to change and then continues doing business the same way they always have. Lastly, customers, who in the age of internet have access to more information, are more concerned with the way companies do business, and want to do business with companies that share their values. The systematic denial of Susan Fowlers claims of harassment are especially poignant considering the political environment and heightened state of the women’s movement.

Article Summary # 1 “The Exclusive Inside Story Of Ring: From ‘Shark Tank’ Reject To Amazon’s

Latest Acquisition” Forbes

February 27, 2018 Article Link: https://www.forbes.com/sites/susanadams/2018/02/27/amazon-is-buying-ring-the- pioneer-of-the-video-doorbell-for-1-billion/#753eb644706c Company Profile: • Ring, a home security device company soon to be purchased buy Amazon • Video doorbells, Security Cameras, Security Systems • Approximately 2000 employees • Jamie Siminoff, Inventor and CEO • Located in Santa Monica, California • Revenue amount unknown Article Topic/Issue: Ring, a newly invented doorbell company, appeared on Shark Tank in 2015. After listening to Jamie Siminoff’s, the inventor and CEO, pitch the sharks turned him away and left him feeling horrible. However, he says appearing on the TV show Shark Tank helped keep his business alive and he is now going from “Shark Tank reject” to a soon to be product under Amazon. Book Topic: “A competitive advantage becomes a sustainable advantage when other companies cannot duplicate the value a firm is providing to customers. Management, 10th Edition, 2017, page 113. Article Summary & Analysis: Inventor James Smirnoff got the idea for a video doorbell when his wife kept complaining he could not hear the doorbell. In 2013, he had lunch with an entrepreneur who urged him to try out for shark tank and provided him with the television show’s contact information. Four months later, he gave the pitch with the then name “Doorbot.” The Sharks turned down the deal and he was devastated, but the episode provided great publicity for his company. Siminoff says, “We were a little crappy company in the garage. Being on Shark Tank let us survive.” Ring allows users to see a video broadcast through a camera in the doorbell by using an app on their phone. However, this year there have been several “copycat doorbells” hitting the market. For example, security companies like ADT, Google and even Amazon. An analyst who tracks 30 home security companies at Imperial Capital, Saliq Khan, says that Google-owned Nest poses a threat. Nest has expanded beyond its thermostat with Wi-Fi connection capabilities and created its own home security devices.

Ring has expanded beyond doorbells to adding an array of motion-activated night-vision cameras equipped with video, speakers, LED lights and sirens. Although there is much competition lurking in the video doorbell market, Amazon is choosing to purchase Ring for $1.1 billion. Amazon is expected to integrate some elements of Ring with other Amazon-owned products like Alexa. I think the doorbell with video enhanced technology is a fantastic idea. This invention took some serious, time, sweat and determination. I think it will positively aide various aspects of the everyday American life. In addition, this idea is becoming so popular and that many companies are starting to formulate their own version of the doorbell home security systems. I find it very interesting that the sharks turned down this jaw-dropping idea. Amazon is hopefully going to help Ring bring their revenue, ratings and reviews to a whole new and popular level. When the contract finally closes between Ring and Amazon, the two are going to have to work together to formulate a sustainable competitive advantage if they want to become “unbeatable” by other companies like Google-owned Nest, and ADT. They also must be able to distinguish that a sustainable competitive advantage is not a simply just a long-lasting competitive advantage. “Instead, a competitive advantage is sustained if competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it… The resources must be valuable, rare, imperfectly imitable and nonsubstitutable.” Management, 10th Edition, 2017, page 113.