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8e

BUSINESS COMMUNICATIONIn Person, In Print, Online

Chapter 8Bad-News Messages

Copyright © 2012 Cengage Learning

Bad-News Messages

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Bad-News Messages

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High Stakes in Communicating Bad News

UBS CEO Memo Following $2.3B Loss: "The buck stops with me"A 31-year-old rouge trader has caused close to $2.3 billion in losses for Swiss bank UBS. Unauthorized, speculative trades over three months apparently went unnoticed until the trader's recent arrest. UBS is expected to be able to absorb the hit, but Moody's is investigating the firm for a potential downgrade.

Link to the full story on the blog.

Video Example

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Revisiting the Colonnade: Delivering the Bad News

• What did the front desk agent do well in communicating the bad news to the guests?

• Could she have done anything to prevent the guest’s reaction?

Click image to play the video

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Revisiting the Colonnade: Delivering the Bad News

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Bad-News Messages

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Goals in Communicating Bad News

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What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Canceling a contract with a long-time

supplier

EmailEmail

Phone Call

Phone Call

LetterLetter

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Canceling a contract with a long-time

supplier

EmailEmail

Phone Call

LetterLetter

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Canceling a contract with a long-time

supplier

EmailEmail

Phone Call

Phone Call

LetterLetter

Firinga new

employee who works across the

country

Firinga new

employee who works across the

country

Email

In-Person

Visit

Phone Call

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Examples | Planning | Replying | Announcing

What Is the Best Medium for the Message?

Canceling a contract with a long-time

supplier

Canceling a contract with a long-time

supplier

EmailEmail

Phone Call

Phone Call

LetterLetter

Firinga new

employee who works across the

country

Firinga new

employee who works across the

country

Email

In-Person

Visit

Phone Call

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Examples | Planning | Replying | Announcing

Planning a Bad-News Message

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Organizational Plans for Bad News

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How to Use the Direct Plan

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How to Use the Indirect Plan

What are the four elements of a bad-news message that uses the indirect plan?

a. Bad news, apology, explanation, and close

b. Buffer, apology, bad news, and explanation

c. Buffer, explanation, bad news, and close

d. Bad news, alternative, apology, and close

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Examples | Planning | Replying | Announcing

How to Use the Indirect Plan

What are the four elements of a bad-news message that uses the indirect plan?

a. Bad news, apology, explanation, and close

b. Buffer, apology, bad news, and explanation

c. Buffer, explanation, bad news, and close

d. Bad news, alternative, apology, and close

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Opening Buffer Statements

What is the goal of a buffer statement in a bad-news message?

a.To establish or strengthen the reader-writer relationship

b.To apologize for the bad news

c.To summarize the bad news

d.To hint at the bad news

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Examples | Planning | Replying | Announcing

Opening Buffer Statements

What is the goal of a buffer statement in a bad-news message?

a.To establish or strengthen the reader-writer relationship

b.To apologize for the bad news

c.To summarize the bad news

d.To hint at the bad news

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Justifying Your Decision

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Giving the Bad News

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Closing on a Pleasant Note

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Bad-News Messages

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Rejecting an Idea

Think about a time when you presented an idea that was not accepted. How did the person respond? How did you feel?

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Refusing a Customer Request

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“United Breaks Guitars”

Watch Dave Carroll’s first video.

Watch the CNN news story.

Read the Harvard Business

case.

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Bad-News Messages

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Bad News about Normal Operations

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Yahoo!’s Layoff Plan

Look at the PPT slides

What is your reaction to Yahoo!’s PowerPoint slides for managers?

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Bank of America Will Cut 30,000 Jobs

Bank of America is cutting more jobs. Following the 6,000 jobs lost earlier this year, a $5 million investment by Warren Buffett's Berkshire Hathaway Inc., and a management-team shake-up, the company will lose 30,000 jobs in attempt to scale down the largest bank in the country.

CEO Brian Moynihan has some explaining to do. The stock is down 48% this year, and the Bank is still paying for what some believe were poor acquisitions of Merrill Lynch and, particularly, Countrywide. BofA wins the dubious honor of having the largest number of cuts this year.

Link to the full story on the

blog.

Copyright © 2012 Cengage Learning

Additional Video Suggestions

Video Example

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“United Breaks Guitars”

• How did United go wrong in responding to the Dave Carroll?

• Why do you think his video and story became so popular? What are the implications for other companies?

Video Example

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Describing Layoffs in Up in the Air

• What is your reaction to Natalie’s “script” for communicating layoffs? Is this useful, unethical, or something else?

• What is your reaction to Ryan’s description of their purpose? Is this an effective analogy?