Tag Archive: Jack Welch


“Fox News is no monopoly. It is a singular minority in a sea of liberal media. ABC, NBC, CBS, PBS, NPR, CNN, MSNBC vs. Fox. The lineup is so unbalanced as to be comical – and that doesn’t even include the other commanding heights of the culture that are firmly, flagrantly liberal: Hollywood, the foundations, the universities, the elite newspapers.” — Fox News commentator and Washington Post columnist, Charles Krauthammer (1950-2018)

The liberal networks were not cutting it across the fruited plain.

The front page of the New York Times always dictated the topics for their evening newscasts.

What played on Madison Avenue was not resonating for millions in the Basket of Deplorables west of the Hudson.

For years, the Nielsen reports for the legendary “Big Three” ABC, CBS, NBC and their ideological cousins, CNN and MSNBC, were consistently going down to the right (from a ratings chart point of view).

As America was becoming a more moderate-conservative nation, the media elites in Manhattan and within the confines of the Beltway were moving further to the left.

There was — and still is — an economic disconnect: pure and simple.

And yet there was an unrecognized-in-plain-sight-new-source-of-money to be made in the always tough media business.

The much-vilified duo of Rupert Murdoch and Roger Ailes recognized a vast unmet need for a “Fair and Balanced” network resonating with the good folks in the so-called “fly-over states.”

Fox News Channel (FNC) was born in 1996, and just this year garnered its highest-ever ratings.

The Nielsen Ratings race is not even close.

FNC became the first cable news outlet to lead all networks, including the big three, in total audience for a November midterm election, beating second place NBC by 7.78 million to 5.64 million viewers. FNC even commanded a two-to-one lead over once powerful, CBS.

Legendary chief executive Jack Welch repeatedly said any business should either be number one or number two in its given market. Fox News is without doubt numero uno.

The unanswered question that must be posed: Is why is Fox News still unchallenged in serving the moderate-conservative psychographic, the one which elected Donald Trump to the presidency two years ago?

The self-anointed elites at the liberal networks, the all-knowing think tanks and the academic types at journalism schools denigrate the Fox News audience as uneducated racist dolts. They don’t seem to realize through their intemperate scolding and actions, they are contributing to the reciprocal scorn of the NYC/DC political class.

Almost DailyBrett to this day has never and will not ever understand the “political wisdom” of lambasting and making fun of hard-working people, who alas did not win the biological intellectual lottery.

It must suck to live, work hard and go to church on Sundays in impregnable Blue Wall states, such as Wisconsin, Michigan and Pennsylvania.

The End of Fox News?

The communal Schadenfreude of the political class celebrating the career ending capers of Ailes and Bill O’Reilly, coupled with the departures of Megyn Kelly and Greta Van Susteren, augured for the inevitable ratings/influence decline of Fox News Channel.

Using football parlance, it was next man (woman) up for Fox News. Sean Hannity vaulted to first place among all cable news programs. Martha MacCallum, Tucker Carlson and Laura Ingraham successfully launched their own opinion programs.

On the news side, superb Bret Bair and MacCallum anchored the aforementioned industry leading midterms’ newscast with solid pros Chris Wallace and Brit Hume by their sides. Almost DailyBrett will always miss the insightful commentary of Charles Krauthammer. His toe-to-toe exchanges with O’Reilly were must-watch television. Krauthammer could have made Fox News’ industry leading Midterm election coverage even better.

The real question that must be asked: Is Fox News merely winning a ratings battle, or the actual media war as well?

Almost DailyBrett argues for the former: Fox achieved a major marker of its success. The network serves 2.5 million prime-time viewers, a 3 percent increase compared to 2017. MSNBC sports 1.8 million prime-time viewers, a 12 percent hike when measured against the preceding year.

Did MSNBC gain share against Fox? Or did MSNBC strengthen its position at the expense in the form of an epic decline by the other 24-7-365 anti-Trump network, CNN? Nielsen reported that CNN draws only 990,000 prime-time viewers, a decline of 6 percent compared to 2017.

What did Welch say about being number one or two in a given market (e.g., cable news)? This blog could easily be focused on what went wrong with CNN, founded 16 years before Fox News?

There was a time when Ted Turner’s network was the authority when it came to breaking news around the world. Remember Bernard Shaw? Those days have been replaced by Anderson Cooper and Don Lemon.

In the meantime Fox News moves forward as the only moderate-conservative oriented network, the television outlet serving the other side of America’s divide.

If Fox remains the only network for the fly-over states, and the liberal networks cannibalize each other for left-of-center crowd … is there any reason to question that Fox News will retain its ratings dominance?

https://www.forbes.com/sites/markjoyella/2018/11/07/fox-news-has-highest-rated-midterm-coverage-in-cable-news-history/#262c5105c867

https://www.forbes.com/sites/markjoyella/2018/12/12/fox-news-channel-has-highest-ratings-in-22-years-but-msnbc-is-growing-fast/?utm_source=TWITTER&utm_medium=social&utm_content=1994079623&utm_campaign=sprinklrForbesMainTwitter#20dfce6a6124

https://deadline.com/2018/11/fox-news-wins-midterm-elections-ratings-cnn-msnbc-donald-trump-1202497745/

https://almostdailybrett.wordpress.com/2014/07/08/nine-fox-blondes/

https://almostdailybrett.wordpress.com/2017/12/27/dan-rather-father-of-affirmational-journalism/

 

 

 

 

Five years ago Hewlett-Packard (NYSE: HPE) was kicked off the Dow Jones Industrial Average, replaced by Visa.

Three years ago, AT&T (a.k.a., The Phone Company) was ingloriously removed from the index of 30 share prices, substituted by Apple.

And just last month, General Electric (NYSE: GE) was unceremoniously ushered off the exchange for Walgreen Boots.

Will Itty Bitty Machines (NYSE: IBM) be the next Dinosaur Tech heading for Dow Jones extinction?

Flintstones vs Jetsons

Under legendary CEO Jack Welch, GE was the most valuable (market capitalization) American company in 2000. The company was one of the founding companies of the Dow Jones Industrial Average in 1896. General Electric was a consistent standard on the exchange since 1907, 111 years.

What have you done for us lately, Fred and Wilma Flintstone? GE was replaced on the Dow Jones two weeks ago by a drug store company? How embarrassing.

Almost DailyBrett earlier wrote about companies that are absolutely rocking (i.e.,  Apple, Amazon, Facebook, Netflix, Google, Salesforce.com), metaphorically packing stadiums as opposed to those reduced to playing “greatest hits” at county fairs and desert casinos (i.e., Intel, Cisco, Dell).

These latter companies were/are directly tied to the mature PC market and thus became fairly valued with limited prospects for investor growth unless and until they credibly changed their story with compelling new information (e.g., Apple from Amelio to Jobs2 to Cook) & (e.g., Microsoft from Gates to Ballmer to Nadella).

Apple was on the precipice of bankruptcy in 1997; now the company is the world’s most valuable at $912 billion. The Wunder corporation may be first to ever to achieve a $1 trillion market cap (share price x the number of shares).

Microsoft has cleverly reinvented itself as the market leader in the cloud, even though the PC software company was late to the party. Macht nichts. MSFT has a $762 billion market cap.

Apple, Amazon, Facebook, Google, Netflix and Salesforce.com constitute the 21st Century version of the Jetsons.

Conversely, AT&T, GE, Hewlett-Packard and IBM are the Flintstones.

What Are Their Winning Narratives?

Having worked in corporate Silicon Valley public relations for more than a decade, Almost DailyBrett understands the virtue of championing a winning narrative.

What is your company’s raison d’etre?

How does it make the legal tender?

How is the company positioned in the marketplace against ferocious competitors?

What is its competitive advantage?

What is its legacy of results?

What are the prospects for reasonable and achievable expectations for shareholder joy?

For the record, Almost DailyBrett owns shares of Apple (NASDAQ: AAPL) and Salesforce.com (NYSE: CRM).

Both companies have delivered. Both are leaders in their respective fields. Most of all, your author understands their business strategies – lead in consumer innovation and services; provide selected software via the cloud to business customers).

Investing or Gambling?

When you understand how and why a company makes money then markets are investing, not gambling.

What is the winning narrative for GE? The company is restructuring yet again. Give it up J.C. Penney. Forget it, GE.

Tell me more about the business strategy for AT&T. How will it beat Verizon? Your author doesn’t know either.

Your author loves his Lenovo Ideapad. Who commercialized the PC? IBM in 1981. Reagan was president. “Watson,” can you help?

HPites love the 1937 story of HP founders William Hewlett and David Packard and the Palo Alto garage.

If the two gents could see their creation in the post-Carly Fiorina era, they would most likely would be turning over in their respective graves.

When contemplating these four Dinosaur Techs – AT&T, GE, HP, IBM — in a Jurassic Park era, the hardest questions are also the most basic: How do these companies make money? What product defines their respective businesses?

In stunning contrast, Apple is the #1 company in the world, defined by game changing innovation (e.g., iPhone X) and services (e.g., Apple Music).

Amazon is the #1 digital-retailer in the world with 100 million Prime memberships.

Facebook is the world champion social media company with 2.19 billion subscribers.

Google is the #1 search engine and developed the smart phone Android OS.

Netflix is the #1 digital-streaming-video company (at least for now) with 125 million subscribers.

Salesforce.com pioneered SaaS (Software as a Service) and is a leading-business-software-via-the-cloud provider.

Quick: Can you name a signature product/service directly associated with AT&T, GE, HP or IBM?

Being a jack of all trades, master of none leaves investors will absolutely … nothing.

https://www.cnbc.com/2018/06/19/walgreens-replacing-ge-on-the-dow.html

https://almostdailybrett.wordpress.com/2011/07/21/what-happens-when-the-music-stops/

 

 

Believe it or not chief executive officers are human, even CEOs that have attained rock-star status.

From Lee Iacocca of Chrysler, Jack Welch of GE and Steve Jobs of Apple, these names became dangerously synonymous with their company brands. Investors, media, analysts, customers, suppliers, partners and employees couldn’t get enough of them.

But what happens when these rock stars demonstrate their inevitable mortality? What happens when nature runs its course and the meeting with the grim reaper gets closer-and-closer…or actually occurs?

Is it proper to plan for the CEOs demise when she or he is successfully running the ship? It would be foolish not to.

Consider the Stuttgart, Germany sales call made by Texas Instruments chief executive officer Jerry R. Junkins on the morning of May 29, 1996. Junkins suffered a major heart attack and immediately died. There were no prior indications of heart issues with Junkins…and 58 is way too young to pass away.

junkins

The sudden passing of Junkins – maybe not a rock star, but certainly beloved by all who knew him at Texas Instruments – required a middle-of-the-night, all-hands-on-deck fire drill. The TI Board of Directors held an immediate conference call, designated Vice Chairman William “Pat” Weber as the interim CEO and started the process of searching for a new chief executive. The Investor Relations Department contacted the NYSE and asked for trading on the company stock (NYSE:TXN) to be halted until the Street had proper time to digest the news. They also made the necessary 8K filings (material event) with the SEC. And of course, the PR Department prepared the necessary news release and conducted media briefings announcing to the world Junkins’ passing, the selection of Pat Weber as the interim CEO and the upcoming search process.

Eventually Texas Instruments started trading again. Weber and the TI team picked up as best as it could for Junkins. And the board eventually selected a permanent CEO Tom Engibous. The key was that TI had a deep bench and a plan for succession…and that plan has been a classic example of successful crisis communications.

Many have wondered if the same would apply to Apple with its rock star CEO Steve Jobs when as the Economist headline stated, “The minister of magic steps down?” The answer so far is favorable to Apple…at least judging by the performance of the company stock (NASDAQ: AAPL)

The stock closed last Wednesday at $376.18 just before the company announced at the close of market that Jobs was going to permanently step down because of health concerns. AAPL opened at $365.08 on Thursday and closed at $373.72. The equity finished the week at $383.58 or $355.6 billion in market cap, actually higher than before the announcement of Jobs’ stepping down as CEO. Why was that?

One reason may be attributed to the fact that Jobs’ health concerns are not new to the Street and his eventual demise may have already been baked into the stock. He has taken medical leave three times, once for pancreatic cancer surgery and another time for a liver transplant. In his stead, Apple’s chief operating officer Tim Cook has assumed the leadership role three times and the Apple board is impressed as The Economist describes with his “remarkable talent and sound judgment in everything he does.” Jobs remains as chairman.

jobskeynote

So obviously Texas Instruments performed well in a fire-drill, aided by advance planning. Likewise, Apple (so far) has not been negatively impacted by the still-shocking-news that Jobs has relinquished the day-to-day responsibilities of running Apple.

Taking these two examples of well-executed CEO succession and others that come immediately to mind, what are some public relations/branding strategies to plan for an effective transition, thus preserving the company reputation and continuing to enhance brand equity?

Repeatedly Contemplate Succession. Even though “succession” is a very touchy subject in most companies, particularly for long-time CEOs nearing retirement and who detest the R-word, you still need to think about this inevitable day. The board of directors will make the call, but you need to cognizant of the strengths and weaknesses of all of the company’s executives. There is a good chance that one of these will serve as the chief executive at least in an interim capacity.

Put Your Bench Players Into The Game. Think of your CEO as the team head coach and the key executives as the assistant coaches. CEO time is valuable. Does the CEO have to be made available for every media interview or every financial conference? It makes perfect sense to show off your upcoming Wunderkindern. This technique also gives you an opportunity to assess who are your best performers before media, analysts, employees etc. in telling the company story. There may also be cases in which the CEO is not available or the EVP or VP may have deeper insights into a particular facet of the company’s business.

Have Your Facts Straight in Advance. Always have a complete bio and background materials at your ready disposal just in case the CEO suddenly passes away or steps down. Maintain a similar repository of information about the other key executives, particularly if one of them is selected as the interim chief executive. Be familiar with the workings of your board of directors and HR Department and understand how they make decisions.  Be ready to learn as much as possible as fast as possible, if the Board of Directors goes outside the family to select a new chief executive.

Never Say Never.  At LSI Logic, we maintained a policy of never engaging in a public discussion of the internal working of the company’s Board of Directors. We made one exception. When it came time in 2005 for Chairman/CEO Wilf Corrigan to step down at 67, we wanted everyone to know that he had been working with the board on his succession for two years. Our strategy was to head off at the pass, any speculation that his retirement as CEO was anything but an orderly process involving both Wilf and the board.

Second-Person Plural, Not First-Person Singular. The best chief executives never use the first-person singular in their internal or external communications (Me, Myself, I). Instead, they employ the second-person-singular (We, Us, Our) to emphasize the team that makes the company’s success possible. The same applies to company chief lieutenants as well. If there is more of a team culture, rather than a cult of personality, it makes it just that much easier to eventually continue business as usual when the time comes for a CEO to move on or the Grim Reaper comes-a-calling.

http://finance.yahoo.com/q/hp?s=AAPL

http://www.nytimes.com/1996/05/30/us/jerry-r-junkins-58-dies-headed-texas-instruments.html

http://www.ti.com/corp/docs/company/history/timeline/key/1990/docs/1996junkinsdies.htm

http://www.ti.com/corp/docs/company/history/junkins.shtml

http://en.wikipedia.org/wiki/Lee_Iacocca

http://www.businessweek.com/1998/23/b3581001.htm

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