Comments on: Hyatt PR gaffe goes viral, global http://edit30.com/2009/10/02/hyatt-pr-gaffe-goes-viral-global/ Thu, 04 Mar 2010 22:07:33 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: rmmiles http://edit30.com/2009/10/02/hyatt-pr-gaffe-goes-viral-global/comment-page-1/#comment-523 rmmiles Fri, 02 Oct 2009 22:31:43 +0000 http://edit30.com/?p=1401#comment-523 From and academic branding perspective, that the Hyatt chain is a private corporation and, thus, the bottom line is that the Pritzker family can pretty well squander their brand equity and hard capital any way they want, or allow others to throw it away for them. That, of course, does not mean that condoning, or even benignly allowing, such behavior is good business practice. To the degree that the Pritzker family holdings are supported by additional private investors, then the picture begins to change because the family’s fiduciary responsibilities expand in proportion to their accountability to those outside of the clan. The real irony comes in that the corporation, thus the family, wants to take the Hyatt public, and has filed with the SEC to do so; however, they are moving toward that new environment where public shareholder accountability is a real responsibility while continuing to behave without regard to that new aspired-to and more accountable status. They seem to have missed the notion that in the public equity world a multitude of stakeholders exist, have influence, and really matter. [This is not to say that stakeholders don’t matter among private entities; they do. However, the burden on a public company is much heavier.] In the end, unfortunately, it might be that the family and any large-scale private investors believe that this little event in Boston is a mere annoyance, nothing more than a gnat on an elephant’s rear; that it will go away, and they can move forward with having hardly missed a beat. Well, maybe; maybe not. We’ll see. From and academic branding perspective, that the Hyatt chain is a private corporation and, thus, the bottom line is that the Pritzker family can pretty well squander their brand equity and hard capital any way they want, or allow others to throw it away for them. That, of course, does not mean that condoning, or even benignly allowing, such behavior is good business practice.

To the degree that the Pritzker family holdings are supported by additional private investors, then the picture begins to change because the family’s fiduciary responsibilities expand in proportion to their accountability to those outside of the clan.

The real irony comes in that the corporation, thus the family, wants to take the Hyatt public, and has filed with the SEC to do so; however, they are moving toward that new environment where public shareholder accountability is a real responsibility while continuing to behave without regard to that new aspired-to and more accountable status. They seem to have missed the notion that in the public equity world a multitude of stakeholders exist, have influence, and really matter. [This is not to say that stakeholders don’t matter among private entities; they do. However, the burden on a public company is much heavier.]

In the end, unfortunately, it might be that the family and any large-scale private investors believe that this little event in Boston is a mere annoyance, nothing more than a gnat on an elephant’s rear; that it will go away, and they can move forward with having hardly missed a beat. Well, maybe; maybe not. We’ll see.

]]> By: Tweets that mention Hyatt PR gaffe goes viral, global | edit30 ...insight for business communicators -- Topsy.com http://edit30.com/2009/10/02/hyatt-pr-gaffe-goes-viral-global/comment-page-1/#comment-522 Tweets that mention Hyatt PR gaffe goes viral, global | edit30 ...insight for business communicators -- Topsy.com Fri, 02 Oct 2009 19:29:31 +0000 http://edit30.com/?p=1401#comment-522 [...] This post was mentioned on Twitter by Dan Hutson and Alison Burke. Alison Burke said: RT @dhutson Hyatt PR Gaffe Goes Viral, Global http://bit.ly/nVxag [...] [...] This post was mentioned on Twitter by Dan Hutson and Alison Burke. Alison Burke said: RT @dhutson Hyatt PR Gaffe Goes Viral, Global http://bit.ly/nVxag [...]

]]> By: Michael Gury http://edit30.com/2009/10/02/hyatt-pr-gaffe-goes-viral-global/comment-page-1/#comment-520 Michael Gury Fri, 02 Oct 2009 16:41:09 +0000 http://edit30.com/?p=1401#comment-520 This is going to be one to watch. It's ugly and the fur is flying, all over the Internet/world/press. This gets down to who is in control in the wonderful world of branding. The business model for hotel chains is really franchising, and thus you have your classic problem with how to manage decisions at the local and corporate levels. Since we are in a period of precipitous economic deline, this is a good example of how the locals really might have thought through the potential noise that such actions might cause. Boston is a bad place to do this sort of thing on any given day, much less now and in a media environment that will, and has, created a flash-bang for the Hyatt brand. As for "Papa" Doug Manchester in San Diego, I can't comment about his contributions to anti-gay causes, but should there be some truth to this it is yet another example of how the local franchisees can go silly-buggers. I suppose if you have enough money to invest, you don't have to go to branding school. This is going to be one to watch. It's ugly and the fur is flying, all over the Internet/world/press. This gets down to who is in control in the wonderful world of branding. The business model for hotel chains is really franchising, and thus you have your classic problem with how to manage decisions at the local and corporate levels. Since we are in a period of precipitous economic deline, this is a good example of how the locals really might have thought through the potential noise that such actions might cause. Boston is a bad place to do this sort of thing on any given day, much less now and in a media environment that will, and has, created a flash-bang for the Hyatt brand. As for "Papa" Doug Manchester in San Diego, I can't comment about his contributions to anti-gay causes, but should there be some truth to this it is yet another example of how the local franchisees can go silly-buggers. I suppose if you have enough money to invest, you don't have to go to branding school.

]]>