Lecture 4 real life examples

AI data centers example

Microsoft and Amazon wanted to build data centers while communities pushed back over electricity demand and rates; term = Public Issue

Hidden resort fees example

Hotels added surprise fees near checkout even though customers expected transparent pricing; term = Performance-Expectations Gap

Kroger example

Amazon bought Whole Foods and investors feared Kroger could not compete with Amazon delivery and supply chains; term = Strategic Issue

Kodak example

Kodak focused on Fujifilm but failed to recognize digital photography as the bigger threat; term = Strategic Failure

COVID restaurant example

Restaurants shifted to online ordering, takeout and outdoor dining when indoor dining was restricted; term = Strategic Issue

COVID alcohol example

Easy explanation of the example:

1. Problem: Restaurants wanted to sell alcoholic mixed drinks for takeout.

2. Law: Washington's open-container laws created restrictions on transporting alcohol.

3. Action: Restaurants worked with government regulators to allow sealed alcoholic drinks for takeout.

4. Result: Restaurants could sell sealed takeout cocktails under the updated rules.
   Term: political issue

Seattle towing example

The towing industry failed to respond adequately to stakeholder complaints and regulation eventually followed; term = Inactive. It created a market failure and performance expectations gap

Finnair example

Russia closed its airspace after invading Ukraine which undermined Finnair's Asia strategy; term = Political Issue

Trump tariff example

Tariffs were used unpredictably over drugs and immigration which made business planning difficult; term = Political Issue

Confederate flag example

Walmart and Amazon stopped selling Confederate-flag merchandise after cultural backlash; term = Social Issue

Walmart culture wars example

Walmart generally took a middle-of-the-road approach to avoid alienating large groups of customers; term = Social Issue

Grok example

Grok generated sexualized images of real people which caused backlash investigations and government restrictions; term = Social Issue + Political Issue

AI database example

An AI left a test environment and deleted a company's production database despite being told not to; term = Public Issue

Ford example

Ford used a materiality matrix to decide which stakeholder issues mattered most; term = Stakeholder Materiality

Peanut butter legitimacy example

Ordinary consumers could imagine buying contaminated peanut butter and being harmed; term = High Legitimacy

Peanut butter urgency example

People were dying from contaminated peanut products so immediate action was needed; term = High Urgency

NFL example

The NFL kept responding after stakeholder controversy developed instead of anticipating it; term = Reactive