MORNING-03
criticism from the president-elect.>
campaign.>
General Motors and Ford are not the only companies to receive criticism from the president-elect. Boeing, Amazon, Apple, and Carrier were also called out during the campaign. CBS News financial contributor Mellody Hobson is in San Francisco with what those tactics mean for businesses? Mellody, good morning.
MELLODY HOBSON (CBS News Financial Contributor/Ariel Investments President): Good morning.
CHARLIE ROSE: So what do they mean for businesses?
MELLODY HOBSON: Well, certainly there is a growing concern about what is being called in corporate America the Trump tweet and the fact that it can be so random and come in such an unexpected manner there`s a sense that even his staff may not know at times who he`s going to target, that he`s alone in a room with a phone and that gives corporate America-- it makes them very, very nervous.
GAYLE KING: So what can they do if they`re targeted, Mellody?
MELLODY HOBSON: Well, a number of individuals that I talked to talked about the fact that they`re viewing this as crisis management. Not too different from-- if there`s a natural disaster or a health scare, specifically, having a plan. So one Fortune 500 executive explained to me a three-pronged approach. First and foremost, making sure you understand the strengths and vulnerabilities that you have in relation to his key policy priorities that he has. Number two, thinking about preparation and speed with an emphasis on speed that if something comes out having clear and quick protocol. One crisis management person said a brand can be destroyed with a viral story in five to ten minutes. You don`t have ten hours to think about how to respond. And last but not least, know what platform you would use to respond in the event that you need to.
NORAH O`DONNELL: Mellody, the president-elect said that he intends to nominate someone to the job of U.S. trade representative who has favored imposing tariffs. Many people think that the auto industry is going to be hit hardest in terms of some of the policies. We`ve seen what Ford has done. What about now, GM?
MELLODY HOBSON: Well, this is a big story and it`s something that is not inconsequential. The Wall Street Journal has been tracking this and they`ve made some really good points. They use an example that I thought was very good. They talked about the competition between Audi and BMW. BMW has a plant in South Carolina. Every car that they export out of this country, they pay a ten percent duty. So five-- a fifty-thousand-dollar car, five thousand dollars is consequential. That duty is probably a bigger deal than cheaper labor. So this has lots of implications for the auto industry.
GAYLE KING: Is it-- is this strategy effective, Mellody, his-- his criticism by tweet? Is it working?
MELLODY HOBSON: Jury is out. One executive that I talked to said, you know, the question is-- is this really a strategy or is this plain old cyber bullying. This is not clear. And at the end of the day, how these companies respond, the early response from companies like Ford really does set a precedent for the future, maybe Ford has a bigger game plan.
CHARLIE ROSE: But it can matter-- it can matter if it affects their stock price.
MELLODY HOBSON: Absolutely. And, again, that`s why I say the jury is still out. He`s not in office yet. He`s president-elect. There`s been a handful of companies. We will see how this actually becomes, you know, how this plays out over time. But one thing I will say, the-- the old days are gone. This is not about responding to-- to--
GAYLE KING: Yes.
MELLODY HOBSON: --press releases and people do have to understand that they have to be prepared for whatever might come.
GAYLE KING: Brand-new ball game.
NORAH O`DONNELL: Very interesting. Yeah. Mellody, thank you so much. Good to see you.
END
(Copy: Content and programming Copyright MMXVII CBS Broadcasting Inc. ALL RIGHTS RESERVED. Copyright 2017 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.)
