Free Essay

Publicity

In:

Submitted By noph
Words 1588
Pages 7
BIAYA MODAL.

Pengertian Biaya Modal.
Biaya modal (coc) merupakan biaya yang harus dikeluarkan atau dibayar oleh perusahaan untuk mendapatkan modal yang diguna-kan untuk investasi perusahaan.

Modal :
1. Hutang Obligasi.
2. Saham Preferen.
3. Saham Biasa.
4. Laba ditahan.

Konsep biaya modal penting dalam pembelanjaan perusahaan, karena dapat dipakai untuk menentukan besarnya biaya yang secara riil harus ditanggung oleh perusahan untuk memperoleh modal dari berbagai sumber.

Konsep perhitungan biaya modal dapat dilakukan dengan menggunakan konsep rata-rata tertimbang (wacc) dari keseluru-han modal yang digunakan didalam perusahaan.

WACC sifatnya “explicit”, sama dengan “discount rate” yang dapat menjadikan PV dari modal neto yang diterima perusahaan sama dengan PV dari semua biaya yang harus dibayarkan karena penggunaan modal tersebut.

Biaya yang harus dibayar :
1. Pembayaran Bunga.
2. Pembayaran dividen.
3. Pembayaran angsuran pokok pinjaman atau “principal”.

Biaya modal dapat diukur dengan “rate of return” minimum dari investasi baru yang dikeluarkan perusahaan, dengan asumsi bahwa tingkat risiko dari investasi baru sama dengan risiko dari aktiva yang dimiliki saat ini.

BIAYA MODAL SECARA INDIVIDUAL.

Biaya Modal dari Hutang Perniagaan.
Biaya modal ini bersifat explicit, karena perusahaan gagal mem-bayar pada tepat waktu, sehingga kehilangan kesempatan untuk mendapatkan discount.

Cash Discount
Cod = x 100% Average Payable

Cod After Tax = (Cod before tax)(1-t).

Biaya Modal dari Hutang Wesel.
Dalam hutang wesel bunga dibayar dimuka, dengan memotong jumlah yang akan diterima.

Interest Payment
Cod = x 100% Nominal Wesel – Interest Payment

Cod After Tax = (Cod before tax)(1-tax).

Biaya Modal dari Hutang Jangka Pendek.
Hutang jangka pendek dikeluarkan oleh bank, disebut kredit bank, jangka waktu pinjaman paling lama satu tahun. Biasanya bank me-motong bunganya didepan, plus premi asuransi, sehingga jumlah yang diterima dibawah nilai nominal hutangnya.

Interest Payment + Premi Asuransi
Cod = x 100% Nilai Nominal Hutang – (IP + PA)

Cod After Tax = (Cod before tax)(1-tax).

Biaya Hutang dari Obligasi.
Dapat dihitung dengan dua cara, yaitu denga rumus pendek atau Short Cut Formula, dan dengan Metode Accurate (menggunakan table Present Value).

Short Cut Formula : (before tax)

F – P

C + dimana : N C = Annual Int. Payment.
YTM = x 100% F = Value of Bond. P + F P = Market Price of Bond. N = Period. 2

Metode Accurate.
Metode ini diselesaikan dengan trial and error, menggunakan tabel PV kemudian diinterpolasi.

Interpolasi :

Selisih Selisih PV of Int. Selisih PV of Interest dengan
Bunga & NV of Bond PV of Market Value of Bond

Bunga I PV of Int. & VB I PV of Interest & VB I
Bunga II PV of Int. & VB II PV of Nominal Value of Bond

A B C C
YTM = Bunga I + ( )(A)% B

YTM After Tax = (YTM before tax)(1-t).

Biaya Penggunaan Modal dari Saham Preferen.
Biaya modal saham preferen adalah sebesar tingkat keuntungan yang diisyaratkan atau diharapkan oleh pemegang saham preferen.

Dp
Biaya Saham Preferen (kp) = x 100% Pn

Biaya modal saham preferen sudah diperhitungkanatas dasar se-sudah pajak.

Biaya Modal dari Laba Ditahan (RE).
Biaya modal dari laba ditahan adalah sebesar tingkat pendapatan investasi (ror) dalam saham yang diharapkan akan diterima. Ini berarti sama dengan biaya modal dari saham biasa.
Biaya modal dari laba ditahan dapat dihitung dengan menggunakan 3 model pendekatan :

1. Model Pendiskontoan Aliran Kas. Model ini dihitung dengan mengestimasikan biaya modal de-ngan mendiskontokan aliran kas, yaitu dari dividen yang diha-rapkan akan diterima pemegang saham.

~ Dt dimana : Po = ( Po = Harga pasar saham saat ini. t=1 (1+ke)t Dt = Dividend diterima untuk periode t ke = Expected return bagi investor.

Besarnya ke ditentukan oleh besarnya dividend yang diharapkan akan diterima selama periode t. Saham dimiliki untuk jangka waktu tidak terbatas, dan dividend tidak mengalami pertumbuh-an, maka biaya modalnya menjadi :

D ke = x 100% Po

Namun yang lebih realistis sesuai dengan harapan investor dividend mengalami pertumbuhan, sebesar g. Sehingga biaya modalnya menjadi :

~ Do(1+g)t Po = ( dimana Do merupakan dividend yg di- t=1 (1+ke)t terima pada t = 0.

Diasumsikan bahwa ke > g, maka persamaan tersebut dapat diubah menjadi :

D1 Po = x 100% dimana; D1 = Do(1+g). ke – g

maka, biaya modal sendiri dapat ditulis :

D1 ke = + g Po

Model ini juga dapat digunakan untuk dividend yang meng-alami pertumbuhan beberapa tahap.

m Do(1+g1)t Dm

Po = ( +

t=1 (1+ke)t (1+ke)m

m Do(1+g1)t 1 D m+1 = ( + ( )( ) t=1 (1+ke)t (1+ke)m ke – g2

dimana : Po = Harga pasar saham. g1 = Tingkat pertumbuhan dividend tahap pertama. g2 = Tingkat Pertumbuhan dividend tahap kedua. m = Periode waktu pertumbuhan.

2. Model Penentuan Harga Aktiva (CAPM). Biaya modal dihitung dengan memperhatikan premium risiko pasar dan beta saham.

ke = Rf + (i(Rm – Rf)

dimana : Rf = Tingkat keuntungan bebas risiko. Rm = Tingkat keuntungan pasar. ← = Beta saham perusahaan.

Persamaan tersebut sebenarnya diperoleh dari persamaan Garis Pasar Sekuritas (GPS), sebagai berikut :

Ri = Rf + (i (Rm – Rf)

dimana : Ri = Tingkat keuntungan yang diharapkan pemilik saham biasa.

Ri = ke

I GPS

ke2

ke1

Rf

Risiko, (. 0 (1 (2

3. Model Bond Yield Premium Risk. Model ini biasanya digunakan oleh para analis yang tidak mem-percayai CAPM. Model ini lebih subyektif, hanya menambah-kan premi risiko mereka sendiri sebesar 3 sampai dengan 5 poin persentase.

ke = Hasil Obligasi + Premi Risiko.

Semakin berisiko obligasi, maka biaya modalnya akan menjadi lebih tinggi pula.

Biaya Modal dari Emisi aham Baru.
Biaya modal dari emisi saham baru lebih tinggi dari biaya modal dari laba ditahan, karena saham baru dibebani biaya emisi (flotati-on cost). Ror yang diharapkan dari Saham Biasa ke = 1 – Persentase Biaya Emisi.

Catatan : Persentase biaya emisi dihitung dari harga jual sebelum dikurangi biaya emisi.

D1
Atau : ke = x 100% Pnet dimana :
D1 = Divident yang diharapkan.
Pnet = Harga pasar saham dikurangi biaya emisi saham.

Jika diharapkan dividend akan mengalami pertumbuhan selamanya sebesar g, maka besarnya biaya modal :

D1 ke = + g Pnet

BIAYA MODAL SECARA KESELURUHAN.
Tingak biaya modal yang harus dihitung perusahaan adalah tingkat biaya modal secara keseluruhan. Perhitungannya menggunakan konsep Weighted Average Cost of Capital ( WACC).

Komponen Biaya Masing-Masing Jumlah Persentase
Modal Komponen Modal

Bond Payable 10% $ 100,000 20%
Preferred Stock 15 100,000 20
Common Stock 21 300,000 60

$ 500,000 100%

Tambahan Modal.
Tambahan modal akan dapat mengakibatkan kenaikan marginal cost of capital (MCC), sehingga WACC-nya naik, apabila tambah-an modal tersebut begitu besarnya sehingga perusahaan harus melakukan emisi saham baru. Agar supaya tambahan modal tidak menaikan WACC, maka tambahan modal harus memperhatikan besarnya laba ditahan pada periode tersebut.
Besarnya tambahan modal yang diperlukan supaya tidak mening-katkan WACC dapat dihitung dengan rumus sbb :

Laba Ditahan
Tambahan Modal = Persentase Saham Biasa

Misalkan, diketahui :
Komponen Jumlah Modal Biaya masing- Persentase
Modal komponen dari total

Obligasi Rp 200.000.000 4,8% 20%
Saham Preferen 50.000.000 10 5
Saham Biasa 750.000.000 12 75

Total Rp 1.000.000.000 100%

Dalam operasinya perusahaan memperoleh laba ditahan sebesar Rp 150.000.000,00.

Besarnya tambahan modal maksimum yang diperlukan untuk mempertahankan WACC-nya adalah :

Rp 150.000.000
Tambahan Modal = Rp 200.000.000,00. 0,75
Jika tambahan modal lebih besar dari Rp 200 juta, maka WACC-nya akan naik, karena perusahaan harus menerbitkan saham baru. Dimana penerbitan saham baru ini akan dibebani biaya emisi atau flotation cost, sehingga wacc-nya naik.

Biaya Saham Lama
Biaya Saham Baru = 1 – Biaya Emisi

Marginal Cost of Capital (MCC).
Adalah biaya yang dikeluarkan untuk mendapatkan tambahan ru-piah modal baru; biaya rata-rata tertimbang dari rupiah terakhir modal baru yang diperoleh. Skedul biaya modal marginalnya sbb :

WACC (%)

WACC = MCC

15

0 1 2 3 4 Jutaan Rupiah Modal Baru

MCC tetap, karena setiap rupiah tambahan modal baru mempunyai biaya sebesar 15%.

WACC (%)

MCC

11,46 10,46

Jutaan 0 500 Rupiah Modal Baru

Skedul Biaya Modal Marginal

Jika tambahan modal lebih besar dari Rp 200 juta, misalkan Rp 500 juta berarti perusahaan harus menerbitkan saham baru, sehing-ga WACC-nya naik menjadi 11,46%.

Komposisi Tambahan Modal :

Jika Rp 200 juta. Jika Rp 500 juta.

Obligasi Rp 40 juta. Obligasi Rp 100 juta.
Saham Preferen Rp 10 juta. Saham Preferen Rp 25 juta.
Laba Ditahan Rp 150 juta. Saham Biasa Rp 375 juta.

Biaya Modal dari Depresiasi.
Biaya modal dari depresiasi sama dengan biaya modal rata-rata sebelum menggunakan modal yang berasal dari emisi saham baru.

Skedul Oportunitas Investasi (IOS).
Merupakan sebuah grafik dari oportunitas investasi perusahaan yang diberi peringkat berdasarkan tingkat pengembalian proyek tersebut.

Return (%)

A = 13% 13 B = 12,5% C = 12% 12

MCC

10 IOS D = 10,2%

0 50 100 150 200 Jutaan Tambahan Modal Anggaran Modal Optimal Baru. Sebesar Rp 180 juta.

Proyek Modal (Rp) Return (%) A 50.000.000 13,00 B 50.000.000 12,50 C 80.000.000 12,00 D 80.000.000 10,20

FAKTOR-FAKTOR YANG MEMPENGARUHI BIAYA
MODAL.

1. Faktor yang Tidak Dapat Dikendalikan Perusahaan.

Tingkat Suku Bunga. Jika suku bunga dalam perkonomian meningkat, maka biaya utang juga akan meningkat karena perusahaan harus membayar pemegang obligasi dengan suku bunga yang lebih tinggi untuk memperoleh modal utang.

Tarif Pajak. Tarif Pajak digunakan dalam perhitungan biaya utang yang digunakan dalam WACC, dan terdapat cara-cara lainnya yang kurang nyata dimana kebijakan pajak mempengaruhi biaya modal.

2. Faktor yang Dapat Dikendalikan Peusahaan.

Kebijakan Struktur Modal. Perhitungan WACC didasarkan pada tarif bunga setiap kompo-nen modal dengan komposisi struktur modalnya. Sehingga jika struktur modalnya berubah, maka biaya modalnya akan ber-ubah.

Kebijakan Dividend. Penurunan ratio pembayaran dividend mungkin dapat menye-babkan biaya modal sendiri meningkat, sehingga MACC-nya naik.

Kebijakan Investasi. Akibat dari kebijakan investasi akan membawa dampak yang berrisiko. Besar kecilnya risiko inilah yang akan mempengaruhi biaya modal.

Similar Documents

Free Essay

Sports Communication Employment Essay

...relevant studio programming. I will also handle daily duties for ESPNU, ESPN High School and recruiting, select NCAA Champions and regular-season college sports programming, and all ESPN college sports communication tools including press kits, bios, weekly newsletter and images. The other job offer is Media Relation and Listing Coordinator. With this job comes a lot of responsibilities. Some of them are weekly/daily schedule Updates: Work with programming/production to deliver changes/matchups/details/talent updates that are robust with timely information in schedule for all ESPN networks listed above to all outlets listed above. I will also have to write and edit the show/program descriptions in the NCS system, used by clients. General publicity in listing outlets through supplying...

Words: 678 - Pages: 3

Premium Essay

English Test

...fix its relations with the locals and at the same time would increase the amount of the sales. According to,the first scheme the company will donate £500,000 in order a new maternity unit to be open. This effort will increase the company’s reputation and its publicity, however, there would be no short term impact in the sales. Also, according to the second scheme the company will pay to the Totnes Art Centre £100,000 for the next four years so that the theatre would make a tour of Spain. The company will open a factory in Spain so this scheme would increase the awareness of the brand. The negative points are that this scheme would not improve directly. There is also £20,000 p.a for four years tax savings. As far as the last the scheme is concerned, the local football club would advertise the company in the ground and on the teams strips for two years. The cost of this advertisement is £350,000 and the tax savings are £100,000. This scheme would increase the sales of the company and also would contribute to the improvement of its relations with the local residents. However, this scheme includes a risk. Sometimes the players tend to have an aggressive attitude and this may have a bad impact in the company’s publicity. To sum up, I believe that the best scheme is the third. However, it contains a risk, it is the only option that would increase the sales in short term and at the same time would boost the public relations and especially with the young...

Words: 288 - Pages: 2

Premium Essay

Publicity

...Amber Turner CMM 404 November 13, 2015 Dr. Morrison Publicity What is Publicity? Well publicity is the Art of Attracting free public exposure making one’s self visible to the public eye now this may be a newspaper article mention in a magazine on radio or television interview or item it’s all free exposure none paid visibility that can illustrate a positive or negative image to the “general public”. Now I’m sure your saying to your self-publicity sounds a lot like advertising, and you’re wondering, what’s the difference between Advertising and publicity? Advertising is the activity of attracting public attention to a product or business or “a band”, as by paid announcements in the form of print, broadcast, or electronic media such as the internet, what can Publicity do for you? To really hit the nail on the head I would say Publicity provides important visibility. An article in newspaper or a story on radio or television will attract public attention and stimulate public interest and create awareness and build creditability for the cause you’re promoting, then you and your organization can profit from this most important visibility Why attract publicity? One of the main reasons P.R professionals seek publicity and not advertising the significant word here is Creditability, publicity is regarded as more credible then advertising; to attract positive publicity requires establishing a good working relationship with the media. This is of course easier...

Words: 420 - Pages: 2

Premium Essay

Promotion Decisions Worksheet

...Part 5 Promotion Decisions Worksheet Objectives Promotional objectives: 1. 2. 3. 4. 5. 6. On-line promotion? Yes No Describe: Off-line promotion? Yes No Describe: Theme Promotional theme is: Promotional message is: Copyright needed? Yes No Design Promotional tools designed by: In-house personnel Outside agency Combination In-house personnel responsible: Agency hired: Advantages to in-house design work: Disadvantages to in-house design work: Media Select media for promotions: |Television |Radio (stations) |News-papers |Magazines |Outdoor (cities) |Internet (sites) |Other | |(stations) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ...

Words: 259 - Pages: 2

Free Essay

Red Bull

...Red bull promotion Red bull is involved in a lot of sports like motorsports, bike racing, winter sports, skateboarding and surfing. They have their logo on the equipment used for the sport. By generating publicity through the sports is ‘below the line’ promoting they do often not use traditional sponsorship method, they create their own sporting events such as Red Bull X-Fighters and Red Bull Air Race, where the world’s top FMX riders and pilots respectively perform world class flips, turns and tricks in front of tens of thousands of spectators. These events help to establish the brand values. They also begin the AIDA process with the participants and audiences for these events, creating awareness and interest in Red Bull products. Red bull used public relations when they involved Austrian skydiver Felix Baumgartner by sending him 24 miles into the stratosphere over New Mexico, United States, in a helium balloon before free falling in a pressure suit and then parachuting to Earth. Red Bull has not made public how much the stunt - which included funding the equipment, training and support staff – cost, although the balloon that took Baumgartner on his ascent is reported to have cost (£43,600) alone. Red bull used sales promotion as they gave away free cans of red bull they delivered them to 400 student campuses in 55 countries over 6 continents. Red bull use personal selling as they have teams of young women/men to sell their products at their sports events. Red bull...

Words: 312 - Pages: 2

Premium Essay

Accounting

...promotional tools an organization uses; the traditional mix includes: Advertising, Person selling, Sales Promotion, and Public Relation. Advertising -- Paid, non-personal communication through various media by organizations and individuals who are in some way indentified in the message. Infomercial -- A full length TV program devoted exclusively to promote a particular product. Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service. Public Relations (PR) -- Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance. Publicity -- Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller. Word-of-Mouth Promotion -- People tell others about products they have purchased....

Words: 373 - Pages: 2

Free Essay

Publicity

...Introducere în publicitate cursuri universitare Dan Petre Mihaela Nicola Introducere în publicitate comunicare.ro Ilustraþia copertei: Cristian Kit Paul, Brandient Toate drepturile asupra acestei ediþii aparþin Editurii Comunicare.ro, 2004 SNSPA, Facultatea de Comunicare ºi Relaþii Publice „David Ogilvy“ Strada Povernei 6–8, Bucureºti Tel./fax: (021) 313 58 95 E-mail: difuzare@comunicare.ro www.editura.comunicare.ro Descrierea CIP a Bibliotecii Naþionale a României PETRE, DAN Introducere în publicitate / Dan Petre, Mihaela Nicola. – Bucureºti: Comunicare.ro, 2004 Bibliogr. ISBN 973-711-004-8 I. Nicola, Mihaela 659.1 Cuprins Notã introductivã / 7 Introducere: surse teoretice ºi delimitãri conceptuale / 9 Surse teoretice / 10 Delimitãri conceptuale. Definiþii. Distincþii faþã de domeniile înrudite / 18 Scurt istoric al publicitãþii / 25 Scurt istoric al publicitãþii la nivel internaþional / 25 Scurt istoric al publicitãþii în România / 34 Publicitatea ca proces de comunicare / 41 Funcþiile publicitãþii / 44 Tipuri de publicitate / 47 Rolul publicitãþii în activitatea de marketing / 52 Obiectivele campaniei de publicitate / 55 Canalele media utilizate în publicitate / 56 Agenþia de publicitate / 67 Agenþia de publicitate / 67 Scurt istoric / 68 Agenþia de publicitate modernã / 71 Cercetarea pentru publicitate / 87 Cercetarea exploratorie ºi de dezvoltare a campaniei (developmental research) / 93 Cercetarea confirmatorie de testare (confirmatory research...

Words: 106426 - Pages: 426

Free Essay

Comparative Publicity

...PUBLICITE COMPARATIVE La réglementation de la publicité comparative en France définie aux articles L. 121-8 et suivants du code de la consommation a subi depuis quelques années de nombreuses modifications : il est possible de distinguer plusieurs étapes très nettes de cette évolution de notre droit : • La situation avant la loi du 18 janvier 1992 (n°92-60) : • La publicité comparative était purement et simplement interdite : - un des premiers fondements juridiques invoqués par les tribunaux était l’article 1382 du code civil sanctionnant la concurrence déloyale pour dénigrement de la société concurrent - l’article 422, 2ème du code pénal était régulièrement invoqué pour sanctionner l’utilisation de la marque sans autorisation de son titulaire - l’article 4 de la loi Royer (article L.121-1 du code de la consommation) condamnant la publicité trompeuse était appliqué lorsque la comparaison n’était pas réalisé à partir de critères exacts. - L’article 7 de la directive du 10 septembre 1984 (n°84/450/CE) permettait aux Etats membres de ne pas autoriser la recours à la publicité comparative. • La situation de notre droit au lendemain de la loi de 1992 : • l’article 10 de la loi de 1992 a donné lieu à l’introduction des articles L.121-8 à L.121-14 dans le code de la consommation encadrant la mise en œuvre d’une campagne de publicité comparative sur le territoire français : cet article autorise la publicité comparative en droit français. • les conditions de...

Words: 8517 - Pages: 35

Premium Essay

Marketing Negative Publicity

...MKT 506 – Integrated Marketing: Week 8 Discussion 1 Many companies have experienced the impact of negative publicity over the past few years as a result of product recalls, marketing blunders, etc. Give some example of some instances where companies experienced negative publicity and how they handled it. Evaluate their means of dealing with negative publicity. Many times corporate crises often result in negative publicity, threatening the image of the company. Spirit Airlines had some negative publicity recently. This negative publicity was regarding their customer service which they deemed to have a material adverse effect on business. In the past they have experienced a relatively high number of customer complaints related to, among other things, their customer service, reservations and ticketing systems and baggage handling. In particular, they generally experience a higher volume of complaints when they make changes to the unbundling policies, such as charging for baggage. This irritates customers and they complain. Thier reputation and business could be materially adversely affected if we fail to meet customers’ expectations with respect to customer service or if they are perceived by our customers to provide poor customer service. They did a horrible job when they tried to handly it. Spirit launched a Congress-facing grassroots campaign based on a shameful lie as stated on its website: “Spirit must now HIDE the government's taxes and fees in your fares.” The truth...

Words: 742 - Pages: 3

Premium Essay

Privacy vs. Publicity

...plan to upload it straight to Facebook. You realize it's not your business, but you start to wonder: is that really right of that group of people to make a situation like that public? The borderline of privacy and publicity seems to be unsteady with this new, rising age of electronics and technology. Science has taken the human race on an unimaginable journey through time and space. We can fly around the world in less than a day. And yet, this feat used to take months. The same could be said for the way we communicate with one another. Years ago, the most anxious part of the our day was to run out to the mailbox and see if the postal man had brought you a letter of response, be it family or friend. Now days, you can simply take a picture of a family event and upload it to Facebook, Twitter, or any other social networking site for that matter. You can even email it. Social media has not only transformed how we make contact with one another, but also how we view others and the lives they live. It has become a way of life, and the same could be said for cellphones. Nearly 80% of our world population uses a mobile phone. But where exactly do we draw the borderline between privacy and publicity? Let's...

Words: 1046 - Pages: 5

Free Essay

Good Deed to Get Publicity

...Luis Cruz Jr 3 November 2014 Good Deed to Get Publicity Publicity is a very important issue for Law enforcement. Currently, people are doing good deeds to get publicity so, they can became famous over the internet. In this picture of a homeless guy in Times Square New York, shows a homeless man with a police officer right next to him. By the police officer doing this deed, makes the law enforcement look better. Also for the police officer, people label him as a hero and not a person just trying to look good in the eyes of the public. In this visual it shows a cop doing a good deed to get publicity. In the picture the homeless man is wearing raggedy clothes because his pants are all ripped up at the bottom. It is winter time because he has a winter coat on and so does the police officer. People that are unhoused usually only have one pair of clothing and it’s the one they are wearing also, don’t have many possessions because everything that they have travels with them. Usually homeless people carry everything they own in a book bag or a shopping cart. In the picture a pair of boots is next to the homeless man and the police officer is kneeling down next to him. The officer is looking right at him with his hands in front of the homeless man, showing the man that he won’t hurt him. The officer knew that the homeless man was walking bare foot around Times Square and bought him a pair of all-weather boots and thermal socks. The homeless man’s feet were all blistered...

Words: 1232 - Pages: 5

Premium Essay

How Do Businesses Deal with Bad Publicity?

...How do businesses deal with bad publicity? Companies and brands work tirelessly to build a strong image and protect the reputation of what that entity represents. Even the most guarded company and/or brand can make mistakes that lead to bad press. Something unexpected has happened and an organization is involved. The media has shown up on one’s doorstep looking for an answer, a response, some sort of comment. Is everyone’s organization ready to deal with bad publicity? Ethical conduct in business and government is one preventive measure that reduces bad publicity. Anyone who lies creates false records, or who knowingly uses defective materials is creating a potential disaster. The best defense against this type of disaster is to follow ethical standards of behavior. Depending on the nature of a business and the number of people it employs, the organization could face an unexpected public relations crisis such as: 1. An unpopular policy needing to be quickly reversed 2. An unsatisfied customer complaining to the media 3. A disgruntled former employee revealing trade secrets and other inner workings of an organization. 4. A company experiencing a service interruption or blackout that angers thousands of users 5. A human rights complaint being filed against an organization or an employee of that organization. 6. A lawsuit 7. An employee being arrested and charged with a serious crime The first thing one need to do once they realize that something...

Words: 681 - Pages: 3

Premium Essay

Case Study: Madsen Vs. The Texas Right Of Publicity Contract

...A court will likely find that Baseball Illustrated did not infringe upon Mike Madsen’s right of publicity because, not only is the image used of him not readily identifiable under the statute, but Baseball Illustrated’s primary purpose concerns sports coverage in the Houston area, and thus constitutes the appropriate newsworthiness affirmative defense under the statute. The Texas Right of Publicity Statute provides that “any person who knowingly uses another’s…photograph, or likeness in any manner on or in products, merchandise, goods or services, without such person’s consent…shall be liable for any damages sustained by the person or persons injured thereof.” Tex. Rev. Civ. Stat. Ann. §62 (West 2016). The statute identifies three necessary requirements for a person’s right of...

Words: 1326 - Pages: 6

Premium Essay

Ellen Degeneres Sues Clean Clothes for Misappropriation and Right of Publicity for the Use of a Look-Alike Model for the Slacks Advertisement. Clean Clothes Countersues for Product Disparagement. Joseph A. Bank (Josb)

...permission. The law that Ellen is presented in the court is misappropriation and right of publicity against the Clean Clothes Company. The Clean Clothes Company is countersuing Ellen DeGeneres for product disparagement. While Joseph A. Banks, is suing Ellen DeGeneres for the reduction of sales on clothes because of an unsolicited comment on her show. And the law of the right of publicity means Right of publicity means the right of an individual to control any commercial use of his/her name, image, or some other aspects of one's identity. In the U.S., it is a state law-based right. In the U.S., right of publicity is enforced through state law. The recognition of the right varies from state to state. Some states have clearly provided this right by way of statute. States which do not have specific legislation relating to the right to publicity recognize the right by way of common law. It is generally considered a property right rather than a personal right. So the right of publicity is descendible to the person's heirs after their death. The Right of Publicity is a rapidly-evolving right with great increase in reported cases in the United States and worldwide. The right of publicity is also termed as publicity rights or personality rights. The following is an example of a state statute (Indiana) defining the right of publicity. Burns Ind. Code Ann. § 32-36-1-7. Right of publicity. "Right of publicity" means a personality's property interest in the personalities: (1) Name; (2) Voice; ...

Words: 315 - Pages: 2

Premium Essay

Advantages of Publicit

...The Advantages of Publicity Publicity is a way to get your company in front of potential customers. Unlike marketing, which can come across as a sales pitch, publicity often carries the authority of an independent voice. Proper use of publicity can result in higher sales, as your company and products are exposed to a wider net of customers. While publicity cannot always be directly controlled, strategies to garner publicity often prove beneficial to corporate growth. Cost * Publicity and marketing are often used interchangeably to describe a company's promotional activity, but there are significant differences. Whereas companies generate their own marketing materials, publicity is granted by outside sources, such as the media. One of the biggest advantages of publicity is that it is usually free. A marketing staff and promotional activities can cost a company a significant amount of money. However, publicity -- ranging from unsolicited newspaper reviews to social media word-of-mouth -- typically costs nothing. Credibility [The quality of being believable or worthy of trust] * Consumers expect a certain level of bias or exaggeration in the commercials or advertisements a company produces about its products. However, third-party sources, such as magazine articles or online reviews, are often considered less biased. This is particularly true with reputable sources, such as longstanding publication houses or well-regarded professional reviewers. As opposed to company-generated...

Words: 1451 - Pages: 6