Chapter Five

Chapter Five-Investor Relations

Chapter five is all about investor relations. The body of investors is not
just the weathly anymore. More and more middle class wage earners are
looking to a more secure future. Since the stock market is such a topic of
debat these days, a public relations practitioner must be on top of all
the topics whenever dealing with investor relations.

Investor relations has a lot more red tape and demands that need to be
meet more so than say community relations. Investor relations usually
deals with a lot more money, the government, and Wall Street. I
interviewed Barry Gross, CEO of Gross Capital. He deals a lot with
investor relations and Wall Street. He is the voice between the companies
and their investors. There are three organizations that practitioners
represent, corporate, government, and non-profit.

In case 5-2 titled, "Bankruptcy: Communicating for Future Success," it
deals with the issue of public companies declaring bankruptcy. I have
always thought of declaring bankruptcy as a very negative move that a
company can do. But in this section, it says that a company that declares
bankruptcy can use that as an important tool for effectively operating an
enterprise. In the Harvard Industires case, a communication plan was set
in place in the event of the company filing for Chapter 11 bankruptcy. A
strong emphasis was placed on answering questions quickly and effectively.
Getting all the answers everyone needed all at once, and not have to
re-tell their story over and over again. Harvard did announce Chapter 11
bankruptcy, but since they have had a plan the whole time, is will be
ready to re-establish its leadership role as a leading industrial
manufactor, and all the stakeholders will know about it. The key is
keeping up good communication between everyone that is involved within the
bankruptcy.