Here is the report that we received from a student in internal communication. It describes the stages of the crisis we at Fnac, then analyzes the situation brilliantly. We thank him for his very interesting contribution.
The cultural agitator stirs - Crisis Communication
Fnac is undergoing a social crisis: the CEO, Denis Olivennes, recently announced the elimination of 300 positions in administrative services. Seven unions were then called in the strike May 4, 2007.
eight months before the crisis
all started in October 2006 when the CEO presents to all of its 900 frames a strategic plan for the next five years. The reason for this decision is the declining profitability of the group. Unions respond to this news by launching a first strike call. Rumors of layoffs and redemption appears in the camps of employees. Provided no communication seems to be done internally.
seven months before the crisis
In November, the CEO of FNAC is interviewed in Life Media on LCI. During his visit, he discusses the changes in consumption patterns. At that time, the CEO is aware of the social plan ahead. Yet he said nothing. It may seem strange, especially since it says that Fnac is increasing its turnover, " we continue to sell lots of records: more than 22 million in 2005 .
three months before the crisis
CEO Fnac published an essay: The free is theft . When piracy is killing the culture. He denounces piracy and will protect the crop. Through this publication, it quickly as a legitimate stakeholder in this issue.
Denis Olivennes has become a "benchmark" in the controversy on Internet piracy. This can be better prepared for the coming crisis of FNAC in public opinion?
month before the crisis
April 24: A procedure plan launched at the office central works council, providing for the net deletion of 300 jobs by mid 2008. A new contact then arrives on the media scene: HRD. Indeed, this is not the CEO who announced the measure, but the HRD. This will be his only response. This is the date that the unions announce the date of May 4 as nationwide strike.
April 27: Fnac CEO returns to the front of the stage, giving an interview to Figaro in which he denies rumors of layoffs, taking them yet to increasingly important. Despite this, FNAC appears remain in a controlled strategy of transparency: it communicates only what it wants. It seems such a plan exist GPEC which we do not hear. On the other hand, the concerns of employees about their future are not lifted.
Early May: To answer questions and concerns of employees, leaflets and posters made by management are distributed to employees. The management certainly feels the need to inform internal and measure the growing importance of wage demands.
The Intranet also allows employees to view a speech explaining the situation. The caller is still the CEO. He then went to the scene of Fnac in Paris to hear the claims of its employees.
communication to employees was late, the management had probably underestimated the threat of strikes and their importance.
During the crisis
The day of the strike, the media transcribe little about the DG, it is essentially the unions that are honor. One can still read the following statement from CEO " Fnac is facing changes in their environment as falling sales in the music market, the disappearance of work and the emerging picture of the Internet. "
After the strike
CEO's statement that one can read in Le Monde :
" past three years, we are modernizing Fnac in compliance with its humanistic values. It is normal that the reorganization raises questions of employees and vigilance of the unions. I regret that the reorganization raises questions of employees and the vigilance of the unions. I regret that we failed to negotiate this upgrade yet socially responsible "
The message is really to redirect internally. The CEO seems to play the card of empathy for meaningful negotiations.
Different actors
- CEO: "We are in an evolving sector."
- HRD: "We must modernize."
- the unions, "is anti-social is a risk to the sustainability of the company and our working conditions. "
- employees: "We do not understand, yet the company is doing well."
- the unions, "is anti-social is a risk to the sustainability of the company and our working conditions. "
- employees: "We do not understand, yet the company is doing well."
Another "player" appears in this crisis: the Internet. Indeed, the emergence of new media becomes important in this crisis. To express their political demands without union label, employees have created a blog: blogofnac . Innovative tool that highlights the new role of media. It also includes
, it becomes more more difficult for a company to manage the crisis in its entirety, before the proliferation of information sources. It is then necessary for the company to focus its communication to make it effective.
strategy FNAC
During this crisis, the strategy seems to Fnac to expand the problem. Communicating on this crisis, Fnac is moving on a more global problem: piracy. Thus, by diverting the piracy problem, public opinion and disperses into oblivion heart - this one, nor depth, nor explained. Fnac awakens a sense de culpabilité chez les consommateurs : « en téléchargeant, je détruis des emplois ». Elle s’oriente sur une thématique bien plus large et complexe que celle d’une restructuration. En « noyant le poisson », la Fnac conserve ainsi une image positive .
strategy FNAC
During this crisis, the strategy seems to Fnac to expand the problem. Communicating on this crisis, Fnac is moving on a more global problem: piracy. Thus, by diverting the piracy problem, public opinion and disperses into oblivion heart - this one, nor depth, nor explained. Fnac awakens a sense de culpabilité chez les consommateurs : « en téléchargeant, je détruis des emplois ». Elle s’oriente sur une thématique bien plus large et complexe que celle d’une restructuration. En « noyant le poisson », la Fnac conserve ainsi une image positive .
Cet argument semble pourtant faible. En effet, la Fnac va, ces prochaines années, créer plus de 3000 emplois par des ouvertures de magasins en périphérie des villes (NB : la Fnac est actuellement implantée dans les centre-villes). On peut alors se demander en quoi le piratage leur est néfaste ? N’est-il pas plutôt question d’une reclassification des métiers ?
And for good reason, the elimination of jobs only place in the administration. Fnac justifies this by changing the environment, while the strategic repositioning of argument would be more responsive. Indeed, Fnac seems to turn its stores and booksellers in business . The new variable assigned to vendors is the proof. Fnac tends to gain more commercial than cultural.
Moreover, Fnac seems to make good profits from this "new era". It is indeed a leader in the online download via its website and its market share in digital products (iPod, USB keys ...) are rising.
Finally, do not forget, Fnac belongs to the group PPR, which, among the recent takeover of PUMA and sponsorship of Laure Manaudou, is doing quite well. And, thanks to an aggressive marketing strategy.
Sources:
Press:
Weakened by Internet, Fnac is looking for a new economic model, Le Monde, 28 October 2006
Fnac threat to cut 300 jobs, the World, April 24, 2007
Fnac will remove 300 posts by 2008 without layoffs, the World, April 26, 2007
Employees on strike for Fnac, Le Monde, May 4, 2007
Employees Fnac fear of a social plan and a massive sale of the brand, Le Monde, May 5, 2007
Fnac: 8% of strikers in the direction, Nouvel Observateur., May 4, 2007
Fnac wonders about its future Expansion, May 3, 2007
The free t it will kill the culture?, Nouvel Observateur, March 22, 2007
Fnac preparing to launch a social level, the Nouvel Observateur, April 13, 2007
Fnac do not dismiss Le Figaro, April 27, 2007
Television:
Life Media, November 4, 2006
JT TF1 20H
May 4, 2007 Internet:
http://blogoFnac.blogspot.com.
www.Fnac.com
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