Hi good morning,

I need assistance on this assignment, can someone please help me with these questions as soon as possible, thank you.

For the exclusive use of M. Sheahan, 2016. NA0353 In American C Facebook Folly at Northeast BMW (A) Gabrielle R. Lopiano, The University of Tampa Mary Anne Watson, The University of Tampa "W hat were you thinking?" demanded Bill Thompson, vice president nd general manager of Northeast BMW, a car dealership in Dover, Massachusetts. He revealed copies of two Facebook postings involv- ing the company, one related to a company hosted event and the other referencing an accident that took place at an adjacent company-owned Land Rover dealership. Thompson was confronting Brett Buckley, a salesperson at Northeast BMW, at a meeting he called with other managers on June 16, 2010, to discuss the Facebook postings that included photos and sarcastic remarks about the company. In response to Thompson's inquiry, Buckley responded that it was his Facebook page and that what he posted to it was none of Thompson's or any other manager's business. Thompson informed Buckley they had received phone calls from neighboring Land Rover dealers who had seen the negative postings and told Buckley that he embar- rassed his managers and colleagues at Northeast BMW. At the end of the meeting, Thompson stated that management would be reviewing this issue and that Buckley would be contacted when a decision was made. Buckley was asked to turn in his key and leave the premises. COMPANY HISTORY Northeast BMW was part of the Northeast Automotive Group that had serviced the Greater Boston area since 1934. Before establishing itself as an industry leader, North- east Automotive founder Karl Kelley began selling DeSoto automobiles out of his small service station. He added Chrysler and Plymouth to his portfolio by 1940, and by the early 1970s, both Mercedes and BMW were included in the brand mix. Later additions included Land Rover and Buick. By 2010, Northeast Automotive owned several dealerships that offered consumers a range of luxury vehicle brands, including Mercedes-Benz, MINI, Land Rover, and Hyundai, in addition to BMW. Copyright @ 2015 by the Case Research Journal and by Gabrielle Lopiano and Mary Anne Watson. This case was presented at the North American Case Research Association Annual Conference in Octo- ber 2013 in Victoria, BC. The authors would like to acknowledge conference roundtable participants, reviewers, and the editor for providing feedback. The authors would also like to thank Carol Cumber for classroom testing an earlier version of this case in her undergraduate Human Resources Management course. The case was based on publicly-available primary and secondary sources. The events and individu- als in the case are real, but their names have been disguised. Facebook Folly at Northeast BMW (A) This document is authorized for use only by Michael Sheahan in 2016. For the exclusive use of M. Sheahan, 2016. The area had one of the highest per-capita incomes in the country, making it an ideal location to grow an auto park of high-end brands. BMW was one of the world's premier brands for high-end automobiles. In 2008, the brand was valued at over $23 billion. It was an emotional brand whose consumers typically had a higher level of affluence and less price sensitivity than the average car buyer. When Karl Kelley retired, his son Bill took over running the dealership and con- tinued to operate and grow the family business as his father had done. When he first stepped in as CEO, Bill Kelley got to know all of his customers by name, and although that became increasingly difficult as the company grew, Northeast Automotive con- tinued to see a large amount of repeat business from children and grandchildren of former customers. During Bill Kelley's tenure, Northeast Automotive saw tremendous growth. Sales revenues more than doubled in his last ten years as CEO. In 2000, Bill Kelley stepped down from running the daily operations, although he remained chairman of the exec- utive board, and turned the company over to his son-in-law, William Mitchell. Upon taking the reins, Mitchell acknowledged the foundation of Northeast Automotive by stating, "Most importantly, we wanted to continue perpetuating this as a family- owned business." EMPLOYEE RECRUITMENT AND RETENTION Northeast BMW prided itself on its practices for recruiting and retaining employees. According to Bill Kelley, these practices, which he learned from his father, included: . Treating employees and customers the way they wanted to be treated. Many employees were hired through high school automotive courses, busi- ness acquaintances, friends, and even customers. A common statement from Bill Kelley was, "We are in it for the long haul, and we treat people accord- ingly because we rely so heavily on repeat business." Always being open to new sources for employees. For example, a few years before, Bill Kelley had met a man who was a Land Rover enthusiast whoFaceboolt Folly at Northeast BMW (A) 1 This document is amnorlzeo tor use only by Michael Sneahan In 2016. For the exclusive use of M. Sheahan, 2016. The area had one of the highest per-capita incomes in the country, making it an ideal location to grow an auto park of high-end brands. BMW was one of the world's premier brands for high-end automobiles. in 2008, the brand was valued at over $23 billion. It was an emotional brand whose consumers typically had a higher level of afuence and less price sensitivity than the average car buyer. When Karl Kelley retired, his son Bill took over running the dealership and con- tinued to operate and grow the family business as his father had done. When he rst stepped in as CEO, Bill Kelley got to know all ofhis customers by name, and although that became increasingly diicult as the company grew, Northeast Automotive con- tinued to see a large amount of repeat business from children and grandchildren of former customers. During Bill Kelley's tenure, Northeast Automotive saw tremendous growth. Sales revenues more than doubled in his last ten years as CEO. In 2000, Bill Kelley stepped down from running the daily operations, although he remained chairman of the exec- utive board, and turned the company over to his son-in-law, William Mitchell. Upon taking the reins, Mitchell acknowledged the foundation of Northeast Automotive by stating, \"Most importantly, we wanted to continue perpetuating this as a family- owned business." EMPLDYEE RECRUITMENT AND RETENTION Northeast BMW prided itself on its practices for recruiting and retaining employees. According to Bill Kelley, these practices, which he learned from his father, included: ' Treating employees and customers the way they wanted to he treated. Many employees were hired through high school automotive courses, busi- ness acquaintances, friends, and even customers. A common statement from Bill Kelley was, \"We are in it for the long haul, and we treat people accord- ingly because we rely so heavily on repeat business." I Always being open to new sources for employeu. For example, a few years before, Bill Kelley had met a man who was a Land Rover enthusiast who worked on his own vehicle and others in his spare time. Although the man held a building maintenance job, he agreed to join Kelley at Northeast Auto- motive and learn the auto business when the dealership opened its new Land Rover store. Training their own technicians. When a young man who was washing cars at the dealership wanted to quit his job to attend mechanics' school, Bill Kelley oifered to train him on-site. He became one of the dealership's top Mercedes-Benz mechanics. From its establishment, the owners of Northeast Automotive expressed a philoso- phy of mutual respect at the company, reducing the risk of employee turnover, an uncommon characteristic in an industry where many employees had a commission- based compensation structure. In 1998, roughly 20 percent ofemployees had been on stalT ten years or more. The company's treatment of employees reduced the likelihood of its employees being hired away by other dealers. Car: Researcfauml ' Volume 35 ' IssueZ ' Spring 2015 This document is authorized lor use only by Michael Sheehan In 2016. For the exclusive use of M. Sheahan, 2016. SALESPERSON COMPENSATION STRUCTURE in 2010, salespersons at Northeast BMW earned compensation by means of three contributing factors: 1. Sales commission: Sales personnel received a commission of 25 percent on the prot netted from each sale. The net prot is the difference between the dealer's invoice cost and the amount the customer paid for the car, less over- head expenses, For example, a $20,000 sale of a cat with an invoice cost of $18,000 yielded a $2,000 prot before overhead costs were deducted. After $500 in overhead costs was subtracted, the net prot of the sale was $1,500. The sales person earned 25 percent of that prot (or $1,500 x 0.25), which brought the total commission on the sale to $375. A commission rate of 25 percent matched the industry average. 2. Sales volume: Sales employees also received bonus compensation based on the total number of automobiles sold, An employee who sold twelve vehicles in a calendar month, including two used vehicles, would earn an additional xed amount in compensation. 3. Customer Satisfaction Index (C51): The third way for sales staff to earn compensation was through their performance on the C31, which was derived from customer responses to post-purchase questionnaires. These responses provided feedback to the car manufacturer to evaluate its dealers on how well its customers were being treated. lf scores were low, the brand could lose customers, and the manufacturer might not send the newest inventory to the dealer. Therefore, the dealership typically incentivized its salespeople to perform well by tying CSl results to their compensation. Each of these factors was directly aligned with the employee's individual sales. ULTIMATE DRIVING EVENT In June 2010, the dealership planned to host the Ultimate Driving Event to launch This document is authorized tor use only by Michael Shaahan In 2016. For the exclusive use of M. Sheahan, 2016. SALESPERSON COMPENSATION STRUCTURE In 2010, salespersons at Northeast BMW earned compensation by means of three contributing factors: 1. Sales commission: Sales personnel received a commission of 25 percent on the prot netted from each sale. The net prot is the difference between the dealer's invoice cost and the amount the customer paid for the car, less over- head expenses. For example, a $20,000 sale of a car with an invoice cost of $18,000 yielded a $2,000 prot before overhead costs were deducted. After $500 in overhead costs was subtracted, the net prot of the sale was $1,500. The sales person earned 25 percent of that prot (or $1,500 at 0.25). which brought the total commission on the sale to $375, A commission rate of 25 percent matched the industry average. . Sales volume: Sales employees also received bonus compensation based on the total number of automobiles sold, An employee who sold twelve vehicles in a calendar month, including two used vehicles, would earn an additional xed amount in compensation. . Customer Satisfaction Index (C51): The third way for sales sta\" to earn compensation was through their performance on the C31, which was derived from customer responses to postpurchase questionnaires. These responses provided feedback to the car manufacturer to evaluate its dealers on how well its customers were being treated 1f scores were low, the brand could lose customers, and the manufacturer might not send the newest inventory to the dealer. Therefore, the dealership typically incentivi'zed its salespeople to perform well by tying C81 results to their compensation. Each of these factors was directly aligned with the employee's individual sales. ULTIMATE DRIVING EVENT in June 2010, the dealership planned to host the Ultimate Driving Event to launch the redesigned BMWS Series model. At a planning meeting for the event, Buckley had stated, \"I can't believe we're not doing more for this event," upon learning that the company was planning to serve hot dogs and chips. The other salespeople present at the meeting had concurred with Buckley's concern and questioned the decision. \"This is not a food event," Paul Calhoun, the general sales manager, had responded, and proceeded to inform his staff of what was expected of them and the incentives being offered at the event. Customers and potential customers were invited to the event through a mailing, in which there was no mention of the food that would be provided. After the meeting, the sales staff continued to voice their complaints about the menu among themselves. One member said that he thought the event should be catered and added that at the MercedesBenz dealership, customers were olfered hors d'oeuvres with servers. \"It's our bread and butter car for BMW . , . it should be more professionally done," he said. Buckley, who began his employment with Northeast Automotive in 1998 at the Land Rover dealership before transferring to the BMW dealership in 2004, felt that what management had planned for the event \"was not up to par with the image of the brand, Lthe ultimate driving machine,y a luxury brand . . . The two just don't mix." He added that. "Everything in life is perception. BMW's a luxury brand . , . when some- body walks into our dealership . . . it's a beautiful auto park . . . it's a beautiful place." Facebook Folly at Northeast BMW (A) This document is authorized for use only by Michael Sheahan In 2016, For the exclusive use of M. Sheahan, 2016. The event was held on June 9, with hot dogs served from a mrt, bags of chips, cook- ies, and bowls of apple and oranges available for customers. Buckley took pictures of his coworkers mocking the refreshments at the event and told them that he planned to post them to Facebook. LAND Rover. ACCIDENT On June 14, less than a week after the Ultimate Driving Event, there was an acci- dent at the Northeast Land Rover dealership located adjacent to the BMW dealership. A customer was being shown a vehicle by a Northeast salesperson. The customer's thirreen-yearold son was sitting in the driver's seat, as allowed by the salesperson who was sitting in the passenger's seat with the door open. The boy drove the vehicle into a nearby pond and the salesperson was thrown into the water, but remained unharmed. The Land Rover accident could be seen from the BMW dealership. When Buckley heard about the accident, he walked over to the scene and took pictures of the vehicle in the pond and the salesperson wrapped in a blanket. FACEBOOK POSTINGS later that day at home, Buckley posted the photos he took ofboth the Ultimate Driv ing Event and the Land Rover accident, and accompanied them with sarcastic and mocking remarks. The photos of the BMW driving event, titled \"BMW 201 l 5 Series Soiree," were of himself and his fellow sales stallr around a hot dog cart holding hot dogs and of a snack table containing fruit and cookies. Buckley supplemented these pictures with a comment: I was happy to see that Northeast went \"All Out" for the most important launch of a new BMW in years . . . the new 5 series. A car that will generate tens in [sic] millions of dollars in revenues for Northeast over the next few years. The small 8 oz. bags of chips, and the $2.00 cookie plate from Sam's Club, and the semi fresh apples and oranges were such a nice touch . . . but to top it all 05'. . . the Hot Dog Cart. Whete our clients could attain a [sic] over cooked wiener and a stale bunn [sic] . . . 10. 11. 12. 13. 14. 15. 16. ls Buckley entitled to privacy of his Facebook posts? Why might Buckley believe his actions were acceptable? Did Buckley's Facebook posts reasonably identify him as an employee of Northeast Automotive? Did Buckley's Facebook posts have a detrimental impact on close working Ielationships (Le. adversely affected loyalty or condence)? Did Buckley's Facebook posts create a disruption in the normal operations of his employer's business? Was it important for the public to be aware ofthe events Buckley posted on Facebook? Did Buckley do anything wrong by posting on Facebook about the food at the event? Why or why not? Did Buckley do anything wrong by posting pictures of the accident on Facebook? Why or why not? Does it matter that Buckley was sarcastic? Why or why not? Are the employee guidelines in the Employee Handbook sufficient to hold Buckley accountable? Why or why not? Are the employee guidelines in the Employee Handbook sufficient to terminate Buckley's employment? Why or why not? How does the common law employment-at-will doctrine relate to this decision? Do any of the three major exceptions to employment at will apply to this situation? Information to supplement your book: NLRB \"protected concerted activity\"- The law we enforce gives employees the right to act together to try to improve their pay and working conditions, with or without a union. If employees are fired, suspended, or otherwise penalized for taking part in protected group activity, the National Labor Relations Board will fight to restore what was unlawfully taken away. If unionized, would any of Buckley's actions be protected under the National Labor Relations Act (NLRA)? Why or why not? Would that change your disciplinary recommendation? .. \"Hwy... .. v", on .w. m-..\" am. u u u J This document is authorlzed for use now by Michael Shannan In 2016. For the exclusive use of M. Sheahan, 2016. The event was held on June 9, with hot dogs served from a mrt, bags of chips, cook ies, and bowls of apple and oranges available for customers. Buckley took pictures of his coworkers mocking the refreshments at the event and told them that he planned to post them to Facebook. LAND Rover. ACCIDENT On June 14, less than a week after the Ultimate Driving Event, there was an acci dent at the Northeast land Rover dealership located adjacent to the BMW dealership. A CuStDmCr was bing Shwn I VEhiClC by 1 Northeast SQJESPEISDH. Tilt Cmtmer's thirteen-yearold son was sitting in the driver's seat, as allowed by the salesperson who was sitting in the passengers seat with the door open. The boy drove the vehicle into a nearby pond and the salesperson was thrown into the water, but remained unharmed. The Land Rover accident could be seen from the BMW dealership. When Buckley heard about the accident, he walked over to the scene and took picnues of the vehicle in the pond and the salesperson wrapped in a blanket. FACEBOOK POSTINGS Later that day at home, Buckley posted the photos he took ofboth the Ultimate Driv- ing Event and the Land Rover accident, and accompanied them with sarcastic and mocking remarks. The photos of the BMW driving event, titled \"BMW 201 1 5 Series Soiree,\" were of himself and his fellow sales stallr around a hot dog cart holding hot dogs and of a snack table containing fruit and cookies. Buckley supplemented these pictures with a comment: I was happy to see that Northeast went \"All Out\" for the most important launch of a new BMW in years . . . the new 5 series. A car that will generate tens in [sic] millions of dollars in revenues for Northeast over the next few years. The small 8 oz. bags of chips, and the $2.00 cookie plate from Sam's Club. and the semi fresh apples and oranges were such a nice touch . . . but to top it all oil. . . the Hot Dog Cart. Where our clients could attain a [sic] over cooked wiener and a stale bunn [sic] . . . Comments from Buckleys Facebook \"friends" and his responses followed. Another picture showed a colleague holding bottles of water, under which Buckley wrote: No. that's not champagne ot wine, it's 8 01. water. Pop or soda would be out of the question. Buckley also posted the photos he took of the Land Rover accident the same day with the caption: This is your car: This is your car on drugs. Under a picture of the car in the pond, the salesperson with a blanket, the cus tomer, and the boy, Buckley wrote: This is what happens when a sales person sitting in the front passenger seat . . . allows a thirteen year old boy to get behind the wheel of a 6000 lb. truck built and designed to pretty much drive over anything. The kid drives over his father's foot and into the pond in all [sic] about four seconds and destroys a $50,000 ttuck. OOOPS! About fteen of Buckley's ninety-nine Facebook \"friends" at the time of the post ings were Northeast Automotive employees, and his privacy settings also allowed (\"Ase Restarcbjouml ' Volume 35 - Issne2 - Spring 2015 This document is authorlled for use now by Michael Sheahan In 2016. For the exclusive use of M. Sheahan, 2016. access to \"friends of friends," meaning that everyone who was Facebook "friends" with Buckley's \"friends\" could see the things he posted. EMPLOYEE HANDBOOK While Northeast BMW had no policies explicitly referencing social media usage, it had distributed an employee handbook to all employees that included the following guidelines: Bad Attitude: Employees should display a positive attitude toward their job. A bad attitude creates a diicult working environment and prevents the dealership from providing quality service to our customers. Courtesy: Courtesy is the responsibility of every employee. Everyone is expected to be courteous, polite, and friendly to our customers, vendors, and suppliers, as well as to their fellow employees. No one should be disrespectful or use profanity or any other language which injures the image or reputation ofthe dealership. Unauthorized Interviews: As a means of protecting yourself and the dealership, no unauthorized interviews are permitted to be conducted by individuals repre- senting themselves as attorneys, peace oicers, investigators, reporters, or someone who wants to "ask a few questions." if you are asked questions about the deal- ership or its current or former employees, you are to refer that individual(s) to your supervisor. A decision will then be made as to whether that individual may conduct any interview and they will be introduced to you by your supervisor with a reason for the questioning. Similarly, ifyou are aware that an unauthorized interview is occurring at the dealership, immediately notify the general manager or the president. Outside inquiries Concerning Employees: All inquiries concerning employees from outside sources should be directed to the human resource department. No information should be given regarding any employee by any other employee or manager to an outside source, later that clay at home, Buckley posted the photos he took ofboth the Ultimate Driv ing Event and the Land Rover accident, and accompanied them with sarcastic and mocking remarks. The photos of the BMW driving event, titled \"BMW 201 1 5 Series Soiree,n were of himself and his fellow sales stallr around a hot dog cart holding hot dogs and of a snack table containing fruit and cookies. Buckley supplemented these pictures with a comment: I was happy to see that Northeast went \"All Out" for the most important launch ofa new BMW in years . . . the new 5 series. A car that will generate tens in [sic] millions of dollars in revenues for Northeast over the next few years. The small 8 oz. bags ofchips, and the $2.00 cookie plate from Sam's Club, and the semi fresh apples and oranges were such a nice touch. . . but to top it all 05'. . . the Hot Dog Cart. Where our clients could attain a [sic] over cooked Wiener and a stale hunn [sic] . . . Comments from Buckley's Facebook \"friends\" and his responses followed. Another picture showed a colleague holding bottles of water, under which Buckley wrote: No. that's not champagne or wine, it's 8 oz. water. Pop or soda would be out of the question. Buckley also posted the photos he took of the Land Rover accident the same day with the caption: This is your car: This is your car on drugs. Under a Picture of the car in the pond, the salesperson with a blanket, the cus- tomer, and the boy, Buckley wrote: This is what happens when a sales petson sitting in the front passenger seat . . . allows a thirteen year old boy to get behind the wheel ofa 6000 lb. truck built and designed to pretty much drive over anything. The kid drives over his father's foot and into the pond in all [sic] about four seconds and destroys a 350,000 truck. OOOPS! About fifteen of Buckley's ninety-nine Faoebook \"friends\" at the time of the post- ings were Northeast Automotive employees, and his privacy settings also allowed 4 Care Research Journal ' Volume 35 - [ssnel - Spring 2015 This document is authorized tor use oniy by Michael sheehen In 2016. For the exclusive use of M. Sheahan, 2016. access to \"friends of friends," meaning that everyone who was Facebook "friends" with Buckley's \"friends" could see the things he posted. EMPLOYEE HANDBOOK While Northeast BMW had no policies explicitly referencing social media usage, it had distributed an employee handbook to all employees that included the Following guidelines: Bad Attitude: Employees should display a positive attitude toward their job, A bad attitude creates a difcult working environment and prevents the dealership from providing quality service to our customers. Courtesy: Courtesy is the responsibility of every employee. Everyone is expected to be courteous, polite, and friendly to our customers, vendors, and suppliers, as well as to their fellow employees. No one should be disrespectful or use profanity or any other language which injures the image or reputation ofthe dealership. Unanthuriled Interviews: As a means of protecting yourself and the dealership, no unauthorized interviews are permitted to be conducted by individuals repre- senting themselves as attorneys, peace officers, investigators, reporters, or someone who wants to \"ask a few questions." if you are asked questions about the deal- ership or its current or former employees, you are to refer that individual(s) to your supervisor. A decision will then be made as to whether that individual may conduct any interview and they will be introduced to you by your supervisor with a reason for the questioning. Similarly, ifyou are aware that an unauthorized interview is occurring at the dealership, immediately notify the general manager or the president. Outside Inquiries Concerning Employees: All inquiries concerning employees from outside sources should be directed to the human resource department. No information should be given regarding any employee by any other employee or manager to an outside source. MANAGEMENT RESPONSE The day after Buckley's Facebook postings of both the BMW event and the Land Rover accident, managers at Northeast BMW received phone calls from other local Land Rover dealers informing them of the demeaning photos and comments posted online by one oftheir salespeople. Calhoun asked Buckley to remove the postings, and he immediately complied, On June 16, two days after the postings, Thompson called Buckley into a meeting with Calhoun, his direct supervisor, and the sales director of Northeast BMW After questioning Buckley and allowing him the chance to respond, Thompson told him they would need to decide how to handle the situation and until then, Buckley was to go home and wait for them to contact him once a decision had been made. Thompson had been the vice president and general manager at Northeast BMW for ten years, joining the company the same year that William Mitchell took over as president. Prior to joining Northeast, he had worked in several other organizations in the industry in nancial and operational positions. He arranged to bring his managers to a meeting with Mitchell and Bill Kelley on June 21 to discuss the incident, where they would want to hear his recommendation for how to respond to Buckley's Face- book postings. Fueboolt Folly at Northeast BMW (A) This document is authorized iar use oniy by Michael Shannen In 2016. CLASS 5 Facebook Folly at Northwest BMW Exercise Instructions- Answer the questions and submit online via Webcourses before the start of class. No late or incomplete assignment are accepted. Answers can be written out or bulleted/outlined. (Estimated time to complete: 1.5 hours) Resource: The Legal Environment of Business; A Managerial Approach: Theory to Practice 3rd Edition Chapter 11 and the Facebook Folly Case. 1. Was Buckley acting as an agent of Northeast BMW when he posted on Facebook? 2. Could Northeast BMW be liable for Buckley's actions (e.g. insurance company denies accident claim, boy's father sues for injuries etc.)? 3. Is Buckley entitled to privacy of his work emails? 4. Is Buckley entitled to privacy of his Facebook posts? 5. Why might Buckley believe his actions were acceptable? 6. Did Buckley's Facebook posts reasonably identify him as an employee of Northeast Automotive? 7. Did Buckley's Facebook posts have a detrimental impact on close working relationships (i.e. adversely affected loyalty or confidence)? 8. Did Buckley's Facebook posts create a disruption in the normal operations of his employer's business? 9. Was it important for the public to be aware of the events Buckley posted on Facebook? 10. Did Buckley do anything wrong by posting on Facebook about the food at the event? Why or why not? 11. Did Buckley do anything wrong by posting pictures of the accident on Facebook? Why or why not? 12. Does it matter that Buckley was sarcastic? Why or why not? 13. Are the employee guidelines in the Employee Handbook sufficient to hold Buckley