News from Vollrath Associates

As the snow continues to fall, we are reminded that winter is upon us. We hope that you are keeping warm this winter, and we recommend reading this month's Vibe to pass the time indoors! From all of us here at Vollrath Associates, we wish you a Happy Valentine's Day!

Social Media's Influence on Journalists

In a recent study conducted by Cision Global Media Intelligence and George Washington University, 371 journalists were surveyed regarding their use of social media. The focus of the survey explored the journalists' use of social media when researching online for a news story. The majority of participants polled had 10 or more years of experience and wrote for print-based media.

The survey concluded that the majority of participants prefer obtaining their information from a public relations professional rather than social media. PR firms offer journalists access to reliable sources, target information and a critical perspective, as well as exclusive information. Participants described social media websites as a much less reliable source of information due to the lack of fact-checking and source credibility.

Corporate websites, press releases and PR firms still remain constant resources for journalists when writing news stories. An impressive 96% of the survey participants said they utilized corporate websites when researching online, while 60% used social media for researching. Social media outlets such as Facebook and Twitter serve as a publishing medium for many reporters and journalists. The majority of journalists surveyed said that social media was an important PR tool.

Incidentally, journalists who have more experience relied on traditional media sources, while those with less experience were more willing to use information they found on social media websites. Here are a few more interesting statistics taken from the study:

80% of participants said that traditional media outlets are still more reliable.
PR provides critical services and perspectives that social media can't.
Journalists are using PR professionals and press releases for story development more than they have in the past.

Adapted from the A 2009 Social Media & Online Usage Study by Cision.

Business Managers without the Business Knowledge

In a recent study performed by the Harvard Business School, 300 managers were surveyed regarding their knowledge and basic understanding of business. The participants ranged in experience from top-level executives to supervisors. All were asked to take a basic financial literacy exam and the results provide an interesting discovery.

The average score on the test was a startling 38%! The results showed that the majority of managers didn't know the difference between a balance sheet and an income statement, while other managers thought that profit and cash were interchangeable terms. These numbers provided a startling reality to several companies. The lack of these basic business principles at any managerial level could cripple a business.

Take the test and see how you score:

1. You should be pleased about your company's financial results if -

a)   There is a negative trend in operating margin.

b)   There is an increasing trend in COGS.

c)   Cash flow is coming from company investing.

d)   Cash flow is coming from company operations.

2. A company has more cash today when -

a)   All customers pay their bills sooner.

b)   Accounts receivable increases.

c)   Profit increases.

d)   Retained earnings increases.

3. To investors and analysts, free cash flow is a key number because -

a) It reflects the cash that is "free" - that is, your company doesn't have to pay interest on it.

b)   It is the cash that can be used to pay shareholders their dividends.

c)   It reflects the operating cash that has flowed into the business that year.

d)   It is the cash that investors put into a business.

Answers:

Adapted from the businessbrief.com survey: "Most Managers Don't Know Jack About Business."

Annie Almasi Joins Vollrath Associates

We are pleased to welcome Annie Almasi to our team as an account executive.

Annie is an accomplished marketing communications professional with more than 10 years of experience managing a wide variety of communications projects. She comes to us from Assurant Health in Milwaukee, where she served as marketing communications manager responsible for strategy development, copywriting, editing and design direction for the company's major product lines.

Annie earned a bachelor's degree in journalism and a Master's degree in communications from Marquette University.

Please join us in welcoming Annie to the Vollrath team!

Vollrath Associates Welcomes Spring 2010 Interns T.J. Andres and Emily Flock

Happy New Year to all of our Vibe readers and colleagues! My name is T.J. Andres and I am one of two fortunate interns joining Vollrath Associates for the spring 2010 semester. I am a senior at Marquette University studying for my bachelor's degree in advertising and public relations with a minor in Spanish. I look forward to working with each and every one of you during my time here at Vollrath Associates.

Hello friends and colleagues of Vollrath Associates! My name is Emily Flock and I'm finishing up my last semester at Marquette University as a public relations major and marketing minor. After having Phil as a professor a few semesters ago, I feel very lucky to be interning at Vollrath Associates this spring and I am excited to learn more about their clients. The VA team has given me a very warm welcome and the first few weeks here have been great!

Quote of the Month

February is Black History Month:

"If you lose hope, somehow you lose the vitality that keeps life moving, you lose that courage to be, that quality that helps you to go on in spite of all. And so today I still have a dream."

~Martin Luther King, Jr.