Taser Company Ignored SEC Emails Because They Were In a Spam Folder By Kristy We

Question

Taser Company Ignored SEC Emails Because They Were In a Spam Folder By Kristy Westgard October 20, 2017, 1:07 PM EDT Check your spam box. It could be the SEC. That’s the lesson learned this week by Axon Enterprise Inc., the company best known for its Taser stun guns. Late Thursday, Axon announced that “due to miscommunication issues,” the company has just become aware of SEC requests regarding its previous financial reports and is now scrambling to respond. The stock fell as much as 7 percent, its biggest drop in more than two months. What happened? Axon’s internal email filters are to blame. The SEC sent its initial comment on Aug. 10 and follow-up requests only to Axon’s new CFO Jawad Ahsan, and they were quarantined in a spam filter. Dougherty & Co. analyst Jeremy Hamblin in a note to clients, called the incident "embarrassing, but nothing to be concerned about.” Truth be told, the SEC sends these sorts of comment letters to companies all the time, Hamblin says. Next time, Axon is sure to be watching more closely. The company says it has already changed its email filter and established a more reliable line of communication with the agency.

Questions

1-What Characteristics or strategy would have helped the SEC efficiently communicate?

2-Did SEC analyze their medium options for effectiveness?

3-Would another medium have been more effective and why?

4-Based on your readings what type of communication was the SEC email such memo, request, informational, etc.?

5-Did it follow the general guidelines for the required form of communication?

6-How should Taser respond to the SEC which type of correspondence should they use such memo, informational, persuasive or apologetic and what are the required guidelines for that specific communication for it to be effective and through which medium?

Explanation / Answer

1. Apart from relying just on the mail messages, more one to one conversations would have helped the SEC communicate effectively.

2. No SEC did not check on its medium options for the effectiveness and that is why in the end they have come to know about it.

3. Yes another medium which would have strengthened the one to one communication like personal messages would have been of help as irrespective that the mails went in spam still the message would have been conveyed.

4. SEC mails were more informational as it was related to the dropping prices

5. No, every communication also relies on the feedback of the receiver, if Axon was unable to receive the message SEC also on its part did not take the responsibility of follwoing up for no response received from the Axon CEO.

6. Taser should use apologetic correspondence for the irresponsiveness on their part as this will ensure that this does not happen again and the medium of apology can be through mail but also has to be sent in person.

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