HAMBURG HAFENCITY:the black swan turns white(?)

By Ilias G. Bissias,University of the Aegean

Useful info

Total plot: 157 hectars (ha) Land Development of the City of Hamburg 40 % New buildings 2.32 εκατ. m² 5,800 households and 45,000 new jobs created 10.5 km sea side roads 47 projects have been completed; 37 are carried out Before the sale 99 % of the land belonged to the State of Hamburg

(“Stadt und Hafen”) Private investments € 8 billion; Public investments € 2.4 δισ., mostly

from the price of the land sold HafenCity (circa € 1.5 billion) Timeline:

– Masterplan 2000 – Masterplan of new east HafenCity 2011

What is PR?What is PR? PR is a mutually beneficial function benefiting both publics and the

management (Grunig, 2001).

the relationship between management and its publics is symbiotic in nature, benefiting from the use of two-way communication to achieve the company’s goals without any adverse effects to its publics.

In contrast, those who identify the function as being manipulative believe that companies use public relations to achieve goals that are often detrimental to publics (L’Etang and Pieczka, 1996).

Let’s talk about triangles

PR as a Strategic functionPR as a Strategic function

Key elements:– Vision– Strategic Importance– Commitment- ethical and financial– Risk– Separate, High Ranking Function (Strategic

planning, implementation, review and control)

Strategic Questions

What are your publics? What do your publics ask? How do you handle your image and reputation? Are you willing to risk? Are you willing to act strategically? Who is going to handle your image and reputation? How will you plan ahead?

Hamburg HafenCity- Using Pr Methodology

Press Conferences Exhibitions (in town) Events (in town) Creation of Port Museum New Port Shop (employing young students and unemployed) State of the Art Website and android applications Focused brochures for Niche Markets (music lovers, senior

citizens, religious travelers, newly weds, gays ) Fam Trips

Hamburg HafenCity- Networking

Lufthansa Lufthansa Technic Hamburg Port Lutheran and Catholic Church of Hamburg Hamburg Airport City of Hamburg Tourist Board of Hamburg

Building a Business Model for PR

A ‘Business Model’ is a buzz word concept in the business and scientific world.

The literature is populated with multiple definitions and there is no generally accepted definition of the term ‘‘business model’’.

Business models describe or prescribe more specifically how resources are combined and transformed in order to generate value for customers and other stakeholders, and how a value generating company will be rewarded by its exchange partners that receive value from it (Magretta, 2002).

Whereas strategy emphasizes competition, business models build more on the creation of value for customers (Morris et al., 2003). In that respect business models are typically developed from a more narrow perspective that a strategy.

The business model concept can best be understood as a conceptual view of a particular aspect of a specific company. (Osterwalder et al., 2005).

Osterwalder’s business plan

A prototype of business models is a “thinking tool” (Osterwalder, 2010, pp

As Osterwalder writes “prototypes of business models may be thought-provoking – even a bit crazy – and thus help push out thinking. When this happens, they become signposts pointing us in as-yet unimagined directions rather than serving as mere representations of to-be-implemented business models” Osterwalder, 2020).

As such, a prototype does not intend to provide a rough or fixed picture of what the actual business models should be, but simply to guide and present suggestion for the design of superior business model.

The prototype must focus on key or fundamental aspects of the business model and, thus, indicating directions and paths for exploring alternative designs, which ultimately will lead to superior business models.

The Canvas

The Canvas analysed

Any organization serves one or more customer segments, by serving their problems and satisfying their needs through value propositions.

Successful value proposition will result in good customer relationship and in a permanent revenue stream, which is the ultimate goal of any company.

Key activities are required to fulfil the value propositions. Some of these key activities are produced by key resources while others are outsourced and even acquired outside the enterprise, through key partnerships.

The various elements of the business model, in particular, the key activities, key resources and key partnerships, results in the cost structure of the activity.