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A Communications Analysis between AppleInc. and Microsoft Corporation
Vincent S. Osborne, Shannon SchwarmFlorida Institute of Technology
COM2224 - Business and Professional WritingOctober 19, 2011Professor Kathleen Bartlett
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E x e c u t i v e S u m m a r yThis paper examines the corporate communications style between two titans in the technologysector: Apple Inc. and Microsoft Corporation. By analyzing the companys website, theirmarketing, public relations and the way they communicate their products, services and corporatebrand/image to the public, were able to draw clear distinctions between the two companys
styles of communications. Apple is legendary for their simple, yet effective marketing; theyvebeen recognized and awarded by many entities as one of the most effective and savvycorporation in advertising. Microsoft on the other hand is not as well decorated in the marketing
category, but what they lack in public craftsmanship of their corporate message/image, theyoften make up in their willingness to be transparent and engage their core market demographics.
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A Communications Analysis Report between Apple & Microsoft
ContentsExecutive Summary ........................................................................................................................ 1
Introduction ..................................................................................................................................... 2
Apple Inc. .................................................................................................................................................. 2
Microsoft Corporation .............................................................................................................................. 5
Communication Style...................................................................................................................... 8
Corporate Web Presence .......................................................................................................................... 8
Apple ..................................................................................................................................................... 8
Prominent Apple Blogs: .......................................................................................................................... 10
Microsoft ............................................................................................................................................. 10
Marketing ................................................................................................................................................ 13
Apple ................................................................................................................................................... 13
Microsoft ............................................................................................................................................. 14
Media Presentation ................................................................................................................................ 15
Apple ................................................................................................................................................... 15
Microsoft ............................................................................................................................................. 16
Public Perception .................................................................................................................................... 16
Apple ................................................................................................................................................... 16
Microsoft ............................................................................................................................................. 17
http://c/Users/Vincent/Documents/FIT/COM2224%20-%20Business%20and%20Professional%20Writing/Week8/Team%20Project/Week8%20-%20Analysis%20Report.docx%23_Toc306931959http://c/Users/Vincent/Documents/FIT/COM2224%20-%20Business%20and%20Professional%20Writing/Week8/Team%20Project/Week8%20-%20Analysis%20Report.docx%23_Toc306931959 -
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A Communications Analysis between Apple
Inc. and Microsoft Corporation
I n t r o d u c t i o nThese are two of the most successful and powerful companies in the personal computer
business. These two companies (with IBM as a distance third) has single-handedly created the
personal computer revolution that is so pervasive today, and which we now take for granted.
Weve chosen to compare the communications style of these two companies because of their
historical rivalry and the significant role theyve played in ushering in the technological
revolution, but because these companies, while targets the same markets and releases similar, yetcompeting productsoffer vastly different style of communications.
To understand Apple and Microsofts divergent communications style, we feel it is necessary to
outline these companies corporate culture from an historical point of view.
Apple I nc.
Apple, Inc. currently fighting Exxon as the worlds most valuable publicly traded company
based on market capitalization (Lowensohn). Although is Apple one of the worlds mostsuccessful and beloved brands, it wasnt until recently that the company rose to such illustriousstatus. A discussion of Apple would be impossible without mention of its former CEO and late
marketing visionary and businessman Steve Jobs.
For a snap-shot of Apples corporate structure in terms of its key executives, its marketit li ti j d t d k t d th i l l l T bl 1 A l
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Full Time Employees: 46,600
Principal Competitors: Microsoft Corp.; Samsung; Google; Sony
Corporation; Research In Motion; Nintendo;Hewlett-Packard; Lenovo; Dell; Nokia
Markets: Worldwide to: consumer, small and mid-sized
business, education, enterprise, government, and
creative markets
Sales Channels: online stores, retail stores, direct sales force, third-
party wholesalers, resellers, and value-added
resellersRetail Stores: 317 retail stores (233 in the US / 84 internationally)
Key Executives: Mr. Timothy D. Cook , 50
Chief Exec. Officer and Director (Salary: $6.76M)
Mr. Peter Oppenheimer , 48
Chief Financial Officer and Sr. VP (Salary: $1.42M)
Mr. Ronald B. Johnson , 53
Sr. VP of Retail (Salary: $1.42M)Mr. D. Bruce Sewell J.D., 52
Sr. VP, Gen. Counsel and Sec. (Salary: $1.36M)
Mr. Jeffrey E. Williams , 47
Sr. VP of Operations (Salary: N/A)
Major Products: Mac, iMac, Apple TV, MacBook, iPhone, iPad, and
iPod, OSX and application software (iWorks,
iTunes, Logic Studio & Aperture)
Source: Yahoo! Finance
Apple stared in a garage of Jobs' parents on Crist Drive in Los Altos, California in 1976. Apple
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Table 2: Timeline of Ma or A le Events/Accom lishments
most successful and powerful corporation as detailed in Table 2: Timeline of Major AppleEvents/Accomplishments, on Page 4.
APRIL 1, 1976
College dropouts Steve Jobs and Steve Wozniak found Apple Computer on AprilFool's Day. Within three months they show a rudimentary personal computer tofellow enthusiasts in Palo Alto, Calif., and start selling it at a local computer store
for $666.66.
APRIL 1977The company rolls out the Apple II on its first anniversary, using money earnedfrom the Apple I to create a far more elaborate and cosmetically polished machine.With a plastic case, it looks more like a conventional PC.
JAN. 1, 1983Apple introduces the Lisa, a revolutionary computer that flops spectacularly. Themachine nevertheless sports many features that later become standard.
JAN. 24, 1984 Apple launches the Macintosh with a 1984-inspired Super Bowl commercialridiculing IBM.
MAY 31, 1985
Jobs clashes bitterly with Apple CEO John Sculley over company strategy amidflagging sales for the Apple II and Macintosh. Jobs is driven out of the companyand goes on to found NeXT Software, a new computer company, and buyLucasfilm's Graphics Group.
DEC. 10, 1996
Apple buys NeXT and brings Jobs back to the company. Seven months later he
helps lead a boardroom coup that soon reinstalls him as CEO. Exiled CEO GilAmelio writes an angry memoir blasting him.
OCT 23 2001Apple takes on the music business with the iPod, a player that costs $399. It'spaired with iTunes a software program that allows users to manage music files on
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Cook takes over as CEO of the company.
Source: The Evolution of Cool, Newsweek, 2011.
M icrosoft Corporation
Microsoft Corporation, like Apple, has had a very interesting and illustrious history. Microsoftwas founded by Bill Gates (until the last few years, was the richest man on earth) and Paul Allenback in 1975. Similarly like Apple, but playing a more significant role, Microsofts has been the
biggest purveyor of the personal computing technology revolution. The company's core businessis based on developing, manufacturing, and licensing software products, including operatingsystems, server applications, business and consumer applications, and software developmenttools, as well as Internet software, technologies, and services.
As a result, theyve benefited handsomely, growing to the status of the worlds largest and mostpowerful software companyemploying some ninety thousand people world-wide, and with
revenues totally $69.5 billion (Yahoo! Finance). Unlike Apple, however, Microsofts fortuneshave always relied heavily on making software for other companys hardware whereas Applemakes their own hardware and software.
For a snap-shot of Microsoft corporate structure in terms of its key executives, its marketcapitalization, major products and markets and their annual sales, please see Table 3: MicrosoftsCorporate Profile, below.
Table 3: Microsofts Corporate Profile
Company Statistics
Headquarters Microsoft Corporation
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business, education, enterprise, government, and
creative markets, OEMs (Third-party
manufacturers)Sales Channels: online stores, retail stores, direct sales force, third-
party wholesalers, resellers, and value-added
resellers
Retail Stores: 317 retail stores (233 in the US / 84 internationally)
Key Executives: Mr. Steven A. Ballmer , 54
Chief Exec. Officer and Exec. Director (Salary:
$1.38M)Mr. Peter S. Klein , 49
Chief Financial Officer (Salary: $1.26M)
Mr. B. Kevin Turner , 45
Chief Operating Officer (Salary: $2.67M)
Mr. Steven J. Sinofsky , 45
Pres of Windows and Windows Live Division
(Salary: $1.92M)Mr. Kurt DelBene , 51
Pres of the Microsoft Office Division (Salary:
$2.06M)
Major Products: Windows OS, Windows Azure, Microsoft SQL
Server, SQL Azure, Windows Intune, Windows
Embedded, Visual Studio, Silverlight, Microsoft
consulting services, Bing, MSN portals, Microsoft
Office; Microsoft Exchange; Microsoft SharePoint;
Microsoft Lync; Microsoft Dynamics ERP and CRM,
Kinect for Xbox 360, Xbox 360 video games and
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Table 4: Timeline of Ma or Microsoft Events/Accom lishments
tech people in the industryeven incubating many young technical wizards during their collegeyears. Like Apple, to get a sense of how Microsofts communications style and corporate culture
has contributed to their success, well explore several key communications components thatcontributes directly or indirectly to their overall market tone -- such as corporate culture, webpresence, consumer perception and their marketing style/image to name a few.
Again, to contrast Microsofts corporate history and their successes and relevance as it relates toone of their main competitor (Apple), well break-down via a timeline of Microsofts greatestevents/accomplishments as detailed in Table 4: Timeline of Major MicrosoftEvents/Accomplishments on page 7.
1975Microsoft is founded by Bill Gates and Paul Allen; they sell BASIC, the first PCcomputer language program to MITS Computer, Microsoft's first customer.
1981 Microsoft, Inc. is incorporated; IBM uses Microsoft's 16-bit operating system forits first personal computer.
1982 Microsoft, U.K., Ltd. is incorporated.
1983Paul Allen resigns as executive vice-president but remains on the board; JonShirley is made president of Microsoft (he later becomes CEO); Microsoftintroduces the Microsoft Mouse and Word for MS-DOS 1.00.
1985 Microsoft and IBM forge a joint development agreement.
1986 Microsoft stock goes public at $21 per share.
1987 The company's first CD ROM application Microsoft Bookshelf is released
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2001 Microsoft Windows XP is released internationally.
2003Microsoft launches Windows Server 2003 and Windows Mobile, an operatingsystem for Smartphone and PDAs.
2006 Windows Vista is launched.
2009 Microsoft Windows 7 launched internationally.
2010 Microsoft re-launches their Mobile OS as Windows Phone 7
C o m m u n i c a t i o n S t y l eApple and Microsoft are two of the most successful and power brands in technology today. Inpart, both companies have risen to their respective roles in the global technology marketprimarily by offering superior products and services in much different ways by crafting andcontrolling their corporate communications style and messages. From the companys websites, to
their annual reports down to adverting and marketing, what and how these two companiesportray their corporate message has as much to do with their success as the products and servicesthey market and sells.
Corporate Web Presence
Like all major corporations today, Microsoft and Apple maintain and cultivate their corporateimage and online presence via their corporate web sites, blogs and by directly and indirectly
feeding the online world with information. It has become a major component in their efforts towin mindshare, market share and convey information about the companys products, itsgovernance and services. To understand how both companys webpresence play a role inhelping to craft their public image and their corporate message, well analyze both companys
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Figure 1: Apples Corporate Homepage
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sealed on other types of information about the company, its executives, products and corporateculture.
As an example, in 2004 when Steve Jobs learned andexpressed publicly (but, only partially the truth) that hisdoctors discovered he had a tumor on his pancreas, he said to aStanford graduating class, 'I had the surgery and I'm finenow, adding, Remembering that you are going to die is thebest way I know to avoid the trap of thinking you havesomething to lose. However, the situation was far worse than
this and even when Apple was pressed by the media andfinancial community for clarity, their replies fell on deft ears.They would normally get the companys standard non-answer:Steve's health is a private matter (Nocera, 2008),
In apples narrative of the companys image, they keep bad
news close to their chest and when they do try to get out aheadof bad news, its usually in the form of splendid public
relations fanfare. Such was the case with their Antennagatewhich affected iPhone 4s reception when held a certain way.After the issue became quite loud and negative, in typicalApple showmanship fashion, they held a press conference to address the issues surrounding theiPhone 4s perceived antennae problem and went on to announce they were going to give alliPhone 4 users free cases. Essentially, as Apple almost always does, they pretty much announcedthat there was no issue to the point that all smartphones have antennae issues. As Steve Jobs saidduring the press conference, So the heart of the problem is, smartphones have issues . . . . Butthe data supports the fact that the iPhone 4 is the best smartphone in the world, and there is noAntennagate . . . there is a challenge for the entire smartphone industry to improve its antennatechnology so there are no weak spots. So today we're going to try and take care of our
Prominent Apple Bl ogs:http://gigaom.com/apple/
http://www.tuaw.com/
http://www.engadget.com/
http://www.macrumors.com/
http://daringfireball.net/
http://www.cnet.com/
http://www.gizmodo.com/
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Figure 2: Microsoft's Corporate Homepage
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Perhaps, both companys target market may have a lot to do with this perception, in that, Apples
main target demographics for their products are consumers, who by a large degree, are not
usually very technical and computer literate in nature. Whereas, majority of the people who visitsMicrosofts sites are usually technical or computer literate in nature -- remember, Microsoftmajor target demographics are other computer/hardware manufacturers, computer programmersand hobbyists and corporate executives looking for information to evaluate Microsoft corporateproducts (Windows Server 2008, Microsoft BizTalk Server, Dynamics, SQL Server, etc.).Therefore, to the extent that both companies websites are tailored to their target demographics,
it is without question nonetheless, that Microsoft websites does not boast the same simplisticease of navigation demonstrated by Apples website.
Blogs/Other Online PresenceAnother major battle ground both companies utilize for consumer and corporate perception canbe seen in how they utilize the other online presence (often called, the blogosphere) to help
craft their overall corporate message or the message of a product(s).
This is one area where Microsoft hands-down bested Apple in terms of their transparency withmany of their products whetherits from failure, negative sales figures, press releases or simply
conveying features or specifications for an upcoming product before its launched. An exampleof this can be seen with Microsofts recent Anaheim, California event for developers called:Build (see photo, Figure 3: Microsoft Build Event).
Figure 3: Microsoft Build Event
http://www.microsoft.com/presspass/imagegallery/images/events/2011/build/events_Outside_Convention_Center_page.jpg -
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The Start Screen feels like a
mess of icons, having all of theproblems with the Start Menu
you described and adding some
of its own. I keep a very neat andorderly desktop, and can see
everything on my computer in aglance in the "All Programs"
view introduced in WindowsVista. To me, the Start Screen
just doesn't work, nor does it
Windows. This products specification and features are incomplete at this point but, Microsoft iseager to show the world whats in store for the next version of Windows OS and garner early
feedback on the producta stark contrast to Apples model (where they never releases earlybuilds or early betas of theirproducts). Microsoft has even provided a website(http://blogs.msdn.com/b/b8/), called Building Windows 8 where early developers and generalconsumers can go to provide feedback and exchange ideas about the product.
As an example of this transparency in Microsofts efforts to engage the developer community,
the corporate world and general consumers as a whole, Microsoft is actively listening andfactoring its participants comments into the product development cycleeven negative ones
such as this comment from blogger, mt327000 who commented on Windows 8 new startscreen: The Start Screen feels like a mess of icons, having all of the problems with the StartMenu you described and adding some of its own. I keep a very neat and orderly desktop, and cansee everything on my computer in a glance in the "All Programs" view introduced in WindowsVista. To me, the Start Screen just doesn't work, nordoes it have any advantages over the superior StartMenu.
Unlike Apples traditional stance on negativediscourse about its products features andspecifications which are usually ignored or are given asharp rebuttal from Steve Jobs or provided with adry company line, Microsoft has adapted a more
reconciliatory tone in addressing users concern orperceived inadequacy in the product. For example,Steven Sinofsky goes into details to address this (andperhaps, other) users concern over the start screen byexplaining, The comments have been very clear thatknowing whats on your PC and seeing it at a glance is
http://blogs.msdn.com/b/b8/http://blogs.msdn.com/b/b8/http://blogs.msdn.com/b/b8/http://blogs.msdn.com/b/b8/ -
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Apples marketing, like their corporate message and their products, they all tie into the samenarrative: simplicity.Take their corporate slogan for example, Think Different.Its simple,
yet provocative enough to evocates and empowers its employees to strive harder in their thinkingand their never-ending pursuit of perfection. To this end, Apples marketing via their late CEO,Steve Jobs has created such a powerful brand and image, that Work from TBWA\ Media ArtsLab underscored Apple's positioning as a top-end brand that believes its products are worth theextra money (Bulik, 2010).
As an example, most of Apples commercials offer something simple, yet powerful: the idea ofshowing the general consumer how using their products can make their lives, simpler, more
engaging or more connected. Unlike most of their competitors who mainly focuses onfeatures and product specifications, which almost neveris as effective when marketing toconsumers. Apple archives success with their marketing/advertising because they follow thesame criteria as they do for almost every other facets of their business communication style,make it simple.
Figure 4: iPhone 4S Commercial
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another skydiver. While the ad it itself may be fun and slightly creative, its effectiveness fallsshort nonetheless to convey a sense of desire because its premise is groundless. Most people do
not skydive, and for those that do, Im sure there is far more adrenaline rush in the free-fallingexperience (or there are far more interesting things going on) than the need to take a photo of afellow skydiver.
If this was an marketing effort led by Apple to demonstrate the simplicity and ease at which thephones camera feature allowed its users to take quick, but yet beautiful shots, Apple wouldprobably have had a father quickly taken out the camera from his pocket just in the right momenthis baby was born. Essentially, the difference with most of Apples marketing as oppose to
Microsoft is that Apple tends to create powerful and usually emotional connections between theirprecepts use-cases and peoples real lives.
Figure 5: Microsoft Windows Phone 7 Really Ad
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When Apple issues press releases, its almost always
news that reflects on how successful various products
were, when they have launched a new product,financial statements (which are mandatory for SECfiling, stockholders, etc.) and/or major purchases orbuy-out of other companies. Essentially, like everyother facet of the companys communication style Apple seldom ever divulges information that it doesnt
want you to know. As Mark Hamblin, an engineer whohelped created the touch-screen technology for the
iPhone said, They make everyone super, superparanoid about security, after leaving Apple last year.I have never seen anything else like it at anothercompany'. Apple is one of the world's coolest companies. But there is one cool-companytrend it has rejected: chatting with the world through blogs and dropping tidbits of informationabout its inner workings (Stone, 2009).
This type of communication style is on the opposite end of the spectrum when compared to
Microsofts corporate message, whom as mentioned in the section under Blogs/Other OnlinePresence, where Microsofts Steven Sinofsky actually embraces the online blog community.
MicrosoftIf someone were to do a quick comparison on the press section of both Microsoft and Applessite, they might think that Microsoft releases press releases for everything management does.Unlike Apple, Microsoft provides a fair amount of details to its investors, the media, developersand the general consumer as a whole.
Microsoft publishes press releases for quite a lot of their innovations, future productspecifications and releases (sometimes even when they are months away from release),
t hi b t d it i f ft d i d t ti
Apple is one of the world's
coolest companies. But thereis one cool-company trend it
has rejected: chatting with
the world through blogs and
dropping tidbits of
information about its inner
workings.Brad Stone
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As the blogger, LethalWolfe, said in a blog post on mcarumors.com, In the past few yearsthat I've really been paying attention to Macs I've noticed a gradual shift towards the company
from not only the mainstream but also PC geeks. I frequent a very large PC forum(anandtech.com) a bit less than I frequent MR and the change in attitude over there has beenalmost shocking. When I first joined AT in '01 any mention of "Mac" started a huge flamefest . .. Today in the threads at AT (yes threads) there a couple of trolls, but I saw many people say howcool the iPod Shuffle looked, or how cool the Mac Mini looked (and that a Mac Mini might betheir first Mac ev[e]r) . . . (macrumors.com)
Microsoft
Because of several key product missteps and a few public relations battle with Microsoft over theyears, the Microsoft brand and their public perception has taken quite a nose dive over the lastfew years. After the European Union bought a case against Microsoft for abuse of its dominantposition in the market, which subsequently made Microsoft divulged certain information aboutits server products and released a version of Microsoft Windows without Windows Media Playerand made Microsoft make the choice for alternative browsers in its Windows, these public eventspainted Microsoft in a very negative light.
Rightfully or not, Microsoft was portrayed as a greedy, monopolistic corporate entity that wantsnothing but to stifle competition and diminish opportunities for others in the tech sector(Newman, 2009).
Also, Microsoft has had some missteps, such as the launching of Windows Vista which manyconsumers and corporate citizens decried as a slow, buggy, slow, bloated and poorly designed.Other products such as Windows Mobile, which languished in the same unattractive, poorlydesigned for a mobile device for many yearswhich allowed competitors like Apple with their
iPhone and forward-thinking designs, too swoop in and cause a revolution in the mobile market.Even late comers like Googles Android which stared late in the mobile space have trashed
Microsofts mobile efforts and has now overtaken Apple in global market share.
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C o n c l u s i o nThe communication style between Apple and Microsoft are in stark contrast to each other. Whileboth companies have had an illustrious past in the tech sector and have veered off into totallydifferent direction with its evolution, theyve both had an equally immutable presence that
helped define the technology world as we see it today. Apple one end of the spectrum through itslate perfectionistic and enigmatic CEO, Steve Jobs (many often characterized him as anegomaniac) has crafted and cultivated a corporate style of communications that has made italmost unbeatable. With the very simple premise of Think Different, this message has
manifested into some of the most ground-breaking products ever produced and has permeatedthrough-out every fabric of Apples Cupertino hallways to make Apple one of the most belovedbrands and most successful technology companies in the world.
To speak about Apple would almost be impossible without speaking about Microsoft. WhileMicrosoft has been Apples primary rival for decades, the competitive nature between the twocompanys CEO, Steve Jobs and Bill Gates provided the impetus that pushed both companies toinnovate and at exceedingly break-neck pace. Microsofts corporate culture and communication
style has traditionally been less, hippy and more corporate and this has been reflected in thecompanys major target demographics. Today, Microsoft is increasingly embracing a consumer-centric communication tonelaunching products that target consumers solely (Xbox, MicrosoftKinect, Windows Phone 7, etc.) and along the way, they are becoming more transparent andadept to listening to what their customers has to say.
In reality, today, Microsoft and Apple have adapted a more respectful tone of each otherafterdecades of fighting, suing and public rhetoric by each other, both companies have adaptedpolicies that reflect this reality. Theyve both teamed-up to purchase Nortel patents and havesigned agreements not to poach each others staff and to sue over patents (Church, 2011).Although, these communications go over channels not intended for the general consumer, the
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A p p e n d i x A : G a n t t c h a r tFigure 6: Project Schedule
ID Task Name Start Finish Duration
Sep 2011 Oct 2011
24 1 10 19 30 15 15 12 8 9 1416 23 11 16 42 73281814 27 6 20 29 18 25 26 21 17 2017 191322 5
1 1d9/14/20119/14/2011Initial meet-up (Vince & Shannon)
2 0%1d9/15/20119/15/2011Shannons email with initial data
3 1d9/19/20119/19/2011Shannons 2nd email w/ data
4 1d9/21/20119/21/2011Schedule meet-up (scheduling
conflicts)
5 1d9/24/20119/24/2011Schedule meet-up (progress report)
6 1d9/28/20119/28/2011Schedule meet-up (analysis status)
8 1d10/1/201110/1/2011Schedule meet-up (progress report)
9 1d10/5/201110/5/2011Schedule meet-up (analysis status)
10 1d10/9/201110/9/2011Schedule meet-up (progress report)
12 1d10/12/201110/12/2011Schedule meet-up (analysis status)
13 1d10/16/201110/16/2011Schedule meet-up (progress report)
14 1d10/19/201110/19/2011Schedule meet-up (analysis status)
15 1d10/20/201110/20/2011Submittal of Final Project
7 Open for re-scheduling conflicts5d9/30/20119/26/2011Open for re-scheduling conflicts
11 Open for re-scheduling conflicts5d10/14/201110/10/2011Open for re-scheduling conflicts