Monday, October 26, 2009
Other Paragraphs for Why Amazon Rules Retail
Why Amazon Rules Retail
Sunday, October 25, 2009
Fed & Treasury Pitch Pay Rules, But Will They Work?
The Fed and Treasury had a huge impact by unveiling a sweeping compensation rules that apply to executives at banks and other financial companies. The treasury has rules that apply to seven companies that have gotten an extraordinary taxpayer aid. These companies include AIG, Bank of America, GM and Chrysler to name a few. The Fed takes their proposals and they consider formalizing them after a 30-day comment period. This will tell the bank holding companies just how the agency intends to assess their pay practices. Kenneth Feinberg has a policy to pay only for the top five executives and the 20 highest paid employees at each of the firms. This will result in various government bailouts. The main focus is on swapping big chunks of cash in salary for stock and replacing annual bonuses with restricted stock. In Feinbergs words “salarized” shares belong to executives immediately but they can only cash it out over the course of three years. In the article they say the better approach would have been to fine tune each executives pay package to his duties mainly for the ones responsible for specific business unites instead of the firm as a whole.
The Economy: Beware the Bottlenecks
The article starts off by saying there is a nice thing about a recession and that is everything is on sale. James B. Bullard is the president of the Federal Reserve Bank in St Louis and he brings up the idea of the recession of 1774-1775. He says that the Fed overestimated the amount of unused productive capacity in the system. In result of this, the Fed kept a monetary policy that was to easy and wound up with high inflation. Economist, business executives, and supply-chain experts believe that shortages are short-term problems that wont harm the economy as a whole. They think the big risk will come from deflation. The auto industry is most vulnerable to supply disruptions even with the massive decline in sales. Automakers have decreased their capacity and this has help sustain prices. Cash for clunkers has produced shortages for Ford vehicles like Escape and Chevy Cobalt. To end the article it says that the central bank needs to be prepared to fight a war on two fronts. The fronts that he is referring to are inflation and deflation.
Monday, October 19, 2009
Wal-Mart
Wal-Mart is a big global market and it rates among the top give global retailers. Wal-Mart had a strategy called big box low price model. This was an effective strategy in the United States but in some other international countries like Germany and Korea it wasn’t such a success. Four countries like Japan, India, Russia, and Chile are trying to seek new sources of global wealth and they are struggling doing so. Wal-Mart has had many different types of issues while in Japan. Some were managers resisting its initiatives to tendency among Japanese shoppers to compare prices with other products. Edward Kolodzieski is the CEO of Wal-Mart in Japan. He has 20 stores and cut 29% of corporate staff since he has been appointed CEO. India and Russia are the two worlds fastest crowing retail markets and the two most frustrating for foreign retailers. Best Price employs 25 people to go around the region and check prices at other competitive stores and make sure that Wal-Mart has the best value. It says in the article that 10 to 15% of Best Price products currently go right from the field to the shelves. They want the number to increase to 40% by next year. Wal-Marts in Russia are not doing well and it said the 35% of the companies stake was sold to TPG a private equity arm. Wal-Mart has increased D&S’s expansion budget from 150 million to 250 million and that money will go towards 70 stores next year.
Industrial stocks are up 27% in the last three months. Some of the big industrial companies that are making more and more money now are General Electric, Technologies, Caterpillar, and Honeywell. Since the economic disarray that started in 2008, companies have been liquidating their inventories at a rapid rate. In the article it says that the U.S. needs to export more and import less. A weaker dollar is said to benefit this idea. Gary Wolfer a chief economist for Univest Wealth Management believes that the world and the U.S. economy will bounce back strongly. He backs that up because the stock market is getting better and energy prices are better. The U.S. economy needs industrial firms like Caterpillar and UPS to do well because other parts of the U.S. economy aren’t doing so well like home construction.
Monday, October 12, 2009
Sunday, October 11, 2009
new web site
Apple is a big company that has a good website. Having a company like that it is essential to have a website especially in today’s society were people spend a lot of there time on the internet. To start off, they have everything labeled in bold so it’s easy to see what were looking for. They have pictures of there products on there home page as well as different downloads and supports for there products. They also have videos that you can watch on some of their products so you can get a visual understanding of what the different products are. They have all of there big products on the site and everything is very accessible and easy to understand makes and that makes a good site. www.apple.com
Bad web site
This website is awful. I don’t know what its about but they have random items on their page that have absolutely nothing to do with what the company is. The company is a Cherokee Rose Border Collies and there is a skeleton on the home page with a rat on it. There is also a glob with hearts rotating around it and music in the background that is annoying. There is a castle that looks like it is from the movie a nightmare before Christmas. There is also a bunch of random icons on the page including the playboy bunny and I am sure that has nothing to do with the company. The worst part of the site is the bottom has 7 presidents that are dancing. Just really annoying to look at and doesn’t catch my attention like other good websites.
Gary Vaynerchuk's startup advice
Gary Vaynerchuk is building an obsession with wine, internet, and business. He has a book called Crush it and it is about technology and passion. He thinks building a business is about picking a specialty you love, build up your reputation, and make money by selling advertising. Vaynerchuk turned a family’s small liquor company into a wine company that makes 60 million a year. There was a study that said passion and self-efficacy is the measure of confidence and how a company is successful or not. Paula Davis has been making soap by hand as a hobby for 4 years. At one point she wanted to return to her old job as a legal assistant, but she didn’t want to put her kids in day care during the day. She sold her company to Canyon Creek and Soap on Amarillo Texas she just wanted it to be something small until her children got older. Five years in, she is still continuing to make soap selling wholesale to private label products in stores. She is said to of maid 65,000 in revenue. Vaynerchuk wants people to rethink their priorities in there business aspect and what they do in life.
Washington Revives the Mortgage Cramdown
Many hope that a renewed push to allow cramdown and this would let bankruptcy judges adjust the terms of home loans to give borrowers relief. Cramdown is hated by the banking industry some democrats think that the effort to fix the housing mess is not going as well as it hoped. Ecconomy.com says that 3.8 million homes will enter foreclosure this year that is a 41% increase from 2008. Lenders want to avoid the loss they take from lowering what homeowners pay. Institutions are largely innocent of the worst excesses of the crisis and tend to be viewed favorably on Capitol Hill. President Barrack Obama supports this during his campaign and soon after his election. There are people that say the administration did little to push for passage of the bill. It is said that Obama was unwilling to place further stress on already fragile banks. Durbin is said to attract senators to embrace the bill of these foreclosures continue to surge.