Death of the American consumer

Description:  Fortune’s Andy Serwer says consumers can no longer be counted on to stimulate the economy.

Source: CNNMoney.com – video report
 
Date: 08/27/2010

Link: http://money.cnn.com/video/fortune/2010/08/27/f_sl_us_consumer_dead.fortune/

Questions for discussion: 

  • Summarize the reasons given for the slow economic recovery?
  • Why is the spending power of American consumers so important for both American and global economic recovery to take place?
  • What reason is given for being optimistic that the economy will improve?
  • Why would a “job” program help the recovery?
  • Which businesses do you think will be the first to hire more people back?
  • Which businesses are likely to be slow to hire people?
  • What more do you think can be done to help economic recovery?

digits: Pay TV Loses Subscribers

Description:  The subscription television industry suffered a drop in total subscribers in the second quarter. Meanwhile, more online TV viewing options abound. Dow Jones Newswires’ Nat Worden joins Simon Constable and Spencer Ante on Digits to discuss.

Source:  Marketwatch.com – video report

Date: 08/24/2010

Link: http://www.marketwatch.com/video/asset/digits-pay-tv-loses-subscribers/3B9C3648-A3D8-4A53-937A-CDF2F564C568

Questions for discussion: 

  • Do you think the trend away from television subscription will grow?
  • How would you recommend the cable-television industry respond to this threat?
  • Why do you suppose consumers have shifted over to online services like Hulu and iTunes?
  • How would you market these services as more competitors enter the marketplace?

Money managers are optimistic — but their clients aren’t

Description:  A majority of investment advisers say that a double-dip recession is unlikely and that the stock market will improve over the next six months — but their clients are more worried, according to a survey of money managers released Wednesday by financial-services firm Charles Schwab Corp.

Source:  Marketwatch.com
 
Date: 08/25/2010

Link: http://www.marketwatch.com/story/money-managers-are-optimistic-but-clients-arent-2010-08-25?pagenumber=1

Questions for discussion: 

  • Summarize the reasons given for money manager optimism and consumer pessimism.
  • What is your perception of the current business environment from an investing point of view?

Ideas Wanted: Multinationals Open Doors to Entrepreneurs

Description:  Giants such as GE and PepsiCo are sponsoring competitions that let startups strut their stuff.

Source: Businessweek.com
 
Date: 08/26/2010

Link: http://www.businessweek.com/smallbiz/content/aug2010/sb20100825_281270.htm

Questions for discussion:

  • Why does this open-door approach work well for both parties?
  • How is this good for customers?
  • What are the benefits for the economy as a whole?

USA Today to Remake Itself to Stress Digital Operations

Description:  The history of USA Today is full of firsts for the newspaper business: the first general-interest national paper of its kind, the first to use color widely in charts and photographs and once first in the number of copies printed each day.

Source: NYTimes.com
 
Date: 08/27/2010

Link: http://www.nytimes.com/2010/08/28/business/media/28paper.html?ref=business

Questions for discussion:

  • Do you think the reorganization effort will revitalize revenues for USA Today?
  • What gives USA Today competitive advantage over other newspapers and news organizations?
  • Is there anything different in their digital effort in comparison to other news sources?
  • What would you recommend to the firm in order to give it some advantage over its competitors?
  • Would you be an investor in stocks of the firm today?

Lenovo doesn’t have IBM’s cache

Description:  Five years after buying IBM’s PC unit, Lenovo’s a hit in China but still struggles for international success.

Source: CNNMoney.com – video report
 
Date: 08/19/2010

Link: http://money.cnn.com/video/news/2010/08/19/n_lenovo.cnnmoney/

Questions for discussion: 

  • Why do you think Lenovo has had so much trouble establishing its brand in the U.S. market?
  • What does the success in China say about the company?
  • What marketing advice would you suggest to management?

Starbucks looks for pick-me-up

Description:  Despite a run of weak earnings and store closings, the coffee shop operator is gearing up for international expansion.

Source:  CNNMoney.com – video report

Date: 08/20/2010

Link: http://money.cnn.com/video/markets/2010/08/20/mkts_starbucks_jolt.cnnmoney/

Questions for discussion: 

  • Do you think Starbucks is a good investment today?
  • What has the company done to improve its financial condition?
  • Do you think its current strategy is better than the previous one?

The New GM to hit market with new hopes, old ghosts

Description:  The second-biggest IPO in U.S. history is finally winding its way toward Wall Street, and while the road ahead is fraught with hazards, some analysts still see big potential in a rebuilt General Motors.

Source:  Marketwatch.com
 
Date: 08/20/2010

Link: http://www.marketwatch.com/story/should-investors-steer-clear-of-gm-ipo-2010-08-20

Questions for discussion: 

Do you think the GM IPO will be successful with small investors? 

  • Should investors stay away from GM?
  • Do you think the IPO is a good choice for small investors?
  • Would the small investor be wiser to wait until the IPO dust has settled and then look at the possibilities of purchase?

Intel, After McAfee Deal, May Find Mobile Security a Hard Sell

Description:  Intel Corp. Chief Executive Officer Paul Otellini, with the $7.68 billion acquisition of security software maker McAfee Inc., is betting that customers will pay to guard against attacks that have yet to materialize.

Source: Bloomberg.com
 
Date: 08/20/2010

Link: http://www.bloomberg.com/news/2010-08-20/intel-s-otellini-after-mcafee-deal-may-find-mobile-security-a-hard-sell.html

Questions for discussion:

  • Do you think this was a wise decision by Intel?
  • Do you believe there will be long term need for virus protection?
  • What advantage is there for Intel to place anti-virus software on their chips?

In Striking Shift, Small Investors Flee Stock Market

Description:  Renewed economic uncertainty is testing Americans’ generation-long love affair with the stock market.

Source: NYTimes.com
 
Date: 08/21/2010

Link: http://www.nytimes.com/2010/08/22/business/22invest.html?ref=business

Questions for discussion:

  • Do you think the small investor’s attitude toward the stock market will continue to become more negative?
  • What has caused this change in attitude?
  • What could cause a reversal?
  • Why is the small investor’s attitude important to understand?

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