Buffett buying Burlington rail in his biggest deal
Description: Warren Buffett’s Berkshire Hathaway Inc will pay $26 billion to buy out Burlington Northern Santa Fe Corp in a bet the nation’s largest rail company will benefit from a recovering U.S. economy.
Source: Reuters.com
Date: 11/03/2009
Link: http://www.reuters.com/article/topNews/idUSTRE5A22A720091103
Questions for discussion:
- Do you think this investment will turn out to be a good one for Buffett? Explain your answer.
- What are the risks to owning and operating a railroad?
Chrysler aftershocks to hit industry hard
May 4, 2009 by admin
Filed under Uncategorized
Experts worry that auto suppliers will be devastated by Chrysler’s bankruptcy and the shutdown of its plants.
Source: CNNMoney.com
Date: 5/01/2009
Keys: Economics, supply chain, operations management, marketing, labor relations
Link: http://money.cnn.com/2009/05/01/news/companies/chrysler_aftershocks/index.htm?postversion=2009050116
Questions for discussion:
- The article explains the chain reaction resulting from Chrysler’s closing plants and reducing production. What would you do now if you were a parts supplier to the auto industry?
- An auto worker at Chrysler?
- An owner of a Chrysler franchise dealership?
Goodbye Trans AM
April 27, 2009 by admin
Filed under Uncategorized
GM is preparing to ‘kill off’ its Pontiac brand as the carmaker searches for viability.
Source: CNNMoney Reports – video report
Date: 4/24/2009
Keys: Marketing, positioning, brands, operations management
Link: http://money.cnn.com/video/news/2009/04/24/news-gm-pontiac-042409.cnnmoney/
Questions for discussion:
- Do you agree with the explanations offered for shutting down the Pontiac brand name? Explain your thinking.
- How would you handle the large number of brands and models under the GM name?
- How would you rationalize your marketing resources? Explain.
Food Industry Safety Inspections Challenged
March 24, 2009 by admin
Filed under Uncategorized
The food industry’s self-policing system failed to catch poor conditions at a peanut processing plant blamed for a nationwide salmonella outbreak, lawmakers said Thursday. The House Energy and Commerce investigations subcommittee released new documents and pictures Thursday that attested to long-standing sanitary problems at facilities owned by Lynchburg, Va.-based Peanut Corp. of America. The company is at the center of a nationwide outbreak that has sickened nearly 700 people and is being blamed for at least nine deaths.
Source: WSJ
Date: 3/19/2009
Keys: operations management, ethical and legal issues, government
Link: http://online.wsj.com/article/SB123746051155183071.html
Questions for discussion:
- Do you think government agencies or the businesses in an industry should be responsible for the control of the nation’s food supply?
- What would you suggest is a better approach than the current system?
- Should the business people involved at Peanut Corp. be held legally accountable for damages caused by their business practices?
