GM: Battery innovation is key

Posted by & filed under Part 4: Marketing Management.

GM’s CEO says leading-edge autos like the Chevy Volt are the right investment of U.S. taxpayer money.

Source: CNNMoney – video report
 
Date: 8/13/2009

Keys: Marketing, international business, economy, government, finance,  strategic alliances

Link: http://money.cnn.com/video/news/2009/08/13/n_co_gm_henderson_volt.cnnmoney/

Questions for discussion:

  • Do you believe the future of the automobile is “electric”? Explain your answer.
  • Would you invest in this emerging technology?
  • What risks are there for GM as it moves ahead?
  • How does the selling price of vehicles enter into these discussions?

The top 10 highest paid CEOs are…

Posted by & filed under Part 1 Business in a Global Environment, Part 3 Management: Empowering People to Achieve Business Objectives.

Ten CEOs take home more than $70 million in 2008, with Blackstone’s Stephen Schwarzman topping the list with more than $700 million in compensation.

Source: CNNMoney.com

Date: 8/14/2009

Keys: Management, HR, government

Link:  http://money.cnn.com/2009/08/14/news/companies/highest_paid_ceos/index.htm?postversion=2009081410

Questions for discussion:

  • Compensation for work done is a controversial topic and often receives great public attention when the numbers are extraordinarily large or small. What is your view of the compensation paid to these CEOs?
  • Do you believe that there should be ceilings set by government (through taxes) or other regulatory bodies? Explain your thinking.
  • Is there anything inherently wrong with anyone receiving high levels of compensation?
  •  How would you decide proper compensation for work provided? Explain your thinking.

Robo-copter can navigate inside your home

Posted by & filed under Part 4: Marketing Management.

Just when you were getting used to the idea of unmanned aerial vehicles patrolling the skies over your city, they’re beginning to enter buildings.

Source: CNET News

Date: 8/14/2009

Keys: Marketing, market segmentation, new product development, technologies

Link: http://news.cnet.com/8301-17938_105-10309811-1.html?tag=mncol

Questions for discussion:

  • What are the possible market segments that could see uses for these products?
  • What advantages would there be over the existing technology?
  • Which applications would not consider the price an important criterion for the decision to adopt this new technology? Explain your answer.

U.S. Stocks Fall on Concern Rally Outpaced Recovery Prospects

Posted by & filed under Part 1 Business in a Global Environment.

U.S. stocks slid, capping the first weekly drop for the Standard & Poor’s 500 Index in more than a month, as lower-than-estimated consumer confidence added to concern a five-month rally outpaced prospects for the economy.

Source: Bloomberg.com

Date: 8/14/2009

Keys: Stock market, economy, finance, investing, business cycle

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aAXWJXOKPGC4

Questions for discussion:

  • Do you agree that stocks are overvalued at the moment?
  • Do you think investors will continue to push stock prices higher over the remainder of the summer? Explain your thinking.
  • If you were investing in stocks with the intention of holding your portfolio for at least one year, which stocks would you be buying? Which would you stay away from? Explain your thinking.

China’s $300 billion bullet train

Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management.

Multinationals like IBM and Bombardier stand to profit from China’s new high-speed rail system. 

Source: CNNMoney – video report
 
Date: 8/05/2009

Keys: International business, economy, government, management, finance, banking, strategic alliances

Link: http://money.cnn.com/video/fortune/2009/08/05/f_fr_china_bullet_train.fortune/

Questions for discussion:

  • Summarize the current and longer term benefits to the Chinese economy associated with the building of the bullet train.
  • How are international businesses like IBM involved?
  • Besides the obvious employment and earnings derived from selling products and services to the Chinese, what additional benefits are realized by international businesses? Explain your answer.

Half of mortgage borrowers will be ‘underwater’

Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management.

An estimated 25 million borrowers will owe more than their house is worth by 2011.

Source: CNNMoney.com

Date: 8/06/2009

Keys: Marketing, pricing, consumer behavior, economy, government

Link:  http://money.cnn.com/2009/08/06/real_estate/underwaterworld/index.htm?postversion=2009080615

Questions for discussion:

  • Research suggests that the current and expected value of a home influences the homeowner’s attitude towards spending. Explain why this would be true.
  • How do you think the conditions described in the article will influence the general buying behaviour of individual homeowners as well as potential future homeowners? Explain your thinking.

Should Starbucks ban laptops?

Posted by & filed under Part 4: Marketing Management.

In my local Starbucks, there’s a bald man who wears the same pristine white Prince tennis shoes every day. He is always perched on a stool, his PC open in front of him, typing away with the middle finger of each hand. He has one of those Bluetooth thingies in his ear and he’s often talking as he’s typing. This somewhat peculiar gentleman is, indeed, running his business from Starbucks.

Source: CNET News

Date: 8/08/2009

Keys: Marketing, consumer behavior, strategic planning, technologies

Link: http://news.cnet.com/8301-17852_3-10305936-71.html?tag=mncol

Questions for discussion:

  • Do you think Starbucks would be making a strategic mistake if it changed its current policies on the use of laptops?
  • How would you solve this problem of lingering non-revenue generating patrons?
  • Explain how you think patrons might react to your suggested changes.

S&P 500 Tops 1,000 in Fourth Weekly Gain on Better Labor Market

Posted by & filed under Part 1 Business in a Global Environment.

U.S. stocks rose for a fourth week, pushing the Standard & Poor’s 500 Index above 1,000 for the first time since November, as better-than-estimated employment, manufacturing and home sales data boosted confidence that the worst slump since the Great Depression is ending.

Source: Bloomberg.com

Date: 8/08/2009

Keys: Stock market, economy, finance, investing, business cycle

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=agU0z5koJRvU

Questions for discussion:

  • Stock market performance is a leading economic indicator since investors buy stocks in anticipation of improving future business profitability. On the other hand, employment levels tend to be lagging indicators. Given the information provided in the article, why do you think investors are pushing up prices on the stock market?
  • Do you believe the economic stimulus programs from government, such as the cash for clunkers program, can be stopped at some time in the future without dramatically affecting car sales? Explain your thinking.

Dissecting the ‘Microhoo’ deal

Posted by & filed under Part 4: Marketing Management.

Microsoft’s gains in its deal with Yahoo are clear, but not so for Yahoo, according to senior writer Jon Fortt.

Source: CNNMoney – video report
 
Date: 7/29/2009

Keys: Marketing, management, finance, strategic alliances, product development

Link: http://money.cnn.com/video/fortune/2009/07/29/f_microsoft_yahoo_deal_analysis.cnnmoney/

Questions for discussion:

  • Summarize the reasons this strategic alliance makes sense for Microsoft and for Yahoo!.
  • What products or services would you suggest Yahoo focus product development attention on for the next five years?
  • Do you think this alliance is a first step towards an eventual merger between the two firms? Explain your answer.
  • Do you think this alliance will help Microsoft gain market share from Google? Explain your answer.

House OKs $2 billion more for Clunker program

Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management.

House passes bill to add $2 billion for Cash for Clunkers program.

Source: CNNMoney.com

Date: 7/31/2009

Keys: Marketing, pricing, consumer behavior, economy, government

Link:  http://money.cnn.com/2009/07/31/autos/cash_for_clunkers_update/index.htm?postversion=2009073114

Questions for discussion:

  • Explain why you think this program has been overwhelmingly successful in stimulating demand for new car purchases?
  • What does price sensitivity suggest to you about why auto sales might have been poor until now?
  • Which other categories of consumer products do you think would also respond as dramatically to similar price reductions?
  • Do you think governments should help certain businesses – like autos, and not others? Explain your thinking.