Moto Droid Off To A Good Start. But Is It Good Enough?

Peter Burrow's article, Moto Droid Off To A Good Start. But Is It Good Enough? discusses the sales of the Motorola Droid smartphone. According to the market research firm Flurry, 250,000 Droids were sold in the first week. That number is considerably more than the MyTouch 3G from HTC (60,000) but nowhere near the iPhone 3GS from Apple (1.6 million). The Droid is being billed as the only phone to current sport the new Android 2.0 OS.

The Motorola Droid's main competition is not the iPhone, but rather the fragmentation of the Android market. Apple and AT&T will have no problems keeping current users and attracting new ones to the iPhone because it is the only smartphone from Apple and its users know that there 100,000 apps in the App Store ready to be downloaded and used. Droid users are not sure if they will be able to use all 12,000 apps that are designed to run on Android-based phones. Also, customers may be unclear as to whether they are purchasing the phone from Verizon (the service provider), Google (the phones OS creator), or Motorola (the phones manufacturer). Former Motorola CEO Ed Zander believes that it is that very complexity that may keep people from purchasing the device.

One thing this article showcased was the potential issue of confusion regarding the Motorola Droid. As a future educator, I can apply this article and make an analogy to it. I need to be able to teach with clarity to avoid confusion so that the product (my students' knowledge and education) is not compromised and everybody involved sees the positive results.

Summary - Fertile Ground for Startups

The article, Fertile Ground for Startups by Spencer E. Ante discusses why the current economic climate is a good time for entrepreneurs to create their own business. Some new businesses will succeed and many more will fail. According to the Center for Venture Research, angel investors financed 24,500 new ventures, a 6% increase over the same period last year. A look back at history reveals that great companies are often built during bad times. The year 1939 and the end of the Great Depression saw the creation of Hewlett-Packard. The Silicon-Valley based technology companies were created during the recession of the 1970s. During a recession, everything needed to start a business is cheaper including labor costs, material, and office space. There is less competition because established businesses are trying to survive themselves and other start-ups are unable to raise the money needed. These tough times force entrepreneurs to begin working on their business ideas earlier enabling them to reap profits more quickly than when money comes cheap. Jim Breyer, general partner of Accel Partners, a venture capital firm that has invested in Facebook, believes that 2010 and 2011 should be good years for innovative small companies. However, recessions do present a potential problem for entrepreneurs in that harder to drum up business, take a company public, or raise money than during good times.

Summary - At General Motors, Loss Reduction Is a Good Start

David Welch's article, At General Motors, Loss Reduction Is a Good Start discusses the financial stability of the automotive manufacturer General Motors. GM CEO Frederick A. "Fritz" Henderson will be giving the first update on November 16, 199, on the company's finances since it emerged from bankruptcy. Henderson is expected to announce that GM will have had much-improved third-quarter earnings and cash flow. Unnamed sources familiar with the company's books say that the company will still be in the red but its losses will have been significantly cut. These same sources indicate that GM will show better cash flow due to lower costs and better net pricing on its cars. Joseph Phillippi, principal of AutoTrends, a New Jersey consultancy, indicates that while GM is not fully stabilized, it is stabilizing and that the company's new cars are doing well. However, it should be noted that GM's third-quarter financials could be aided by the fact that many of its manufacturing plants were shut down while the company was it bankruptcy. At Henderson's November 16 presentation, it is rumored that he will be making three different presentations. One will detail the company's third-quarter of 2008, another will detail the bankruptcy and old GM, and the last one will discuss the company's re-emergence from bankruptcy.

How Google Voice is Growing

The article, How Google Voice is Growing details the popularity of the Google Voice service. Google recently turned over records regarding Google Voice to U.S. regulators. Currently, there are 1.419 million users of the service and 570,000 of those users use it seven days a week. At the moment, Google Voice is still limiting the number of users but is slowly growing in the number of users.

Google argues that because Google Voice is not a traditional phone service provider, it should not be subject to the current regulations of the industry. To reduce costs, Google Voice blocks calls to certain numbers including those in rural areas and other high cost destinations. Due to unusually high call volume, Google has blocked access to 100+ numbers. Of those 100+ numbers, a majority of them include phone sex businesses and conference calling services. Because of these practices, AT&T has cried foul over Google's actions.

Due to the fact that the Google Voice service is still in its infancy, I am surprised by the number of individuals who want to partake in it. At the same time, not too much information is known about Google Voice as a whole. This service provided by Google could be of use to many individuals who use a cell phone and a house phone regularly. The ability to have calls from two different numbers sent to a single phone number instantaneously would make life easier for some. As the service grows, Google may be interested in charging a small monthly fee for this service. However, that may subject them to standard phone industry rules.

Summary - MBAs Confront a Savage Job Market

The article, MBAs Confront a Savage Job Market discusses the difficulties that recent college graduates are having finding a job due to the current economic recession. Hundreds of unemployed business school students had to accept the fact that they would be unemployed when they graduated in the spring. According to Business Week, 16.5% of job-seeking students from the top 30 MBA programs did not get even one offer by the time schools collected their final fall employment data three months after graduation in 2009 compared to just 5% in 2008. Industry insiders for see a similar trend occurring with business school students in 2010. Those students who were able to secure a job received smaller salaries and smaller signing bonuses than in previous years. Mark Brostoff, associate dean and director of the Weston Career Center at Olin Business School, believes that students need to "recognize the value of other career paths" and begin to seek jobs in other related sectors. With the economy still suffering, situations like this will become more and more common.

Summary - Are Investors Ready for Higher Interest Rates?

The article, Are Investors Ready for Higher Interest Rates? discusses the difficult decisons that the Federal Reserve has regarding the appropriate time to raise interest rates. The Federal Reserve stated on September 23rd, "economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period." The Feds next meeting is from November 3-4 and it is unlikely that they will significantly change their stance on interest rates. Many investors believe that the Fed could be forced to raise interest rates as soon as early 2010. Others believe that the current low interest rates could last for months or potentially years. While the economy is still not very strong, it is gaining momentum with a better-than-expected 3rd quarter and the differences in opinions reflect the different beliefs of how soon the economy will fully recover. For the time being, the Feds are following the economy and other financial markets before any significant decisions are to be made.

Can Main Street Catch Up with Wall Street?

The article, Can Main Street Catch Up with Wall Street? details the differences of how the economy is viewed between individuals on Wall Street and your average citizen on Main Street. Many economists feel that the recession may be nearing its end because the Dow Jones is above 10,000 and earnings of major corporations exceeded expectations. Investors note that it is easier for Wall Street to recover after a recession than the job market. However, unemployment has doubled in the past year and foreclosures are expected to top 3.5 million this year, up from 2.3 million in 2008.

The author Moira Herbst states that there are two different types of indicators regarding the economy. "Leading Indicators" like stock prices and the difference between short-term and long-term borrowing costs are examples of this because they tend to signal the status of the economy. "Lagging Indicators" like unemployment and consumer credit volumes tend to recover more slowly, hence the term "lagging." The belief by those on Wall Street is that the leading indicators are soaring ahead of the lagging indicators and that is one of the reasons why they sense that the economy is on the verge of a recovery.

Herbst states in the article Can Main Street Catch Up with Wall Street? that the difference in views on the economy is rather broad. The recession has crushed the job market and those on Main Street are feeling the pinch. The hope is that companies will realize how badly their cuts have hurt the economy and begin hiring again in the near future. At the same time, investors are beginning to question if they are overvaluing the stock market because of the diminished spending power and willingness to spend of consumers. In the end we will see who is right, Wall Street or Main Street.

Summary - Fed & Treasury Pitch Pay Rules, But Will They Work?

The article, Fed & Treasury Pitch Pay Rules, But Will They Work? details the new compensation rules for executives at banks and other financial institutions set forth by the Federal Reserve and Treasury. The new regulations by the Feds are broad so that they will affect every bank. The new proposals by the Treasury only affect the seven institutions that received large amounts of taxpayer aid. The Feds new rules are not "hard-and-fast" because every institution is different and they believe that the pay practices reflect that. The Feds also want to inform the bank holding companies how they plan to assess their pay practices. The Treasury's new rules is to police the pay for each firms top five executives and the next 20 highest-paid employees. While a better approach may be to adjust each executives pay to his or her duties, consultant Pearl Meyer believes this is a start.

Summary - The Economy: Beware the Bottlenecks

The article, The Economy: Beware the Bottlenecks discusses the different potential outcomes of deflation and inflation during an economic recession. According to Peter Coy, the author of the article, inflation is not a problem because sellers want to get rid of excess inventory. However, experts believe that more bottlenecks similar to this could form causing prices to increase and the Federal Reserve to increase interest rates before we can sustain a recovery. James B. Bullard, President of the Federal Reserve Bank of St. Louis has seen this before in the 1970s and doesn't want it to occur again. Bullard states that the Federal Reserve "overestimated the amount of unused productive capacity in the system" causing high inflation. Economists believe that the scarier thing would be deflation. Factories are closing at record pace and automakers have been reducing capacity at a pace not seen since World War II. In the end, the Fed must be prepared to counter both, inflation and deflation.

Can Apple Spoil Microsoft's Day?

http://www.businessweek.com/magazine/content/09_43/b4152000782247.htm?chan=rss_topStories_ssi_5

Peter Burrow's article Can Apple Spoil Microsoft's Day? discusses how Apple plans to try and lure PC users away from Microsoft beginning on October 22. October 22 is the official release date of the brand new Windows 7 OS. Apple is hoping to capitalize on Windows 7 in the next year because many consumers who purchase computers running the Windows Vista OS will recollect how poorly the OS was constructed and in turn, switch to the brand new Snow Leopard OS from Apple. As usual, Apple plans to advertise their machines as being virus-resistant, more current, etc.

PC makers are not too concerned with another attempt by Apple to steal customers. Analyst Stephen Baker of researcher PC Data points out that PC's are much cheaper than Apple's. PC makers will also be able to sell new products such as netbooks, etc. that are both cheap and run the new Windows 7 OS.

As a PC user myself, I find it hard to believe that Apple will have great success over the next year in taking customers away from Microsoft. I have been using the RTM version of Windows 7 Professional since it was released to certain groups in July and have absolutely loved it. While I agree that Vista was a mess, I do not anticipate a herd of PC users going to Macs over one poor OS. Only time will tell whether or not Apple will succeed in their latest venture.

Summary - Wal-Mart's Painful Lessons

The article Wal-Mart's Painful Lessons details the different struggles that Wal-Mart Stores (WMT) have had in achieving success around the globe. While Americans have embraced the low-cost goods and services it provides, other countries in the world have not. One reason Wal-Mart has not succeeded in Japan is that the Japanese equate low-cost products to being inferior products. Wal-Mart has struggled to make a dent in India's $350 billion retail sector due to their government restrictions and because India's predominant retail sector consists of small, family-run businesses. In Russia, Walmart has faced obstacles establishing due to the rampant corruption. Finally, in Chile consumers are resistant to foreign retailers. Wal-Mart is in the early stages of global expansion and it may take awhile to succeed.

Summary - Industrial Stocks: A Smokestack Comeback?

The article Industrial Stocks: A Smokestack Comeback? discusses the new economic data that may indicate that the current recession may be nearing its end. Data provider Capitol IQ reports that industrial stocks are up 27% in the past three months. Only the materials and financial sectors of the market had a better showing in the last quarter. The upcoming third quarter earning reports from the individual corporations may be a better indicator of the current status of the economy. According to Ben Steverman, one indication that investors should be optimistic about the recovery is the increase in freight traffic. Freight traffic is up 37.7% since March. Steverman also suggests that as a whole, the U.S. should export more than it imports due to the weakened state of the greenback. In the end, as long as the manufacturing demand increases, the end of this recession could be over.

Squeezing Every Dime from DVDs

http://www.businessweek.com/magazine/content/09_42/b4151059074777.htm

The article Squeezing Every Dime from DVDs by Ronald Grover and Tom Lowry discusses the different ways that the movie industry in Hollywood is trying to get a "bigger piece of the pie" in terms of DVD monies amid a poor economy. With the economy the way it is, DVD sales have been declining and DVD rentals have been increasing. Time Warner, owner of Warner Bros', states that they want "better economics" from their current deal with Netflix. Redbox, a cheap per day rental system with kiosks around the country is also beginning to feel the wrath of Hollywood. They are being pressured into sharing a higher percentage of rental fees, limiting the number of titles available in each kiosk, and having to wait 45 days before new releases can be rented.

Executives in Hollywood and the DVD industry believe that DVD sales will increase when the economy rebounds but are also preparing for a future without physical discs. The different movie companies have begun trying different ways to release their products in order to find a more profitable system of delivery. Industry analysts believe that by Christmas, the popular website YouTube may be able to offer digital movie rentals straight from their website.

As a movie lover, I do agree that the DVD industry may be hurting a bit due to the economy. At the same time, executives in Hollywood have to realize that your average American citizen is also hurting for the very same reason. Personally, I have always rented DVDs first and will only purchase a copy for myself if I enjoy the movie afterwards. I believe that if the movie industry is successful in their efforts against Netflix, Redbox, etc., they may irreparably harm their image with the public and then even fewer will purchase DVDs again once the economy reverses course.

Websites

Good Website
http://www.twelvehoursinacity.com/
*Not overly jumbled with ads, useless information, etc.
*A little bit on the long side (more of a blog website)
*Good layout
*Easy to navigate

Bad Website
http://www.miauk.com
*Cluttered
*Bright, flashing lights
*Hurts the eyes
*Poor choice of font
*Makes you want to punch whoever created the homepage for being incredibly stupid

Summary - Gary Vaynerchuk's Startup Advice

The article Gary Vaynerchuk's Startup Advice talks about the different necessary components to successfully create a business. Vaynerchuk says to pick something that you love first. Then you need to build your reputation as an expert, deliver content online, and begin to make money by selling advertising, niche products, or services like consulting or speaking. Because of Vaynerchuk's passion and dedication, he turned his family's small liquor store into a wine business that grosses $60 million per year while also becoming a popular speaker and signing a book deal with HarperCollins. Professor Scott Shane from Case Western Reserve University believes that passion goes hand-in-hand with hard work. Another different factor is to choose a favorable industry, such as software instead of restaurants. In the end, Vaynerchuk states that picking the motive of profit over passion can result in utter failure. "People are chasing cash, not happiness," he says. "When you chase money, you're going to lose. You're just going to. Even if you get the money, you're not going to be happy."

Summary - Washington Revives the Mortgage Cramdown

Theo Francis's article Washington Revives the Mortgage Cramdown discusses the notion that cramdowns (from the idea of cramming deals down lenders' throats) would be a good way for citizens to adjust their unpayable mortgages before bankruptcy proceedings reaches the courthouse. Democratic Senator Richard J. Durbin (IL) is leading the charge in favor of these cramdowns. If Durbin's bill were to pass in the Senate (it narrowly failed in the spring), it would allow a judge to reduce principal or interest rates on home loans and lengthen the time to pay back mortgage payments. Another possible result of this bill will be for homeowners to have their unaffordable debts wiped free. Lobbyists on behalf of the financial industry in Washington D.C. are preparing for battle because the vote was extremely close last time around. While cramdowns may be good for homeowners in foreclosure, the banks are certainly hoping to try and avoid this.

Detroit's Salvation: Higher Gas Taxes

http://www.businessweek.com/investor/content/oct2009/pi2009105_910211.htm?chan=investing_investing+index+page_top+stories

Chris Farrell's article Detroit's Salvation: Higher Gas Taxes states that higher gas taxes would increase the demand for smaller, fuel efficient automobiles thus helping out the United States auto industry. With the Cash for Clunkers trade in program completed, car sales have fallen in September because many people took advantage of the $3,500 or $4,500 government rebate to purchase newer, fuel efficient vehicles. As a result of that, experts believe that a significant increase in the gas tax will help to bailout the still-struggling auto industry.

As a result of the now defunct Cash for Clunkers program, experts believe that a significant increase in the gas tax will help to bailout the still-struggling auto industry. Currently, the federal gas tax sits at 18.4 cents per gallon. N. Gregory Mankiw, an economist at Harvard University and former chair of the White House Council of Economic Advisers under President George W. Bush, believes that the federal gas tax should increase from the current level by $1 per gallon. Mankiw suggests phasing the tax increase in 10 cent increments for 10 years. However, three unnamed economists suggested back in 2007 issue of the Journal of Economic Literature that the federal gas tax should be $2.10. However one looks at it, it is a significant increase for your average citizen.

As a car driving American citizen, I would vehemently argue against an increase the federal gas tax. I am a college student with very little money and a gas tax increase of any significant change would greatly harm my personal finances. This is also on top of the fact that I drive a new, fuel efficient vehicle (2009 Pontiac Vibe, 25 city/35 highway). Low-income individuals who work full time would also have a difficult time to find the extra needed money to support a gas tax increase. In whole, while an increase in the gas tax may appeal to those in Detroit and on Capitol Hill, it could potentially devastate your average American car driver.

Summary - Typical U.S. Worker Saw 401(k) Lose 24.3% in 2008

Lauren Young's article Typical U.S. Worker Saw 401(k) Lose 24.3% in 2008 discusses what happened to the money U.S. workers invested in and how much of a loss occurred between 2007 and 2008. The average balance in a workers 401(k) account at the end of 2007 was $114,337 and by the end of 2008, it was $86,513. According to a study by the Employee Benefits Research Institute and the Investment Company Institute, the average worker invested 56% of their assets in company stock compared to 41% in fixed-income securities. The stock market did not help the average workers 401(k) accounts in 2008.

Summary - The Coming Energy Revolution

Rachel King's article The Coming Energy Revolution discusses the benefits of smart-grid technology, the different costs associated with it, and how smart-grid technology is currently being used. Smart-grid technology is a new type of electrical grid in which a two way network is constructed where power and information flow freely between producer and customer. If the smart-grid is created properly it will reduce energy consumption, enable customers to choose what type of energy they are using, and to sell energy back to the producers. The Electric Power Research Institute estimates that it will cost approximately $165 billion to create the smart-grid. Currently, Cargill, a major food producer with a plant in Springdale, Arkansas, is depending on their smart-grid to lower their electrical costs. When peak energy costs become too expensive, a sensor remotely starts the companies generators in order to save the company money. Cargill hopes to save about $680,000 this year in energy costs because of the smart-grid technology.

Consumers to Spend Big on TVs, Smartphones

http://www.businessweek.com/technology/content/sep2009/tc2009092_803429.htm?chan=technology_technology+index+page_consumer+electronics

Cliff Edwards article Consumers to Spend Big on TVs, Smartphones states that regardless of the current economic recession, American's are purchasing high definition TVs, smartphones, and networking accessories at a record pace. In the year 2008, over 10 million high definition TVs were sold and in the next 5 years, 39 million houses will purchase a high definition TV. In that same timeframe, 30 million homeownerss will add wireless networking capabilities to their homes.

The article also states that the winter holiday sales on all things technology will be better this year than the previous year. Researcher Charles Golvin states, "In the next several years consumers will increasingly rely on a ubiquitous Net that is instantaneously accessible on a wide variety of devices, from mobile phones to laptops to new form factors such as e-readers." To support this, television manufacturers have begun to incorporate the necessary technology to allow TV's to stream content from the Internet.

As a consumer, I will be looking into purchasing a smartphone in the near future once my families current cell phone contract is up. I would like to have a device that is powerful enough to meet my technological needs. In this economy, it is good for me to know sales may be a-plenty, thus potentially creating good deals for consumers alike.

Summary - Publishers Try to Learn to Love the Web

Olga Kharif's article Publishers Try to Learn to Love the Web states how the different publishing companies are delving into the electronic book market (e-books) in hopes of finding new sources of revenue. The cost to create e-books are cheaper than physical books which help to increase profit. O'Reilly Media has begun to sell books on Apple's iTunes store as applications. Cengage Learning has begun to sell their books for a little as $1.99 per chapter. Safari Books Online, a joint collaboration between O'Reilly Media and Pearson Education, has let colleges and universities view books online and the original publisher of the book gets paid each time a user views their book. Some companies have gotten into the textbook rental program, similar to Netflix and their products, on a subscription style service. Clearly, book publishers are embracing the world wide web in hopes of finding new streams of revenue.

Summary - Hydrogen Cars Are Still Headed for the Highway

The article Hydrogen Cars Are Still Headed for the Highway states the belief that hydrogen fuel cells are the future of the automotive industry rather than the current "battery fad." On September 10, 2009, the German government announced plans to build 1,000 hydrogen filling stations in Germany by the year 2015. This occurred two days after prominent auto manufacturers lobbied energy companies to build networks of hydrogen filling stations around the world. For the time being, automotive companies will continue to invest in hydrogen technology due to the belief that batteries will never catch fuel cells in terms of technology. But according to Daimler CEO Dieter Zetsche, simply picking one technology over the other is extremely risky in this ever changing world.

Exercise, Education Keep You Sharp in Old Age

http://www.businessweek.com/lifestyle/content/healthday/627860.html

The article, "Exercise, Education Keep You Sharp in Old Age," states what is needed to be done both physically and mentally in order to "stay on top of your game" once you start to become older. It states that an individual should exercise at either a moderate or vigorous level at least once a week, should love with another person, avoid smoking, participate in some volunteer work or continue to work until a person is in their 70s or 80s. The mental aspect of this is that the individual should maintain at least a ninth grade literacy level.

The results of the study talked about in the article also found a number of other interesting points. The study found that individuals with at least a high school education were three times more likely than someone with less of an education. Another result of the study was that nonsmokers were almost twice as likely as smokers to either maintain or increase their mental capacity. An interesting point is that hypertension and diabetes played no role on mental performance.

As a future physical educator and health teacher, the results of this study are important to me. From the physical education point of view, the results tell me that I need to teach my students lifetime activities such as badminton, golf, or walking that can be done for exercise by nearly anyone. It is much easier for an older individual to just walk that to play basketball. From the health education standpoint, the results tell me that I need to emphasize how bad tobacco is not only for the body, but for the mind as well. Another point that I need to parlay across to my students is that good health habits throughout life will pay off. Dr. John Hart, Jr., a professor at the University of Texas at Dallas says it best, "Stay physically and mentally active, and you will increase your chances of successful aging." I couldn't agree with those words any more.

Summary - The Great Trust Offensive

Many prominent American companies have begun to alter their marketing campaigns in order to win back the trust of the consumer. McDonald's has begun to work with PETA in order to gain their support and the relationship is a work-in-progress. They have also revamped their website to provide more information to the consumer. The Ford Motor company is basing their advertising campaign on how well managed they are (because they did not take money from the federal government). Also new to Ford ads are the message that they are pushing (i.e. fuel economy and new technology). American Express has reached out to small businesses which make up a large portion of their clientele and are sponsoring contests where the winner will receive marketing money from the company for free. Only time will tell if these new marketing campaigns will work because you can't win a consumers trust back overnight.

Summary - A Chevrolet Camaro for the MBA set

General Motors has announced that it will be releasing an executive version of its classic Camaro car. This executive version will feature a V-6 engine with 304 horsepower that can get 29 mpg highway. A V-8 engine is an available option for those looking for more power underneath the hood. The Executive Express Camaro will be black in color and will sport a European-looking interior that is similar to Audi's. Given the current state of the automotive industry, Chevrolet/General Motors is hoping that this will be a winner.

Assignment 1 - Needs & Wants

What I need to be when I grow up?

In order to accomplish what I want to be when I grow up, my needs need to be met first in order for the wants to be successful. First, I need to graduate from college with a good GPA as well as successfully student teach this coming spring. I am on track so far with a 3.45/4.0 GPA through the end of my junior year of college and my student teaching application and portfolio recently turned in. Second, I need to have my finances in order once I graduate. I will be lucky enough to not have to repay any loans after college and actually leave college with money still in my bank account. It was worth it to fill out all of those scholarship applications during my senior year of high school. By having my finances in order, this will help to give me some options in regards to getting on my feet and beginning my future career. Third, I need to just be myself (self-explanatory).

What do I want to be when I grow up?

When I grow up, I want to teach Physical Education at the high school level somewhere in the northwest suburbs of Chicago. Ultimately, I would love to teach and coach at my old high school (Prospect HS). My family is all located in either Chicago or the surrounding suburbs and it is important to me to be near them since I am close to them. I would also like to get married and have a family that I can support. While it would be nice to have a large salary, money is not the most important thing to me. More importantly, teaching and coaching will allow me to share my passion of sports with my future students and student-athletes and hopefully leaving a positive, lasting impression on them.

While everybody would love to have all of their wants met in addition to their needs, I realize that life doesn't always work like that. Needs need to come before wants. It's that simple. But through hard work, a strong desire, and motivation, a person's wants can be met. I believe that I can achieve them and that is all that really matters to me.