This was an analysis of the presidential race I did in October 2008. It was significant to a few people I had some very interesting, and heated, discussions with at the time. I still think the questions are relevant to what Obama is doing right now. I tried to be objective and unbiased, pointing out the good and bad in both candidates.
In the presidential race between Barack Obama (D) and John McCain (R) the subject of restructuring and/or saving the American Economy has been a much heated debate. The American people seem to be at wits end. Both candidates blame the other’s party for the failure. The best thing to do now is stop blaming each other and start figuring out a way to fix the problem. Both candidates have plans for the rebirth of the economy both at home here in America and globally as a whole.
Barack Obama, the senator from Illinois, has a large plan in which he attacks ten different planes of the economy. The basic forefront of the plan is to cut taxes for families earning less than $250,000 per year. “Obama and Biden will restore fairness to the tax code and provide 95 percent of working Americans the tax relief they need. They will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family.” (BarackObama.com, n.d., ¶ 1). The second main factor is tax relief for small businesses and start ups to drive them to spend the money in new developments and creating jobs (BarackObama.com, ¶ 2). The third and final main point is to instill fair trade and to “fight for a trade policy that opens up foreign markets to support good American jobs. They will use trade agreements to spread good labor and environmental standards around the world” (BarackObama.com, ¶ 3). These all are great ideas and putting them into actual use will help millions of families and businesses cope with the downturn in the economy.
The problem is these ideas cost money and the economy in this country is already strapped for cash. Where is this money going to come from? The money paid in taxes is what runs this country, just like a business selling a product, the money has to be made to continue the cycle. Struggling states and municipalities are closing down some areas to conserve money because the deficits are so great. Cutting taxes is going to help a few people but where is the country’s money to function going to come from? The top five percent of wealth in this country pays 90% of the taxes in the U.S. already; cutting taxes for the lower 95% is going to put more strain on the upper 5%. Not that they cannot afford the extra burden, but that just proves that becoming wealthy is a punishment not a pleasure.
Barack has great plans to kick start the economy by delving into the mess with a strong back wind with such plans as eliminating taxes for seniors who earn less than $50,000 or for adding a rebate for over 10 million families by instituting a new “Make Work Pay” tax rebate. The plan to create better trade plans and amend old plans like NAFTA and CAFTA to make the agreements more fair for the U.S. side of the equation will take time and maybe a long term fix, but something short term is needed to get it off on the right foot.
Senator McCain also has a very detailed plan to get the country out of recession and help an ailing global economy right itself. John’s plan involves cutting taxes for corporate America in hopes prices will fall and more people will spend money to bring cash back into the economy. The problem with this idea is companies want to make a profit, the money being put back into the businesses as profit will, in some cases, merely see its way into the pockets of the officers of the company. How does this help the economy? Jobs are still threatened because costs are high, and profits are not being spread around to get the economy rolling. Plus if the prices do not drop people will still cut back on luxuries and only spend enough to buy necessities. The one idea John continues to press forward and has the best chance of winning is his energy plan. His plan to expand domestic oil exploration and drilling to decrease the U.S. dependency on foreign oil and to leap forward to create better green fuels like nuclear and solar power stations and plants will give the American people greater savings and cut costs by billions in the near future. His ideas to increase clean coal technologies have been some the most aggressive of any administration to date. The concept of bring the technology to bear on the problem of energy production in the U.S. will also create hundreds of thousands of new jobs to design, build, and operate these facilities needed to make the plan a success.
McCain’s ideas do not stop just on energy production, but his plans to help companies build more fuel efficient transportation options such as hybrids, fuel-cell, and full electric cars and trucks will reduce even farther the dependency on fossil fuels. The plan is to help America “break its strategic dependence on foreign oil” and “change how we power our automobiles and rejuvenate our automotive industry” (JohnMcCain.com, 2008, ¶ 12). By requiring companies to build more fuel efficient and alternative fuel vehicles, with penalties for failure to follow the guidelines, the McCain administration is leaping forward on the Obama administration.
Many of the ideas both candidates have will give the economy a fighting chance to recover and once again lead the world as the global powerhouse it once was. The question is who is the best choice? This is a hard decision because no one knows the truth until one of them steps into the oval office and assumes command. The plans include money from an unknown source or a source that is already burdened by low funds. The candidates talk and debate and campaign on hundreds of issues with the bottom line of making the country better from the ideas each one brings to the table. Factors of Congress and Lobbyists, the Supreme Court and the Justices, and every American who goes to work to earn a living for his/her family will put the winner to the test. Four years is a very short time to try and implement hundreds of ideas and concepts to bring about change. But is change for change’s sake good or bad? Will one man be able to right a sinking ship and limp it back to shore for repairs? Where is the money coming from to fund these radical plans? These are the questions Americans should be asking and the candidates should be answering when the senators are at the microphone.
Monday, November 8, 2010
Employee Motivation
Increasing employee motivation, satisfaction, and performance is essential to production and profitability. No company can survive if the workforce is not on board with the development and direction of the company. Employees who enjoy their jobs listed the work itself as the biggest contributors to satisfaction. Organizational Behavior authors Stephen Robbins and Timothy Judge stated “…enjoying the work itself is almost always the facet most strongly correlated with high levels of overall job satisfaction. Interesting jobs that provide training, variety, independence, and control satisfy most employees (2007).
Creating a plan to strengthen an employee’s job satisfaction has been a factor for study for more than half a century. Some companies have instituted various ideas to increase their employee’s satisfaction. More recognition, promotions, matching personality to the task, and various health and stress management tools are being instituted at many companies. Things like free gym memberships, free health screens, in-house massages, recreation centers in-house, and healthy food catering for lunches are just some of the many ways companies are helping their employees. Google is probably one the biggest outside-the-box thinkers when it comes to ensuring employees are stress-free and happy. Google has open meeting rooms in hallways lined with whiteboards because according to Google president Larry Page “Ideas don’t just happen in the boardroom. If an idea hits an employee walking down the hall that person should have a way to express that creativity and immortalize it immediately”. Groups can meet in specially designed areas that foster relaxation and creativity like the lounge area where big, overstuffed Laz-E-Boy chairs surround tranquil vegetation and whiteboards. A cafeteria serves healthy breakfast, lunch, and dinner options (free of charge) so employees do not have to leave to get a good meal. Recreation areas with video games, personal televisions, satalite radio, and computers are on excellent places to just “getaway” according to Eric Schmidt, Google’s CEO. “Employees need to relax whenever they need to, not on a schedule. Stress relief fosters healthy habits and productivity”.
These ideas didn’t just happen out of the air. There was serious thought and ingenuity in bringing these thoughts to fruition. “Google is the only dotcom to achieve the rare distinction of zero percent employee turnover” according to 123oye.com (n.d.). So Google seems to have won the battle between success and employee satisfaction. But not every company can have hockey tournaments, foosball competitions, and Zen-like atmospheres for their employees. A plan to optimize employee production and balance it with reasonable employee satisfaction comes from listening to what employees have to say. If they’re uncomfortable in the way desks are arranged, try a different configuration until a good balance is found. When an employee asks why the company doesn’t have bottled water or reverse osmosis filtering, have a company bring in a water dispenser or, if funds allow, have a filtration system put in on the drinking fountains. These are simple things that make employees happy and they feel they are appreciated.
Innovative companies have excelled at developing employees that can identify a problem, collaborate with a team or management, and fix or avoid the issue. Mentoring and/or finding these types of individuals have been a hurdle for every company on the planet. An experienced HR department with clear instructions and definitions of the type of person needed and the job description so a person’s qualifications can be matched to the job that will do the best job and reduce turn-over and increase productivity. Other properties of innovative companies are reward systems, handling failure with praise for initiative, and creating a learning environment that set them apart from the norm. Companies that continue to reinvent themselves consistently produce higher profits and lower turnover rates. So innovative companies are ones that hire and develop the best and brightest talent they can afford, create learning environments that foster creativity and idea, and reinvent themselves when the time is right to keep them at the forefront of their industries.
Creating a plan to strengthen an employee’s job satisfaction has been a factor for study for more than half a century. Some companies have instituted various ideas to increase their employee’s satisfaction. More recognition, promotions, matching personality to the task, and various health and stress management tools are being instituted at many companies. Things like free gym memberships, free health screens, in-house massages, recreation centers in-house, and healthy food catering for lunches are just some of the many ways companies are helping their employees. Google is probably one the biggest outside-the-box thinkers when it comes to ensuring employees are stress-free and happy. Google has open meeting rooms in hallways lined with whiteboards because according to Google president Larry Page “Ideas don’t just happen in the boardroom. If an idea hits an employee walking down the hall that person should have a way to express that creativity and immortalize it immediately”. Groups can meet in specially designed areas that foster relaxation and creativity like the lounge area where big, overstuffed Laz-E-Boy chairs surround tranquil vegetation and whiteboards. A cafeteria serves healthy breakfast, lunch, and dinner options (free of charge) so employees do not have to leave to get a good meal. Recreation areas with video games, personal televisions, satalite radio, and computers are on excellent places to just “getaway” according to Eric Schmidt, Google’s CEO. “Employees need to relax whenever they need to, not on a schedule. Stress relief fosters healthy habits and productivity”.
These ideas didn’t just happen out of the air. There was serious thought and ingenuity in bringing these thoughts to fruition. “Google is the only dotcom to achieve the rare distinction of zero percent employee turnover” according to 123oye.com (n.d.). So Google seems to have won the battle between success and employee satisfaction. But not every company can have hockey tournaments, foosball competitions, and Zen-like atmospheres for their employees. A plan to optimize employee production and balance it with reasonable employee satisfaction comes from listening to what employees have to say. If they’re uncomfortable in the way desks are arranged, try a different configuration until a good balance is found. When an employee asks why the company doesn’t have bottled water or reverse osmosis filtering, have a company bring in a water dispenser or, if funds allow, have a filtration system put in on the drinking fountains. These are simple things that make employees happy and they feel they are appreciated.
Innovative companies have excelled at developing employees that can identify a problem, collaborate with a team or management, and fix or avoid the issue. Mentoring and/or finding these types of individuals have been a hurdle for every company on the planet. An experienced HR department with clear instructions and definitions of the type of person needed and the job description so a person’s qualifications can be matched to the job that will do the best job and reduce turn-over and increase productivity. Other properties of innovative companies are reward systems, handling failure with praise for initiative, and creating a learning environment that set them apart from the norm. Companies that continue to reinvent themselves consistently produce higher profits and lower turnover rates. So innovative companies are ones that hire and develop the best and brightest talent they can afford, create learning environments that foster creativity and idea, and reinvent themselves when the time is right to keep them at the forefront of their industries.
Healthcare Reform in America
1. Title: How Health Reform Will Affect Older Americans
2. Author: Mark Miller
3. Source: Businessweek Magazine
4. Topic: U.S. Healthcare Reform
5. Talking Points:
• Medicare cuts
• Medicare benefits
• Other add ins
6. Summary:
The new healthcare reform bill signed into law by President Obama has had numerous opponents that have told older Americans that the bill has Medicare cuts built in, that the government will control last rites decisions, and eliminate prescription drug coverages for seniors. The author researched the bill and has highlighted the main contradictions to these claims. First, traditional Medicare benefits have not been cut. The only reductions have been to the “reimbursements to Medicare Advantage” according to the author. This translates to reductions for doctors not in the benefits for Medicare recipients. The reason for this is because the companies that Medicare Advantage enlists to provide care have been “reimbursed by the federal government at 114 percent of regular Medicare rates” and this takes money away from traditional Medicare recipients. Second, the Medicare part D drug coverage has gaps in the coverage levels that cause undue hardship on members that fall in the gap between $2,830 in out-of-pocket expenses and the top level at $4,550 in out-of-pocket expenses. In that gap the member is responsible for all costs associated with their prescription costs. Some seniors can barely afford their medication at the reduced rates and most cannot pay the cost in the gap area. The healthcare reform law reduces that cost by 50% on name brand drugs to help offset the cost in the gap levels. Plus it reduces the gap level each year until in 2020 the gap is gone, meaning all Medicare part D members will have coverage with gaps. There are also tax rebates for those in the gap area to help for this year 2010. Lastly, for the rest of those Americans who do not have health insurance due to pre-existing condition, they will not be denied coverage because of that fact. A new “high-risk insurance pool” will be created to allow those families to buy into an affordable plan.
7. Level of data: Actual research data
8. Conclusions:
• Medicare members will not see a reduction in their benefits
• Medicare part D members will see more affordable options for medication
• People with pre-existing conditions will be able to buy coverage
9. Recommendations: Excellent article that helps people understand that the opponents did have scare tactics involved to put fear into seniors about the law. And it clears up some issues about the vague parts of Medicare part D.
10. Relevance: Very relevant to economics because it shows how the cost of Medicare has been ignored in the past. It shows how seniors can benefit from the reduction in costs to their medications.
How Health Reform Will Affect Older Americans
Mark Miller
Opponents of health reform used smokescreens to frighten older Americans -- conjuring up everything from death panels to dire predictions of slashed Medicare budgets and totalitarian takeovers of hospitals and doctors' offices.
But it's really not nice to scare Grandma.
So, now that the smoke is starting to clear, let's consider the important benefits in the new law for people over age 50. They fall into two groups: people over 65 on Medicare, and everyone else.
First, Medicare
The key smokescreen here was that reform would be funded through draconian cuts to Medicare.
But, as I've stated before in this space, the law contains no reductions in traditional Medicare benefits. None.
What the law does do is reduce reimbursements to Medicare Advantage -- the privatized Medicare insurance plans that offer all-in-one medical and drug coverage. These are managed care plans from insurance companies -- PPOs, HMOs and the like.
These plans have been growing quickly in recent years. But they are reimbursed by the federal government at 114 percent of regular Medicare rates, a payment scheme that was put in place to stimulate the Advantage market but amounts to no more than a big subsidy to insurance companies. The new law freezes the reimbursements at current levels through 2011, and then reduces payments by$116 billion over a period of years, ultimately equalizing them with traditional Medicare.
Will that translate to a squeeze on Advantage plans? Not necessarily.
The new law also offers bonuses to Advantage plans that meet certain benchmarks for high quality care. "That could engender a race to the top," argues Joe Baker, president of the Medicare Rights Center.
Moreover, it's important to keep in mind that Advantage plans operate in a competitive marketplace; if a plan were to slash benefits, enrollees could simply move to more attractive plans during the annual enrollment period. It's more likely that the reduced reimbursements will put pressure on insurance company profit margins.
And these plans could stand some tightening up.
A recent report to Congress on Advantage prepared by the majority staff of the U.S. House Committee on Energy and Commerce found that:
-- Medicare paid $12 billion more in 2009 for Advantage beneficiaries than it would have if the beneficiaries had participated in traditional Medicare.
-- Advantage plans are spending less of every premium dollar on actual medical care delivery than basic Medicare.
-- Twenty-three insurance companies in the program spent $121 million on 355 corporate retreats for executives, insurance brokers and board members between 2008 and 2009.
Next, let's talk about the new Medicare benefits contained in the law
First, the Medicare D prescription drug doughnut hole will be closed. That's the coverage gap that starts when a beneficiary's annual out-of-pocket spending hits$2,830, and resumes at the catastrophic level ($4,550 out of pocket).
This year, patients who enter the doughnut hole will get a $250 rebate. In 2011, pharmaceutical companies will provide a discount of 50 percent on brand-name drugs to low- and middle-income beneficiaries who find themselves in the doughnut hole. Then, the doughnut hole itself will shrink a bit every year, ultimately disappearing entirely in 2020.
The law also contains some important improvements to traditional Medicare aimed at boosting preventive care. Deductibles and co-payments will be eliminated for most preventive care services, starting this year. And doctors will receive incentives for joining “accountable care organizations", which will coordinate patient care and foster greater attention to prevention.
Starting next year, Medicare patients also will be able to get an annual wellness visit -- with no co-payment or deductible -- that includes a comprehensive health risk assessment and a long-term personalized prevention plan.
One possible negative in the bill for retirees is the end of a tax break starting in 2013 for employers that provide prescription drug coverage to Medicare-eligible employees. The ranks of these employers has been dwindling fast in recent years, but ending the tax subsidy could encourage more companies to discontinue the benefit or encourage retirees to use Medicare Part D benefits instead.
Meanwhile, the new law will help millions of older Americans who have lost health insurance but are too young for Medicare.
While insurability issues affect Americans of all ages, the problems are acute for people over 50, who tend to have more pre-existing conditions than younger people do, and use more health care.
Starting this year, insurance companies won't be able to refuse applicants with pre-existing conditions, and the new law also creates new insurance options for people without group coverage. Within six months, you can buy into a new high-risk insurance pool that caps annual out-of-pocket costs at $5,950 for individuals and $11,900 for families. While buying coverage will be mandated for most people starting in 2014, tax credits will be available on a sliding income-based scale to help make the coverage affordable.
The high-risk pool will serve as a bridge to longer-term solutions.
These include private insurance exchanges that will operate starting in 2014, as well as expanded Medicare for low-income households.
The new individual insurance options will open up some very positive new options for baby boomers in their 50s and early 60s, many of whom are eager to move on to second careers, entrepreneurial ventures and other new paths, but have been hanging on to jobs solely for the health benefits.
Health reform gives them the freedom to move on.
That will stimulate entrepreneurial activity, and it's going to open up spots on the management charts, allowing younger people to advance.
Is the smoke clearing for you yet?
2. Author: Mark Miller
3. Source: Businessweek Magazine
4. Topic: U.S. Healthcare Reform
5. Talking Points:
• Medicare cuts
• Medicare benefits
• Other add ins
6. Summary:
The new healthcare reform bill signed into law by President Obama has had numerous opponents that have told older Americans that the bill has Medicare cuts built in, that the government will control last rites decisions, and eliminate prescription drug coverages for seniors. The author researched the bill and has highlighted the main contradictions to these claims. First, traditional Medicare benefits have not been cut. The only reductions have been to the “reimbursements to Medicare Advantage” according to the author. This translates to reductions for doctors not in the benefits for Medicare recipients. The reason for this is because the companies that Medicare Advantage enlists to provide care have been “reimbursed by the federal government at 114 percent of regular Medicare rates” and this takes money away from traditional Medicare recipients. Second, the Medicare part D drug coverage has gaps in the coverage levels that cause undue hardship on members that fall in the gap between $2,830 in out-of-pocket expenses and the top level at $4,550 in out-of-pocket expenses. In that gap the member is responsible for all costs associated with their prescription costs. Some seniors can barely afford their medication at the reduced rates and most cannot pay the cost in the gap area. The healthcare reform law reduces that cost by 50% on name brand drugs to help offset the cost in the gap levels. Plus it reduces the gap level each year until in 2020 the gap is gone, meaning all Medicare part D members will have coverage with gaps. There are also tax rebates for those in the gap area to help for this year 2010. Lastly, for the rest of those Americans who do not have health insurance due to pre-existing condition, they will not be denied coverage because of that fact. A new “high-risk insurance pool” will be created to allow those families to buy into an affordable plan.
7. Level of data: Actual research data
8. Conclusions:
• Medicare members will not see a reduction in their benefits
• Medicare part D members will see more affordable options for medication
• People with pre-existing conditions will be able to buy coverage
9. Recommendations: Excellent article that helps people understand that the opponents did have scare tactics involved to put fear into seniors about the law. And it clears up some issues about the vague parts of Medicare part D.
10. Relevance: Very relevant to economics because it shows how the cost of Medicare has been ignored in the past. It shows how seniors can benefit from the reduction in costs to their medications.
How Health Reform Will Affect Older Americans
Mark Miller
Opponents of health reform used smokescreens to frighten older Americans -- conjuring up everything from death panels to dire predictions of slashed Medicare budgets and totalitarian takeovers of hospitals and doctors' offices.
But it's really not nice to scare Grandma.
So, now that the smoke is starting to clear, let's consider the important benefits in the new law for people over age 50. They fall into two groups: people over 65 on Medicare, and everyone else.
First, Medicare
The key smokescreen here was that reform would be funded through draconian cuts to Medicare.
But, as I've stated before in this space, the law contains no reductions in traditional Medicare benefits. None.
What the law does do is reduce reimbursements to Medicare Advantage -- the privatized Medicare insurance plans that offer all-in-one medical and drug coverage. These are managed care plans from insurance companies -- PPOs, HMOs and the like.
These plans have been growing quickly in recent years. But they are reimbursed by the federal government at 114 percent of regular Medicare rates, a payment scheme that was put in place to stimulate the Advantage market but amounts to no more than a big subsidy to insurance companies. The new law freezes the reimbursements at current levels through 2011, and then reduces payments by$116 billion over a period of years, ultimately equalizing them with traditional Medicare.
Will that translate to a squeeze on Advantage plans? Not necessarily.
The new law also offers bonuses to Advantage plans that meet certain benchmarks for high quality care. "That could engender a race to the top," argues Joe Baker, president of the Medicare Rights Center.
Moreover, it's important to keep in mind that Advantage plans operate in a competitive marketplace; if a plan were to slash benefits, enrollees could simply move to more attractive plans during the annual enrollment period. It's more likely that the reduced reimbursements will put pressure on insurance company profit margins.
And these plans could stand some tightening up.
A recent report to Congress on Advantage prepared by the majority staff of the U.S. House Committee on Energy and Commerce found that:
-- Medicare paid $12 billion more in 2009 for Advantage beneficiaries than it would have if the beneficiaries had participated in traditional Medicare.
-- Advantage plans are spending less of every premium dollar on actual medical care delivery than basic Medicare.
-- Twenty-three insurance companies in the program spent $121 million on 355 corporate retreats for executives, insurance brokers and board members between 2008 and 2009.
Next, let's talk about the new Medicare benefits contained in the law
First, the Medicare D prescription drug doughnut hole will be closed. That's the coverage gap that starts when a beneficiary's annual out-of-pocket spending hits$2,830, and resumes at the catastrophic level ($4,550 out of pocket).
This year, patients who enter the doughnut hole will get a $250 rebate. In 2011, pharmaceutical companies will provide a discount of 50 percent on brand-name drugs to low- and middle-income beneficiaries who find themselves in the doughnut hole. Then, the doughnut hole itself will shrink a bit every year, ultimately disappearing entirely in 2020.
The law also contains some important improvements to traditional Medicare aimed at boosting preventive care. Deductibles and co-payments will be eliminated for most preventive care services, starting this year. And doctors will receive incentives for joining “accountable care organizations", which will coordinate patient care and foster greater attention to prevention.
Starting next year, Medicare patients also will be able to get an annual wellness visit -- with no co-payment or deductible -- that includes a comprehensive health risk assessment and a long-term personalized prevention plan.
One possible negative in the bill for retirees is the end of a tax break starting in 2013 for employers that provide prescription drug coverage to Medicare-eligible employees. The ranks of these employers has been dwindling fast in recent years, but ending the tax subsidy could encourage more companies to discontinue the benefit or encourage retirees to use Medicare Part D benefits instead.
Meanwhile, the new law will help millions of older Americans who have lost health insurance but are too young for Medicare.
While insurability issues affect Americans of all ages, the problems are acute for people over 50, who tend to have more pre-existing conditions than younger people do, and use more health care.
Starting this year, insurance companies won't be able to refuse applicants with pre-existing conditions, and the new law also creates new insurance options for people without group coverage. Within six months, you can buy into a new high-risk insurance pool that caps annual out-of-pocket costs at $5,950 for individuals and $11,900 for families. While buying coverage will be mandated for most people starting in 2014, tax credits will be available on a sliding income-based scale to help make the coverage affordable.
The high-risk pool will serve as a bridge to longer-term solutions.
These include private insurance exchanges that will operate starting in 2014, as well as expanded Medicare for low-income households.
The new individual insurance options will open up some very positive new options for baby boomers in their 50s and early 60s, many of whom are eager to move on to second careers, entrepreneurial ventures and other new paths, but have been hanging on to jobs solely for the health benefits.
Health reform gives them the freedom to move on.
That will stimulate entrepreneurial activity, and it's going to open up spots on the management charts, allowing younger people to advance.
Is the smoke clearing for you yet?
Current Conditions in the Automotive Market
General Motors fights for the coveted spot of number one in the global automotive manufacturing market. The company held the spot for more than sixty years until the first quarter of 2007 when Toyota Motors overtook GM as number in automotive sales globally. General Motors sold approximately 9.3 million vehicles worldwide in 2007 according to the General Motors website. Toyota announced the same number of sales at 9.3 million. According to Edmunds GM edged Toyota by merely 3,000 units to maintain overall global sales supremacy (Edmunds.com, 2008). Light vehicle sales were 16.15 million for 2007; number one GM’s portion was 3.87 million units to, second place, Toyota’s 2.63 million units (Autoobserver.com, 2008). Current numbers are down significantly from 2007 and highs in 2006. General Motors has not announced summer numbers for the third quarter of 2008. The first two quarters are devastatingly low compared to recent years. GM sales, for the first three quarters of 2008, have been off 18.3% from the same time last year.
New companies entering the market, whose downturn has all but crippled U.S. companies; have their work cut out for themselves. Tata Motors Limited in India is one of three new companies trying to grab a share of the world market. Tata manufacturers light cars and trucks, also medium and heavy duty commercial vehicles. The company is bringing to market an inexpensive sub-compact car called the Nano. The vehicle will sell for approximately $2,500. The company hopes the car will sell well in gas guzzling countries such as the U.S. and China. The car has yet to pass safety standards in many countries and it is unknown how the upgrades will affect the price. Some companies are pulling out of slow or defunct areas of the globe. China has increased sales for GM in the last decade, but recently sales have also slowed in China for other manufacturers. Smart Car USA is another company in recent months to dive into the sub-compact market with the ForTwo. The company has had better than expected sales due to high fuel prices and exceeding U.S. highway safety standards.
General Motors adjusts prices continuously to entice customers to buy their automobiles. During the summer of 2008 GM advertised employee pricing for everyone. This scheme was believed to kick start sales. Due to the economic downturn customers did not rush out and begin buying cars and trucks. Employee pricing allows dealers to sell vehicles at a lower price, a small percentage above cost. Financing has become harder to qualify for because the financial industry is in a freefall and the government has to bail out the banks. Banks and lending institutions are tightening the reins on sub-prime and risky loans.
Technology may help save General Motors from complete collapse. The introduction of the Volt, a full electric plug in car, in 2009 is predicted to catapult GM into the next decade. New hybrid technology has helped brands Chevrolet and GMC to compete in the market of large SUVs. The Tahoe and Yukon hybrids have sold light numbers compared to smaller hybrids from Toyota and Honda. Cadillac has jumped onboard and has introduced the Escalade Hybrid. This truck is a full-size, luxury SUV that GM is hoping will entice luxury owners to convert to greener vehicles. New safety standards like second generation airbags, traction control, and roll-over avoidance are great leaps forward for the automotive industry. Luxuries like XM satellite radio, navigation systems, and OnStar are big selling points for General Motors. Automatic drive systems are in development and are still in the infant stage but the technology is quickly gaining ground.
Productivity within GM is nowhere the standards of Toyota or Honda and labor unions continue to put pressure on the American auto industry to drive up wages and benefits without stepping up production to pay for these costs. The labor units cost GM more each year as older workers retire and new workers must replace them. The retirement pensions continue to rise as retirees are living longer and wages for the factory workers rise because of union contracts. This phenomenon has caused GM to close plants and lay-off workers. Honda and Toyota do not have these problems because their employees do not retirement plans or large severance packages when a plant closes or staff is reduced. Fixed costs are rare in the automotive industry, and the variable costs grow each year. Fixed costs are the contractual agreements the company faces each year. Wages, benefits, and parts supplies are contracted to stay flat throughout the duration. The variable costs continue to skyrocket each year as fuel costs are out of control, shipping costs are tied to the rise in fuel, and energy costs like electricity and water.
Demand is waning every month and costs are rising. General Motors continues to change the prices of the vehicles or making deals with lower interest rates to bring customers into the dealerships. Nothing has helped drive sales up in the lagging economy. Dealerships are being consolidated or eliminated altogether to cut costs and give customers less options. Less competing dealerships allows GM to keep inventories lower and meet the drop in demand. AutoNation is the largest automotive retailer in the world. Bill Heard Inc. was the largest GM dealer franchise in the U.S. until the recent collapse and subsequent bankruptcy of the company. AutoNation has closed and consolidated a number of dealerships dropping the number of dealerships from approximately 350 nationwide to 250. This has helped GM to shed inventory costs and allowed production to drop off to meet demand. This also has caused GM to close plants and release workers. The plan is to close the Moraine and Janesville plants in December 2008 and early 2009 respectively. Over 8,000 jobs will be cut saving millions over the next five years as GM concentrates on producing smaller cars.
Supply and demand are tricky puzzles GM and the rest of American auto manufacturers are having a hard time figuring out. GM has lowered production to meet demand, but as the economy continues to spiral downward and costs for families rise, demand is slipping lower and supply is still too high. Inventories are setting dead on dealers’ lots while sales continue to slide. The hope of the government’s 700 billion dollar bailout of the financial industry is that lending will begin to help stabilize the economy and cash will flow back into circulation. The problem is consumers are scared and do not want to risk their money by making unnecessary purchases.
General Motors chief Rick Wagoner is optimistic about the future of the company. He believes the company will rebound and continue to reign as the superpower of the auto industry. Some experts have talked about the collapse of GM and eventual bankruptcy. Rick Wagoner has denied these claims and says the company is in great shape financially even though sales have dropped.
References
Autoobserver.com (2008). 2007: A Historic Year for U.S. Vehicle Sales. Retrieved October 12, 2008, from http://www.autoobserver.com/2008/01/2007-a-historic-year-for-us-vehicle-sales.html
Edmunds.com (2008). GM Edges Toyota in Global Sales in 2007. Retrieved October 12, 2008, from http://www.edmunds.com/insideline/do/News/articleId=124482
New companies entering the market, whose downturn has all but crippled U.S. companies; have their work cut out for themselves. Tata Motors Limited in India is one of three new companies trying to grab a share of the world market. Tata manufacturers light cars and trucks, also medium and heavy duty commercial vehicles. The company is bringing to market an inexpensive sub-compact car called the Nano. The vehicle will sell for approximately $2,500. The company hopes the car will sell well in gas guzzling countries such as the U.S. and China. The car has yet to pass safety standards in many countries and it is unknown how the upgrades will affect the price. Some companies are pulling out of slow or defunct areas of the globe. China has increased sales for GM in the last decade, but recently sales have also slowed in China for other manufacturers. Smart Car USA is another company in recent months to dive into the sub-compact market with the ForTwo. The company has had better than expected sales due to high fuel prices and exceeding U.S. highway safety standards.
General Motors adjusts prices continuously to entice customers to buy their automobiles. During the summer of 2008 GM advertised employee pricing for everyone. This scheme was believed to kick start sales. Due to the economic downturn customers did not rush out and begin buying cars and trucks. Employee pricing allows dealers to sell vehicles at a lower price, a small percentage above cost. Financing has become harder to qualify for because the financial industry is in a freefall and the government has to bail out the banks. Banks and lending institutions are tightening the reins on sub-prime and risky loans.
Technology may help save General Motors from complete collapse. The introduction of the Volt, a full electric plug in car, in 2009 is predicted to catapult GM into the next decade. New hybrid technology has helped brands Chevrolet and GMC to compete in the market of large SUVs. The Tahoe and Yukon hybrids have sold light numbers compared to smaller hybrids from Toyota and Honda. Cadillac has jumped onboard and has introduced the Escalade Hybrid. This truck is a full-size, luxury SUV that GM is hoping will entice luxury owners to convert to greener vehicles. New safety standards like second generation airbags, traction control, and roll-over avoidance are great leaps forward for the automotive industry. Luxuries like XM satellite radio, navigation systems, and OnStar are big selling points for General Motors. Automatic drive systems are in development and are still in the infant stage but the technology is quickly gaining ground.
Productivity within GM is nowhere the standards of Toyota or Honda and labor unions continue to put pressure on the American auto industry to drive up wages and benefits without stepping up production to pay for these costs. The labor units cost GM more each year as older workers retire and new workers must replace them. The retirement pensions continue to rise as retirees are living longer and wages for the factory workers rise because of union contracts. This phenomenon has caused GM to close plants and lay-off workers. Honda and Toyota do not have these problems because their employees do not retirement plans or large severance packages when a plant closes or staff is reduced. Fixed costs are rare in the automotive industry, and the variable costs grow each year. Fixed costs are the contractual agreements the company faces each year. Wages, benefits, and parts supplies are contracted to stay flat throughout the duration. The variable costs continue to skyrocket each year as fuel costs are out of control, shipping costs are tied to the rise in fuel, and energy costs like electricity and water.
Demand is waning every month and costs are rising. General Motors continues to change the prices of the vehicles or making deals with lower interest rates to bring customers into the dealerships. Nothing has helped drive sales up in the lagging economy. Dealerships are being consolidated or eliminated altogether to cut costs and give customers less options. Less competing dealerships allows GM to keep inventories lower and meet the drop in demand. AutoNation is the largest automotive retailer in the world. Bill Heard Inc. was the largest GM dealer franchise in the U.S. until the recent collapse and subsequent bankruptcy of the company. AutoNation has closed and consolidated a number of dealerships dropping the number of dealerships from approximately 350 nationwide to 250. This has helped GM to shed inventory costs and allowed production to drop off to meet demand. This also has caused GM to close plants and release workers. The plan is to close the Moraine and Janesville plants in December 2008 and early 2009 respectively. Over 8,000 jobs will be cut saving millions over the next five years as GM concentrates on producing smaller cars.
Supply and demand are tricky puzzles GM and the rest of American auto manufacturers are having a hard time figuring out. GM has lowered production to meet demand, but as the economy continues to spiral downward and costs for families rise, demand is slipping lower and supply is still too high. Inventories are setting dead on dealers’ lots while sales continue to slide. The hope of the government’s 700 billion dollar bailout of the financial industry is that lending will begin to help stabilize the economy and cash will flow back into circulation. The problem is consumers are scared and do not want to risk their money by making unnecessary purchases.
General Motors chief Rick Wagoner is optimistic about the future of the company. He believes the company will rebound and continue to reign as the superpower of the auto industry. Some experts have talked about the collapse of GM and eventual bankruptcy. Rick Wagoner has denied these claims and says the company is in great shape financially even though sales have dropped.
References
Autoobserver.com (2008). 2007: A Historic Year for U.S. Vehicle Sales. Retrieved October 12, 2008, from http://www.autoobserver.com/2008/01/2007-a-historic-year-for-us-vehicle-sales.html
Edmunds.com (2008). GM Edges Toyota in Global Sales in 2007. Retrieved October 12, 2008, from http://www.edmunds.com/insideline/do/News/articleId=124482
Ethics in Business
Ethics in the business world has become a media showcase in the last decade. With Enron, WorldCom, Tyco, Bernie Madoff, Martha Stewart, and Hilary and Bill Clinton having their business dealings questioned and investigated the country has been thrust into an ethics conundrum. What is right and/or wrong? What are the guidelines? Who decides what is right/wrong? The questions posed here are not the same for everyone. Ethics and morals of the individual are based on our experiences, childhood lessons, parents, school, and friends, among others.
In business the ethics, morals, goals, mission, and policies are made up by the owner(s), board of directors, or in the case of the government, Federal and State lawmakers. A company’s goal or mission states what the company plans to do in its life cycle. The ethics of the company are major contributors to the formation of the mission statement. No company states its mission to rip-off, cheat, and swindle its customers out of as much money as it can before getting caught. Although some companies have done this, the mission statement of a company, like Enron stated “Respect, Integrity, Communication and Excellence”, is opposite of the actions shown by the company (Corporate-aliens.com, n.d.). Enron’s Code of Ethics stated,
“As officers and Enron Corp, its subsidiaries, and its affiliated companies, we are responsible for conducting the business affairs of the companies in accordance with all applicable laws and in a moral and honest manner...We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected. Compliance with the law and ethical standards are conditions of employment and violations will result in disciplinary action, which may include termination...in addition to responding to the Act, we are adopting this Policy Statement to avoid even the appearance of improper conduct on the part of anyone employed by or associated with the Company...We have all worked hard over the years to establish our reputation for integrity and ethical conduct. We cannot afford to have it damaged” (Soxfirst.com, 2006).
Enron unfortunately has become a poster child for how a company can get off track from its mission and code of ethics. The victims of these companies continue to feel the effects of these companies and their unethical behavior.
Ethics and Social Responsibility
A company’s social responsibility is directly correlated to its code of ethics. Nike’s code of ethics requires its contractors and partners to abide by the same rules as Nike’s employees. One part that stands out as a socially responsible plan is “The contractor has written environmental, safety, and health policies and standards and implements a system to minimize negative impacts on the environment, reduce work-related injury and illness, and promote the general health of employees” (Pearce II & Robinson, 2011). This shows that Nike has a plan to reduce its environmental footprint and provide a safe workplace for its employees. This also requires Nike’s partners to adapt themselves to the same principles. With this plan Nike has forced its business ethics onto its partners and contractors. In some countries child labor and workers pay are not regulated by the governments of those countries. Nike has required that companies in its business community that wants to be a partner adhere to standards that Nike has deemed necessary to keep Nike’s image in the global marketplace high. Nike has addressed this in its code of ethics plan, “The contractor does not employ any person below the age of 18 to produce footwear. The contractor does not employ any person below the age of 16 to produce apparel, accessories, or equipment. If at the time Nike production begins, the contractor employs people of the legal working age who are at least 15, that employment may continue, but the contractor will not hire any person going forward who is younger than the Nike or legal age limit, whichever is higher” and “The contractor provides each employee at least the minimum wage, or the prevailing industry wage, whichever is higher; provides each employee a clear, written accounting for every pay period; and does not deduct from employee pay for disciplinary infractions” (Pearce II & Robinson, 2011). Companies with global power and consumer face value can use that leverage to impose its will on its partner companies. This poses the question, is that ethical? So the more money and power a company has can create ethical guidelines that other companies must follow or risk not being part of the success of the guiding company.
Ethical Perspective
Over the course of my educational experiences with the University of Phoenix my idea of ethics has been amended to view more than just the actions that affect me. I now assess how my actions will ethically affect others; teammates, subordinates, superiors, clients, and partners. I previously felt something that did not affect me in a positive way was unethical. Now I realize that view was selfish. I now view ethics as a basis for how an individual conducts him/herself in society for the benefit of all peoples. Treating people with respect and dignity is only part of ethics. Moreover being an ethical people does not make you a good person. Character and ethics go hand-in-hand.
In business the ethics, morals, goals, mission, and policies are made up by the owner(s), board of directors, or in the case of the government, Federal and State lawmakers. A company’s goal or mission states what the company plans to do in its life cycle. The ethics of the company are major contributors to the formation of the mission statement. No company states its mission to rip-off, cheat, and swindle its customers out of as much money as it can before getting caught. Although some companies have done this, the mission statement of a company, like Enron stated “Respect, Integrity, Communication and Excellence”, is opposite of the actions shown by the company (Corporate-aliens.com, n.d.). Enron’s Code of Ethics stated,
“As officers and Enron Corp, its subsidiaries, and its affiliated companies, we are responsible for conducting the business affairs of the companies in accordance with all applicable laws and in a moral and honest manner...We want to be proud of Enron and to know that it enjoys a reputation for fairness and honesty and that it is respected. Compliance with the law and ethical standards are conditions of employment and violations will result in disciplinary action, which may include termination...in addition to responding to the Act, we are adopting this Policy Statement to avoid even the appearance of improper conduct on the part of anyone employed by or associated with the Company...We have all worked hard over the years to establish our reputation for integrity and ethical conduct. We cannot afford to have it damaged” (Soxfirst.com, 2006).
Enron unfortunately has become a poster child for how a company can get off track from its mission and code of ethics. The victims of these companies continue to feel the effects of these companies and their unethical behavior.
Ethics and Social Responsibility
A company’s social responsibility is directly correlated to its code of ethics. Nike’s code of ethics requires its contractors and partners to abide by the same rules as Nike’s employees. One part that stands out as a socially responsible plan is “The contractor has written environmental, safety, and health policies and standards and implements a system to minimize negative impacts on the environment, reduce work-related injury and illness, and promote the general health of employees” (Pearce II & Robinson, 2011). This shows that Nike has a plan to reduce its environmental footprint and provide a safe workplace for its employees. This also requires Nike’s partners to adapt themselves to the same principles. With this plan Nike has forced its business ethics onto its partners and contractors. In some countries child labor and workers pay are not regulated by the governments of those countries. Nike has required that companies in its business community that wants to be a partner adhere to standards that Nike has deemed necessary to keep Nike’s image in the global marketplace high. Nike has addressed this in its code of ethics plan, “The contractor does not employ any person below the age of 18 to produce footwear. The contractor does not employ any person below the age of 16 to produce apparel, accessories, or equipment. If at the time Nike production begins, the contractor employs people of the legal working age who are at least 15, that employment may continue, but the contractor will not hire any person going forward who is younger than the Nike or legal age limit, whichever is higher” and “The contractor provides each employee at least the minimum wage, or the prevailing industry wage, whichever is higher; provides each employee a clear, written accounting for every pay period; and does not deduct from employee pay for disciplinary infractions” (Pearce II & Robinson, 2011). Companies with global power and consumer face value can use that leverage to impose its will on its partner companies. This poses the question, is that ethical? So the more money and power a company has can create ethical guidelines that other companies must follow or risk not being part of the success of the guiding company.
Ethical Perspective
Over the course of my educational experiences with the University of Phoenix my idea of ethics has been amended to view more than just the actions that affect me. I now assess how my actions will ethically affect others; teammates, subordinates, superiors, clients, and partners. I previously felt something that did not affect me in a positive way was unethical. Now I realize that view was selfish. I now view ethics as a basis for how an individual conducts him/herself in society for the benefit of all peoples. Treating people with respect and dignity is only part of ethics. Moreover being an ethical people does not make you a good person. Character and ethics go hand-in-hand.
Sunday, October 24, 2010
Choosing an Internet Savvy Marketing Agency
It is estimated that 64% of all shoppers seek out the product or service online before they go to the store. Of that 64%, 38% will buy from the first place the customers visit (Marketing News, 2009). Considering these numbers would it not be smart to increase the web presence of your company. Today's Internet savvy purchaser is educated and self-informed about the types of products he/she is interested. More than six out of ten purchasers have researched the product to the point that he/she is comfortable with the knowledge of function, cost, reliability, and warranty. Making your product stand out among the competition is harder than you think. A knowledgeable marketing professional has spent hundreds, if not thousands, of hours researching, testing, and perfecting a plan to develop, introduce, and advertise your product to the public. Only a marketing professional can put your products in front of prospective purchasers with positive results. Most company owners do not have the time to invest hours per day to perform market research, client testing, and ad development. Hiring a full-time marketing director is impossible for most companies so the owner(s) sublet or contract with a marketing/advertising company. This frees up time to run the business, but how do you know who to choose for your marketing needs.
A marketing/advertising company should give you multiple options and have several examples of previous successful campaigns run by the agency. DO NOT contract with the first company you meet with or you will be sorry. Interview several different marketing companies and ask many questions about past campaigns. Ask to interview clients of the company, good advertising agencies will have many clients how will vouch for the marketing company's good name and show you examples of successful campaigns. After interviewing several companies narrow your list to two or three selections and request a small demonstration of the companies ability to present your products to purchasers. A mock presentation should be no problem for a good agency.
When you receive your presentation now you can make a decision based on your company's wants and needs. This also gives you a chance to see how the agency's culture matches with you own. Developing an ad campaign is not a clip art laden PowerPoint presentation. The presentation should have all aspects of media involved which will fit your budget and reach your target customers. A marketing firm that consistently comes in significantly under budget is short changing you. If you have $10,000 to spend, the agency should use $10,000. Anything less and you are not effectively using your money and something is being left out. Do not think your agency is giving you a deal. The agency should be using every penny available to get your product out in front of your clients. The opposite is true too. If the agency is consistently coming back to you to get more money then it is not using your money correctly. If the quote to perform a campaign set is $10,000 and then the agency comes back and tries to renegotiate the terms or cost, DO NOT comply unless you have thoroughly investigated the reasons behind the increase. A contract to perform work is to protect you as well as the agency. A reputable marketing firm with years of experience will be able to create a campaign to within pennies of the budget you give them. But do not expect a Super Bowl ad campaign on an infomercial budget.
An ad campaign should definitely include Internet ads and social media blasting. Facebook and Twitter are vast wells of potential customers just waiting to buy your products. Introducing your company to users of social media can create a web presence unlike anything you could accomplish with billboards, radio spots, and television commercials. By integrating your company's website with social media outlets such as Twitter and Facebook you can introduce your product to new clientele. More companies are creating Facebook and Twitter accounts to keep up with new trends and fads customers want. Knowledgeable marketing agents can put your company and products in front of thousands of new customers through social media. Make sure this is part of your ad campaign whenever you hire an agency.
A marketing/advertising company should give you multiple options and have several examples of previous successful campaigns run by the agency. DO NOT contract with the first company you meet with or you will be sorry. Interview several different marketing companies and ask many questions about past campaigns. Ask to interview clients of the company, good advertising agencies will have many clients how will vouch for the marketing company's good name and show you examples of successful campaigns. After interviewing several companies narrow your list to two or three selections and request a small demonstration of the companies ability to present your products to purchasers. A mock presentation should be no problem for a good agency.
When you receive your presentation now you can make a decision based on your company's wants and needs. This also gives you a chance to see how the agency's culture matches with you own. Developing an ad campaign is not a clip art laden PowerPoint presentation. The presentation should have all aspects of media involved which will fit your budget and reach your target customers. A marketing firm that consistently comes in significantly under budget is short changing you. If you have $10,000 to spend, the agency should use $10,000. Anything less and you are not effectively using your money and something is being left out. Do not think your agency is giving you a deal. The agency should be using every penny available to get your product out in front of your clients. The opposite is true too. If the agency is consistently coming back to you to get more money then it is not using your money correctly. If the quote to perform a campaign set is $10,000 and then the agency comes back and tries to renegotiate the terms or cost, DO NOT comply unless you have thoroughly investigated the reasons behind the increase. A contract to perform work is to protect you as well as the agency. A reputable marketing firm with years of experience will be able to create a campaign to within pennies of the budget you give them. But do not expect a Super Bowl ad campaign on an infomercial budget.
An ad campaign should definitely include Internet ads and social media blasting. Facebook and Twitter are vast wells of potential customers just waiting to buy your products. Introducing your company to users of social media can create a web presence unlike anything you could accomplish with billboards, radio spots, and television commercials. By integrating your company's website with social media outlets such as Twitter and Facebook you can introduce your product to new clientele. More companies are creating Facebook and Twitter accounts to keep up with new trends and fads customers want. Knowledgeable marketing agents can put your company and products in front of thousands of new customers through social media. Make sure this is part of your ad campaign whenever you hire an agency.
Wednesday, September 22, 2010
Breast Cancer Awareness Making Strides Walk
http://makingstrides.acsevents.org/site/TR/MakingStridesAgainstBreastCancer/MSABCFY11National?pg=informational&fr_id=28080&type=fr_informational&sid=16393
This website will take you to the Making Strides website for breast cancer awareness. Get involved and help those who are fight this disease have a better chance of having many more happy birthdays. The American Cancer Society and the Susan G. Komen Foundation for the Cure have helped fund the fight to see this disease that takes our wives, girlfriends, mothers, aunts, and friends from us. Please if you cannot participate donate to a sponsor or participant. The website explains how to sign up and/or donate to the cause.
I participate for my wife, Sabrina; my mother, Jean; my grandmother, Gwen (survivor); my wife's BFF, Sheryl (fighting victim); and my friends and women I don't even know. Helps fight for their quality of life and keep them here for their families to love and enjoy.
Big Daddy
09/22/2010
This website will take you to the Making Strides website for breast cancer awareness. Get involved and help those who are fight this disease have a better chance of having many more happy birthdays. The American Cancer Society and the Susan G. Komen Foundation for the Cure have helped fund the fight to see this disease that takes our wives, girlfriends, mothers, aunts, and friends from us. Please if you cannot participate donate to a sponsor or participant. The website explains how to sign up and/or donate to the cause.
I participate for my wife, Sabrina; my mother, Jean; my grandmother, Gwen (survivor); my wife's BFF, Sheryl (fighting victim); and my friends and women I don't even know. Helps fight for their quality of life and keep them here for their families to love and enjoy.
Big Daddy
09/22/2010
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