Business Now - A Generation Y Perspective

RSS Feed Homepage

How Does Culture Influence Your Company's Strategic Planning?
2007-07-04 20:25:00
When it comes to strategic planning and implementation, culture can play a large role in many aspects of the planning process. In particular, mission/vision statements, time horizons, and marketing are key areas that can be greatly influenced by culture. A company’s mission statement is supposed to reflect the overall goals of the company, and should clearly state what the company is trying to achieve. These large objectives can be heavily influenced by the culture in which the company is a part. For example, if an oil company is part of a culture that values environmentalism, its mission statement will likely reflect the oil company’s commitment to preserving, rather than destroying, the environment while at the same time providing its customers with the oil they need. However, if this oil company is situated within a culture that cares more about progress and price than the environment, the company’s mission statement may not mention the environment at all, but instead empha...
More About: Culture , Planning , Strategic Planning , Influence , Strategic

Should Human Right be Taken into Consideration When Granting Preferential T
2007-06-22 15:52:00
When it comes to international trade, there are two types of trade agreements that can have a direct influence on human rights; preferential trade agreements and trade sanctions. Whereas trade sanctions stop or severely limit the amount of trade between two countries, preferential trade agreements grant certain trade privileges to a particular country, such as very low import taxes. Although the potential effects of trade sanctions on human rights in the sanctioned country are somewhat obvious, the effects of preferential trade agreements can have many of the same negative effects as sanctions, but in a more obscure manner.Take, for example, a situation involving three countries; A, B, and C. Country A is a wealthy developed country that has decided to give Country B, a developing country with high human rights standards, preferential trade rights in the form of no import taxes. Country C, another developing country with many known human rights violations, may also trade with Countr...
More About: Human , Refer , Consider

What's the Best Way to Enter a Foreign Market?
2007-06-16 14:34:00
Scenario: Your US company has come up with a way to produce a computer that is just as good as your competitors but can be manufactured at half the cost. Now you would like to sell these computers in the EU. What should you do?Option A: Export computers to the EU from the US.This mode of entry falls under the category of international trade. Pro: The greatest benefit of exporting is that it does not require a lot of additional investments and it is the least risky of all given options. Because the manufacturing stays within the US, it is not necessary for the company to have foreign employees or to directly invest in any foreign country. The company must decide whether it will choose to export directly, via a separate foreign sales company or a foreign sales division within the existing company, or to export indirectly via manufacturing export agents, export commission agents, export merchants, or international firms. Indirect exporting requires less investment than does direct expo...
More About: Market , Foreign , Enter , Reign

Microloans - A Win-Win for Everyone
2007-06-13 13:59:00
Microlending is the process of giving very small loans ranging from $50 to a few hundred dollars to entrepreneurs in developing countries. These relatively small loans, known as microloans, are used to promote grass-roots economic development, and have so far proven to be a very effective means of boosting the standard of living for participating borrowers, as well as the overall economies of participating countries. Although at first the idea of lending money to the poorest people in the world does not seem to make financial sense, in fact, it does. Microloans are made typically at the prevailing commercial loan rate, and have a repayment rate between 90 to 100%, depending on the particular country (Bell et al., 346-7, 2006). Not only is this good news for entrepreneurs seeking such loans, but for lending institutions as well. With such an attractively high repayment rate, many lending institutions have come to consider microlending as very profitable venture. So far this seems to ...
More About: Rolo

How Investing Overseas Can Help Your Domestic Market
2007-06-07 14:50:00
Investing overseas can help a firm protect its domestic market in three different ways. The first is to establish foreign operations in countries where the firm has major clients (Ball et al., 61, 2006). For example, if a U.S. firm has many customers in France, establishing subsidiaries in France to service those customers will prevent competition by similar firms in France from acquiring those customers. This strengthens the U.S. firm because they now have the opportunity to prove that they can service customers in France as well. This strategy is not very risky because the domestic firm already has customers in the foreign country. Rather than attacking the foreign market, the domestic firm is just defending itself from foreign competitors.The second way a firm can protect its domestic market by investing overseas is to attack the foreign market in the hopes that the foreign firm will be so focused on defending its local market that it will lessen its efforts to gain customers in ...
More About: Market , Investing , Domestic , Seas , Overseas

The Rebirth of Community Spirit
2007-06-05 11:16:00
"Personal computing is more and more 'interpersonal' - people use computers to relate to others online" (Crainer quoting Tapscott, 273, 2006).Written almost ten years ago, Tapscott's prediction that the internet would become a community springboard rather than an isolating phenomena has come true. Commonly referred to as "Web 2.0," this new movement of up and coming websites is all about interaction, communication, and mass customization. Instead of viewing the web as a conglomerate of static pages designed by a group of highly skilled programmers, Web 2.0 sites encourage browsers to make spaces that are all their own (customized templates, backgrounds, music, etc.) while at the same time integrating features that instantly connect like-minded others. Blogging is just one example of this community trend. Not only are people able to share their thoughts, experiences, and opinions with the world at large, but many bloggers find that the "at large" part isn't as big as many assume....
More About: Community , Spirit , Rebirth , Unit

Blatant Lying or Smart Advertising? The MetLife Case.
2007-05-24 15:12:00
Although the words "deceptive" and "advertising" are considered by many to be synonyms, there are certain industry standards that should be upheld for the good of the public. While mild exaggerations such as "the best" or "the brightest" are widely accepted, blatant lying is usually frowned upon. For example, it seems obvious that one should not advertise toothpaste as a cure for the common cold, nor life insurance as a retirement savings policy. However, the latter is exactly what MetLife did in the early 1990s to the dismay of many befuddled nurses.But just how bad was telling nurses that a whole life insurance policy was actually a retirement savings plan? After all, whole life policies do have an investment aspect to them. In addition to the basic death benefit of all life insurance policies there is also a "cash value" with whole life policies. This cash value is made up of one's premium payments minus "administrative fees and a profit margin plus the cost of death protection"...
More About: Advertising , Smart , Case , Lying , Vert

The Growing Obsession with Customization
2007-05-22 15:52:00
The very foundation of value chain management is giving customers exactly what they want when they want it. With this end in mind, keeping up with the perpetually fluctuating whims and expectations of consumers can pose quite a challenge to the production side of both large and small companies. One of the most difficult trends to keep pace with is consumer's increasing expectation of product customization. "Most engineers are seeing requests for customized products increase year after year. And it's clear that increase is having an adverse impact on time available for product design changes, new product development, and innovation" (Market Wire, May 21, 2007). From colors to functions to software, more and more people are approaching products with the expectation of being able to make it suit their particular needs. Rather than being pleasantly surprised with products that do offer customizable features, consumers are angrily surprised when confronted with products that don't. Ma...
More About: Obsession , Growing , Customization , The G

Positive Manipulation & The Seven Habits of Highly Effective People
2007-05-18 14:09:00
Stephen Covey - The Seven Habits of Highly Effective People , 1989When it comes to the genre of self-improvement and self-help books, Stephen Covey's classic The Seven Habits of Highly Effective People is unquestionably one of the most influential. Although Crainer's review of the book, as well as the self-improvement genre in general, is decidedly negative and cynical, many people have found a lot of merit in what Covey, and others like him, have to say. Admittedly, The Seven Habits offers advice that is double-edged; instructing people on how to act as though they genuinely care about others but only to the extent that it will make them money (Crainer, 2006). At first glance this type of advice may seem distasteful, as it appears to promote dishonesty. However, this book is not about how to be virtuous, but about how to be successful, and part of being successful is knowing how to use those around you to achieve the best results. This idea manifests in many forms, such as how to ...
More About: Positive , Manipulation

The Farmer in the Dell, The Farmer in the Dell, All Praise the Farmer in th
2007-05-17 13:41:00
The amazing success of Dell computers seems contrary to many of today's business trends. In a field where innovation is key, and being "the first" to introduce new technology into a market appears to be crucial for success, Dell managed to reign supreme by doing exactly the opposite. Instead of spending large amounts of money toward product development, Dell allocated only 10% of its revenues for research and development, while competitors such as Gateway, Compaq, HP, and Cisco budgeted between 20-45% of their revenues for research and development (Hartley, 2005). Dell patiently waited for its competitors to spend their money and time in product development, and would scoop up the "new" technology only after it entered a market. Not only was Dell able to save on R&D, but it could offer the "new" technology at lower prices. Apparently many consumers were more than willing to wait for the less expensive Dell versions to become available rather than buying the newest innovations right...
More About: Praise , Farmer , The D

Are Corporate Blogs Becoming Necessary?
2007-05-15 14:35:00
One of the most exciting trends in the world of internet communication is the growing use and influence of blogs. Short for "web logs," these online journals are not only growing in numbers, but also in influence. Unlike the older "gripe sites" which were relatively isolated websites that allowed people to comment or complain about a company's management, procedures, or work environment (Robbins, 2005), blogs are very interconnected, particularly due to their integration with social networking sites such as Technorati and MyBlogLog. Once someone publishes a blog entry it has the potential to reach thousands of people within minutes. "Some bloggers have "viewership" in the millions, rivaling some television program audiences" (Voigt, 2006). This can either be very good or very bad from a business perspective.Rather than trying to silence this type of public scrutiny, many companies have decided to create their own blogs. By doing this they can stay on top of what is being said about...
More About: Corporate , Blogs

Making the Psychology of Sunk Costs Work for You
2007-05-14 14:42:00
When making a decision, one of the worst errors is that of sunk costs; continually investing time, energy, and money into a project or course of action that is not meeting its performance expectations or goals (Robbins, 2005). Sunk cost errors are rooted in the human psychological need to persevere and succeed regardless of insurmountable obstacles. This need is emotionally compounded as more and more resources are invested into attaining an outcome that is logically implausible. From a purely economic perspective, sunk costs refer to costs that have "already been committed and cannot be recovered" (Mankiw, 2007, 297). These costs should be ignored when making future decisions because there is no course of action that would be able to recover these resources, especially the time that has already been lost. Although this concept is easy to understand, people do not always make decisions rationally. Instead many allow feelings of regret to cloud their better judgment, and continue on ...
More About: Work , Psychology , Costs , Ology , Makin

In Defense of Gen Y
2007-05-12 12:32:00
"The Gen Y'ers I know are all about 'me', from what I have seen, they are selfish and very self-centered, and they will do anything to get ahead of everyone else, no matter who they hurt or step on on the way there. They use enviromentalism as a way to make themselves feel better, and feel that they are actually doing something to positively contribute to society, and to make up for past transgressions. Yes there are some out there that truly believe in these special causes, but they are few and far between in this new generation. You ended it with a statement that Gen Y has 'high ethical standards', I have to say that I disagree with you on that statement, the Gen Y'ers that I know are far from ethical..." (Kristofer, Commenting on the Gen Y Shift)First, when I speak of the "Gen Y Workforce" I am indeed referring to those in the corporate business world who are college educated and primarily middle to upper class in the United States.Now, I completely agree with you when you ...
More About: Defense

Maslow's Hierarchy of Needs and the Gen Y Shift
2007-05-11 15:47:00
Maslow - Motivation and Personality, 1954According to psychologist Abraham Maslow, all people have a hierarchy of needs that begins at the bottom with physiological needs, such as food and shelter, and moves upward through safety, love, and esteem needs toward the pinnacle of self-actualization. When this hierarchy is used practically by managers it allows them to make note of exactly where their employees fall and what needs are most important to them at that time. By identifying these needs, managers have a better understanding of what will motivate a particular group of workers. For example, in a country where food is scarce employees would very likely fall on the very bottom of the Maslow's hierarchy, and would be wholly concerned with their physiological needs. Offering these employees a course on respecting one's self and others would not contribute to their overall well-being or job satisfaction because such a course would only appeal to those in a higher needs category, su...
More About: Shift , The G , Needs

Action Learning Poised for Takeoff
2007-05-10 13:45:00
Action Learning , 1979, Reg RevansFor anyone who has ever sat through a three hour lecture, bored beyond comprehension, and thought to themselves 'there must be a better way,' Reg Revans' learning theory is for you. Revans believed in learning through active collaboration and "doing" things in small groups rather than by passively listening to the "wisdom" of an expert. Instead of lectures and books, Revans expounded upon the insights that could be gained via questioning and critical thinking. His theory eliminated the traditional hierarchies of education (teacher/student, expert/non-expert) and instead focussed on the unique ideas, insights, and innovations that could be garnered from each individual. In this way, no one was held above the rest as an "authority" on a subject. As expected, traditional learning institutions in Revans' home country of Britain did not appreciate his radically different ideas, and for the most part, rejected them during the 1970s. However, in today'...
More About: Action , Earning

Ask Yourself, What Would Machiavelli Do?
2007-05-09 15:11:00
The Prince - Mach iavelli, 1513When we here the name "Machiavelli " or the term "Machiavellian" used to describe someone, it is often considered a negative attribute or characteristic. Famous for his (a)moral stance of "the ends justify the means," Machiavelli has become a symbol for unethical or shady practices, both in business and life decisions.In his book, "The Prince," Machiavelli outlines many of the principals on which he based his seemingly ruthless approach to diplomacy and leadership. He stresses the need for appearance over quality, force over reason, and stealth over honesty.Although these tactics are overtly frowned upon in today's business world, they are nevertheless used effectively. For instance, if a top manager projects confidence, he or she has a greater ability to garner employee trust and loyalty. This in turn could lead to higher productivity, less employee turnover, and a general state of well-being for the company...regardless of whether or not the manager i...
More About: Chia

Negligent Consumers vs. Unethical Companies
2007-05-09 13:52:00
Can any company "really expect the average consumer to act with strict prudence" and do companies need to take precautions "with the worst case scenario in mind as to consumer behavior" (Hartley, 33, 2005)?These two questions illustrate one of the most striking ethical issues that face every product-based company in operation. In the particular case of Firestone and Ford, consumers were held partly responsible for their tire blowouts and Explorer roll-overs because they did not check their tire pressures before driving, over-loaded their vehicles, and drove at high speeds for long periods of time. According to Firestone and Ford, the results of this consumer negligence was not something their companies should be held accountable for. Not surprisingly, this stance did not sit well many of their consumers, nor the general public. And although checking tire pressure before driving is commonly recommended in vehicle operation manuals, rarely, if ever, does anyone follow this guideline.B...
More About: Companies , Unethical , Consumers , Gent

The Problem with Snapple, Part II
2007-05-01 15:00:00
Do you think Snapple should have been sold for $300 million?Yes, I think Snapple should have been sold for $300 million. By the time Quaker Oats decided to give up its rejuvenation efforts and sell Snapple, the continued losses of keeping Snapple would have been more than the immediate loss of selling Snapple for such a low price. Although Quaker Oats did not recoup much of its investment, the sale did allow the company to stop losing money, which was more important at that time.What are the social implications related to this case? What did you learn that might be helpful in your work?The main social implication related to the acquisition of Snapple was the overall negative effect it had on Quaker Oats’ profitability, and therefore the financial well-being of Quaker Oats’ shareholders. If the main responsibility of managers is to the owners, or shareholders, of a company, then making a large purchase, such as purchasing Snapple for $1.7 billion, without considering all of the f...
More About: Problem , Part

The Problem with Snapple, Part I
2007-04-25 14:59:00
CEO William D. Smithburg of Quaker Oats purchased Snapple for $1.7 billion in 1994. In 1997 Smithburg sold Snapple to Nelson Peltz for $300 million, reported a $1.11 billion quarterly loss, and resigned from his position as CEO (Hartley, 2005). Smithburg’s decision to purchase Snapple was not based on solid financial reasoning or research, but an egotistical hunch that he could turn Snapple around as he had done with Gatorade. By acquiring the already declining Snapple, Quaker Oats was forced to spend the next few years trying to salvage what was left of a company with too much market competition and an outdated production system. In the end, Smithburg proved to be a socially irresponsible manager whose duty to uphold Quaker Oats’ profits was less important than (dis)proving his own managerial superiority.Do you think Snapple could have been turned around?No I do not think Snapple could have been turned around once it was purchased by Quaker Oats for two reasons, neither of whic...
More About: Problem , Part

Better to Make a Mistake Than Do Nothing At All
2007-04-20 15:16:00
Not making a decision is as potentially damaging to a company as making a bad decision. It is easy to see how errors of omission could be made and go unnoticed until the consequences of inaction become apparent much later on. Many people, managers included, delay making decisions that are difficult or complicated. This delay may take the form of over-analyzing, mental procrastination, or hoping that the problem will simply "resolve itself" in time. In both one's personal and professional lives omissions usually lead to undesirable outcomes since no direct action was taken to avoid or change them.Errors of commission, on the other hand, are easily made by pro-active people. Bad decisions can be due to haste, under-analyzing a situation, making a decision without first having all the facts or data. The results of these mistakes can be seen quickly and can often be traced back to a particular source or decision.In today's rapidly changing business environment, errors of omission may ...
More About: Make , Mista

Making the Perfect Gen Y Work Environment - Or Else!
2007-04-12 14:56:00
As the first wave of Generation Y makes its way into the workforce, well established corporate cultures are being forced to change - not only the way employees are recruited, but also the way new recruits are treated. Born between 1977 and 1997, Generation Y is the first to have grown up with the internet, be technologically savvy, and have career ambitions that go well beyond earning a high salary. (Business Week, 2005) As company’s are quickly realizing, Generation Y expects to be treated with respect, be constantly challenged with new and innovative tasks, and have the freedom to set their own schedules. As Daun Paris, president of Eastern Consolidated points out, “They want to be able to create their own situations and do it their way.“ (Marsh, 2007) Because of this, Generation Y is largely against high degrees of power distance, and do not feel obligated to stay working for a company that makes them uncomfortable or does not suit their own particular needs.Despite being d...
More About: Environment , Work , Perfect , Makin , Envi

Connection Between Women Managers and the Internet
2007-04-05 15:08:00
Having the ability to embrace diversity and incorporate change quickly is one of the greatest determining factors of success for companies today. Changes in workforce composition and the medium of conducting day-to-day business activities are two key factors that need to be fully considered and addressed by managers at all organizational levels. In particular, more women are occupying top-management positions, in part due to the proliferation of e-businesses.According to an article published in the Journal of Leadership Studies (2000), online businesses are providing a way for more women to become top-level managers. Because e-businesses are still a fairly new frontier, they are breaking many of the “traditional” pathways to becoming CEOs or Company Directors. These positions were often handed down from one man to another via familial or social networks, creating the “glass ceiling” effect that many women encountered during the 1980s and 90s. However, since the introduction...
More About: Women , Internet , Connection , The Internet , Managers

US Consumer Pessimism May Lead to Economic Downturn
2007-03-30 15:03:00
According to an article published in the April 11th edition of Business Week Online, there is a general pessimism among U.S. consumers concerning the future of the economy despite moderate growth trends that imply economic stability for the remainder of 2007. Although unemployment is currently at 4.4% nationwide, a low since 2001, and 180,000 new jobs were created in March alone, the public still feels shaky about what the coming months will bring. Some obvious reasons for their uncertainty is the Iraq war and the continually changing price of oil. Just how pessimistic one is seems to be related to one’s annual income, namely the wealthy are the least pessimistic of all, while the poor hold the most doubts. (Coy, 2007)The discrepancy between analytic forecasts and general public opinion should not be taken lightly. Consumer pessimism has the potential to become a self-fulfilling prophecy. Greater pessimism leads to less consumption because people are worried about what the future ...
More About: Economic , Lead

Go Ahead, Have a Cig Kiddo
2007-03-22 15:04:00
Why should cigarette manufacturers be permitted complete freedom to target developing countries?Like any other business, cigarette manufacturers should be able to pursue the objective of profit maximization as long as they fulfill their social obligations and are within the confines of the law (Robbins, 2005). Faced with tightening regulations in developed countries, it makes financial sense for cigarette companies to target their products to foreign consumers whose countries have less restrictive laws. It is the responsibility of national governments, not private enterprises, to concern themselves with the well-being of citizens. If a government decides that smoking has more negative effects on the nation than is tolerable, it will enact laws that will force cigarette companies to conduct business accordingly. Similarly, if consumers do not want to incur the health costs of smoking, they will not buy cigarettes, thereby limiting the profitability of cigarette companies and restrict...
More About: Kidd , Ahead

Efficiency Wages Not So Efficient Anymore
2007-03-15 14:56:00
The March 28th online edition of Business Week reports that electronics retailer Circuit City is planning to lower employee wages across the board as a way to reduce costs and boost profits. Faced with fierce competition from long-time rivals such as Best Buy, Circuit City is hoping the wage cuts, along with other structural changes, will allow them to stay ahead of other electronics retailers. (Business Week, 2007)Previously employees at Circuit City were paid above market, or efficiency, wages. Voluntarily paying higher than average wages has its benefits. First, higher wages attract a better pool of employee candidates. Second, it reduces employee turnover because less people leave for other equitable-position jobs at competing companies. Less turnover leads to a well-trained and experienced sales staff, and eventually more sales. Finally, higher wages gives employees the impression that the company cares about them, which fosters company loyalty and a greater willingness to perf...
More About: Wages , Efficiency , Efficient , Ages