March 2011
9 posts
2 tags
Global Variance in the Price of Gas
Another riveting article title COMING AT YOU! I should write romance novels.
Anyhow, I know I write about oil and gas almost as much as I write about retail. Stories about fossil fuels tend to dominate financial news because fuel determines how much transport costs, and transport affects many businesses. Fuel prices can even affect how some businesses develop- back in January I wrote about...
1 tag
Elasticity of Demand
Elasticity of demand is an important concept within the consumer sphere. Businessdictionary.com defines “elasticity of demand” as
The degree to which demand for a good or service varies with its price.
The typical play is for demand to INCREASE as price DECREASES and vice versa. I will buy one delicious Cadbury Cream Egg if they are a dollar apiece. I will buy two if they are...
1 tag
Proud Iowan Moment
Check it out! According to an article in my hometown Des Moines Register, Men’s Health magazine has named Des Moines one of the 18 “coolest places to live in America”. I couldn’t agree more.
The article cites our growing technology sphere and cultural hotspots like the Pappajohn sculpture park. It also touts Des Moines as having a cost of living 10 percent below the...
1 tag
Wal-Mart Takes Sustainability Into its Own Hands
Wowzers. This article in Advertising Age absolutely delights my imagination. Apparently Wal-Mart has a set of policies that rewards suppliers who adhere to certain sustainability parameters and initiatives. These include reducing greenhouse emissions, investing in “community-development” activities, and even reducing sodium and sugar in food products!
There’s more: old...
1 tag
Retail Poised for Big Gains
Sure, oil prices are skyrocketing and rising gas prices might doom us all. Let’s not worry about that right now. Check out what’s going on in RETAIL! According to this article on Marketwatch, retail is set to make a big splash when February numbers are reported. Year-on-year sales are set for a whopping 9.3% gain, the largest gain since March of 2000.
We are still expecting a...
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What is Organic?
Certainly not that box of Cadbury eggs I put down yesterday, am I right? Heh. I kid, I kid. The actual definition of “organic” is
Big business. Very lucrative.
I guess I’m feeling ornery tonight. This is all true, though- organic food is a $26.8 billion industry in the U.S., and it’s been growing at about 20% annually for the past 15 years according to this Times...
1 tag
Unemployment Drops to 22-month Low
Woohoo! The national unemployment rate dropped to 8.9% in February, its lowest point since April of 2009. Check out the lack of “yes, but”s that I gleaned from a CNNMOney.com article:
The drop was NOT caused by people giving up hope. The number of people who do not count as “unemployed” because they aren’t looking for work remained steady at 2.7 million.
The...
1 tag
What is "curated"?
“Curator” is not a new word. I’ve heard it used in relation to museums and art galleries all my life. According to merriam-webster.com, a “curator” is:
one who has the care and superintendence of something
However, I’ve seen the word “curate” pop up in two new contexts in the past month or so. The first time was in a recent CNNMoney.com...
1 tag
Baltic Dry Index
I’m a big index fan. I enjoy tracking numbers up and down from day to day and week to week. Not month to month, though. Who has the attention span for THAT? Kidding.
The newest index I discovered is the Baltic Dry Index, or BDI. The BDI measures the demand for room on cargo ships that transport dry bulk materials. A lower index means that fewer bulk materials are being shipped, which can...
1 tag
Rich People Loooooove Fast Food
I live for stories like this. According to this article at CNNMoney.com, rich people are eating more fast food. I totally get it. Chipotle tastes good no matter how much money you earn. My wife and I ate it four or five times per week for several months back in 2005. But this post isn’t about my eating habits past or present. It isn’t even really about rich people eating bad...
February 2011
23 posts
1 tag
Wow This is Cool!
One of the keys to learning about business and the economy is saturation. I listen to business podcasts every day, I monitor several business-themed websites, and I read the Wall Street Journal every time some kind soul leaves it in my work bathroom.
Rejoice! Thanks to an article on about.com I found a wonderful resource on the website of the Federal Reserve’s New York branch:
This, my...
1 tag
Logistics!
Logistics is a hot topic in business management circles right now. Thanks to UPS it even has a theme song.
According to my BFF businessdictionary.com, logistics is
Planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy.
Logistics is an important topic...
1 tag
Oil Prices Rising
Crude oil hit $103 a barrel today, according to this CNNMoney aritcle. Political unrest in Libya is causing the price to soar. There are a few interesting points in the article that I’d like to highlight:
This week oil reached $100 a barrel for the first time since the dreaded 2008. In this New York Times article an Edward Jones investment strategist commented that “we would have...
1 tag
The Long Position
I was reading an article about gold values (they topped $1400/ounce today) and I saw a reference to investors increasing their “long positions” on gold. Huh? What is a long position? The answer (according to freedictionary.com) is extremely simple. The long position is:
The ownership of a security or derivative, or the state of having bought one or the other.
That’s...
1 tag
WatchLazy Sunday video! Because talking at a camera is easier than writing thoughtful content. Everyone enjoy the All Star Game tonight… why is it that the NFL’s Pro Bowl is God’s punishment for a wicked world, but the NBA All-Star Game is pure delight? Mine is not to wonder why- mine is but to enjoy the spectacle.
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360-Degree Feedback
Employee assessment is a delicate, high-stakes science. In some work environments(call centers, factories, production) defined metrics can provide a snapshot of employee performance over a period of time. However, in most cases the numbers alone do not tell the story. 360-degree feedback has become more popular in recent decades for assessing employees. According to businessdictionary.com,...
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What is a "Bourse"?
While perusing Marketwatch this morning, I saw a headline about how strong Nestle profits are “supporting the European bourses”? Huh? I’ve never heard of a “bourse”. Is it a business? Is it a mass of consumers? Is it a special cricket move?
The Free Dictionary provides several definitions of “bourse”. The common thread is that a bourse is...
1 tag
10 Worst States for Retirees
Topretirements.com recently published a list of their “Top Ten” worst states to retire in. This list has been analyzed by multiple blogs (check out this great article over at Marketwatch).
The list is very comprehensive- it folds in many important factors including tax laws, climate, and transportation services. The original article looks ahead and predicts civil unrest in the...
1 tag
Borders Files for Bankruptcy: A Historical...
I grew up with Borders. I remember visiting their stores when my family would travel out-of-town, and then I remember when the first Borders opened in the Kansas City area down in Overland Park. My family made the 45-minute drive south once or twice a month to wander around the sprawling bookseller. Over the next ten or twelve years I spent many an afternoon…
Woah, I didn’t see...
1 tag
Bill of Lading
A bill of lading (B/L) is a specialized form of receipt used in the shipping industry. As businessdictionary.com puts it, a bill of lading is a
Document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination.
Businessdictionary.com goes on...
2 tags
Malls Making a Comeback!!!
Well, a 0.1% comeback. But hey! Anything suggesting that the next generation(s) might enjoy malls the way I have is music to my ears. According to this article on CNNMoney.com, malls increased their market share of consumer dollars from 2.4% to 2.5% last year. This is a far cry from the alternating stagnation and contraction they’ve experienced in recent years.
The article attributes...
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Metals Go Boom
The Economist has an interesting report about massive profits logged by the world’s major mining companies. In particular, they cite the success of Rio Tinto, the British-Australian mining giant. In 2010 Rio Tinto saw $14.3 billion in profits. The Economist credits this profit mainly to a rise in demand for iron ore, and that’s where the article gets really interesting.
See, the...
2 tags
Best Buy in China
Remember folks, I’m a retail junkie at heart! I could never pass up a story like this.
Check out this fantastic CNNMoney.com article about Best Buy’s adventures in adapting to Chinese consumer culture. According to the article, Chinese consumers enjoy shopping for technology products in a somewhat chaotic, cluttered atmosphere. They are also described as being “extremely...
1 tag
Consumer Price Index
The Consumer Price Index (or “CPI”) is a popular method of measuring inflation or (less commonly) deflation. According to my beloved investopedia.com, it works like this:
The Bureau of Labor Statistics selects a “basket” (grouping) of goods and services frequently used by average people. This can include things like food items, housing transportation costs, apparel,...
1 tag
What is a "Beta"?
No, we are not discussing pack dynamics. If I was a late-80s mitovational speaker then maybe I’d break off a little “If you’re not the LEAD DOG…” but as it is we’re in the 2010s and I’m not selling an actualization system.
The “beta” we’re discussing today is a general measure of stock risk. Businessdictionary.computs it thusly:
...
1 tag
Generational Accounting
One of my favorite business topics is long-term thinking. I am of the opinion (largely uninformed) that most companies, municipalities, states, and countries are short-sighted in their business plans. One can hardly blame them- short-sightedness tends to ensure short-term survival. A company can’t last 100 years if it doesn’t last one year. A politician won’t get re-elected...
2 tags
Australian Consumer Economy in Trouble
Another recently-strong economy is headed in the wrong direction: according to this MarketWatch article, Australia’s consumer spending increased only 0.2% in December, down from 0.4% in November. Analysts had expected an 0.5% increase, so the 0.2% was a nasty shock.
Now, no one can blame Australians for staying home and generally being stingy with their dollars. Back-to-back natural...
2 tags
What is an "orbit"?
Okay, so I phrased that poorly: in marketing, “orbit” is a verb. According to businessdictionary.com, “orbit” means:
In marketing, practice of rotating a radio or television commercial among different time slots to achieve greater reach (net audience).
Pretty simple concept- take one piece of advertising and present it to several different potential demographics. I...
3 tags
Rural Air Subsidies
Most boring article title ever? Perhaps. However, the upcoming referendum on government subsidies to rural airports has potential to impact America’s development.
This story has been all over the news this morning, but I took this Associated Press article as my main source. In a nutshell, the U.S. government provides financial assistance to airports in small communities. These...
1 tag
Tumblr for Android = Uh Oh
I just updated the Tumblr app on my phone. If I can find a way to make mobile posts meaningful and useful then I may start supplementing my daily posts with smaller observations, links, definitions, or notes. Typos will be off the charts but it will be RAW. REAL. IN YOUR FACE!
…you have been warned.
2 tags
Market Development vs. Market Penetration
MARKETING 101 TIME SO GATHER ‘ROUND:
These are two very important terms in marketing. Let’s look at businessdictionary.com’s take on each one. First off, “market development”:
Expansion of the total market served by a firm by (1) entering new segments of the market, (2) converting non-users into users, and/or (3) increasing usage per user.
Next up,...
2 tags
Borders in Trouble
Woah, I just plain forgot to post yesterday- UNACCEPTABLE. To atone I will post two (count ‘em) times today. As per usual, I’ll start off with some bad news.
According to this CNNMoney.com article, national book retailer Borders saw their stock plummet 35% during trading yesterday (and another 17% after hours). This was on a report that their long-rumored bankruptcy might happen...
1 tag
A Pat on the Back
Shall we start the “Daily Biz Mojo” train? One of my earliest posts was a news summary on Rare Earth Minerals and now this article over at investopedia.com lists REMs as the number one investment trend for 2011! So apparently The Daily Biz is a kingmaker. So without further ado, let me do some articles on downtown Des Moines, the upcoming Dark Tower films, and my bank account. ...
January 2011
55 posts
2 tags
The "New"
The New Economy. The New Frugality. The New Normal. Fallout from the recent Great Recession is intense and it has lasted a long time now. Worker production is up, incomes are flat (at best) and everyone is still on pins and needles. Government seems at a loss about how to proceed, and the unemployment rate won’t budge. Many pundits, economists, and even elected officials suggest...
1 tag
Theory of Price
Why do consumers buy the products they buy? There are many factors including available alternatives, consumer income, and marketing. Let’s refine the question; what influences consumers to spend what they spend on goods and services? That is the central question of the “Theory of Price”. From Investopedia.com, the Theory of Price is
An economic theory that contends that...
1 tag
Wow- That's a Lot of Money
Hedge fund manager John Paulson made over $5 billion during 2010- that comes out to $158.55 per second. According to this CNNMoney article by focusing on gold-focused funds because he sensed the weakness of currencies worldwide. Because I love my readers I did some math: here is what he would have made if he’d gone to see some of my favorite Oscar-nominated films “on the...
2 tags
Authoritarian Leadership
A couple of days ago The Daily Biz explored Servant Leadership. Today we venture about as far away from that as possible and into the realm of authoritarian leadership. The name is self-explanatory, but I never pass up a chance to use businessdictionary.com! Authoritarian leadership is defined as a
Leadership style in which the leader dictates policies and procedures, decides what goals are...
2 tags
Retail Concepts: Retail Squared
Call it “Brick-and-Mortar Makes a Stand”: Large retailers are renting their space out to smaller, self-contained businesses. You know that nail salon you always see when you’re checking out at Wal-Mart? That’s one example.
Regular readers of the Daily Biz know I’m something of a “retail junkie”, so this story from CNNMoney is essentially candy for...
2 tags
Servant Leadership
Last week The Daily Biz offered a brief definition of leadership. I promised to follow up with separate articles about different forms of leadership. Today we start with one of the more fascinating approaches to modern leadership: “servant leadership”.
From 30,000 feet, servant leadership is driven by the notion that organizations open up myriad opportunities for...
2 tags
Dow Jones Industrial Average Nearing 12,000
The Dow Jones Industrial Average (DJIA) is nearing 12,000 for the first time since June of 2008 according to this CNNMoney article. On a top level, all you need to know is that the higher the DJIA goes, the better our economy is performing. What, you want to know more? Good thing I’m here.
Okay, here’s the deal on a slightly deeper level: the Dow Jones Industrial Average...
1 tag
What is a "Stakeholder"?
One term commonly thrown around in business circles is “stakeholder”. According to businessdictionary.com, a stakeholder is a
Person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization’s actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers,...
1 tag
Gas Prices Rising
File this under “Because it’s Obvious” and “I Guess it’s Not My Job to Cheer You Up”: Gas prices are high and getting higher according to this CNNMoney article. The rise could be attributed to a shortage, though some analysts point out that demand is not yet outpacing supply. While prices are not near the summer 2008 levels ($4.11/gallon), the spike is...
2 tags
The BCG Matrix
How does a company know when to pare down its offerings and when to expand? When to invest in research & development? When to phase out an old product? When to take a gamble on a hot new market?
These questions are important because products and offerings have lifespans. Some products, like pain relievers, maintain relevance in the market over a long period of time. Other products,...
2 tags
So Sorry, Arby's
Wendy’s/Arby’s Group Inc., owner of (guess, GUESS!) Wendy’s and Arby’s has decided to explore selling off the latter. According to this Bloomberg Businessweek article, executive Nelson Peltz believes that getting rid of Arby’s will allow the company to maximize value on the stronger Wendy’s brand. Wendy’s appears to be the stronger piece overall with...
2 tags
So Sorry, Arby's
Wendy’s/Arby’s Group Inc., owner of (guess, GUESS!) Wendy’s and Arby’s has decided to explore selling off the latter. According to this Bloomberg Businessweek article, executive Nelson Peltz believes that getting rid of Arby’s will allow the company to maximize value on the stronger Wendy’s brand. Wendy’s appears to be the stronger piece overall with...
1 tag
What is "Delisting"?
Borders booksellers may be delisted this year, according to an article on CNNMoney.com. What does “delisting” mean, exactly? Investopedia.com defines “delisting” as:
The removal of a listed security from the exchange on which it trades. Stock is removed from an exchange because the company for which the stock is issued, whether voluntarily or involuntarily, is not in...
2 tags
What is Leadership?
A couple of weeks ago The Daily Biz posted about what makes a group of people a “team”. While it’s true that teams are typically more horizontally aligned (with no power hierarchy), organizations cannot and should not exist entirely along this model. Leaders are necessary. Beyond that, a healthy organizations oftentimes have many employees from senior executives on down to...
2 tags
Target Makes a Move
Wandering the aisles of Target yesterday I came across an open, bazaar-type expanse where their Christmas products had been some weeks before. “Oh yeah,” my wife said, “this is their new bulk-product push they’re doing.” Huh? My HR-trained, pregnant wife had the scoop on me? She doesn’t listen to business podcasts all day long! She doesn’t read the...
2 tags
What is Leadership?
A couple of weeks ago The Daily Biz posted about what makes a group of people a “team”. While it’s true that teams are typically more horizontally aligned (with no power hierarchy), organizations cannot and should not exist entirely along this model. Leaders are necessary. Beyond that, a healthy organizations oftentimes have many employees from senior executives on down to...
2 tags
Target Makes a Move
Wandering the aisles of Target yesterday I can across an open, bazaar-type expanse where their Christmas products had been some weeks before. “Oh yeah,” my wife said, “this is their new bulk-product push they’re doing.” Huh? My HR-trained, pregnant wife had the scoop on me? She doesn’t listen to business podcasts all day long! She doesn’t read the...