Description: Like plenty of music fans, Sam Broe jumped at the chance to join Spotify two summers ago, and he hasn’t looked back. Source: NYTimes.com Date: Jan 28, 2013 Link: http://www.nytimes.com/2013/01/29/business/media/streaming-shakes-up-music-industrys-model-for-royalties.html?ref=media&_r=0 Questions for Discussions: What does this article have to say about the royalties earned by artists? As small business people on the lower end… Read more »
Posts Categorized: Management Issues
Outsourcing to surge in 2013: study
Description: Love it or hate it, outsourcing is here to stay as a standard business practice. Source: SmartPlanet.com Date: Jan 28, 2013 Link: http://www.smartplanet.com/blog/bulletin/outsourcing-to-surge-in-2013-study/11466?tag=nl.e660&s_cid=e660 Questions for Discussions: Why is outsourcing popular? How does outsourcing relate to productivity, costs, and cash flow? What are the financial risks and limits to outsourcing?
Hasbro cutting jobs after weak holiday
Description: Shares of toymaker Hasbro fell on disappointing fourth quarter sales and layoff news. Rival Mattel was lower too. Source: CNNMoney.com – video report Date: Jan 25, 2013 Link: http://money.cnn.com/video/investing/2013/01/25/investing-buzz-hasbro-mattel-toys-jobs.cnnmoney/ Questions for Discussions: Why have sales declined for the firm? How should management respond to the trends in customer behavior that were highlighted in the… Read more »
Why We’ll Still Never See a 100% Reserve Economy
Description: “I’m going to start with a model of a perfectly safe 100 percent reserve economy,” said Robert Lucas, “…which looks better and better to me.” Lucas, a Nobel Prize-winning economist at the University of Chicago, was speaking two weeks ago at a panel in San Diego to mark the 100th anniversary of the Federal… Read more »
Harry Winston to Use Swatch Cash for Diamonds Purchases
Description: Harry Winston Diamond Corp. (HW)’s $1 billion sale of a luxury unit to Swatch Group AG (UHR) provides the cash to invest more in diamond mining, a business that last year was more than twice as profitable as jewelry. Source: Bloomberg.com Date: Jan 15, 2013 Link: http://www.bloomberg.com/news/2013-01-15/harry-winston-to-use-swatch-cash-for-diamonds-purchases.html Questions for Discussions: Explain the logic of… Read more »
A Goldman Sachs Trading Team Sidesteps the Volcker Rule
Description: Sitting onstage in Washington’s Ronald Reagan Building? in July, Lloyd Blankfein said Goldman Sachs Group (GS) had stopped using its own money to make bets on the bank’s behalf. “We shut off that activity,” the chief executive officer told more than 400 people at a lunch organized by the Economic Club of Washington, slicing… Read more »
Hedge funds win big with subprime mortgages
Description: Subprime mortgages may have been the most lucrative bet of 2012 for hedge funds, with some gaining more than 20% by buying up troubled financial crisis era mortgages. Source: CNNMoney.com Date: Jan 04, 2013 Link: http://money.cnn.com/2013/01/04/investing/hedge-funds-subprime-mortgages/index.html?iid=SF_BN_River Questions for Discussions: Why have hedge fund managers been so successful in subprime mortgage investments? Do you think… Read more »
Big cut, big raise for Apple, Netflix CEOs
Description: Apple Inc.’s chief executive Tim Cook took a 99% pay cut in 2012, while Netflix Inc. CEO Read Hastings saw his salary doubled for 2013. Source: Marketwatch.com.com Date: Dec 30, 2012 Link: http://www.marketwatch.com/story/big-cut-big-raise-for-apple-netflix-ceos-2012-12-30 Questions for Discussions: What is the issue surrounding these executive pay reports? Do you believe executive compensation for Tim Cook is… Read more »
GM Buying 200M Shares, U.S. to Exit in 12-15 Months
Description: Dec. 19 (Bloomberg) — Bloomberg’s Dominic Chu reports that General Motors will purchase 200 million shares of its stock from the U.S. Treasury as part of the department’s plan to sell its entire holding of GM stock within 15 months. He speaks on Bloomberg Television’s “In The Loop.” Source: Bloomberg.com – video report Date:… Read more »
Are executives too big to jail?
Description: Critics ask why many bankers don’t face money-laundering charges Source: Associated Press: VancouverSun.com Date: Dec 19, 2012 Link: http://www.vancouversun.com/business/executives+jail/7719105/story.html#ixzz2FVWyW6mP Questions for Discussions: Do you think some executives should be jailed? What are the implications if they are and what are the implications if they are not jailed? How should financial penalties be decided in… Read more »
