FedEx Is Downbeat on Chinese Economy

Slowdown in Trade, Customer Shift to Cheaper Services Hit Shipper 

Updated September 18, 2012, 2:15 p.m. ET

Not a pretty picture. This article states that, "We see the [U.S.] economy not improving from here," FedEx Chief Financial Officer Alan Graf said Tuesday. He noted that its outlook for growth in U.S. gross domestic product next year has been given "a significant haircut"—to 1.9%, from an anticipated 2.4% just three months ago. Its forecast for global GDP growth next year was cut to 2.7% from 3% previously."

Mr. Fred Smith, FedEx's CEO blamed "policy choices" in the U.S., China and Europe for causing global trade to decelerate even faster than GDP, with U.S. stimulus efforts adding to the pressure on fuel costs by pushing investors into commodities.

The company lowered its full-year earnings view, now expecting between $6.20 and $6.60 a share, down from an already disappointing forecast of $6.90 to $7.40 in June. For its current quarter ending in November, FedEx forecast per-share earnings of between $1.30 and $1.45, below the consensus estimates of $1.67 from analysts surveyed by Thomson Reuters. 

What could Fred Smith be planning to adjust business in this difficult Chinese market?

The Six Secrets of Self−Control

The Six Secrets of Self−Control

By Dr. Travis Bradberry

Talentsmart Posting

Self-control is so fleeting for most that when Martin Seligman and his colleagues at the University of Pennsylvania surveyed two million people and asked them to rank order their strengths in 24 different skills, self-control ended up in the very bottom slot.

Take Responsibility For Your Life

This post comes from the blog, “Purpose Fairy: Ideas and Suggestions about Life” The posting talks about people who are always looking at the dark side of everything, always focusing their attention on what is lacking, what is missing.

Do you know anyone like that? Have you tried to change them?

Take Responsibility for Your Life

Amazon Unveils $299, 8.9-Inch Kindle Fire HD, 4G LTE for $499

I see in on PCMag.com that todayAmazon unveiled a new Kindle Fire lineup, which includes a revamped version of the original tablet, as well as 7-inch and 8.9-inch versions of the new Kindle Fire HD.

Amazon will drop the price of the original Kindle Fire tablet to $159. It will offer a 16GB version of the 7-inch Kindle Fire HD for $199 and a 16GB, 8.9-inch version for $299. But the retailer will also sell a 32GB Kindle Fire HD with 4G LTE connectivity for $499.

Kindle Fire's New Lineup

 Should be interesting. Amazon has one priced for every taste.

On Tuesday morning, September 11, 2001, the U.S. came under attack when four commercial airliners were hijacked and used to strike targets on the ground. Nearly 3,000 people tragically lost their lives. Because of the actions of the 40 passengers and crew aboard one of the planes, Flight 93, the attack on the U.S. Capitol was thwarted.
 

Coming Soon: Toilet Paper Priced Like Airline Tickets

By JULIA ANGWIN and DANA MATTIOLI

Wall Street Journal - Wednesday September 5, 2012

Deploying a new generation of algorithms, retailers are changing the price of products from toilet paper to bicycles on an hour-by-hour and sometimes minute-by-minute basis.

Are there people out there who prefer Fixed Pricing? How much time do people spend shopping?

Old School Marketing Master

Getting Back to Work

Getting Back to Work A Post-Vacation Briefing on the State of Play in Energy, Gadgets, Retailing and Other Businesses

This Wall Street Journal article provides an overview of nine segments of business, ranging from the mining industry to the tablet wars. The authors give us the most important business issues of the fall and winter ahead. (1) Autos, (2) Energy: The Gas Glut, (3) Technology, (4) Industrials, (5) Holiday Harbingers, (6) Telecom:, (7) Publishing E-Books, (8) Mining:, and (9) Health. I found it particularly interesting to see how many industries that are anxiously awaiting the presidential elections. No growth in the picture until industry gets a feel for which direction we will be sailing.

Back to School Spending Boosts Retailers

Consumer Spending Ticks Up
Retailers Gain from Greater Back-to-School Purchases Even as Key Confidence Index Slips
By Conor Dougherty and Karen Talley
The Wall Street Journal Corporate News August 31, 2012

Consumer spending increased 0.4% in July from a month earlier, the fastest pace since February, the Commerce Department said on Thursday. Meantime, reports from retailers—including Target Corp., TGT +0.20% Macy's Inc. M -0.84% and Gap Inc.GPS -1.19% —showed same-store sales gains in August compared with the same period last year.

Gap posted a 9% increase in sales at stores open at least a year versus a year ago. All three of the company's North American brands—Gap, Banana Republic and Old Navy—reported increases, including a 12% rise at Old Navy.

Cincinnati-based Macy's said its same-store sales rose 5.1% over a year earlier. "The strength was broad based across merchandise categories, geographies and channels," said Chief Executive Terry Lundgren.

The improvement in same-store sales comes despite slumping consumer confidence. The Conference Board, a private research group, reported on Tuesday that consumer confidence fell to 60.6 in August—the lowest reading since November—from 65.4 in July.

Electronics Stores Fight for Survival

Electronics Stores Fight for Survival

By Ann Zimmerman WSJ Business August 31, 2012

This Is an interesting update on the future of electronics specialty stores?

The article points out that the economics of the industry have evolved—and not to the benefit of most retailers.

The author of this WSJ article, Ann Zimmerman points out that not long ago, retailers such as Best Buy Co., GameStop Corp. and RadioShack Corp.were outmuscling competitors across America by offering one-stop shopping for the latest televisions, computers, videogames and gadgets.

They are now fighting to survive. The rise of online competitors like Amazon.com Inc.that offer low prices and downloadable products have siphoned customers and sales from these once-powerful retailers.

RadioShack, whose stock is down 75% this year, is playing down cables and connectors and refashioning itself as a convenience store for smartphone buyers.

The average price of a TV has fallen 40% since 2007 even as screen sizes have increased, while gross profit margins have tightened from about 30% on upper end models to the low teens, according to market research firm NPD DisplaySearch.

I find RadioShack particularly helpful when you need an electronic connector or adapter and you have no idea where to turn. I cannot imagine going online with these questions.

How U.S. Lost Out on iPhone Work

In this week's IEconomy Section of The New York Times, there was a great article about "Why Jobs are Flowing to China." Authors Charles Duhigg and Keith Bradsher use Apple's experiences in manufacturing its 70 million iPhones, 30 million iPads and 59 million other products overseas to tell the story.

This definitely should be required reading for every MBA student and every politician who wishes to serve the public. It looks like Charles Duhiggs will be answering readers' questions later this week. www.nytimes.com/business.

The article, How U.S. Lost Out on iPhone Work can be found at:
http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?_r=1&ref=todayspaper

P&G's Profit Drops 49%

The Wall Street Journal

http://online.wsj.com/article/SB10001424052970204573704577186622143009202.html?mod=WSJ_business_whatsNews

By PAUL ZIOBRO

Procter & Gamble Co. posted a sharply lower profit for its fiscal second-quarter reflecting higher commodity costs and a hefty write-down for past acquisitions, including its $57 billion megadeal for Gillette.
The world's largest consumer-goods company also struck a downbeat tone for the current quarter citing a higher-than-anticipated tax rate, as well as commodity costs, and lowered its full-year earnings outlook due to the stronger U.S. dollar.

At the same time, P&G, whose products include Bounty paper towels, Gillette razors and Pampers diapers, still expects a strong finish to its fiscal year as commodity costs stabilize and higher prices continue to boost profits. Sales excluding the impact of currency translation, acquisitions and divestitures are now forecast to rise 4% to 5%, narrowed from 3% to 6%

For the quarter ended Dec. 31, P&G reported a profit of $1.69 billion, or 57 cents a share, down from a profit of $3.33 billion, or $1.11 a share, a year earlier. Stripping out a write-down of 50 cents a share related to the company's appliances and salon professional businesses, P&G reported core earnings of $1.10 a share for the quarter. .

No More Résumés, Say Some Firms

This is a Wall Street Journal article on Careers January 24, 2012 By RACHEL EMMA SILVERMAN

Union Square Ventures recently posted an opening for an investment analyst.
Instead of asking for résumés, the New York venture-capital firm—which has invested in Twitter, Foursquare, Zynga and other technology companies—asked applicants to send links representing their "Web presence," such as a Twitter account or Tumblr blog. Applicants also had to submit short videos demonstrating their interest in the position.

Union Square says its process nets better-quality candidates —especially for a venture-capital operation that invests heavily in the Internet and social-media—and the firm plans to use it going forward to fill analyst positions and other jobs.

http://online.wsj.com/article/SB10001424052970203750404577173031991814896.html?mod=WSJ_Careers_CareerJournal_2

A previous posting for an Internet marketing position had applicants rate their marketing and social-media skills on a scale of one to 10 and select from a list of words how friends or co-workers would describe them. Options included: high energy, type-A, laid back, perfect, creative or fun.
In times of high unemployment, bypassing résumés can also help companies winnow out candidates from a broader labor pool.

This is interesting stuff.

By Joe Castaldo  | January 19, 2012
On January 22, Research In Motion announced that Mike Lazaridis and Jim Balsillie would step down as co-CEOs and co-chairmen of the board of directors. Lazaridis will now be vice chair of the board, and head up a new innovation committee. Balsillie will become a director. Their replacement as CEO is Thorston Heins, formerly RIM's chief operating officer for products and sales.

How management has failed at RIM

http://www.canadianbusiness.com/article/66599--how-management-has-failed-at-rim 

Research Roundup: Team Performance, Demystifying Market Composition and the Reality vs. Hype of Sponsored Search

This article was Published: January 18, 2012 in Knowledge@Wharton.
How do interpersonal relationships affect the performance of individual team members? Why is a shopping mall composed the way it is, and how do different stores affect each other's business? Do higher-ranked sponsored search listings pay off in terms of a company's bottom line? Wharton professors Jennifer Mueller, Maria Ana Vitorino and Kartik Hosanagar, respectively, examine these issues -- and what they mean for business -- in recent research articles.
How Better Interpersonal Relationships Lead to More Effective Team Members
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2928

How do you reward team performance?

How U.S. Lost Out on iPhone Work - New York Times article - January 22, 2012

This is a thought provoking article that shows why jobs are flowing to China. The authors are Charles Duhigg and Keith Bradsher. Follow at www.nytimes.com/business.