Monthly Newsletter

* November 2011 * Monthly Newsletter Quick Links: Video Index Abstract Index

* * VIDEO INDEX • Steamy Visions of Pasta • Steve Jobs: A Life in Technology

* * • Raging Against Wall Street • Price Hikes Hit an Ailing America • Putting a Price on a Like • Is Being First the Same as Being Best in Tech? • Procter & Gamble’s Information Innovation • Paying with the Wave of a Smartphone • Cable TV Catches up to the Networks • Bridging the Gap Between Global Markets • Krispy Kreme’s Comeback • Beyond Baby on Board ABSTRACT INDEX

* * • A recent poll showed that 43% of Americans agree with Occupy Wall Street’s views on the financial system. • Many consumers vented their anger at Bank of America after the company announced a new $5 monthly debit card fee. • As a result, more Americans are closing their accounts at big banks and flocking to credit unions and prepaid debit cards. Raging Against Wall Street

* * • Will small banks and credit unions benefit from the big banks actions? What do you think? • Are further government regulations needed for large financial institutions? Photo courtesy of David Shankbone

* * • Due to increasing food and transportation costs, prices at midsized retailers and restaurants are on the rise. • A recent study found that 61% of surveyed businesses planned to raise prices over the next year. • If done improperly, rising prices at midlevel companies could push consumers to larger outlets with lower prices. Price Hikes Hitan Ailing America

* * • Why are price increases generally a risky strategy for any company? What do you think? • Why must small and midlevel companies be very careful with price increases? Photo courtesy of Luz Bratcher

* * • Although Facebook provides companies with names and faces of their customers, the site provides little more data than that. • Businesses are unable to track standard web data such as which sites send traffic to a fan page or how much time visitors spend there. • As sites become less freestanding and more Facebook-focused, businesses may not be able to track the value of their web presence. Putting a Price on a Like

* * • Why are businesses intent on tracking customer’s clicks and navigation paths? What do you think? • Why is putting a price tag on a “like” valuable to Facebook? Photo courtesy of Sean MacEntee

* * • Should tech companies strive to make better quality products or to release their products before anyone else? • In the ever changing world of tech, just because something gets on the scene first doesn’t mean it will be the big new thing forever. • The iPod stands as the best example of a product that entered the market late only to dominate it through top design and quality. Is Being First the Same as Being Best in Tech?

* * • Why does a “network effect” often give a product an edge over competitors? What do you think? • What’s an important point to remember about producing quality products? Photo courtesy of Colin Harris

* * • Procter & Gamble is ditching paper in exchange for an advanced information system called the Business Sphere. • With its hub located on two huge screens at P&G’s headquarters, managers can access all company data with the push of a button. • P&G expects it will have saved $1 billion between 2003 and 2012 by standardizing and digitizing its information system. Procter & Gamble’s Information Innovation

* * • What are the key advantages of implementing a system like Business Sphere? What do you think? • What must firms remember about using systems like Business Sphere? Photo courtesy of Derek Jensen

* * • Using near field communication (NFC), tech companies are attempting to turn smart phones into freestanding credit cards. • Google recently tested its own Google Wallet this summer while Apple applied for more than 36 patents involving NFC. • These companies’ efforts could fail if no one buys NFC enabled phones or if companies fail to update cash registers to accept them. Paying with the Wave of a Smartphone

* * • What’s the benefit to retailers of replacing money with smart phones? What do you think? • What personal issues must be considered with digital wallets? Photo courtesy of Paul Jacobson

* * • Thanks to cheaper channel packages, cable stations now command upfront ad sale prices comparable to their network rivals. • While primetime viewership for network channels fell 4% last year, cable saw its primetime audience expand by 4%. • A portion of cable’s surge can be credited to a number of high profile attractions like Conan O’Brien or Oprah’s network OWN. Cable TV Catches upwith Networks

* * • Will cable ad revenues surpass network revenues in the near future? What do you think? • Why are many advertisers flocking to cable to promote their products? Photo courtesy of Mars Hill Church

* * • Managers at multinationals can translate breakthroughs in foreign markets into changes that affect other divisions of the company. • One such “global bridger” at ConocoPhillips discovered that consumers in Central America preferred smaller packaged petroleum products. • His observations eventually led to a companywide change in packaging for other developing markets. Bridging the Gap Between Global Markets

* * • What important point does the abstract highlight about global markets? What do you think? • What’s the real key to global bridgers success? Photo courtesy of Sergio Russo

* * • Krispy Kreme saw its market dominance wane in the mid-2000s thanks to overexpansion and an accounting scandal. • In 2008 a new CEO turned things around by closing the company’s “factory stores” and opening smaller outlets in high traffic areas. • In order to stay competitive with its rivals, Krispy Kreme recently unveiled a new menu with healthier fare and high-end coffee drinks. Krispy Kreme’s Comeback

* * • What does Krispy Kreme hope to achieve by expanding its product mix? What do you think? • Will Krispy Kreme’s new strategy bring the company back to prominence? Photo courtesy of Marc Benton

* * • In the 1980s Michael Lerner struck gold with his famous “Baby on Board” sign. • Once the fad product’s sales dropped, Lerner’s company, Safety 1st, branched out into other child safety products. • Sales at the company grew to $158 million annually by 2000 when Lerner sold the company for a $38 million payout. Beyond Baby on Board

* * • What’s an important fact to remember about fad products? What do you think? • What do successful entrepreneurs do to avoid having a one-hit wonder? Photo courtesy of Steve Rhodes

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