One Positive Sign for America's Economy

Ford Posts Third-Straight Annual Profit - Nick Bunkley

Since the economic downturn the United States has little to be proud of or shown many drastic results from President Obama's Bailout. This is not so, Ford Motors posted its third straight year turning a profit. After continually bleeding money to their competitors and within there company (too many costs and not enough revenue) in 2006, they shifted their goals towards more consumer oriented cars and environmentally efficient products. This was the main place they were losing to competitors. Japanese motor companies were producing cheaper and more efficient cars that Ford and GM could not compete with. This year: "the company earned an operating profit of $6.2 billion for the year...the net profit was equal to $4.94 a share, up from $1.56...revenue increased 13 percent to $136.3 billion." However they did show a loss in profit overseas. This was attributed to securing jobs for workers, changing there focus to efficient and less expensive cars, and cutting unnecessary overhead. Between 2006-2008 they lost a reported 30.1 billion USD. Since 2009 they have recovered approximately 29.5 billion USD. This article demonstrates some things we have been talking about, competition, global markets, macroeconomics, product orientation, and production. In the face of economic disparity the American ambition and perseverance prevailed, and showed that we are still able to compete with the global market.

More information can be found at: http://www.nytimes.com/2012/01/28/business/fords-posts-third-straight-annual-profit.html?ref=business

-BW

Not Quite Smart Enough - by Andrew Martin

In class we have been discussing different methods for reaching consumers, competency, utilities, and production. It seems that in the 21st Century many companies are heavily focused on technology while at the same time simplifying the world we live in. The biggest contributor to this is the move to "smart" gadgets. We were first introduced to smart phones, then smart tablets, and now its stemming all the way to televisions and household appliances.The question consumers are asking themselves is "...if I pay an extra $200 for an appliance, show me the payback." What they are referring to is how much these smart gadgets are worth to the individual. To some being able to control the dishwasher or dryer is a must have, others its just a fancy and more expensive appliance. This relates to what we learned in class with the Value proposition; do the benefits adequately deserve the price. Another idea presented in class is competency and utility. There is a distinction between these "smart" gadgets and other standard one, and it is these differences which are marketable. The utility aspect is time and ease. Smart gadgets simplify life and allow the consumer to pursue other interests and worry less about if they left their oven on. These marketable differences are the advancements which create competition and spark innovation.


More can be found at: http://www.nytimes.com/2012/01/24/technology/not-quite-smart-enough.html?_r=1&ref=todayspaper

-BW

The Pregame Show (of Commercials) Begins - by Stuart Elliott

After the dramatic finish of Sunday's NFC championship game it got me to thinking about the Super Bowl commercials. The Super Bowl is the most heavily watched program on television, last years estimate was 111 million people tuned in to watch the Green Bay Packers. With this much traffic to one program companies are paying large quantities of money for commercial air time. The average cost for a 30 second commercial is 3.5 million dollars...yes 3.5 million dollars for 30 seconds of advertising. Many might think this price is astronomical, but at the cost of 0.03 cents per person to have your product reach their television it seems like a worthy investment. Many things we discussed in chapter one can relate to this article. For one the idea of ROI, or the amount of money made compared to the investment. We also discussed the value chain. One step in the value chain is allotted money to marketing and advertising. The Super Bowl is both the most prestigious of games and prestigous of advertising. As excited as I am to see the Super Bowl, I am equally as excited to see if these commercials are worth the pretty penny.

More can be found at: http://www.nytimes.com/2012/01/24/business/media/marketers-tease-super-bowl-commercials.html?ref=todayspaper

-BW