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Kmart's: New Management, No Strategy
Kmart has emerged from Chapter 11 with $2B and a new leadership team. The CEO, Edward Lampert, has some experience turning around retailers. But can he turn around Kmart in the face of the incredible competition offered by Wal*Mart and Target? So far, he doesn't even have a strategy; although he is eyeing promotional sales and exclusive brands as a way to get customers in the stores. You know what would get me in the stores? Products better than Target with prices lower than Wal*Mart. Let's see Lampert figure out that value chain!
http://www.businessweek.com/bwdaily/dnflash/may2003/nf20030515_5966_db014.htm
posted by Solution Junkie at 2:15 PM
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Dubinsky facing hard times
According to a CNET article, Handspring had a tough quarter and expects more to come. Says CEO Donna Dubinsky, "The near-term outlook will be challenging due to a weak economic environment and lower-than-expected sell-in of current products for the coming quarter."
Handspring is also moving toward phone devices and expects organizers to play a smaller and smaller role in the companies revenue. Hopefully Dubinsky will talk about these challenges when she speaks at Babson on May 1.
http://news.com.com/2100-1047-996977.html
posted by Solution Junkie at 12:11 PM
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Just one more
Yes, I too am sick of hearing about Wal*Mart. In addition to the tree of the reading we had on the global retailer, I have spent the last couple weeks working with P&G on an application to be used by their Wal*Mart mechandisers. (Side note: Wal*Mart is now 30% of P&G's US sales.) But I think we can slip in one more reading, especially since it's more about some smart punks than it is about cash flow or value chains.
According to this MSNBC article, some tech-saavy pranksters at re-code.com are promoting the practice of replacing bar codes on products so that the scanners at checkout ring up a lower price. Not satisfied with this petty yet slick theft, the group also provides some interesting replacements. For example, they recommend placing the bar code for Ortho Home Defense Repellant Spray on Mossberg Model E35 12 gauge pump shotgun. Now that's home defense!
Wal*Mart gets into the game by threatening legal action. How predictable.
http://www.msnbc.com/news/901016.asp?vts=41620030748
posted by Solution Junkie at 11:21 AM
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diamondback elliptical
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Dilbert hits close to home
Sunday's Dilbert was just too appropriate. It actually scared me; I thought maybe Scott Adams was in our class this weekend. Despite the fact that I have always felt a close association with Dilbert (my email signature begins "Dilbert's co-worker"), this mention of cash flows brought that association to new highs. Add in the similarity of the VC's questions to those of Prof. Lawler and this strip might as well have "Babson" written on Dogbert's green blanket.
100 points to the first person that tells me (email: dgiuliana1) what is incredibly different about this particular episode than almost every other Dilbert episode ever written.
http://www.dilbert.com/comics/dilbert/archive/images/dilbert2003041261313.gif
posted by Solution Junkie at 11:33 AM
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TOSHIBA SATELLITE L305-S5955 REPLACEMENT LAPTOP LCD SCREEN
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Wal*Mart Rivals Pentagon
We have been reading about Wal*Mart's value chain and the competitive advantage that its use of IT gives to the retailing giant. Optimize Magazine discusses just this topic in relation to not only Wal*Mart, but also Dell, HP, and Nokia. The article establishes that it is the alignment of the IT architecture with the business architecture that opens new strategic opportunities and allows the company to be flexible.
Regarding Wal*Mart's IT architecture:
This business architecture is linked by a computer system that is second only to that of the Pentagon in storage capacity. Wal-Mart's information systems analyze more than 10 million daily transactions from point-of-sale data and share this information in real time with insiders as well as suppliers. This complete supply-chain visibility--from customers to suppliers--allows precision control of logistics and inventory. It's these links between business and IT innovation that have put Wal-Mart at the top of the retailing game.
Maybe Wal*Mart can tell us if Saddam is alive or dead. He may have stopped off at a Sam's Club for a case of gauze and a box of Sam's Choice water.
Thanks to Brad Edmond for the link.
http://www.optimizemag.com/issue/006/pr_management.fhtml
posted by Solution Junkie at 11:43 AM
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Kids as Strategy
Let's start Module 2 off with an example of strategy.
Virgin Mobile (a joint venture between Virgin Group and Sprint) is directly targeting those consumers that spend the most time on the phone -- kids. By offering inexpensive handsets, pay-as-you-go plans, and partnerships with kid-friendly content like MTV and SpongeBob, Virgin is booming in the under-20 mobile market. In the ultimate form of flattery, Nextel has also decided to move toward that market with it's own mobile products.
It used to be that a kid with a beeper stood out as a drug dealer. Now, a kid needs a cell phone to not stand out.
http://www.business2.com/articles/web/0,1653,48459,00.html
posted by Solution Junkie at 10:05 AM
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Stick to your beliefs
entreworld.com offers 8 simple rules to help your business maintain good ethics. And these are simple rules in words we easily understand: respect, honor, integrity, customer focus, results-oriented, risk-taking, passion, persistence. So how is risk-taking ethical? Well, you'll just have to read the article.
Best of luck on your end of mod papers.
http://www.bcentral.com/articles/ew/default.asp?newsid=2003-03-17
posted by Solution Junkie at 2:28 PM
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Who's getting the money?
Venturewire provides all types of information on which companies are receiving venture funding. The have newletters in a number of verticals including tech, wireless, lifescience, and semiconductor. The Alert newsletter is free and gives a list of the days venture activity. Highly recommended if you want to see what ideas are grabbing the VC pockets.
http://www.venturewire.com/
posted by Solution Junkie at 10:17 AM
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Oops, they did it again!
The JD and the SEC both file charges against Quest for fraud. Just a little slight of hand with $114M and something about recognizing revenue before the services were completed. I bet this court transacript reads like Ronald Reagan's did, "I do not recall. I do not remember."
http://www.nytimes.com/2003/02/26/technology/26QWES.html?th
posted by Solution Junkie at 10:38 AM
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Managing Investors
The Massachusetts Interactive Media Council is hosting a series of events called "Entrepreneurs Toolkit". The March event covers managing investors.
When business is flat and there seems like no end to the liquidity tunnel, some investors shrug, while others pick up the phone. At the same time that an entrepreneur needs to manage past investors, she needs to pay attention to how the marketplace is viewing her company, in order to attract new investors. Investor Relations expert Sharon Merrill, whose clients include many New England public high tech companies, will explain how to keep expectations realistic and interest alive in your company.
Thank to Tom McGoldrick for this one.
http://www.imakenews.com/mimc1/e_article000129502.cfm?x=a1q915n,a6337qK
posted by Solution Junkie at 1:48 PM
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All the Music, None of the Mess
The Boston Symphony Orchestra has added a great new concept to their web site called the Online Conservatory. It coincides with BSO performances and provides an education in the performers and music that are being featured. The interface features sound and video and some sweet functionality (Ed. disclaimer: my wife had a little something to do with this project).
Want to express yourself musically, without using items made from Home Depot supplies? Open up the Online Conservatory and click on "Cage, The Seasons". John Cage was actually a friend of Rob Rauschenburg. It seems that Cage might have provided some inspiration for Rob. Cage composed a piece called 4'33" which consists of 4 minutes and 33 seconds of silence (a bit like Robert's white paintings?). Cage also composed music using pieces of junk he found (like Robert's art made of junk he found on the street?). Anyway, on the bottom right, click on "Musical Exploration", then on "Compose like Cage".
Check out the different sounds represented by the colored squares. Then click on "Compose like Cage!" on the left side. You can arrange the musical sounds and create a masterpiece of your own. If you play with it a bit, you can create some interesting combinations. And no tuning necessary!
http://www.bso.org/itemB/detail.jhtml?id=12300008&area=bso
posted by Solution Junkie at 2:50 PM
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Специально для красавиц коктейльные платья делового стиля. Каталоги одежды.
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Intel Latest Inflection
It seems that Intel has recognized another strategic inflection point. The chip-maker has released a series of processors for mobile devices including phones and handheld computers.
Intel's move is a no-brainer. As the PC business continues to flatline and wireless phones start to offer features you used to find only on a computer -- like Internet Access and streaming audio and video -- the Santa Clara, Calif., company is hoping to hop into a rapidly growing market.
They aren't a success yet, though; Intel hasn't landed a single big customer yet. Did they recognize this inflection point early enough? Do they have enough muscle to be successful even though they may be late to the game (like Microsoft and the web)?
http://www.business2.com/articles/web/0,1653,47297,00.html
posted by Solution Junkie at 10:30 AM
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Entrepreneurs of All Types
Oh, my. Here is a new twist on advertising on the web. All thanks to an enterprising young entrepreneur. You have to see to believe.
http://blogads.com/weblog/comments.php?id=228_0_1_0_C
posted by Solution Junkie at 1:41 PM
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A Tale of Two Entrepreneurs
"We won't let you down."
"We will not let you down."
If you live in New England, you probably recognize these words from the end of every Nantucket Nectars radio commercial. Tom First and Tom Scott started Nantucket Allserve not as a foray into the business world, but an attempt to avoid it. Driving a delivery boat around Nantucket Harbor is far from the plush executive suites of most American companies.
Nectars growth was as organic as the fruits in their juices. While initial demand for their goods on Nantucket rose rapidly, turning the venture into a sustainable business took a bit more effort. Tom and Tom grew the business "up and down the street", by convincing convenience stores to add another juice to their already stocked shelves one at a time. (Ask me about exploding bottle caps, bad labels, and below-average flavors.)
As the business grew, the Toms decided to open their own distribution company to decrease the costs of getting their beverages to market. This decision almost proved fatal for Nectars as the struggling distributor almost pulled the juice guys down with it. Tom First will tell you it was a "valuable, valuable experience." However, Tom and Tom got the formula all worked out and Nectars continued to grow into a popular premium juice. (Ask me about the juice guy that got away, the naked guy on the label, and how they invent new flavors.) The juices were so successful that the company was purchased by Ocean Spray and more recently by Cadbury-Schwepps.
Ever vigilant for a new opportunity, Tom and Tom took their experience in the food and beverage sales and distribution industry and started Shelflink. Shelflink would bring convenience, decreased costs, and improved accuracy to medium-sized distribution companies (ask me about the usefulness of cigarette cartons, meetings catered with beef jerky, and the non-smoking room). While the idea was very popular, the target market just didn't have the money to spend. Unphased, Tom First redirected the company to focus on providing sales force effectiveness software to large producers and distributors in the consumer packaged goods industry. Shelflink recently launched a project with Pepsi Bottling Group which will be featured at the Microsoft Mobility Conference in March.
From taking trash on a boat to shaking hands will Bill Gates may seem like a long and winding road. But it was pretty fun too.
http://www.nantucketnectars.com/fullstory.php
posted by Solution Junkie at 11:46 PM
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CEO's: Horns or Halos?
Are CEO's heroes, as they were seen during much of the 1990's, or villains, as they have been recently depicted? And how much is a good CEO worth?
In many quarters, CEO's are being depicted as the arch-villains of the downturn-enriching themselves at shareholder expense, in some cases cashing in huge stock option holdings before prices tumbled and leaving shareholders, along with employees, holding an empty bag.
I wonder what class is going to teach that.
Many critics are hopeful that imposing an accounting charge on options and thereby making equity incentives more transparent and expensive will result in executive paychecks being slashed.
That's it. I'm dropping out. If I can't get my $4M salary plus $100M bonus, how am I going to pay back my student loans AND buy off a judge so I can stay out of jail? This is so unfair.
http://www.bcentral.com/articles/isyn/default.asp?newsid=2003262
posted by Solution Junkie at 9:41 AM
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Subscribe to email!
Type your email address in the Subscribe box to the right and hit the "subscribe" button. You'll get one (and only one) email any day that I add a new entry. You will get the first couple sentences from each post so you can decide whether to read the entire post. You will NEVER get any spam or unsolicited email. You will know when to check back for the latest tidbits. And you can unsubscribe at any time. Oh, it's FREE FREE FREE (sorry, I've seen too many Ronco commercials). But wait, there's more. No, actually there isn't.
posted by Solution Junkie at 5:11 PM
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Taxes.com
It has finally happened. Some online retailers have already started collecting sales tax. These retailers, including some stores within Amazon.com, are complying with the many state tax codes. In the pipeline, however, is the Streamlined Sales Tax Project which hopes to simplify to a single tax structure. One difficulty that we didn't cover in our class discussions is that along with varying tax percentages from location to location, different categories are taxed differently and some items are categorized differently. For example, some states identify orange juice as a fruit, and some as a beverage. What will the think of next?
http://news.com.com/2100-1017-983636.html
posted by Solution Junkie at 1:10 PM
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Filling out the "Forms"
As we wrap up our discussions of business forms, Inc Magazine provides a list of articles on the subject. "In Search of the Perfect Form" tells the story of one entrepreneurs trials with switching form as the company grew (clearly she hadn't covered this in B-School). There are other articles covering "how to", the use of lawyers, and when switching form might be advantageous.
Thanks to Brad Edmond for the link.
http://www.inc.com/guides/start_biz/20676.html
posted by Solution Junkie at 10:50 AM
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But can she shoot?
Fast Track classmate Jackie Raffi appears in the Boston Globe today in a photo with Bruins great Cam Neely. Jackie and Cam played some poker, and Cam walked (limped?) away with some pricey watches. Rumor has it that Jackie, in a fit of rage, slashed Cam in his bum knee. The watches will be auctioned off at the Betting on a Cause and a Cure fundraiser in Cambridge. Rumors that the cost of the watches would come out of Jackie's pay could not be confirmed.
http://www.boston.com/dailyglobe2/036/living/Names+.shtml
posted by Solution Junkie at 1:12 PM
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Resources tight? Scavenge!
Although this article has some tech-specific items, it does point out a few ways to stretch our resources when budgets are tight. These work best in an existing company rather than a start-up, so they should prove useful sooner rather than later (when we all start companies in the Babson incubator and leech off of our professors).
http://builder.com.com/article.jhtml?id=u00420030205ptk01.htm&fromtm=e053-1
posted by Solution Junkie at 10:04 AM
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Legal Troubles
Not doing too well in Law class? Maybe you should check out this article that describes how to hire an attourney.
Entrepreneur.com seems to have quite a bit of material about all stages of start-ups and all types of businesses. However, many of their articles are on the short side and actually seem a bit JV for us budding MBA's. Worth a bookmark though. I'll check back often and post useful links here.
http://www.entrepreneur.com/howto/attorney/1,6334,,00.html
posted by Solution Junkie at 3:43 PM
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Goin' Legit
Kazaa claims it is going legit. Michale Corleone said he was going legit too just before he killed the heads of the five families. If I were Sony, Virgin, BMG, Warner, or MCA, I'd check my bed for a horse's head.
Courtesy of Chris Godfrey who read it ihn something called "the paper". Thanks, Chris.
http://kazaalegit.notlong.com
posted by Solution Junkie at 11:05 PM
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I can't compete with that
BellSouth is enforcing a non-compete clause in the employment contract of vice chairman Forsee who wants to defect to Sprint. I bet Sprint offers BellSouth $1M plus a third round pick in the 2005 MBA draft. Who knows, you could be the player to be named later!
http://bellsouthsprint.notlong.com
posted by Solution Junkie at 10:58 PM
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The Family Business
I'd love to tell you all about the Giuliana "family business". But that would only make my FBI file thicker, and that's not good for anyone.
However, recent research has identified that 62% (81 million people) are employed in family-owned businesses (FOB). While this includes 34% of companies listed on the S&P, many more are smaller organizations. And these orgs seemed to be quite different than the large corporations or agile start-ups we are used to studying.
Over a quarter carry no debt! Prof Lawler would not be pleased.
Twenty-five percent think their board of directors is useless. Ouch!
Sixty percent don't have a formal strategy. I guess they don't read FastCompany.
Check the link for a slew of other interesting stats. Maybe Vishal can educate us on his family business; I certainly can't unless I want a visit from "The Knife".
http://www.bcentral.com/articles/isyn/default.asp?newsid=20031311
posted by Solution Junkie at 12:03 PM
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Keep your taxes off my books!
How do you feel about taxes on Amazon, eBay, BlueNile, or (gasp) Victoria's Secret?
CIO Magazine pops the question "Is it time to start taxing online sales?" Given that state deficits are getting worse while online retail sales are booming, you may not have much of say.
Originally, the rationale for letting online merchants slide was twofold. 1. Online business was young, tender and needed a boost to make its way in the cruel world of business, and 2. It was too damn hard for vendors (and IRS agents) to navigate the labyrinth of various tax codes and regulations.
So online business is no longer a helpless newborn. But the complexity of implementing a system coordinating the various state codes will certainly be painful, except for businesses that provide such services. Anyone looking for a business to start?
http://comment.cio.com/soundoff/013003.html
posted by Solution Junkie at 3:39 PM
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Business Ethics and Worker Directors
Although "business ethics" was one day thought to be an oxymoron, it has come a long way. Now "business ethics" seem taboo!
How else can you explain the incredible number of ethical lapses? It must be that corporate leaders are reading their ethics book upside down. It's as if each CEO is trying to be more unethical than their peers. Maybe there is some underground competition, like cock fighting.
Business Ethics magazine covers the topic not by covering the news, but by discussing new ideas. An idea covered in this month's issue is "worker directors".
Compared to the conventionally selected boards at Enron and WorldCom, worker directors could have been far more effective -- and certainly would have been no worse. Does anyone imagine worker-directors would have voted for exorbitant executive pay packages, or to forgive millions of dollars in loans to corporate officers? If workers with knowledge about falsified accounting were looking for a place to turn, they might have found worker directors more approachable than faceless directors from out of town.
Now that's an idea. Include in the board some people that actually have a stake in the company. Most of the directors are only interested in exchaning trips to each other's country clubs. And the company executives get million dollar bonuses even if the company collapses. Ah, but the lowly employees, they need the job or they will have no way to get free office supplies for the new business they are starting.
http://www.business-ethics.com/employee1.htm
posted by Solution Junkie at 10:53 AM
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10 Reasons Why Businesses Fail
Calculating cash flow, comprehensive planning, competitive advantage, business law, and the importance of hiring a strong team. We have touched on all of these topics in the first few hectic weeks. According to Microsoft bCentral, lack of attention to these topics appear on the list of top reasons why businesses fail.
http://www.bcentral.com/articles/wuorio/150.asp
posted by Solution Junkie at 3:30 PM
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