Thursday, April 28, 2011

General Motors Advertising

General Motors is known for their great deal of advertising, spending millions of dollars to accomplish what they want. With the demand being very large for the Super Bowl, General Motors decided to launch many commercials for their cars during this time. They also saw that the television show "Glee" would be coming on afterward so they were able to present themselves in the show. To show off their cars, they decided to give one of their models, a Camaro, to the game's most valuable player. Spending so much money on advertisements is helping our economy because they are giving away so much. Even though General Motors is spending so much money on these commercials, it well help them in the long run because so many people watch the Super Bowl and they are being exposed to all the vehicles they present in the commercials. If the demand to watch the Super Bowl is very high then many consumers will see the cars and more than likely become interested. They used commercials that would draw people in and find them interesting so they were able to watch. However, they did not drift away from the point of presenting their cars because they wanted consumers to stay focused on the main topic. This auto industry became bankrupt a couple years ago and was not able to do advertisements but as they rose out of this bankruptcy they were able to do advertisements again and draw in consumers. All of the companies advertising in the Super Bowl are spending a lot of money, however it is helping our economy. General Motors is being intelligent when they spend their money on advertisements during the Super Bowl because the demand is so high and they will be sure to attract many consumers from it.

Bri Sharp, Catherine Gregory, Chris Kennard

Easter egg woe for chocolate makers as costs rise and prices are slashed

Everyone expects Easter weekend to be a huge weekend for chocolate to bring in a huge profit. This Easter chocolate makers are feeling the pain of their favorite chocolate eggs and bunnies not being as popular. Because of the low demand the chocolate makers are forced to lower prices. Even popular favorites such as Cadbury's Creme Eggs are finding it hard to make a profit with the rising prices of sugar and cocoa. The price inflation of these items makes the cost of production higher and low demand causes the price to remain low. Many stores use the deals on these Easter favorites to draw people into their stores so they can make a profit with other products. Although the demand of these items is obviously higher this time of year the profits are still not comparing to previous years. The amount of independent chocolatiers is slowly decreasing as large companies take over the marketplace. Rising prices of necessary ingredients may just cause these independent chocolatiers more discouragement from continuing in their business. While the Easter bunny may be enjoying the low prices the manufacturers and sellers are finding it hard to make their usual profit.
Catherine Gregory, Bri Sharp, Chris Kennard

Tuesday, April 26, 2011

Best Companies

After reading this article about some of the best companies for I thought about how the employees of a company affect the consumers. For example when I go to a restaurant where all of the wait staff seems happy, upbeat, and willing to do their job I am more likely to go back, rather than a restaurant where my waiter seems tired, bored, and ready to leave. The attitudes of a company’s employees directly influence the perception of the consumer. This was one of the comments posted by another person who read the article, “Thats probably why Zappos is one of the best businesses to order/purchase/work with ever!! Zappos is the best online shopping; they have the best stuff, the best prices, and the best shipping ever!!!! Coincidence? Probably not.” I think that the companies who put effort into making sure that their employees get good training, good working environments, and make the job at least somewhat enjoyable are benefitting their business outcome in the long run. On top of that, when you have employees who enjoy their job you will have less employees who quit. It takes time and money to train a new employee because with a new employee a business owner increases their variable costs because they must pay the new employee to work and a more experienced worker to teach them what to do regardless of if the job only requires one person.. It is financially smarter to keep people working for the company for long periods of time; they will be able to master the system saving the business owner time and money. 

The New Nook is a great Investment

The new and improvised nook uses new Android technology, a universal company, increasing the demand for the product because of the population that uses it.  According to this article by CNN, the nook color creates a bridge between the Amazon Kindle and the Apple’s iPad at a reasonable price of $249. The new nook is now capable of handling apps, Flash, interactive books and generally most of the tasks modern tablets can. The Nook Color is now a very attractive proposition.  The built-in e-mail reader lets you check several webmail accounts (such as Yahoo, Gmail, Hotmail and AOL) from one place. The BlackBerry PlayBook, a tablet selling at double the Nook Color's price, currently doesn't have this functionality. Because of the reasonable price of the new Nook, there will be excess demand for the product.  The only problem is that the nook is not as well-known as brands such as apple or blackberry. The search cost will lead people to buy the nook, because o the convenience of it being sold in Barnes and Nobles and other book stores nearby. However, because of the lack of advertisement and popularity there will be people who are still willing to buy blackberry or apple. 

Sunday, April 24, 2011

Can someone benifit from the NFL lockout?

As many of you guys are probably already aware, the NFl lockout may potentially cause the cancellation of the 2011 NFL season. The cancelation of the NFL season would result in finical losses for many businesses, because Sunday Football is not just a source of income for the NFL, it is also a source of income for sports bars, city governments, and many casinos and countless other businesses. The National Hockey League is not one of these businesses, in fact the cancellation of the 2011 NFL season would be great for the sport of Hockey. The NHL would benefit from football not being played in 2011, because with no football to watch there will be many people looking for another sport to watch, and the NHL would be able capitalize on this because as a substitute sports league to the NFL, it would be able to get higher ratings because there will be many sports fans with nothing else to watch. demand for hockey tickets would also go up because in some citys such as Nashville that is the only other team in town and there is less supply of sports tickets. Once these fans get a glimpse of the greatness of the sport of hockey, the league may have potentially gained new fans for years to come even after the NFL lockout ends. As a league that had it's entire 2010-2011 NHL season cancelled by lockout the NHL should be well aware of the damaging effects of a labor stoppage and know they can capitalize on it now that one of their competitors are in trouble. In fact some teams have started playing the lockout card now, in a recent advertisement the Florida Panthers have declared themselves as the " only team in South Florida guaranteed to play in October 2011". What do you think? Do you think the NHL can benefit from the NFL lockout and the potential cancelations of the 2011 NFL Season?
Andrew Velvin, Cameron Casey, Will Noble

Tuesday, April 12, 2011

Is Netflix Taking Over?

After reading this article, it is plausible to believe that Netflix is taking over. Netflix is a rising competitor with TV Cable and DVD sales.  As more people are turning to on demand TV the demand for DVDs and TV cable is decreasing tremendously. Netflix has original content and is evolving from DVD rental service to a full-fledged network. It’s not hard to imagine people choosing Netflix over an HBO subscription, especially if it has a stable variety of shows exclusive to their paying audience.  Netflix is thinking about exclusively distributing an original TV series by David Fincher and Kevin Spacey, which would put it in direct competition with HBO and other premium cable channels. Different from other networks, Netflix commits to two seasons’ worth of the show (26 episodes). Most networks require a pilot to be produced before committing to even one season of a TV show.  To be a Netflix member one must pay 7.99$ a month to watch TV instantly. Why would one want to drag themselves all the way to Blockbusters when they could watch unlimited shows and movies in their own homes.  The supply for movies is extremely high, yet most people would prefer to watch movies in their own home. The demand for Netflix has increased tremendously creating extreme competition with Blockbusters, HBO, and TV cable.  If one buys an excess amount of movies, the Netflix steady price of 7.99 a month is a much better investment than purchasing multiple movies at Blockbusters per month.  

Monday, April 11, 2011

Charlie Sheen's Show Back on CBS?

Would we really put a narcissistic alcoholic piece of trash like Charlie sheen back on the air?  That would be terrible publicity for CBS.  The fans that Charlie Shene has lost will stop watching the show and CBS fans will probably stop supporting the network as well.  I think that until Charlie Sheen gets himself together, and actually shows an effort to better himself as a person, he should not be let back onto the set of “Two and a Half Men”. Even if he has made amends with the producers, directors and his other employers, he still can’t just be forgiven. The CBS directors are wrong by wanting to “forgive and forget”.  I agree that he would have to show tremendous effort in making it right between CBS and Warner Bros. Before he is allowed anywhere near the set. Charlie Sheen has done unforgivable things, awful things towards that studio.  Not to mention a $100-million lawsuit against the company.  Good news for Charlie is that he will have plenty of free time to think about things and “find himself” on his new "My Violent Torpedo of Truth" concert tour.  He can take the time and do plenty of self-meditation and plan out the rest of his life.  
Chris Kennard, Bri Sharp, Catherine Gregory

Sunday, April 10, 2011

Obama's Anti-Populist Budget

Obama has gone too far with putting America in debt by using the money we dont have to spend. Obama is doing absouletly nothing to help out the economy right now with the recession we are having. Year's ago during America's Great Depression, FDR did everything he could to bring things back to normal. His "deal" brought people to work again and found them new jobs. He aalso renvovated many buildings such as schools, hospitals, bridges, and roads. Lastly, and more importantly, he helped people with their needs. It's too bad people can't say the same for Obama. In Obama's case, he is doing the complete opposite of what he should be doing. He ignores people's vital needs, does little to create new jobs, and spends over one trillion annually on war and the military when America has no enemies to use these forces on. He invests America's money at the wrong time and on the wrong cause. On top of that Obama is issuing his Anti-Populist Budget". His plan with this is to reduce the annual deficit in America. Obama is pretending to care about people's needs when he is really still using more money on other wrong causes and not reducing deficits at all. What should America do about Obama? One things for sure, it's a good thing the next election isn't too far away. -George, Dallas, Austin

The Final Four

The final four were huge games for many people this year. Located in Huston this year, the revenue in the city would be expected to rise for the duration of the games. In this article, it was also made clear that the Connecticut Huskies were also in for a raise in their future revenue. The Huskies wanted to make sure that their image to people was that they were a very supportive school, possibly hoping to increase upcoming freshman applications to their school. The Huskies made sure of their presence by presenting 300 free tickets to the games to all Houston and Rice students.  By making sure they had a full fan section even though they were not the home school, there presence is more appealing to the outside eye. Although Connecticut had to pay for the 300 seats, which decreased the amount of profit they made, Huston continued to make a profit from all of the drinks and food consumed by these 300 fans.  It was made obvious that the demand for the tickets was beyond low. The Huskies made an economically wise choice by allotting 300 of their designated seats to be free hoping to fill up their stands, where UConn had a great amount of empty seats out of their designated 800. The huskies were able to supply multiple tickets even with a lacking demand, still making revenue from the seats that family members and school mates paid for. On top they expect to see future funds from tuition and donations for the support of their basketball team. 

Thursday, April 7, 2011

Will Online Shopping Be the Demise of Stores of Brick and Mortar?

On April 2nd 2008, ITunes surpassed Wal-Mart and established itself as the number one music retailer in the U.S. This historical event marks a serious transition from the use of record stores distributing music to the use of technology to buy ones music. The benefits of buying online are obvious. It takes away the hassle of having to get in your car and go the store and purchase music. All your needs can be fulfilled with a few clicks of the button. ITunes and other online sources for goods and services have eliminated the need for customers to have to leave their homes and wait in line for the item they wish to purchase. They also eliminate obstacles such as shortage of supply by having an almost unlimited amount of quantity supplied due to the fact their item is either digital or shipped directly from its origin. Online markets such as ITunes, Netflix, and Amazon have dominated customer’s preference of shopping for the past years with % of shopping being done online. Is this new sudden demand for goods online good for our economy? Recent studies show it’s resulted in several companies filing for bankruptcy. Companies just can’t compete with the convenience of online shopping and stores such as Tower Records, Blockbuster, and Borders Books have been forced to go out of business. There isn’t room for stores of tradition like these in our modern society of the internet and technology. The demise of these establishments causes loss of jobs and with one out of five Americans being unemployed is this really what our economy needs? How far can technology help us until it ultimately destroys us?
Will Noble, Andrew Velvin, Cameron Casey

Why is the McRib so appealing, yet only sold for limited periods of time?

Unless you were away or completely secluded from everyday life during this past holiday season, you are probably very well aware of McRib’s reappearance for a 60 day period in the months of December and January in its 2nd ever nationwide appearance. McDonald’s probably owes the astounding popularity of the McRib to it’s almost cult like followers. The limited availability of the McRib has also led to an excessive demand for the product throughout the country. McDonald’s probably keeps a low supply of this product on person in order to add an aspect of exclusivity and rarity to the product, that enables them to be sold very quickly during the limited amount of time during which the product is on sale. In fact if it were not so exclusive I doubt it would be as appealing of a sandwich to many because I personally find it to be disgusting. Some McRib consumers are so dedicated that they travel long distances in order to go to markets where the McRib at the time is being sold, another went as far as going to Germany, the only country whose McDonald’s sell McRib’s year round. The exclusivity is a good thing for McDonalds, in fact during the 3rd quarter, the quarter in which McRib’s were sold, McDonalds sales went up 5.3% percent in the United States. Tell us what you think about the McRib and rather its better being exclusive instead of being sold year-round? Or if there are any other products that are exclusive like this one? Also if you want to read the articles go to

-Andrew Velvin, Will Noble and Cameron Casey

Friday, April 1, 2011

Dallas ISD offers incentive to noncontract employees to resign

In this article we see basic principles of economics at play. The effects of the hard economy are showing in many fields, especially in school districts. As a way to cut spending, DISD is offering incentive packages to noncontract teachers in order to persuade them to resign. DISD is offering these noncontract employees fifteen percent of their annual salary (up to $10,000) to leave the district. These noncontract employees include food service workers, teaching assistants, central administration and other support staff. DISD which is facing major budget costs hopes that this incentive deal that costs up to 2 million dollars will keep them from having to spend significantly more to keep these employees on staff. DISD has already made a similar deal with contracted teachers which ended up costing over 6 million dollars but saved 45 dollars based on yearly salaries. Here, we can see the importance of incentives when making financial decisions. The opportunity cost of DISD to lose so many teachers is that they will not have as many people capable of doing different jobs but based on their decisions it is apparent that they put a higher value on saving more money in the face of major state funding cuts. We can also see it from the teacher’s point of view. They teacher will be more likely to resign if they are offered something in return. Because the teachers are being offered money to leave they might find that they are in need of that money now and would be more willing to take the package. Other teachers may find that 15% of their yearly salary is not going to be enough for them to live on while looking for other teaching jobs that are getting increasingly harder to find. Incentives play a huge role in making large financial decisions.