Nydia Gunawan's Blog

US president Barack Obama has proposed a limit to carbon emission on new power plants built in the US as a step to reduce pollution blamed for global warming. He aims focus on climate change and to end the “limitless dumping of carbon pollution” from US power plants. 

The limit for the new gas-fired power plants restricts their carbon dioxide emissions to 450kg or 1,000lb per megawatt hour. And the limit for new coal-fired power plants are to 1,100lb. Regardless, on average, coal plants emit about 1,800lb of carbon dioxide on hourly basis.

The proposal is disputed by the coal industry and congressional Republicans. Even though the plan seems to have been working since April 2012, it is facing steep resistance from the both. The limit proposal would eventually inflict struggle for existing power plants that held accountable for about a third of all US greenhouse gas emission. The costs that the power plants would have to incur to capture their carbon emissions may harm job creation and employment in the industry (In order to meet the standards, coal plants would have to install expensive new carbon capture technology to minimize its emission of carbon dioxide to the air.).

“Obama Proposes Carbon Limits on New US Power Plants.” BBC News. BBC, 20 Sept. 2013. Web. 22 Sept. 2013. <http://www.bbc.co.uk/news/business-24181341>.

Blackberry is facing a loss of nearly $1billion for the second quarter and has to cut 40% of its global workforce. In addition, Blackberry’s stock is down 26.5% this year. The company is trying to keep itself and its sales afloat as demand for blackberry has been poor.

Reports announced 4,500 jobs cut came about this Friday Sept 20 2013, corroborating the layoff rumors that have been a problem at the smartphone industry. It ascribed to the losses (capital costs) and burden it carries to restructure its business well and re gain increases in its competitiveness in the market.

The operating loss Blackberry is facing is about three times larger than forecasts. One of the key factors contributing to the loss is that the sales of the devices are comparatively poor compared to other smart phones in the market. The demand for the new Blackberry 10 — in which Blackberry has placed so much hope on — is lacking.

The constant bad news on Blackberry may further decrease the demand to its sales. Following trends, the population’s demand for Blackberry smart phones may deteriorate further as everyone stops using it.

Analysts claim that taking the company private would be the best option. There have been rumors that Fairfax Financial Holdings, Blackberry’s largest shareholder, might be interested in taking Blackberry private.

Source: CNN News. “BlackBerry Slashes Staff, Warns of Nearly $1B Loss.” CNNMoney. Cable News Network, 20 Sept. 2013. Web. 22 Sept. 2013. <http://money.cnn.com/2013/09/20/technology/blackberry/index.html?iid=H_T_News>.

Nonetheless, Blackberry is endowed with some profitable patents that may be appealing to potential buyers or partners.

Blackberry’s brand has lost its customer standing as demand for its product has declined. This may negatively affect other business elements starting from Blackberry’s sales to its stocks, revenue and back to damage its brand image. Nevertheless, Blackberry still have a strong reputation in terms of its corporate security.

The Lapindo mudflow in Sidoarjo started in 2006 and is still becoming a problem until today. Aburizal Bakrie, the Founder&CEO of the Bakrie group was held responsible as the damage inflicts citizens living/lived in Sidoarjo, especially around the plant. The mudflow ruined ten of thousands of houses, caused deaths&diseases due to the chemicals it contained. Right now, the mudflow is being progressively handled, but it involves a huge amount of money. It was claimed that government helps by contributing billions of rupiah.

Currently, Bakrie is nominating himself as a candidate for Indonesian President 2014-2018. Indonesians criticized him and expects him to fix this problem completely before jumping towards presidential election.

Stakeholders involved:
– Citizens of Sidoarjo:negatively affected due to ruined houses, deaths&disease.
– Aburizal Bakrie:loss of respect from Indonesians

– Bakrie Group:negative outlooks from the masses
– Government:opportunity cost due to allocating its finances on Lapindo when they can allocate the money towards other aspects. (health-support for victims, infrastructure)
– Potential shareholders
– etc.

Marketing&Financing
– Financing:should be able to allocate their finances and focus more towards fixing the problem completely.
– Marketing:Bakrie may advertise his/their brand and himself by other positive factors (e.g: Bakrie’s successes, in his presidential election advertisement he suggests family closeness/harmony is the key to success).

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