Crisis of Japanese Industry

Although Japan’s Toyota recall events occurred not in 2010, but it intensified in the past year. California has experienced the largest outbreak of automotive history after the recall. Toyota has suffered a series of storm.

At December 13 , Toyota submitted applications for the North American market to recall of 2011 models Siennas MPV cars for a mount of 110,000. Thus, in 2010, Toyota has recalled the Japanese transport ministry for 17 times, involving markets cover North America, Japan, China, Australia, Europe and other major automobile market. Its characteristics can be summarized briefly as follows: high frequency, wide range of large-scale and multi-modeled. As the world’s largest car maker, Toyota was used to be Japanese largest enterprises, experienced the spate of recalls storm and such an unprecedented crisis. Subsequently, they were forced to recall their products including more than 40 million vehicles again because Honda airbag hidden hazards and brake pedal.

This series of serious quality problems brought adverse impact to Japanese industry. Many other Japanese top brands have lost the glory:”Made in Japan”. Japanese enterprises showed up their arrogance and complacency, they always think of themselves as the best in the world.Moreover, through progress of the crisis, Toyota’s public relations capacity should also be queried.

Introspection and renovation in McDonalds

America territory McDonalds (MCD) acknowledged recently in the U.S. market since the company was blamed with the poor quality of customer service and to recognize that its rapid introduction of new menu with too much food is a wrong move, this move largely lead to decline of service quality.

According to reports, president of McDonald’s U.S. operations Jeff Stratton, said this year the company launched a number of new products and limited buying activity, the purpose is to give consumers more choice, but actually it seems to launch a new product too quickly. From March to July, McDonald updated its menu by adding four new products. Stratton said the rapid introduction of new products brought much challenges to McDonald. Its business became more complex, resulting in impaired quality of customer service.

Stratton added: “Review of the past , I should spend more time to deal with this problem .” In terms of how to introduce new products, McDonald’s managers need to become more intelligent. In order to reverse this situation , McDonald plans to transform 300 stores in the United States for renovations, during this year, more than 465 stores have been renovated yet.

Continuous decrease in gasoline price

It reported that U.S. gasoline prices continued to fall, in some states, it even has dropped to $ 3 / gallon or less. Declining of gasoline prices is undoubtedly good news, but falling oil prices also reflect the weak economy. Recalling the last financial crisis, economic recession also reduced the demand for gasoline. Depression has been far away from us, but its negative impact is still pulling down the price of gasoline.

In 2004, the United States reached its peak after driving has started to decline. According to data in 2011, the drivers driving an average mileage of 12,492 miles during decreasing of 8.9% of the peak. Study analyzed that the mileage decline occurs for several reasons, including the result of the new technology that makes it easier to work at home, accelerated aging, so that more elderly people willing to use public transport , more young people postpone the driving test .

In addition to the above reasons,, promotion of more hybrid fuel and electric cars on the market is another important reason for decline in gasoline prices. It remains to be observed whether lower demand for gasoline effects the price, but the decrease in demand has prompted the current decline in gasoline prices.

Largest customer of global luxury market

Chinese consumers’ annual consumption of luxury goods in 2013 has risen over one hundred billion U.S. dollars, which builds up half of the global luxury market .

Although the global luxury goods market is facing a lot of pressure, but the total capacity of the global luxury market will reach a record of $ 217 billion, the annual growth rate is expected to reach 11% . Chinese domestic consumption of luxury goods market will reach $ 28 billion,  which is expected to increase by 3 percents. Meanwhile, consumption abroad tends to be further strengthen. It will reach $ 74 billion, that Chinese people’s total consumption of luxury goods in 2013 will reach $ 102 billion, or about 600 billion yuan. This also shows that Chinese people will bought 47% of the global luxury goods.It means that China is the undisputed largest customer of global luxury market.

With the rapid economic development of China these years, Chinese people has become more richer than before and there is a huge improvement of their level of living and consuming. However there might occur such an enormous waste in money that Chinese people buy too much luxury goods. It convinces that some Chinese people can not manage their fortune wisely, and that is an important point to be improved.

U.S. Government Debt Ceiling

What let the U.S. federal government shut down,is that Obama’s new health care?Fundamentally,it caused by the U.S. government budget crisis and huge problems with the debt ceiling.

U.S. debt ceiling is the total U.S. federal government debt amount in essence.The United States Congress has established statutory limits of that.However, the debt ceiling has always been non-existent in a long time,and during the expansion of the country,the statutory bond cap has constantly been raised.Since 1960,the debt ceiling has been raised 79 times,almost every eight months.The debt ceiling  seems never to pose a real threat to the United States .

U.S. Congress report shows that since Obama taking office,Congress has raised the debt ceiling for four times increasing the amount to $ 5.4 trillion Raising the ceiling without mention will bring much risks:If public debt ceiling can not be raised in time,the government will run out of money to pay the debt including interest and a variety of health care spending bill.However,if the United States continues to raise the debt ceiling with the crazy growth of U.S. Treasury bonds, it will destroy the balance of international American dollar market and continue to challenge the global credit lines and bottom line creditor tolerance.

U.S. Government Shutdown

The two parties of U.S. government reached an temporary agreement on the problem of “fiscal cliff” at the beginning of 2013.However,the country do not get rid of the shutdown because the U.S. Congress from both parties failed to resolve differences between the new fiscal year the government budget.The U.S. government’s non-core departments formally came to a standstill on October 1st.

Shutdown of the government has influence on millions of American people,about 800,000 federal employees will stop working and go back home,trails in Federal Court may be postponed,some public hospitals service will be suspended,national parks and other tourist attractions will be temporarily closed.

The Ministry of Finance has taken extraordinary measures in order to avoid defaulting on its debt,but it would only be effective before October 17th.After that  if government can not raise the debt ceiling, the U.S., the world’s biggest debtor will be unable to repay the debt timely.Global stock markets will suffer heavy losses,companies need higher funding costs.Both the U.S. and global economies are likely to be dragged and may even fall into recession.

The only solution that may ease the situation is that two parties approve Obama’s health care plan and raise the debt ceiling as soon as possible.

The Obama Health Care Plan

High spending,low efficiency and loss of equity,since continuously are the worst three problems of American Health Care System.The plan commits itself to provide benefit of health care for those people who do not have opportunity of getting the medicare in America before.Obama pays more attention on disadvantaged groups in society.

Meanwhile,interest of the employers and the bourgeoisie will be visibly harmed because they have to pay for the extra expenditure for universal health care.The slide in standards and aggravation of financial burden bring them much concerns and averseness of Obama’s plan.This becomes the strongest resistance of the promotion of Health Care Plan.However Obama devotes plenty of effort in this plan and wants to make achievements during his tenure to increase his public approval rate.Although adjustment in health care plan will improve current situation of medicare system in USA,it inevitably causes inverse problems in the deficit and debt of government.

The political battle between two parties changes the plan into a brand different one.People who do not have health care still have problems with their bills of medical treatment and there is remaining unfairness among US citizens of different classes.Government should concentrate on real benefit for people instead of endless arguing.

Prof.Gateman

Every year there are thousands of students in UBC campus rush to get a special book named “Gbook” which costs $110 in the discount bookstore. It sells as a pack including a textbook, a Gbook and a magic pen, however I was quite shocked by its simple and crude bookbinding and unbelievable and unique price. It seems that he forced his students to buy his book, and formed something like monopoly.

But after my observation and participation in his class, gradually I find that it values the price. Gateman’s great understanding and conclusion lead to the high price. He saves our time through the well-prepared note and wonderful speech in the lecture. Many students have misunderstanding about his monopoly . In my opinion, he has great commercial ethics because of his effort devoted to his books. He take responsibility for his every student who spent money on his product (Gbook).

The other hand, producers (company or individual) should try best to make their productions perfect in order to show respect to consumers and the business ethics. Therefore business ethics of corporations can bring reputation and profit to companies as well benefit and satisfaction to customers.