Month: October 2010

Wal-Mart announced they have plans to buy the African-based company, Massmart, for approximately $4.2 billion. Wal-Mart has stores in 14 countries but non in Africa. International sales for Wal-Mart make up 1/4 of the companies revenue. Massmart owns 232 stores in South Africa, as well as 24 additional stores in other African countries. Perhaps the major reason why Wal-Mart has shown interest in Massmart is due to a statement by Andy Bond, a Walmart executive. “South Africa presents a compelling growth opportunity for Wal-Mart and offers a platform for growth and expansion in other African countries.” However, the growth and success of Wal-Mart expanding to Africa may be limited primarily to South Africa, as many African countries are financially unstable. David Strasser, an analyst for Janney Montgomery Scott stated, “For every relatively stable country like Botswana, there is a Zimbabwe.” Wal-Mart is an expanding company who continuously looks for new opportunities to gain profits. Sales in the United States have been decreasing quarterly, so Wal-Mart is looking for new ways to take in income. This proposal is risky and audacious but appears to have a positive long-term possible outcome  for Wal-Mart, who are hoping to expand their operations to over 14 countries.

Work Cited: http://www.nytimes.com/2010/09/28/business/global/28walmart.html

Cassie Smith, a Hooters waitress in Michigan has been put on probation because of her weight. Smith got glowing reports from managers and good reviews from customers at Hooters. One day, she was called into a conference where she was told “We have that your shorts and shirt size could use some improvement,” followed by if she wants to keep her job, she has 30 days to lose some weight. For anyone, this is a degrading and demoralizing comment to hear. Smith stated “If I could’ve gone back and not worked there for two years to take back that feeling, I would do it.” The question is, did Hooters have the right to make the statements they did? When people go to Hooters, they usually don’t go for the wings. Therefore, Smith knew what she was getting into when she applied for the job. In summary, Hooters needs to be more courteous and respectful when they talk to their employees about personal features, as these comments could have long term affects on their lives. Also, they need to be more clear about their job description during their hiring process so employees know exactly what they’re getting into.

Work Cited: http://www.thaindian.com/newsportal/world/hooters-waitress-placed-on-weight-probation_100366642.html

It was a dark day for Blockbuster Video when they filed for Chapter 11. The last few years have been incredibly tough for Blockbuster as they have been competing with online-video rental stores such as Netflix, Video on Demand and computer downloading. It has been reported that Blockbusters debt is approximately $1 billion. They are strategizing deals with senior stockholders to reduce the debt to a much more manageable $100 million. Blockbuster attempted unsuccessfully to introduce rental kiosks as a way of completing with online-rental services.  The kiosk rental market is extremely competitive and has seen Redbox rise to the top, while Blockbusters and many other competitors trail behind. Blockbuster video needs to start focusing more on their online services as this is the way of the future. Owning stores costs rental money, maintenance fees, employee fees as well as many additional fees. An online service reduces theses costs and makes renting videos and games a much easier process for consumers. Due to the brand name Blockbuster has already made for itself, a well-made online service can save Blockbuster money as well as increase total profits made. 

Work Cited: http://news.cnet.com/8301-13506_3-20017366-17.html

Is getting your Masters in Business Administration (MBA) from a prestigious school really worth up to $350,000? Josh Kaufman, a self proclaimed “independent business educator” does not think so. Kaufman estimates that companies such as Goldman Sachs and McKinsey & Co and others hire no more than 5,000 to 10,000 MBA’s a year. That is out of the more than 200,000 people who are getting their MBA around the world. in Kaufman’s opinion, the only difference between getting your MBA and not, is you are not $350,000 in debt.  Kaufman insists an MBA won’t guarantee anyone a high-paying job. To compensate for not getting an MBA he says, one must become a self-educator. Read, read and read to expand your knowledge. Kaufman believes that you can learn as much from the reading list of 30-40 books that he has put together as what the MBA’s are  acquiring through their graduate program. Now, Kaufman claims he is making what a fresh graduate student from Harvard’s salary would be earing, “Without any of the debt.” The simple fact Kaufman is trying to make is MBAs are not worth the debt they come with. However, is reading books and studying extremely hard a positive alternative? Business is about connections and who you know. A well renown MBA program will set up any student with great connections for the future, opening many doors which books just can’t offer.

Work Cited: http://finance.yahoo.com/news/Why-business-school-is-a-hftn-1393904292.html?x=0&.v=3&.pf=career-work&mod=pf-career-work