Yatingzhang's Blog

 http://www.theglobeandmail.com/report-on-business/international-business/european-business/nestle-to-shake-up-its-portfolio-of-brands/article14621042/

When I look at this blog, we know that as one of the well-known business operations in the world, Nestle is deciding to diminish its unprofitable sectors. This is because despite bad brands can make profit in some cases; their marginal benefit is lower than the average benefit and cannot run Nestle as a profitable company. I totally agree with Dimu’s opinion because cost is an important element to consider in business operation. If Nestle continue operates these bad brands, it will increase its’ total cost, also unprofitable brands will create bad influence on Nestles’ reputation since the company need to show their financial statement to public.

From my standpoint, reducing underperformed sectors in Nestle is a proper market method to save cost. Therefore, Nestle can invest majority of their cost toward profitable brands to increase benefit. When Nestle increase its profit level, it will create business confidence for the investors and strengthen the firm position. However, it is so narrow to use “profit level” to judge whether the brands are good or bad. This is because the business operators in Nestle are limit to predict whether these brands can make profit in long term. Maybe these sectors make loss in short term, but in long term, they may earn profit.

http://www.nytimes.com/2013/10/07/technology/awaiting-ipo-twitter-must-deal-with-horde-of-younger-rivals.html?ref=technology&_r=0

 When I look at this blog, we know that anyone wants to get share of the market by implementing appropriate market strategy.

Twitter has launched a total redesign of its web and mobile apps today, and along with that it has unveiled brand new “brand pages”, where brands can more fully control the content that their followers see. As a result, this market strategy will increase Twitter’s popularity. Furthermore, the difficulty manipulate level of the Twitter has become an important element in Twitter’s market strategy. I totally agree with Dimu’s opinion, Twitter can take full advantages of the brand to achieve profit maximization. Apparently, Twitter had become one of the most successful social media companies in 21 century.

From my own perspective, if Twitter wants to occupy a large proportion in Social Media Pie, the company needs to combine their unique market strategies with strong technological improvements. For the market strategy, it is a proper method for Twitter makes their users do not feel sophisticated and inconvenience, especially for the new users. This is because the difficulty operation level of the product will create psychological impacts on consumers. For the technological improvements, Twitter should create more useful and convenience apps to install in different mediums.

Overall, with the combination of suitable market methods, high technology improvements and increasing numbers of users, in one day, Twitter could compete with Facebook and held large amount of percentage in the Social Media Pie.

 Posted on November 7, 2013

http://business.time.com/2013/11/07/twitter-ipo-leads-to-sky-high-24-billion-valuation/

 Twitter could raise $2.1 billion if an zunderwriters’ over-allotment is exercised, as expected, making it the second largest Internet offering in the United States behind Facebook Inc.’s $16 billion IPO last year and ahead of Google Inc.’s 2004 IPO, according to Thomson Reuters data.

Under Dick Costolo, who took over as CEO in October 2010, Twitter has rapidly ramped up its money-making engine by selling “promoted tweets,” messages from marketers that are distributed to a wide-ranging but targeted group of users. In the third quarter, Twitter had $168 million in revenue, it said, more than double from a year prior. It is just a right sense of distance. Twitter gives a very appropriate sense of distance, the BBS and blog, and a question and answer psychological distance is too far away, and in the MSN, QQ and other IM tools, and people and too close a distance. Twitter will be just the right distance between friends right. In both, can be the sidelines. When people use Twitter they are following certain people, they’re searching for specific information,” said Mark Mahaney, an analyst at RBC Capital Markets. “There are powerful marketing signals that are almost Google-esque, something that Facebook doesn’t really have.” Twitter quickly began to penetrate popular culture in unexpected ways, with its open design and broadcasting format-attracting celebrities, athletes, politicians and anybody who wanted to share short, punchy thoughts with a digital audience.

Fans believe that Twitter, which has 230 million users, has established itself as an indispensable Internet utility alongside Google and Facebook, and that it has only scratched the surface of its potential as a global advertising medium.

http://newsfeed.time.com/2013/11/04/kerry-washington-spoofs-what-does-the-fox-say-on-snl/

 YLVIS’ music video “The Fox” raises a series of questions about pop culture. How can a video of a guy wearing a fox suit singing “wa-pa-pa-pa-pa-pa-pa-pow” get more than twelve million viewson YouTube in less than a week?

 There YouTube video hosting and audience discussion, there is strength Twitter to help out at the same time, stars and celebrities are also involved, and some recommendations, some personally impersonation, and then sought after race fans, follow, set off waves of heat.

Why are people so interested in wacky things? We might to use economic theory to explain this phenomenon. Effectiveness of psychological feelings of consumers, consumer goods actually provide a certain stimulus, people have a satisfied feeling, or have some psychological reactions. Consumption of an item when the stimulation begins a large, so that people on the high level of satisfaction. But keep the same kind of consumer goods that constantly repeated the same kind of stimulus, the people in the psychological level of excitement or satisfaction will be reduced. Or, as the increase in consumption, utility continue to accumulate, the added utility of increased consumption brought increasingly insignificant. This rule can be used to explain the law of diminishing marginal utility.

Because in seemingly goodly under the surface, at least artificially provoke or spread of the virus need opportunity. Finally, we should be reminded that the attention of several aspects: First, not all of the singers are holding this; Secondly, we work to have enough flash point; Third, the market will be the law of marginal efficiency; Fourth, the market consumption is not infinite. In addition, this is just all kinds of cultures and entertainment consumption in one, overall consumption will still be multi-level and diversity, do not rush to deliberate.

http://www.bbc.co.uk/news/business-24923317

 2011, Kraft Foods, Starbucks suddenly decided to withdraw its distribution rights bagged coffee, and then expand the business themselves. Kraft Foods proceedings are instituted against Starbucks, with intent to prevent recovery of bagged Starbucks coffee business, but without success. Bagged coffee business from Kraft single-handedly built and painstakingly built up over 13 years, with annual sales of $ 500 million once.

The reason for the termination of cooperation, Starbucks feels that Kraft did not provide appropriate support to the business, which involves the promotion Starbucks Coffee and Seattle’s Best Coffee these two brands. In addition, Starbucks also refers to Kraft did not work closely with Starbucks, decisions on major markets and customer communication is not timely coordination with Starbucks. Kraft not well fulfill the obligations specified in the contract, resulting in impaired performance of Starbucks, we have the right not to pay compensation in case of termination of this co-operation. Starbucks has insisted that: “the bagged coffee business from Kraft corporate recovery, for Starbucks, our brand as well as shareholders, are the right choice.”

My point of view, cooperation between enterprises first and foremost is trust.Continuing operations of mutual trust is fundamental, if mutual suspicion must disband.In addition,Business process will inevitably produce a distribution of benefits, such as wages, such as the credibility of the purchase price, if everyone want their own interests, over time inevitably produce conflict, contradictions, the result is the development division.In actual operation, their ideas will not be the same, will inevitably cause some inadvertent mistakes, if we good communication, reduce errors, so it can ensure continuous operation and common development.

http://blogs.wsj.com/indiarealtime/2013/08/16/tasting-delhis-first-cronut-2/?KEYWORDS=cronut

In the commercial war whether more than their competitors take into account the interests of consumers and psychological, and whether they could have a sufficiently attractive to provide products and services to enterprises in the marketing battle will determine the success or failure.

For now, the cronut reigns supreme in the world of fanciful food fads. All other fads measure themselves against the breakout popularity of this doughnut made with croissant dough. While some insist that this deep-fried croissant has been around for decades, trademark rights go to Dominique Ansel Bakery in New York City, where people endure long waits and pay $5 per cronut (with a limit of two per person). If the wait is too long and you’re willing to spend more, score one on Craigslist, where cronuts sell for around $30 each.

In a seller’s market, the supply of goods less, because the supply is unable to meet the market demand, commodity prices rise. At this time, the buyer did not choose the initiative of goods, the seller only interested in number of products, with little consideration market demand. The seller on the transaction in the driving position. The existence of a seller’s market, meaning that the commodity exchange in equal relationships between buyers and sellers, has been broken by commodity in short supply. Seller is peculiar commodity economy. At this time there is a whole black market for cronuts on Craigslist. Thus giving rise to each of the cronuts sold so expensive.

http://online.wsj.com/news/articles/SB10001424052702303559504579196043034413108

In the network economy, the value of the product or service network than its own value more important. As interconnection, especially beyond the space limitations of the Internet, resulting in a truly extraordinary results

When the network is just emerging, Amazon founder Jeff Bezos realized that a new business era is approaching. Replaced with a computer company Virtual storefront virtual space with efficient software program provoked cumbersome inbound and outbound work, with considerable savings compared to traditional bookstores human and material resources.

Online trading management, more precisely, for customers to complete the network space and double management of a real market creative content, scenes and infrastructure together. Amazon’s strategy is: to have more data about customers, giving each client to provide a unique and irresistible choice. Through the establishment of a large information empire, Amazon is a comprehensive surround customer.

People passionately believe that the Internet and e-commerce in the future, so they are more or less with the faith to invest. We are convinced that blindly focus on short-term profits. Certainly is a big mistake, of course we must pay attention to long-term profits. Amazon will bookshop positioned as high-tech industries, rather than circulation. Rely on the traditional bookstore store clerk, but in the Amazon is the largest software engineer, is a technology innovation. That is why the United States in just a few years though emerge 1000 online bookstore. Amazon’s success is attributed to scientific and technological.

http://www.usatoday.com/

 According to the U.S. “USA Today” September 3, 2013 reported that a few days ago, a non-profit organization “university evaluation” in the United States to carry out an employment situation for graduates investigation.

The results show that a prestigious university degree certificate does not mean necessarily be able to find a relatively high-paying career. For fresh graduates, a two-year technical school diploma may be more than the four-year undergraduate degree favored by employers. This tends to make a person with technical diplomas just entered the community will be able to get a higher income. Such is human nature, that a great many people are often willing to sacrifice higher pay for the privilege of becoming white-collar workers.

Many students may be in school and professional choices made a very unwise decision – they will make themselves into debt dilemma, so finally had turned to the government for financial assistance. The employment situations for graduates research is currently being expanded scope of the study, and strive to help parents, students and policy makers properly assess the value of a university degree.

Long-term unemployment on skills and labor force participation negative impact. Long-term effects of unemployment on the natural rate of unemployment is permanent, skills and knowledge of workers reserves will gradually “rusty”, unwilling to go out looking for work, the links with the labor market weakened, exacerbating the problem of structural unemployment in the United States.

In brief, I think every student is able to find a satisfactory job as long as he acquires adequate information and has a clear knowledge of his own capability. The last advice is to set reasonable targets that best suit one’s own qualification.

http://www.canadabusiness.ca/eng/blog/entry/4364/

Most businesspeople use social media to make contacts, sustain relationships and identify needs and discover new resources or innovations while social media is the essential tool to build the ties between individuals and communities since social enterprises are operated to sell a social, environmental or cultural good or service, which means that social media speeds up the sale of social enterprises. Social media can help enterprises to make partnerships, identify financial contributors recruit volunteers with the right kills, crowd source new ideas or solutions and promote missions to promote products potentially but effectively.

For example, the enterprises whose main products are made from recyclable materials are actually not only making profits but also taking the goal of promoting the idea of protecting our environment as their main achievement. But they have to fully utilize social media to reach their goal at the same time selling their products. No people would be willing to spend more money to buy an expensive but recyclable item if they are not clear of the importance of protecting products, so enterprises have to make customers clear of their social objectives via social media. Specifically, noncommercial advertisements before any television shows and online videos are always effective enough to get the public attentions and promote public interests concepts.

In a word, social media is the most effective way for social enterprises to promote their public interests concepts and products or services by connecting individuals and communities.

There are grounds for scepticism. The Chinese gaming and social media firm started in the same way many local internet firms have: by copying Western success.QQ, its instant messaging service, was a clone of ICQ.And unlike global internet giants such as Google and Twitter, Tencent still makes its money in its protected home market.

Yet the Chinese firm’s stockmarket valuation briefly crossed the $100 billion mark this week for the first time.Given that the valuation of Facebook, the world’s leading social media firm, itself crossed that threshold only a few weeks ago, it is reasonable to wonder whether Tencent is worth so much.However, Tencent now has bigger revenues and profits than Facebook.In the first half of this year Tencent enjoyed revenues of $4.5 billion and gross profits of $2.5 billion, whereas Facebook saw revenues of $3.3 billion and gross profits of $935m.

The Chinese firm’s market value reflects the phenomenal rise in its share price.A study out this week from the Boston Consulting Group found that Tencent had the highest shareholder total return( share price appreciation plus dividends) of any large firm globally from 2008 to 2012 -topping Amazon and even Apple.

Tencent has created a better business model than its Western peers.Many internet firms build a customer base by giving things away, be they search results or social networking tools.They then seek to monetise their users, usually turning to online advertising.Google is a glorious example.Other firms try to make e commerce work.But as the case of revenue rich but profit poor Amazon suggests, this can also be a hard slog.

Tencent does give its services away: QQ is used by 800m people, and its WeChat social networking app has several hundred million users.What makes it different from Western rivals is the way it uses these to peddle online games and other revenue raising offerings.

Once users are hooked on a popular game, Tencent then persuades them to pay for” value added services” such as fancy weapons, snazzy costumes for their avatars and online VIP rooms.Whereas its peers are still making most of their money from advertising, Fathom China, a research firm, reckons Tencent gets 80% of its revenues from such kit( see chart).

There are some problems too.Tencent is too big and bureaucratic to create things themselves.A more pressing worry for Tencent’s shareholders is that its lavish spending, on top of heavy investment in improving its unimpressive e commerce offerings, will eat into profits.Worse, the m commerce arms race risks distracting it from gaming and value added services, the cash cows that are paying for everything else.A $100 billion valuation might then seem too rich.

http://tech.sina.com.cn/i/2013-10-03/09428788006.shtml

http://mi.techweb.com.cn/tmt/2013-09-30/1339967.shtml