Should firms volunteer to pay living wages instead of mandated minimum wages? A 2013 Harvard Business Review article, Does Money Really Affect Motivation? A Review of the Research, concluded, “We all need to pay our bills and provide for our families — but once these basic needs are covered the psychological benefits of money are […]
Stock Market Volatility Continues Unabated As COVID-19 Cases Rise
Stock market volatility continues and is today’s norm. The Dow Jones Industrial Average (DJIA) fell a further 28% to 18,591 on March 23, following its largest one day drop of 1,191 on February 27. Although the March 23 dip was 35% below January’s opening, the DJIA is off a mere 12.3% for the year-to-June 26. […]
Layoffs Not Long Term Solution For Firm’s Tough Times
Layoffs are not a long-term answer for firms when they face tough times. Nine-eleven and the Great Recession tested firms with no-layoff policies. Southwest Airlines, Marriott, FedEx, Honeywell, Toyota, to name a few, passed the test. I should add that I am talking about permanent employees in non seasonal businesses. Here is a comment from a Southwest […]
COVID-19 Personal Finances Effects in Canada Could Be Harsh Despite Government Help
Effects of COVID-19 on Canadians’ personal finances could be severe. But now might be opportune to make tough decisions to reset crucial lifestyle choices that led to massive debt build-up since the Great Recession. The federal government stepped up and is providing relief to workers and businesses to cushion the impact of job and income […]
Supporting Businesses During The Pandemic Means Supporting People During The Pandemic
Supporting businesses during the pandemic means supporting workers. Businesses like other institutions are vehicles, mere shells with people who decide every aspect. The left complains that government shouldn’t support companies. The left is anti business and pro worker, but that’s an unsound position. If you are pro worker, logic dictates you be pro business to ensure firms create […]
Coronavirus Driving People From The Stock Market
The coronavirus’ stock market impact is immense. It is spooking stock markets. The Dow Jones Industrial Average (DJIA) shed 12% or over 3000 points over five days, February 24-28, the largest 5-day drop since the Great Recession. The DJIA recorded the biggest single day drop (1191) during that week on February 27. China is a key player […]
Share Buybacks Distort a Firm’s Results and Reduce Funds Available to Invest
Share buybacks or share repurchases can distort a firm’s results and delude the public. These events hike earnings per share (EPS) without growth in the firm’s basic value. The baseless boost in EPS could lift a chief executive officer’s (CEO) bonus. So, is a share repurchase plan the best use of a company’s funds? Who enjoys buybacks except the […]
Capitalism Isn’t Dead, Corrupt Leaders Placed it on Life Support
Capitalism isn’t dead, it is on life support. Industry leaders push their agendas with practices that hurt the public, and they get rewarded. For instance, Boeing’s CEO oversaw the 737 debacle, the company fired him but plans to pay him millions. Donald Trump’s lies and corruption as he presided over failed businesses, a fraudulent foundation and fake university, propelled […]
Effective Supply Chains Key to Delighting Customers and Creating Stakeholder Value
Firms need to focus on maximizing value in their supply chain—a series of interrelated activities to move a product or service from its originating point to the customer or client. It is the linkages involved in delivering a product or service most productively for the customer and the business. It is vital to operations management and crucial to deliver consistent, high-quality products on-time to customers, and to create value for the business.
Published Vision Statements Are Helpful But Not Necessary
Sometimes young entrepreneurs ask me to help write their vision statements. They believe a written vision statement is essential. I assure them the crucial issue isn’t the written vision statement, but their ability to articulate their vision to those who will join their firms and others. To be sure, writing the vision provides clarity, but […]