Yahoo is looking to the future by targeting young entrepreneurs with enterprising apps. Yahoo announced Monday, March 22, that it planned to acquire mobile news reader Summly, which was the brainchild of 17-year-old Nick D’Aloisio. Yahoo plans to pay D’Aloisio a reported $30 million and he will become Yahoo’s youngest employee.
Questions:
1. When Swartz’s article was written, what was Yahoo stock trading at?
2. What did the Summly app do?
3. How does Summly fit into Yahoo’s strategic plan?
Source:
Swartz, J. (2013) Yahoo skews young, buys site run by 17-year-old. USA Today, March 26 (Retrievable online at http://www.usatoday.com/story/tech/2013/03/26/yahoo-acquires-summly/2020411/
Even though Dodd-Frank legislation is suppose to keep our financial system safe from another crisis like the one that happened in 2008, a newly released Senate report disproves this.
Questions:
1. According to the report detailing the trading fiasco, what are some of the signs that this could happen again?
2. What was the trend in “risk limit breaches” on trading at Chase between late 2011 and the first quarter of 2012? Express this in a percentage.
3. How did the investigation indicate that Chase minimized losses? What type(s) of controls would have prevented this?
Source:
Morgenson, G. (2013). JP Morgan’s Follies, for All to See. The New York Times, March 16 (Retrievable online at http://www.nytimes.com/2013/03/17/business/jpmorgans-follies-for-all-to-see-in-a-senate-report.html?_r=0)
While the car rental rate might look like a bargain at the beginning, watch out for sticker shock once you get the final bill for your rental car! Be sure to read the fine print in the car rental contract and learn how to avoid the optional services that rental companies offer.
Questions:
1. How can you avoid the fee for GPS?
2. How can you avoid the fee for insurance?
3. How can you avoid the airport pickup fee?
4. How can you avoid the refuel fee?
5. Based on this article and the video, discuss why it is important for companies to have policies in place regarding car rentals for employees and also reimbursement guidelines.
Sources:
Thornley, R. (2013). How to Avoid Extra Charges for Car Rentals. USA Today. (Retrievable online at http://traveltips.usatoday.com/avoid-extra-charges-car-rentals-1638.html)
CNN Video. (2013). Car Rental and Cost-Cutting Secrets, March 14. (Retrievable online at http://www.cnn.com/video/#/video/international/2013/03/14/business-traveller-montreal-canada-c.cnn)
It was March 18, 1990, when a pair of thieves disguised as Boston policemen, entered the Isabella Stewart Gardner Museum and stole 13 masterpiece valued at $500 million. Twenty-three years later the FBI says that they know who did it. They are releasing a few details and offering a $5 million reward for information leading to the safe return of the artwork.
Questions:
1. Research the crime. How long did it take to steal the 13 masterpieces?
2. Research the heist. What internal controls were in place to prevent this type of theft?
3. Based on your research, what additional controls would have prevented this?
4. Can anyone be prosecuted in this case? Discuss.
Source:
CNN Video. New leads in $500 million art heist. CNN, March 19 (Retrievable online at http://cnn.com/video/data/2.0/video/crime/2013/03/18/tsr-dnt-sylvester-boston-art-heist.cnn.html)
During these recessionary times, “people are drinking less, but they want something that’s good,” said Simon Thillou, a former journalist who in 2006, opened La Cave à Bulles, a specialty shop in the Marais section of Paris. Around the world in 17 countries, people who are tired of tasteless beer have turned to the Brooklyn Brewery brand, a company that has become the largest exporter of American craft beer. The privately held company has foreign sales that account for 20 percent of its annual sales of $50 million and is planning to expand its reach.
Questions:
1. According to Hervieux, what is the company’s biggest European market?
2. According to Hindy, what is a “category captain” and what role do they have in product placement?
3. According to Hindy, what are “equity contracts” and what role do they play in the beer wars?
4. Research where the Department of Justice’s current anti-trust suit stands in its case against Anheuser-Busch InBev NV (ABI). Do you agree that this would be a duopoly or monopoly?
Sources:
CNN Video. (2013). Recession Can’t Stop this Brewery, March 8 (Retrievable online at http://www.cnn.com/video/#/video/us/2013/03/08/aj-american-journeys-brooklyn-brewery-foreman.cnn).
Hervieux, L. (2013). Brooklynite Hits France with Plans to Seduce. The New York Times, Feb. 13 (Retrievable online at http://www.nytimes.com/2013/02/14/business/global/a-brooklyn-specialty-brewer-dares-the-french-market.html?_r=0)
Hindy, S. (2012). Don’t Let Big Brewers Win the Beer Wars. CNN, December 13 (Retrievable online at http://www.cnn.com/2012/12/12/opinion/hindy-beer-wars/index.html).
Jim McNerney, Boeing’s CEO, saw his compensation rise by 15 percent to $21.1 million for 2012. His company rewarded him for better-than-expected profits and faster airplane production.
Questions:
1. Based on this information, what was Mr. McNerney’s compensation for 2011?
2. According to the article, why has Boeing’s stock been rising?
3. If Mr. McNerney’s salary is $1.9 million what types of compensation make up the remainder of his compensation and what types are not included?
Source:
Freed, J. (2013). Boeing CEO Jim McNerney’s Pay Rose To $21.1 Million In Year Leading Up To Dreamliner Disaster. Huffington Post, March 15. (Retrievable online at http://www.huffingtonpost.com/2013/03/17/boeing-ceo-pay_n_2895721.html?utm_hp_ref=business)
King 5.com Video (2013).Boeing to propose 787 battery fix. Feb 20. (Retrievable online at http://www.king5.com/news/aerospace/Boeing-has-fix-for-787-battery-problem-192026061.html)
Since many banks will not give auto loans to people with bad credit or no credit, due to increased restrictions or risk, on-the-lot financing has become more popular. Unfortunately, since Buy-Here-Pay-Here financing is not strictly regulated, interest rates can be quite high.
Questions:
1. What are the benefits of on-the-lot financing?
2. What are the costs of on-the-lot financing?
3. What are some of the reasons for further government regulation of on-the-lot financing?
Source:
Hendricks, D. (2013). A Look at the Dangers of On-The-Lot Financing. Huffington Post, March 15 (Retrievable online at http://www.huffingtonpost.com/drew-hendricks/a-look-at-the-dangers-of-on-the-lot-financing_b_2870508.html)
According to a new study by the Urban Institute, the American dream of working hard, saving more and becoming wealthier than one’s parents holds true for many, unless you’re under 40.
Questions:
1. What are some of the factors that have negatively affected the wealth of younger Americans?
2. According to the article, if a person delays buying a home from 30 years of age to 40 years of age, how much home equity will be lost by age 60?
3. What types of government policies might help this situation?
Source:
Lowrey, A. (2013). Younger Generations Lag Parents in Wealth-Building. The New York Times, March 14 (Retrievable online at http://www.nytimes.com/2013/03/15/business/younger-generations-lag-parents-in-wealth-building.html?pagewanted=1&_r=0&src=recg)
Canada started rolling out new, polymer-based $100 bills two years ago, followed by 50s and then, last November, 20s. The money, which isslick like a sheet of plastic, hard to fold and partly transparent, is more difficult to counterfeit than Canada’s old paper-and-cotton bills. Australia and New Zealand have used similar, plasticized notes for years.
Questions:
1. Based on the article, what are at least two problems with the new currency bills?
2. What was the controversy with the the $100 note?
3. What is the maple leaf controversy on the $20 bill?
4. What other countries have had currency problems and why?
Source:
Johnson, K. (2013). Canada’s New Banknotes Strike Some as Loonie. The Wall Street Journal, Feb. 15 (Retrievable online at http://online.wsj.com/article/SB10001424127887323511804578297993757700724.html?mod=WSJ_hp_EditorsPicks)
WSJ Video. (2013). Paper or Plastic? Dollar Bills, That is! (Retrievable online at http://on.wsj.com/YkPqkq)
About 12 million borrowers turn to payday lenders each year. According to a new study by the Pew Charitable Trusts, only about 14 percent of borrowers can afford to take enough out of their monthly budget to repay the average payday loan. While 15 states that have banned the predatory, high-interest loans that payday lenders offer to low-income borrowers, offshore lenders are increasingly getting around state laws by issuing predatory loans over the Internet.
Questions:
1. According to the NYT article, what is the loan model for payday lenders?
2. What would the Safe Lending Act, a bill pending in the U.S. Senate, require?
3. How does a Federal lawsuit brought against J.P. Morgan Chase associate the bank with payday lenders and predatory lending problems?
Source:
The New York Times Editorial Staff. (2013) Bleeding the Borrower Dry. The New York Times, March 3, (Retrievable online at http://www.nytimes.com/2013/03/04/opinion/bleeding-the-borrower-dry.html?hp&_r=1&)
Yahoo is looking to the future by targeting young entrepreneurs with enterprising apps. Yahoo announced Monday, March 22, that it planned to acquire mobile news reader Summly, which was the brainchild of 17-year-old Nick D’Aloisio. Yahoo plans to pay D’Aloisio a reported $30 million and he will become Yahoo’s youngest employee. 
