Super Bowl Ads! Worth it?

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The questions asked each year are whether Super Bowl advertising is worth it and what the network is charging. This year Fox charged $5 million for a 30-second spot, last year CBS charged about the same, and Comcast NBC charged about $4.5 million for a 30-second spot.
Questions:
1. How much is the per second charge for this year’s Super Bowl?
2. How do the spots this year compare with the three highest priced show 30-second spots?
3. What would be secondary exposure to the ads that this article talks about?
4. Do a cost benefit analysis of the risks associated with a Super Bowl ad, basing it on one of your favorite companies or products. Be sure to include a conclusion.
5. What costs do companies have to incur besides paying the networks for these advertisements?

Source:
Kline, D. (2017) Super Bowl Commercial Prices Rarely Pay Off for Advertisers. Newsweek, Feb. 5 (Retrievable online at http://www.newsweek.com/super-bowl-commercials-rarely-pay-advertisers-552217)

The Dizzying Student Loan Game

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The Feds claim that the nation’s largest student loan servicer gave rushed and costly advice.

Questions:
1. What is the amount or size of the U.S. government’s student loan program in dollars?
2. What is Navient?
3. How would you describe the structure of Student loan servicing?
4. What are some of the claims about Navient and the legal challenges?

Source:
Nasiripour, S. and J. Lorin. (2017). Behind the Dizzying Student Loan Game Navient Allegedly Played. Bloomberg, Jan. 26 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-26/behind-the-dizzying-student-loan-game-navient-allegedly-played)

Snags at Starbucks

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At Starbucks, customers are now able to order and pay for coffee via their phones, so many of them now head directly to the part of the cafe where beverages are handed out. Various snags contributed to company’s lower-than-expected sales and the coffee giant is working to correct problem, according to its Chief Operating Officer.

Questions:

1. Describe the congestion that Chief Operating Officer Kevin Johnson is explaining about Starbucks.
2. How much of Starbucks sales are generated via Phone app?
3. Describe Starbuck’s current financial position (in your own words).

Source:

Patton, L. (2017). Starbucks Mobile Orders Bring Traffic Jams to Pickup Counter. Bloomberg, Jan.27 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-26/starbucks-mobile-ordering-brings-traffic-jams-to-pickup-counter).

May all your Wishes Come true!

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Donald Trump met with Japanese billionaire Masayoshi Son and soon news of 30,000 to 50,000 new U.S. manufacturing jobs were part of Trump’s boasts. Now Taiwanese manufacturer, Foxconn, appears to be reneging on claims that it is preparing to build a $7 billion factory in the U.S.

Questions:
1. How did Foxconn’s chief executive officer, Terry Gou, explain its plans for U.S. facilities?
2. Why have the negotiations with the Taiwanese electronics manufacturer become more complicated?
3. Has Gou mentioned building a facility in the U.S. prior to the Trump promise and if so, what happened?

Source:
Thielman, S. (2017). Foxconn backpedals on US factory plans: ‘It is not a promise. It is a wish’

No more breakfast!

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All-day breakfast is beginning to lose its novelty for McDonald’s Corp.

Questions:
1. What happened to last quarter’s domestic same-store sales?
2. In your opinion, what will be McDonald’s next big source of growth?
3. Are the profit potentials the same for McDonald’s globally? Explain.

Source:
Giammona, C. (2017). McDonald’s All-Day Breakfast Push No Longer Fueling Growth. Bloomberg, Jan. 23 (Retrievable online at https://www.bloomberg.com/news/articles/2017-01-23/mcdonald-s-profit-beats-estimates-as-turnaround-gathers-steam)

Not a good financial plan!

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Even though Wall Street and the financial press have been harping for decades on the retirement savings crisis, this article provides some additional perspectives.

Questions:
1. According to the Manpower Group, what percentage of millennials plan to work until they die (as their solution to retirement)?
2. Why do so many millennials have such a negative view of retirement?
3. According to Transamerica, what percentage of retirees quit work sooner than expected and what are the reasons for this?
4. What would you advise a friend of yours to do at your age in order to plan for retirement?

Source:
Kadlec, D. (2017). Retirement Planning: Working ‘Til You Die Is a Lousy Financial Plan. CNN.com, Jan. 12 (Retrievable online at http://time.com/money/4631542/working-forever-is-lousy-retirement-plan/)

Xiaomi – Cheap phones online may not be the key to success.

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Xiaomi, once hailed as an Apple iPhone slayer in China, now admits that they moved too fast to outpace their competitor. The company’s founder, Lei Jun, wrote his employees this week, indicating that the company needs to focus on the future and long-term sustainability.

Questions:
1. Who are the domestic rivals to Xiaomi in the smartphone Chinese market?
2. What were Xiaomi’s unforgettable challenges?
3. What secured Xiaomi’s spot in the Guinness World Record book in 2015?
4. Lei admitted that selling cheap phones online isn’t enough. So what is his focus now, besides sustainability?

Source:
Pham, S. (2017). The ‘Apple of China’ admits it grew too quickly. CNN.com, Jan. 13 (Retrievable online at http://money.cnn.com/2017/01/13/technology/xiaomi-apple-china-smartphone/index.html)

What will be the distributional consequences of this tax overhaul?

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According to Neil Irwin, our current tax system is infinitely complicated and it gives companies incentives to borrow too much money and move operations to countries with lower tax rates. With the House, Senate and presidency all soon to be in Republican hands and with all agreeing that a major tax bill is a top priority, some kind of change appears likely to happen.

Questions:
1. What type of change does Irwin suggest will happen?
2. What does D.B.C.F.T. stand for?
3. What were the two prime examples that Irwin gave regarding overseas transfers?
4. What are the risks of this model?

Source:
Irwin, N. (2017).The Major Potential Impact of a Corporate Tax Overhaul. The New York Times,Jan. 7 (Retrievable online at http://www.nytimes.com/2017/01/07/upshot/the-major-potential-impact-of-a-corporate-tax-overhaul.html)

Japan Wants Its Overworked Citizens to Start Having Fun by Getting off of Work on the Weekends at an Earlier Time

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Japan is the country that coined the word “karoshi,” or death by overwork. Now it wants companies to let workers finish early on the last Friday of every month, go out and have some fun.

Questions:
1. What will this government campaign be called and when does it start?
2. How is this move expected to improve private consumption in Japan?
3. How much of annual leave consumption do Japanese workers typically use?

Source:
Ujikane, K. (2016). Japan Wants Its Overworked Citizens to Start Weekends Early. Bloomberg News, Dec. 29 (Retrievable online at https://www.bloomberg.com/news/articles/2016-12-29/japan-wants-its-overworked-citizens-to-start-weekends-early)