Read + Write + Report
Home | Start a blog | About Orble | FAQ | Blogs | Writers | Paid | My Orble | Login

Business - Business Ramble

Rising Gas Prices Continue to Have an Effect on the Economy

March 26th 2011 22:04
Sorry, America, but the outlandish gas prices that are plaguing our nation look to be here to stay.

As the United States continues to feel the fallout from the revolutions in the Middle East and Northern Africa, the price of a gallon of gas has climbed as high as $4 in some states. In the last few years, the price of a barrel of oil has nearly doubled.

Though many people think this will only increase gas prices, that is really not the case. The steep hike in transportation costs will surely cause less people to use cars as their main mode of getting around. Any opportunity to use public transportation, walking or biking is sure to take the place of driving.


As this transition slowly becomes more prevalent, other necessities will be forced to increase prices as well.

Unfortunately, most costs will be passed onto the consumer, as we have repeatedly seen during oil crises. The most significant of these are the costs of food and drinks.

Airlines are sure to increase their prices as well, as consumers will likely begin to spend less and save more.

Conservative spending can seriously hurt the economy, and definitely will not help Americans climb out of the recession.
24
Vote
Add CommentsAdd Comments
[ Link ]
Posted By: Biggnights - Category: Business
   


The NFL Lockout and its Effect on Small Businesses

March 25th 2011 00:05
The NFL Players Association has claimed that the lack of an NFL season in 2011 could cost each NFL city up to $160 million.

A year without football means a lot more than a few boring Sundays next fall. An NFL lockout could deliver a massive blow to many small businesses that rely on the league games for profit.

Countless restaurants, bars, and team apparel stores collect a huge portion of their earnings on Sunday afternoons each fall and could stand to lose a large percentage of their revenues. While basic economic principles may say that this disposable income will be spent elsewhere, it’s likely that many small businesses will be forced to close down without the NFL.


Consider a bar or restaurant only a few short miles from an NFL stadium. Every Sunday hundreds of fans come to enjoy a few overpriced drinks and sandwiches while watching the game. This happens in each of the 32 NFL cities and surrounding areas around the United States.

Let’s continue this exercise by assuming that on weekdays, these small businesses cater to a smaller and more conservative crowd. Imagine taking away the select Sundays that they rely on for as much as 10% of revenues in a single year. This could be a disastrous hit for the companies that are already facing difficulty paying the bills in this struggling economy.

Citing an article written by an owner of a small bar that appeared in the Huffington Post, NFL Sundays accounted for his business’ entire profits last year. $300,000 of his $3.5 million in revenue came from NFL game days. His profit was exactly that much, while football Sundays averaged 6 times more revenue that of non-football Sundays. The statistics are staggering and his entire earnings would be thrown out.

The NFL is no small company; it’s estimated to be a $9 billion a year industry. In comparison, imagine that Starbucks has a monopoly on the coffee market (before Starbucks decided to diversify their products). Now, the board of directors for Starbucks can’t come to an agreement with their employees on fair wages. The board of directors locks out its employees and ceases operations for a year.

Hundreds of thousands of Starbucks employees are without a job. It’s not only the front office executives, but also the cashiers and the coffee makers. Convenience and grocery stores that sell Starbucks coffee lose sales. The countries that import Starbucks coffee no longer have any demand for their product. On the other hand, the grip Starbucks has on the coffee market is gone; other coffee companies have the opportunity to penetrate the market in the United States.

In football, these “other coffee companies” would be other football leagues like the CFL and the UFL, or even non-football leagues like the NHL and NBA who could capture some NFL fans. However, there is no documentation to prove the fan base will cross over to other leagues. In any event, this does little to decrease the fear of the NFL cities about what a lockout could do to their economies.

More than small businesses are at stake here. As demonstrated by the Starbucks example, thousands of NFL employees will lose their jobs. Referees, stadium workers, and team employees will have no jobs in 2011. Cities that collect taxes on stadium concessions and parking to help pay for the stadiums will now be without that income for a year. The advertisers and TV stations for the NFL will need to find suitable replacements in a short period of time.

The NFL lockout is sure to have a huge impact on our economy, and small businesses in the effected cities may have to face the brunt of the force.

Whether you blame the owners for wanting to take an extra $1 billion for themselves off the league revenue or the players for not letting them have it, there are many people with a whole lot more to lose than these wealthy individuals.

-Statistics on small business taken from Really Long Link
24
Vote
Add CommentsAdd Comments
[ Link ]
Posted By: Biggnights - Category: Business
   


Is Best Buy the "Best Buy" on the Market?

March 22nd 2011 04:28
Sorry for the pun, that was lame.

However, bad jokes aside, that title may have some merit behind it.

Best Buy had some real positive cash flows coming out of last year, and they are finally beginning to seize control of the electronic goods market, especially with Circuit City out of the picture. Yes, I realize that is old news, but Best Buy is continuing to reap the benefits. Keep an eye on its debt to equity ratio, though, as Best Buy recently issued $1 billion in debt.

Either way, with past growth rates of around 10%, many analysts have predicted a similar growth rate for Best Buy and its subsidiaries this year.

Investors may be hesitant to take a chance with a company selling for $17 below its 52 week high. However, a surge similar to what Best Buy saw in late 2010 is definitely not out of the question.

The end of Best Buy's rising stock price saw them lose a lot of market share as well, but this came largely in part because of a decline in the general public's demand for many electronic products.

As Best Buy approaches its 52 week low, don't be afraid to take a chance. It may be a volatile stock, but we're looking at a volatile market right now. Many Wall Street analysts used their predicted growth rates to calculate Best Buy rising up to as high as $50 per share in 2011. If you're a fan of the discounted cash flow method, then you might have to take the bait for the former Forbes Company of the Year.

Considering it closed at $31.90 today, Best Buy may not be a sure thing, but it's at least a "good buy."
21
Vote
Add CommentsAdd Comments
[ Link ]
Posted By: Biggnights - Category: Business
   


Antisocial Insecurity: Why Our Grandparents are Laughing All the Way to the Bank

March 17th 2011 21:56
As a proud member of Generation Y, I take exception to how the Social Security crisis is playing out.

Our Social Security system is expected to run out of funds by 2030, which is a long time before I will retire (unless I’m extremely lucky). Just because the government made a few promises they couldn’t keep, my generation has to pay for this surplus. Every year since 1986, the government has been forced to essentially take the money from my generation, and put it right into the pockets of the Baby Boomers.

However, it's unlikely that we will get to reap the same benefits. Can the government really afford to add on more debt to a country that already has over $14 trillion of it?

A recent article in Bloomberg BusinessWeek took an interesting stance on our current debt predicament. It looked at the United States of America as a company, and as with any company, found ways to erase that debt and become profitable again.

Basically, to cause USA the company to break even any time soon, a drastic increase must be implemented into taxes or a drastic decrease must occur in government spending, specifically in health care. How the government handles America's debt will have a huge impact on Social Security.

If you still don’t believe that a lack of Social Security would be an injustice to my generation, then think of it this way: Say someone from Generation Y makes $40,000 in an entry level job next year. Now, imagine a Baby Boomer made the equivalent of $40,000 (adjusting for inflation) from their initial salary way back in the day. Well, the Baby Boomer’s $40,000 equivalent is worth more than the Generation Y member’s $40,000 because the Baby Boomer gets his social security payment back. I don’t think that’s what “time value of money” is supposed to mean. As a result, my entire generation is inherently poorer than past generations.

I’m not here to blame anyone for the Social Security crisis, and I’m certainly not trying to say I could have done a better job avoiding it than the government did. But I think my generation does need a voice. Someone has to reach out and help my generation when we retire.

This could be done through donations from Generation Z, the reduction of government spending, or simply government run seminars on how to save just to name a few ideas. Regardless of what the solution is, if you were to ever spend any significant amount of time around my idiot friends then you’d agree with me. God knows they could use some help.

The Bloomberg BusinessWeek article can be found here: Really Long Link
35
Vote
Add CommentsAdd Comments
[ Link ]
Posted By: Biggnights - Category: Business
   


Business Ramble is Back

March 16th 2011 04:23
Sorry about that brief hiatus, loyal readers.

For your enjoyment, hopefully, Business Ramble has returned.

There's a lot going on in the business world, so expect a new post within the next couple of days!
24
Vote
Add CommentsAdd Comments
[ Link ]
Posted By: Biggnights - Category: Business
   


Re-active!

October 13th 2010 03:40
Hello everyone -

Well, an unanticipated absence and some family health issues are behind me, so I'm back to Business Ramble. I'm looking forward to getting the word out on business news and events that the media is under-reporting. Much has happened, let's get to it


[ Click here to read more ]
57
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business
   


Dell Buys Perot Systems

September 21st 2009 19:53
Earlier today Dell Computer announced the purchase of Perot Systems for $3.9 Billion in cash. The move is seen an indicator that Dell will be moving into more lucrative business consulting services as PCs become an increasingly commodity-priced low-margin product.

Perot Systems was started by H. Ross Perot after he sold EDS to General Motors. Perot Systems specializes in the health care industry (48 percent of revenue) and government (25 percent of revenue). While both companies are based in Texas, about one-third of Perot Systems' employees are based in India


[ Click here to read more ]
73
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business, Technology, Management
   


Bernanke: "Recession Very Likely Over"

September 16th 2009 04:54
The Washington Post reports that Federal Reserve Chairman Ben Bernanke commented after a speech on Tuesday that the recession is "very likely over". However, he continued by adding that the job market will remain weak.

The question Bernanke doesn't address, but should be on the minds of every American taxpayer is this: If the recession is over, can we cancel the rest of the "stimulus" plan which is scheduled to be spent in the next 18 months? After all, that $700 BILLION is much better taken off the spending list than to incur the additional debt


[ Click here to read more ]
71
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business, Taxes
   


Small Companies Slammed

September 15th 2009 18:27
A report from Ernst & Young on the Russell 2000 small cap compaines shows that they have been slammed by the receission.

Companies with a market cap (stock price plus number of outstanding shares) as low as $78 million are now on the list. In 2008, the minimum market cap was $167 million, Ernst & Young says. That is the lowest valuation since 1993.

[ Click here to read more ]
78
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business
   


Windmills Are Killing Our Birds

September 8th 2009 18:44
The Wall Street Journal reports that "Windmills Are Killing Our Birds" throughout the country.

On Aug. 13, ExxonMobil pleaded guilty in federal court to killing 85 birds that had come into contact with crude oil or other pollutants in uncovered tanks or waste-water facilities on its properties. The birds were protected by the Migratory Bird Treaty Act, which dates back to 1918. The company agreed to pay $600,000 in fines and fees.

[ Click here to read more ]
47
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business, Technology, Energy
   


Labor Unions and Environmentalists

June 30th 2009 19:06
Who would have expected labor unions to hold up development of environmentally positive projects? Well, as IBD Editorials report, that's exactly what's happening in California.
The New York Times [no link], for all its problems, can still do good reporting, one example being its coverage of unions using environmental regulations in California to try to pressure developers into signing "agreements pledging to use union labor."

[ Click here to read more ]
60
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
   


How Bad Is Greed?

May 19th 2009 21:42
Recently President Obama has blamed much of what lead to the economic meltdown to "greed" by various parties: Investors, bankers, mortgage companies, insurance companies, overpaid executives, etc. The media and the public lap this up, since we all disapprove of "greed". But what is greed and how bad is it? Of course, no one ever points into the mirror and accuses himself of being greedy - it's always the other guy. And what does those greedy persons do that is so bad? Aren't we supposed to be making as much money as possible - didn't Vice President Biden recently point out that it is patriotic to pay taxes? But the public clamours for laws that control what some might label as greed, and the legislative class (and the executive class as well, if Obama is a good example) are willing to pass all the expected regulations.

George F. Will, in his column of May 17th, gives a wonderful overview of just how greed works in an unregulated market


[ Click here to read more ]
81
Vote
Read MoreRead More Comments (1)Comments (1) Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business, Management
   


Pay For BBB Score Boost

April 27th 2009 20:56
Reporting today in the Orange County (California) Register, columnist Jan Norman discloses that the Better Business Bureau (BBB) gives higher rating scores to businesses that are members of the BBB than to those that are not members.

Despite the BBB website claiming that "not being a BBB member (which it calls “not accredited”) does not disparage the company in any way", the recently updated scoring system does award 4 points for membership in the organization. That means the only way a company can get the top A rating is if they are members


[ Click here to read more ]
70
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business
   


What Is Obama Admin Message?

March 30th 2009 16:57
Anyone watching these early days of the Obama Administration has to wonder what the message is. Candidate Obama promised to exit Iraq immediately - President Obama is calling for a phased withdrawal with thousands of troops remaining in Iraq. Candidate Obama discussed attacking Pakistan - President Obama has added 21,000 US personnel to Afghanistan. Candidate Obama called for an end to earmarks - President Obama signs legislation with more earmarks than anything prior. Candidate Obama called for the closing of the detention facility at Gitmo - President Obama signed an executive order, but cannot find any facility to move the prisoners to.

Now President Obama says he doesn't want to run General Motors - but forces the CEO of GM to resign
[ Click here to read more ]
75
Vote
Read MoreRead More Add CommentsAdd Comments
[ Link ]
Posted By: Opher Banarie - Category: Business, Politics
   


Previous Page (1-14) | Next Page (29-42)



[ Business Ramble Home ] [ Create A New Post ]

Biggnights's Blogs

80 Vote(s)
6 Comment(s)
8 Post(s)
Moderated by Biggnights
Copyright © 2012 On Topic Media PTY LTD. All Rights Reserved. Design by Vimu.com.
On Topic Media ZPages: Sydney |  Melbourne |  Brisbane |  London |  Birmingham |  Leeds     [ Advertise ] [ Contact Us ] [ Privacy Policy ]