#248 Warren Buffett's Hand Picked Successor?

In an interview that gives some interesting insight to his leadership style, Warren Buffett talks about the importance of being replaced by someone who shares his core values. He obviously feels technical competency in the financial analysis can be supplied by underlings, but his son has the right attitude to follow him at Berkshire Hathaway.

#247 So What Happened to That $1.2 Billion That's Missing From MF Global?

Click on the segment title to read the transcript or listen to the audio discussion of how forensic accounting can be used to detect whatever fraud may be involved in the $1.2 billion missing from Global Financial. Did I say there might be fraud involved? Ha!

#246 - Alec Baldwin Shows How Disgruntled Customers Stick It to Companies via Social Media

With the popularity of social media these days, bad PR travels fast and it's hard for companies to manage negative image problems such as the one created by Alec Baldwin when he was removed from his flight earlier this week. This situation creates another challenge as someone who thinks he is too special for the existing rules regarding electronic devices to apply to him. It doesn't matter that many contend that these FAA rules regarding electronic devices are overly strict. IMO, personal responsibility and accountability standards dictate that we should step up and own our mistakes, instead of trying to blame others by deflecting the negative attention. Alec has a history of this type of behavior though. Click on the title of this thread to read his apology/rant against American Airlines.

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#245 Prosecuting Wall Street

These two segments from 60 Minutes highlight the internal control requirements of the Sarbanes Oxley Act and management's responsibility for certifying that such controls are adequate. While that sounds good on paper, evidently it's not happening in actual practice as highlighted in the two segments which feature internal control failures at Countrywide and Citicorp with regard to the collapse of mortgage backed securities.

#244 Postal Service Cost Control Measures Announced

If you go deep in this blog to posts late in 2009, you'll see that the proposed changes to postal delivery were being discussed even then. The question is, will these cost control measures be enough to bring the postal service back to a break even (or better) position?

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#243 GM Offers to Buy Back Chevrolet Volts From Fearful Owners

From USA Today - Financial Accounting students may realize that this will be a big hit to GM's estimated warranty liability! Managerial Accounting students will recognize this as a sizable external failure cost.


General Motors will buy a Chevrolet Volt back from any owner who is afraid the plug-in extended-range electric car will catch fire, the company's CEO told the Associated Press today.

CEO Dan Akerson insisted that the cars are safe, but said the company will purchase the Volts because it wants to keep customers happy. That appears to go beyond the policy announced Monday in which GM offered loaner cars to any customers fearful of fires in their Volts.

Michelle Bunker, Chevy spokeswoman who handles Volt matters, disputed that today, calling it "wrong" -- period, no qualifiers -- to suggest that buy-backs are new.

"This is not 'new news.' This is one and the same" as the offer of loaner cars that GM made Monday, she says.

Bunker says that GM's Monday announcement included the promise that, "if something escalated so that the customer wanted us to buy back the car, we'd do it. It's just a part of owner satisfaction. It's not a new initiative" in response to reports that Volts crash-tested by the government later caught fire in post-crash storage while in government hands.

GM has said the feds didn't store the crashed Volts properly.

Bunker says "a handful" of Volt owners have asked for loaner cars. No one has yet asked GM to buy back a Volt, she says.

Reports Tom Krisher of the AP:

Akerson said that if necessary, GM will recall the more than 6,000 Volts now on the road in the U.S. and repair them once the company and federal safety regulators figure out what caused the fires.

"If we find that is the solution, we will retrofit every one of them," Akerson said. "We'll make it right."

The fires happened seven days to three weeks after tests performed by the National Highway Traffic Safety Administration. And GM has said there's no threat of fires immediately after crashes. GM also has said that no Volts involved in real-world crashes have caught fire.

Still, NHTSA has opened an investigation into the fires and has asked other companies that make electric cars for battery testing data. NHTSA said the safety testing hasn't raised concerns about electric vehicles other than the Volt.

"The fire broke out seven days later. Not seven minutes. Not seven seconds," Akerson said, adding that the company wants to fix the problem so people continue to have faith in Volts and other advanced-technology cars. The company is notified of any Volt crash through its OnStar safety system and dispatches a team within 48 hours to drain the battery, preventing fires, he said.

"I think in the interest of General Motors, the industry, the electrification of the car, it's best to get it right now than when you have — instead of 6,000 — 60,000 or 600,000 cars on the road," he said.

The NHTSA testing, Akerson said, intruded into the Volt's battery pack by four to five inches, beyond the normal testing standard of about two inches. Then the cars were rotated 360 degrees to simulate a rollover crash. He said anytime there's a new technology introduced like the Volt, problems will arise. GM is dedicated to fixing them.

He conceded that the fires may cause some potential buyers to shy away from the Volt.

But he added that GM is trying to get the message out that they happened only after extreme tests. Akerson also stressed that standard gas engine cars also have problems with fires after crashes.

The Volt can go about 35 miles on battery power before a small gasoline generator kicks in to keep the car running. The car can be recharged with a standard home electrical outlet.

The Nissan Leaf, a fully electric car and the Volt's main competitor, has not had any similar fires after crash tests or real-world crashes, Nissan said.

The Leaf battery is cooled by air rather than a liquid used to cool the Volt battery.

Akerson said investigators are looking at spilled coolant as one possible cause of the fires, although he said the coolant itself did not catch fire. Investigators are looking at everything from circuit boards to the way the battery cells are packaged into the Volt's larger T-shaped battery pack, he said.

Investigators have some promising leads but no conclusions yet, Akerson said.

GM doesn't expect many Volt owners to return their cars, given feedback from customers thus far, said spokesman Rob Peterson.

Earlier this week GM offered loaner cars to all Volt owners until the cause of the fires is found and fixed. So far, Akerson said 16 Volt owners have inquired and only two have taken the loaners.

TAGS: CHEVROLET VOLT

#242 That Used to Be Us

If you don't have the time or inclination to read the book, you can get the gist of Thomas L. Friedman and Michael Mandelbaum's new book, That Used to Be Us, by watching this BookTV segment. I became a huge fan of Friedman through his previous bestsellers, The World is Flat and Hot, Flat, and Crowded. He has some real wisdom to share regarding how our country's younger generation can position themselves for career success in this globally competitive economy.
Copy and paste the following link to view this program which lasts about an hour and a half.
http://www.c-spanvideo.org/program/BeUs

#241 Waiting For Midnight

In this segment from Rock Center, we can see how the shopping habits of families receiving food stamp assistance have changed the way Wal-Mart serves their customers. Love them or hate them (or some of both!), Wal-Mart does use the data they track on shopping patterns to better serve customers and to manage their variable labor costs. They have clearly learned that additional staffing costs on night shifts at the first of the month are exceeded by the marginal revenue generated.

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#240 Brandwashed

#239 Army Aims to "Buy Less, More Often"

Copy and paste to read this WSJ on how the Army is trying to become more agile in purchasing and communication, part of a JIT strategy.
http://online.wsj.com/article/SB10001424052970203503204577036330106971766.html?mod=djem_jiewr_OM_domainid

#238 Borders - Why a Culture That Couldn't Adapt Killed This Retailer

Copy and paste this link to an excellent Business Week article on the demise of Borders.
http://www.businessweek.com/magazine/the-end-of-borders-and-the-future-of-books-11102011.html?chan=magazine+channel_features

#237 More on Netflix

The day after I read this article, Netflix shares lost 30% of their value in trading sent downwards by news of massive customer defections. Copy and paste this link to read the article.

http://www.businessweek.com/magazine/can-netflix-regain-lost-ground-10192011.html?chan=magazine+channel_top+stories

#236: A Taxing Debate

Martha Teichner presents a balanced view from both sides of the aisle regarding the need for tax reform. Draw your own conclusion!

Re: #232: Ben Stein Advocates Raising Postage

I'm not sure $1 for a first class stamp will fly, but I agree with the idea of increasing the price of stamps.

#235 Business Week Special Issue: Steve Jobs

This link must be copied and pasted. It links to a wonderfully comprehensive issue on Steve Jobs and his growth as both a human and a visionary leader.

http://www.businessweek.com/magazine/11_42.html

#234 - Jeffrey Immelt, Jobs Czar

#233 - Understanding Occupy Wall Street

Whether for or against, a good overview of this movement. Judge for yourself!

#232 No GAAP for Postal Service

or any other federal agency for that matter!

http://redtape.msnbc.msn.com/_news/2011/10/07/8191425-twisted-government-accounting-behind-postal-service-woes

#231 From MSNBC - If You Had Bought Apple in 1997...

...when Steve Jobs returned to Apple. This track record qualified him as the most successful CEO in America at the time of his retirement.

By Allison Linn
While much of the tributes to the late Steve Jobs have focused on his innovation, we're guessing folks on Wall Street are going to miss him for a related, but different, reason.
He made investors a lot of money.
Shares in Apple rose more than 6,000 percent between the time Jobs took back the helm at Apple in September 1997 and the time he stepped down in August of 2011.
Jobs, who died earlier this week, returned to the company he had co-founded as many were questioning whether Apple could even survive. Shares in the company were trading around $5.
On Aug. 24, the day Jobs resigned, shares in Apple closed at around $376.
In the years in between, Jobs reinvigorated the company’s computer line and oversaw the invention of the iPod, the iPhone and the iPad.
Last year, Harvard Business Review named him the best-performing CEO in the world, citing the $150 billion increase in market capitalization between 1997 and 2010, when the list came out.
“It may come as no shock that Steve Jobs of Apple tops the list,” Harvard Business Review wrote.
Jobs was known for being deeply involved in the minutiae of product development, but experts said this week that they expect the company will continue to be successful without Jobs. Investors are surely hoping for that.

http://lifeinc.today.com/_news/2011/10/07/8191385-good-graph-friday-steve-jobs-wall-streets-darling

#230 The Latest on Debit Card Fees

New fee structures are taking effect this month - beware!

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#229 Boeing Gets It

Although Boeing has deployed a number of improvements in the new 787, they realize that passengers will still based their satisfaction with the flying experience on the customer service they receive on the plane.

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#228 Target's Blunder - Uh,Oh!!!!

This article shows how you can turn a satisfied customer into a dissatisfied one pretty quickly!

http://news.yahoo.com/targets-blunder-designer-continues-100449092.html

#227 Netflix New Pricing Doesn't End Changes for Customers

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#226 China Losing Manufacturing Over Quality & Cost

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Last Week - Not So Bad After All!

Although the (long-time) leak in the roof of Rosenthal Hall was linked to water damage that flooded my office last Wednesday, it wasn't such a bad week overall. This is where I was last Friday night - one of the highlights!

#225 State Farm's New York Commercial

I don't teach marketing, but, if I did, this would be a great example of institutional advertising! Love it!

#224: Making Crayons

The various steps in production can help to illustrate the difference between unit, batch, product, and facility level costs for activity based costing.

#223: Re: #222 - One Post on Steve Jobs Just Isn't Enough

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#222 Steve Jobs Resigns

Jobs is one of my favorite studies in visionary leadership. His legacy is enormous.

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#221 Dippin Dots Practices Continuous Improvement With New Product

Also of interest, this article in the August 24th issue of The Atlantic:
http://www.theatlantic.com/business/archive/2011/08/dippin-dots-whats-the-future-of-the-ice-cream-of-the-future/244040/

#220 Math + Science = Better Employment Possibilities

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#219 Corporate Cash

I love the Fast Draw segments on CBS Sunday Morning!

#218 Dilbert Comments on Millenials

#217 Straight Talk About the Debit Crisis

Our country is lucky that retired U.S. Senator Alan Simpson is so committed to this issue and that he continues to speak out. He emphasizes the necessity of political compromise and shared sacrifice by all Americans. His understanding of why we need a revenue component on top of spending cuts is well articulated in this Business Week commentary.

Copy & paste this link to read his commentary:
http://www.businessweek.com/magazine/debt-hawk-alan-simpson-on-the-work-ahead-08042011.html?chan=magazine+channel_news+-+politics+%26amp%3b+policy

see also #4: i.o.u.s.a.

#216 JIT Kink for Ford

Ford can’t make enough Focus cars to keep up with rising demand because of equipment problems that have caused a shortage of dashboards, two people familiar with the situation told The Associated Press.

Machinery that makes the skin that covers dashboards at a Ford parts factory outside Detroit works intermittently. That is forcing the company to take the unusual and costly step of flying in parts from Europe to keep its assembly lines moving, the people said. Despite those efforts, the Focus plant near Detroit can’t run at full speed, they said.

The problem comes at a time when high gas prices and shortages of Japanese small cars have driven up demand for the Focus. Dealers say they’re having trouble getting the newly redesigned compacts, and they’ve been forced to put customers on waiting lists.

#215 Why You Shouldn't Count on Social Security As It Currently Exists

A good article on what it will take to save Social Security for the long haul:
http://www.msnbc.msn.com/id/43912701/ns/business-going_green/

#214 Howard Schultz Again!

See also #44, #135, and #141 for more on Howard Schultz and Starbucks. This CEO is a primary example of total quality leadership!

#213 Supermarkets Inc.

Another awesome special from CNBC. Relevant for both ACC 202 and QMS 101.

#212 Behind the Increase: Netflix's New Pricing Model

This article gives a great explanation of why Netflix is increasing their prices for customers who want both dvd disc delivery and the ability to stream movies & tv shows.

http://news.yahoo.com/behind-increase-why-netflix-raising-prices-094058403.html

#211 Practical Advice on Buying a Home

If any of you share my interest in House Hunters, the popular HGTV program, you know that, for many, the house hunt focuses on stainless steel appliances, granite countertops, and an open flow floor plan. But, in this Today Show segment, Barbara Corcoran shares some important advice on purchasing a home as an investment and the importance of location, location, location!

Visit msnbc.com for breaking news, world news, and news about the economy

#210 Jack Welch on Six Sigma and Leadership

#209 CNN Innovation Special

Fareed Zakaria's special on innovation touches on so many QMS 101 themes! From the CNN Press Release:
CNN Press Release: Fareed Zakaria Talks to America’s Top Innovators About the Best Way Forward in New Primetime Special

Restoring the American Dream: How to Innovate – A FAREED ZAKARIA GPS Special debuts Sunday and is featured in TIME magazine

In 2011, for the first time in history, China is on track to outpace the United States in patent filings. From the political right to the political left, nearly everyone agrees that innovation is key to American job growth. CNN and TIME magazine’s Fareed Zakaria interviews America’s top innovation experts for their best ideas on how to fuel creativity and the U.S. economic recovery for a new special.


Here's the link to view:
http://podcasts.cnn.net/cnn/big/podcasts/fareedzakaria/video/2011/06/13/gps.innovation.special.cnn.m4v

#208: IBM Turns 100 Showing Innovation Pays

As we watch many businesses achieve success that doesn't last (think Blockbuster), IBM shows that continuous improvement is a key to long term success.

#207 NPR: Value of College Extends Beyond Paycheck

While a college education has traditionally been touted as the key to economic success, it provides additional benefits for those who avail themselves of the experience.

#206 Tom's Eyeware

See #194 for more on Tom's Shoes. This company has managed to create a model for profitability that promotes social responsibility as well - well done!

#205 Building Customer Goodwill

This experiment by St. Louis Bread Co. (Panera) shows that a company that values people over profits may not have to give up much in the profit category and may build long term customer relationships.

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#204 Dilbert's View of Customer Service Feedback

#203 Rising Prices Being Passed Along to Consumers

#202 Airlines Forced to Improve Customer Service

Federal mandates should improve the passenger experience for airline passengers - let's hope!

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#201: America's Big Mess: Our Federal Tax Code

If I could be Queen and fix 10 things in life, the Federal Tax Code would be one of them!

#200 Fixed Costs Hurt Pizza Sales

http://community.seattletimes.nwsource.com/mobile/?type=story&id=2014714955&

#199 Products, Products Everywhere

http://online.wsj.com/article/SB10001424052748704100604575145920370092174.html?mod=djem_jiewr_OM_domainid

#198 Employees Provide Innovative Ideas

http://online.wsj.com/article/SB10001424052748704100604575146083310500518.html?mod=djem_jiewr_OM_domainid

#197 When You're Most Vulnerable to Fraud

http://online.wsj.com/article/SB10001424052748704080104575287153987995176.html?mod=djem_jiewr_HR_domainid

#196 Customer Service as a Growth Engine

http://online.wsj.com/article/SB10001424052748704080104575287153987995176.html?mod=djem_jiewr_HR_domainid

#195 How the Girl Scouts Built Their Cookie Empire

Girl Scout cookies - are they characteristic of price setters?

http://www.msnbc.msn.com/id/42270952/ns/business-small_business/

#194 One Day Without Shoes

While I'm not likely to go barefoot on April 5, I love my Tom's shoes. I also love the corporate mission and marketing.

#193 Checking Fees Continue to Increase & Expand

This article provides a great summary of the hidden costs of checking, particularly ATM fees.
http://redtape.msnbc.com/2011/03/total-checking-value-checking-myaccess-checking-what-do-they-all-have-in-common-the-word-free-is-decidedly-missing-from-t.html

#192 New Tax Havens Allow Tax Avoidance

Tax avoidance, unlike tax evasion, isn't illegal. But, it's not good for the American tax base.

#191 Howard Schultz on Keeping Starbucks Fresh

http://www.cbsnews.com/stories/2011/03/27/business/main20047618.shtml?tag=cbsnewsTwoColUpperPromoArea

#190 Disruption in Supply Chain for Automakers

JIT is great, except when it isn't. The disaster in Japan will likely impact U.S. auto production.

http://money.cnn.com/2011/03/23/autos/toyota_us_plant_shutdown/index.htm?hpt=T2

#189 Not All Consumers Will Fight For Their Rights

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#188 Trading Privacy for Savings$$$ on Car Insurance

So what do you value more?

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#187: Sir David Tweedie Talks U.S. Reluctance to Commit to IFRS

Short summary at http://goingconcern.com/2011/03/sir-david-tweedies-patience-is-wearing-thin/. More at http://www.cfo.com/article.cfm/14562111.

#186 The Death of The Magnetic Stripe Credit Card

Interesting article about the next generation of electronic transaction processing.
http://redtape.msnbc.com/2011/03/the-death-of-the-credit-card-mag-stripe.html

#185 Employee Focused Corporate Culture at The Container Store

Perfect example of how happy employees make happy customers!!!!

#184 The Pay Gap Continues Despite Changes to the Economy

#184 The Pay Gap Continues Despite Changes to the Economy

Re: #148: Phasing Out the Old School Light Bulb

or not.......

Visit msnbc.com for breaking news, world news, and news about the economy

#183 Inflation is the Danger

According to Ben Stein, we should be more concerned about the possible affects of inflation, rather than the recession.

#182 Taxation Without Complication

I loved this commentary from the latest issue of Business Week. We are a country in desperate need of tax simplification and more revenue. No one wants to pay more taxes, but the long term implications of doing nothing are scary!
http://www.businessweek.com/magazine/content/11_08/b4216006351851.htm

#181 IRS Experiments With Debit Card Refunds

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#180: 5 Ways to be a Smarter Shopper

Visit msnbc.com for breaking news, world news, and news about the economy

#179: 3 Tips for Improving Your Credit Score

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#178 Secrets of Supermarket Marketing

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#177 McDonald's Set to Raise Prices in 2011

It's not the labor costs forcing the price increase, but the prices of key ingredients.

http://www.msnbc.msn.com/id/41231991/ns/business-consumer_news/

#176 Steve Jobs Takes Medical Leave

Apple is trying to be more upfront about CEO Steve Jobs' medical issues as he takes his third medical leave. CNBC discussed the ethical issues at this link: http://www.cnbc.com/id/41135014

#175 Fastest Growing Jobs: Accounting & IT

https://news.fidelity.com/news/news.jhtml?articleid=201101061336CNN_____MONEYMAG_-2011-01-06-pf-jobs-fastest_growing_professions_moneymag-index_htm&IMG=N&cat=default&ccsource=rss-default

#174 Smart Shopping in the New Year

A good segment on comparison shopping for Personal Finance students. For Managerial Accounting, a segment that illustrates one of the ultimate truths in that discipline - there are two ways to improve the bottom line: 1) increase revenue or 2) reduce cost. Obviously, in these economic times, many companies are electing to try the second one as the primary option.

Visit msnbc.com for breaking news, world news, and news about the economy