Tag Archives: Cost

Wal-Mart’s ecommerce approach to combat Amazon.com

An article in Bloombergbusinessweek (April 2, 2012) cites WalMart’s 8 % growth in 2011 vs Amazon.com’s 41 % growth as reason for WalMart to innovate in the ecommerce space. The result (a) Endless Aisle – which permits customers to order … Continue reading

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What are GM’s choices for the Opel plant in Bochum, Germany ?

An article in the New York Times (April 2,2012) describes worker frustration at GM’s Opel plant in Bochum, Germany, with worries that it will be shut down in 2014. Wages at the plant are six times the wage rate in … Continue reading

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The reuse vs recycling decision at Starbucks

An article in Sustainable Brands (http://www.sustainablebrands.com/news_and_views/articles/starbucks-increases-recycling-backs-away-reusable-mugs?utm_source=newsletter&utm_medium=businessweekly&utm_campaign=april2) describes a decision by Starbucks to shift from reuseable to recylclable cups. Reuseable mugs were related to a 5 % increase in water usage in 2011, after and 17 % drop from 2008 to … Continue reading

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How many hours should Chinese workers work at Foxconn’s plant ?

An article in the New York Times (March 31, 2012) suggests that only 18% of the Chinese employees at Foxconn’s plant have complaints about working longer than the Chinese government mandated maximum of 49 hours each week, with overtime for … Continue reading

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The collapse of Sony’s interest in Sharp’s Sakai plant

An article in the Wall Street Journal (March 29, 2012) describes a collapse in Sony’s interest in Sharp’s Sakai plant, whose production of high end LCD displays was expected to decrease costs for Sony, and garnered a 7 % investment … Continue reading

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Ban “pink slime” or let the market decide ?

An article in the Wall Street Journal (March 29, 2012) describes a move by supermarket chains to ban ground beef containing “pink slime”, an additive made from leftover beef trimmings, that is used as a filler in beef. Iowa’s governer … Continue reading

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The ripple effect of Foxconn’s changes

An article in the New York Times (March 29, 2012) describes widspread violations discoverd by the Fair Labor Association, hired by Apple to audit its suppliers, at Foxconn. The supplier, Foxconn, has committed to adhere to Chinese law, which restricts … Continue reading

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Uniqlo’s global expansion

An article in the Economist (March 24, 2012) describes the Japanese retailer’s expansion into the US and China. The company focuses on producing large volume, low cost items that are sold across the season. Given that weather patterns in China … Continue reading

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Using the US Strategic Petroleum reserves

An article in the Economist (March 24, 2012) discusses a plan to use the US Strategic Petroluem Reserves to dampen US oil prices. The reserve was set up to provide an inventory buffer against emergencies and has been used after … Continue reading

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The Impact of New Emission rules for power plants

An article in the New York Times (March 28, 2012) describes new EPA rules that limit the CO2 emissions of power plants to 1,000 lbs per KWh. The new rules are easy to meet for new natural gas fired plants. … Continue reading

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