Tag Archives: Risk

China slowdown and supply uncertainty for outsourcers

An opinion piece in the Wall Street Journal (September 7, 2012) describes supply issues faced by US companies that outsource manufacturing to plants in China. Some companies face demands for more money to buy raw materials, others find the company … Continue reading

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Planning for Greece exiting the euro

An article in the New York Times (September 3, 2012) describes plans by US companies in the event of an announcement that Greece will exit the euro and move back to the drachma. Some of them include sending employees into … Continue reading

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Indonesian illegal tin mining and the smartphone and tablet connection

An article in Bloombergbusinessweek (August 23, 2012) describes the dangerous conditions faced by miners at illegal mines in Indonesia, with demand and price increased riven by the collateral impact of bans against “conflict materials” in the Congo. With the tin … Continue reading

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Moving production to the US despite lower Chinese manufacturing costs

An article in Bloombergbusinessweek (June 25, 2012) describes several examples of companies that moved production to the US from China, despite up to 30% lower Chinese manufacturing costs. For Lightsaver, the 30% lower manufacturing costs were compensated by costs of … Continue reading

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A shortage of jute bags hurts storage of a bumper wheat crop in India

An article in the Wall Street Journal (June 23, 2012) describes the large wheat harvest in India, but a shortage of jute bags. Indian law specifies that 100% of the wheat should use jute bags, to protect the industry and … Continue reading

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Topshops within Nordstrom stores – a beneficial alliance for both ?

An article in the New York Times (July 12, 2012) describes a decision to open Topshop stores within Nordstrom’s stores. The limited line of Topshop fashion apparel, with new items delivered weekly, will enable Nordstrom to increase the speed of … Continue reading

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Impact of faulty US government data on pecan prices

An article in the Wall Street Journal (April 5,2012) describes an overstatement of US pecan exports to Hong Kong and China in 2010 and 2011, which was corrected recently. The impact of higher exports was perceived impending shortages and thus … Continue reading

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Boeing’s delivery delays, airline order cancellations and profit impact

An article in the Wall Street Journal (August 24, 2012) describes a decision by Quantas Airlines to cancel orders for 35 Dreamliner airplanes. Delivery delays meant that the promised 20% fuel efficiency and 30 % lower maintenance costs did not … Continue reading

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Nokia’s smartphone component costs vs Apple’s iphone component costs

An article in the Wall Street Journal (May 31, 2012) describes an estimate by iSuppli that components for the Nokia Lumia 900 cost $ 209 while those for the 16GB iPhone cost $ 190. But the Lumia sells for $ … Continue reading

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Export US gas or keep it to reduce energy costs at home

An article in the Wall Street Journal (May 31, 2012) describes a US decision to hold exports of natural gas, whose generation capacity has grown rapidly. Countries like Japan want to use liquified US gas in the future to replace … Continue reading

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