Free Essay

2008 Great Recession - Companies Who Survived and Alternate Methods to Employee Layoffs

In:

Submitted By delisabarnes
Words 4269
Pages 18
2008 GREAT RECESSION

COMPANIES WHO SURVIVED AND ALTERNATE METHODS TO EMPLOYEE LAYOFFS

MGT 310-06
PROFESSOR CAS CASWELL

BY
DE’-LISA BARNES

INTRODUCTION
In 2008, the end of the first decade of the 21st century, the world market experienced the worst economic decline, known as the Great Recession. The overall impact was described as being the worst global recession since World War II. The precise magnitude and timing of the recession is widely debated and varied from country to country. The years leading up to the crisis were characterized by a highly excessive rise in asset prices, combined with a boom in economic demand, which inflicted a clear hardship for businesses and families. To further explain my research, this paper will focus on the following: What caused the great recession, Effects of the recent recession, Types of Businesses that survived the recession, Companies that hired during the recession, Companies that choose shared-worked programs over layoffs, Various states that participates in the work shared programs, and the Advantages of the work share program.

WHAT CAUSED THE GREAT RECESSION
The Great Recession actually began in December 2007, which is long before most people ever realized what was to soon transpire. Although there are many speculated factors or causes that led to the recession, the American people strongly believe that the following groups are responsible for the Great Recession of 2008: Government, Mortgage Companies, Banking Institutions, Rating Companies, and AIG.

The Government and the Great Recession. Politicians and the banks wanted deregulation in the banking and investment industries. During The Great Depression of the 1930s, regulation called the Glass-Steagall Act went into effect that separated banking from investment. In 1999, this act was repealed with bankers, investment firms and politicians thinking that they were too smart to ever let another Great Depression happen again. They eventually won their sought after deregulation and completely abused it.

The Mortgage Companies and the Great Recession. Fannie Mae, Freddie Mac, Countrywide and numerous other mortgage companies played a major role in sub-prime mortgages (Alt-A and NINJA loans - No income, no job or assets). They lent money for homes to anyone and everyone, regardless of their income or credit rating. The lending standards were lowered significantly until people with no jobs, no income, no assets and no credit rating were able to obtain large mortgages for no money down and no proof of income. Mortgage writers did not check the information on mortgage applications and applicants were encouraged to lie on the mortgage applications. Lastly, these mortgages came with low initial teaser rates and ARMs (Adjustable Rate Mortgages), and in two years they would re-calculate to a much higher payment.

The Banks and the Great Recession. The banks lived their dream world during this so called housing “bubble”. These mortgages were securitized and turned into mortgage backed securities that people could invest in, without knowing the credit worthiness of those mortgages. O to further explain, these mortgages were dissected into smaller tranches (known as collateralized debt obligations), which were sold in pieces to multiple investors, who would only get paid by mortgage payments. See, the banks listed these CDOs at inflated prices when there was really no value at all. When they had to properly list the CDO’s at current market value, everyone could see that the banks didn’t have nearly the assets they claimed to have. Another problem was the 30 to 1 leverage. For every dollar invested in these mortgages the bank used $30 borrowed dollars to invest. Lastly, shadow banking, which included the unregulated derivatives market and the repo market or repurchase agreements.

The Rating Companies Role in the Great Recession. The rating companies Moody’s, Standard and Poor’s and Fitch also contributed to the Great Recession. Their job was to properly rate securities anywhere from the highest investment grade down to junk status. They rated the CDOs as high investment grade securities without even knowing what was in each piece. Interestingly enough, these rating companies are paid by the banks or companies whose securities are being rated, which is one reason they were rated highly. Many entities like pension funds, city, state and nations by their bylaws invested in securities because the rating companies all said so.

AIG and the Great Recession. AIG is known to be an immense insurance company, and one of its main function is to insure bonds against default. This insurance is called CDS (credit default swap), and the pension fund pays a premium for this insurance. As the sub-prime enthusiam continued with everyone buying the mortgage backed CDOs, they also wanted to buy insurance in the form of credit default swaps in case some of the mortgages defaulted. This immediately shifted and transferred the risk of the bonds defaulting to the seller of the credit default swaps. And, in this case, AIG in turn bought the credit default swaps and made a tremendous amount of money. AIG collected the premiums on all of these credit default swaps insurance and felicitously sold the credit default swaps to anyone. Even after the increase in foreclosures, AIG continued to sell the swaps for the premiums. By the fall of 2008, AIG was losing billions of dollars per day.

Credit Crunch, Bank Failures and Businesses Role in the Great Recession. By the fall of 2008, it was quite clear that there was a serious problem as houses tremendously plummeted and continued to decline. People owed way more than their homes were worth, and there were significant increases in defaults and foreclosures. As home prices dropped, mortgage backed CDOs dramatically sank in value, banks acquired severe capital and liquidity problems and vastly running out of money. Customers pulled their money out of the banks, and banks desperately fought to find buyers and mergers before they went bankrupt. Construction halted on the building of new homes. The economy came to a screeching halt causing the Great Recession to move from Wall Street to Main Street America.

EFFECTS OF THE RECESSION
The 2008 devastation to the U.S. economy spread far beyond housing. Stagnating oil prices occurred, the Lehman Brothers (a global financial-services firm) declared bankruptcy, the banking industry took a hit in which 176 banks in the U.S. failed, businesses could not rely on their customers’ ability to secure loans and they weren’t able to find the credit that they needed to pay creditors or buy inventory, or even pay their own workers. Lastly, the recession had a tremendous negative impact on families. People work hard just to stay afloat, in hopes that the economy will turn around soon. By 2009, at least 8.7 million jobs were lost and nearly 2.5 million homes were foreclosed on with millions more having foreclosure filing. Reduced income lead to reduced entertainment, dining, and extracurricular activity expenses. Also, families put investment accounts on hold, hoping to play catch-up at a later date.

When home prices headed back down in 2007, large numbers of homeowners faced rising adjustable-rate mortgage payments and/or could no longer borrow against a rising home value to finance other expenses. The U.S. government stepped in with a massively expensive bailout program in late 2008, which continued into 2009. The government initiated plan included a two-pronged strategy to reverse the financial crisis: bail out distressed financial institutions (lest they transmit their failure to their creditors) and pump government money into the economy (to stimulate business activity when private loans were scarce). Altogether, by late 2009 the government had provided an estimated $4 trillion to keep the financial sector afloat, the TARP (Troubled Assets Relief Program) was created, and a $700 billion safety net was appropriated by the U.S. Congress.

TYPES OF BUSINESSES THAT SURVIVED THE RECESSION
The majority of people believe that the recession was highly detrimental. This reality triggered many industries to begin cutting back on spending and focus on making conservative decisions for future purchasing. However, for a select group of industries, the recession brought about potential increase in business, and an opportunity to extend or grow their businesses. The following types of business survived the recession: Accountants and Financial Advisors, Healthcare Providers, Auto Repair and Maintenance, Rental Agents and Property Management Companies, Grocery Stores, and Bargain and Discount Stores.

Accountants. Even during recession, both people and businesses have to exist, function, pay taxes and strive to keep their finances in order. With that being said, Accountants are highly likely to experience an increase in business especially during recession. This is the point where people and businesses will diligently seek professional help to ensure that they have a clear understanding of their financial position, and are making the best decisions pertaining to their financial operations (i.e. expenditures, revenue, taxes).

Healthcare Providers. In regard to health, it is common knowledge that people get sick. This is clearly one thing that truly doesn't vary regardless of whether or not were are facing economic hardship. Since many people will still require this service, and may utilize it more due to being stressed behind the recession, the healthcare industry must be fully operational. Hence, they are not prone to implement or experience employee layoffs as other industries.

Auto Repair and Maintenance. When times get tough people are less likely to purchase a brand-new car. As a result, people will choose to repair and maintain their existing vehicle. During this time the majority of people were not afford to allocate a large monthly sum towards a car loan when they are trying to make ends meet. Because of this notion, auto repair and maintenance shops continue to thrive and can earn a substantial amount of the cash during times of recession.

Rental Agents and Property Management Companies. As a result of the recession, many families were forced to sell their property or lost it via bank foreclosure. Other individuals were not able to afford to purchase a home due to common variables such as price and/or credit. Either way, people still need a place to live. With very limited options these individuals more than likely turned to renting. This is how rental agents, landlords and/or property management companies thrive and expand their business.
Grocery Stores. It is a clear fact that one of the greatest components to the survival of the human species, or any other species for that matter, is food. A shift in the economy can cause an individual to re-evaluate or re-adjust their spending budget in the area of food. Hence, people are more likely to start preparing meals at home rather than paying a premium for food at a restaurant. And for this reason, grocery stores typically observe an increase in sales as people choose to spend more time at home cooking delicious meals.

Bargain or Discount Stores. There are a lot of wonderful, enchanting and high-end places to ravish your shopping appetite. However, when people can no longer afford to do so, let alone shop 'til they drop, they may turn to places like bargain or discount stores. At least this way they can still enjoy the feeling of treating themselves at a cheaper or more reasonable cost. Bargain and discount stores allow consumers to shop and pay less for discretionary items, without feeling guilty. This ideology positions the bargain and discount stores to continue to generate revenue during recessionary periods.

COMPANIES THAT HIRED DURING THE RECESSION
Most businesses today are just as committed to cost reduction as they were in the depths of the global recession. The main difference now is that many are focused on cost-cutting as a way to drive growth, rather than as a way to survive or avoid bankruptcy. This continued focus on cost reduction combined with a new emphasis on growth represents a significant shift in business strategy and mindset. In the past, cost reduction was largely associated with companies that were struggling or in distress. Now, growing companies are just as interested in reducing costs as those with declining sales. However, there are actually some companies that put their employees first, and were in full swing of hiring during the recession to current. The top two companies that helped families in the recession were Kroger Company and Ernst & Young Company.

Kroger Company. One of the world's largest retailers, employs more than 375,000 associates who serve customers in 2,640 supermarkets and multi-department stores in 34 states and the District of Columbia. Since 2008, the Kroger Company has created 20,000 full- and part-time jobs, including 5,000 in the Tri-State. Lastly, Kroger has hired more than 22,500 veterans since 2009. In addition, Kroger is proud to have helped the "100,000 Jobs Mission" surpass its original goal in January 2014, seven years early. The "100,000 Jobs Mission" is a coalition of more than 130 companies with the common goal of hiring more than 100,000 transitioning service members and military veterans by 2020.

Ernest & Young Company. This well-known accounting firm has made nearly 10,000 hires since 2008, Ernst & Young, as part of its plan to hire 4,100 professionals, will hire 925 of them to work in the New York metro area, a more than 30 percent jump from the 700 hired last year. But while the economy is improving ever-so-sluggishly, Ernst & Young is definitely hiring. The firm’s advisory practice will absorb some 40 percent of the planned 4,100 experienced hires.

COMPANIES THAT CHOOSE SHARED-WORKED PROGRAM OVER LAYOFFS
With the former and current state of the economy, businesses continue to search for innovative approaches to survive the recession. A great new program known as work-sharing, both cuts costs and prevents worker layoffs. Work-sharing operates by reducing employees’ weekly hours by around 20-40% and having states pay nearly half of the lost wages. This type of program benefits both the employer and worker because it prevents layoffs in a failing economy, allowing workers to keep their benefits and a large portion of their paycheck, while retaining employee talent and a skilled workforce. The following are some companies that utilized the work hire program: Lincoln Door, Hartford Technologies, Tri-Star Industries, Quinlan Companies, Reflexite, ESCO Corporation, and New Buffalo Shirt Factory.

Lincoln Door. Located in Rocky Hill, Connecticut, installs commercial and residential overhead doors. The company had to cut payroll -but instead of laying off workers, management decided to cut back hours, and spare jobs. They used a state program called shared work, which allows employees to collect unemployment benefits for furloughed time. In the end, the employees work one less day a week, loses only half a day’s pay, and keeps their benefits.

Hartford Technologies, (a 70-year-old company that makes ball bearings for everything from cars to lip gloss) suffered a 40 percent drop in orders in early 2009, as customers, hit by the recession, used up their inventories. So, Hartford Technologies’ union employees began getting Fridays off that March, with all management employees following in April on staggered days off. After a full year on furlough, business began picking up at Hartford Technologies and workers went back to full time in March 2010.

Tri-Star Industries. A metal-working plant in Connecticut, now has its 29 non-managerial employees working three - or four-day weeks. While this means they take home lower pay, workers liked the program because it lets them keep their jobs and they get more time to do other things, from camping to side jobs for extra cash.

Quinlan Companies. In 2009, the head of the Quinlan Companies had a hard decision to make. The recession had taken its toll on the Rhode Island-based records-management firm. Customers were canceling contracts. Revenue was down. It looked like there would have to be layoffs. Upper management learned of the work share program as an alternate solution. They then cut back hours, and the state paid workers a percentage of their lost wages. In the end, no employees were laid off.

Reflexite. A manufacturer based in Avon, Connecticut, makes reflective material for highway signs, motorcycle helmets and roadwork vests. Reflexite cut most employees’ hours from February through April, but with orders increasing as highway construction picks up under the stimulus plan, all workers are now back at 40 hours.

ESCO Corporation. Located in Oregon, this company just last year contemplated laying off some of its 1,000 workers in Portland when global demand for mining equipment decreased. Instead, the company said the state’s work-share program allowed them to reduce some workers’ hours instead of eliminating any jobs.
New Buffalo Shirt Factory. An apparel manufacturer in New York state with 70 employees, started participating in the state-s work-sharing program in 2010. The move saved 25 jobs and helped the company learn how to better manage labor costs.

STATES WHO PARTICIPATE IN THE WORK SHARE PROGRAM
Work-share programs have existed since the 1980s, but the Middle Class Tax Relief and Job Creation Act of 2012 marked the first time the federal government offered states grant money to help set up such programs and to pay for benefits. When the Great Recession hit the American workforce, some states were better prepared to weather the storm, other states strived to make employers aware of the program. In fact, more than 501,000 layoffs were averted and jobs saved since 2008 through work-share programs, according to the Labor Department. Since the 1980’s, twenty six states nationwide (i.e. California, Colorado, Florida, Maryland, New York, Oregon, Pennsylvania, and Wisconsin) offer work the work sharing programs, which helps their businesses lower costs and keep employees.
State of California. In 1978, under Senate Bill 1471, the California State Legislature created a Work Sharing program. This was the first program of its kind in the entire nation. It was established to help employers and employees avoid some of the burdens that accompany a layoff situation. It allows employees to be retained during a temporary slowdown, and employers can minimize or save on the cost of recruiting, hiring, and training new employees. This California program allows for the payment of Work Sharing Unemployment Insurance benefits to those individuals whose wages and hours have been reduced. Lastly, this program is effective to the companies who chose to utilize it.
State of New York. Rhode Island isn't the only state with work share. But the program has been uniquely successful in Rhode Island. The state has the highest rate of employer participation relative to the size of its labor force. Just last year, 171 business owners enrolled in the program, with an average length of participation of roughly 19 weeks. Rhode Island's work-share program has been operating since 1992. It's designed to help business owners avoid layoffs when times get tough and state officials say it's saved more than 15,000 jobs since the start of the program.
State of Oregon. 905 employers participating in Oregon.
State of Connecticut. Makes up more than half the wages the workers lose because of shorter workweeks. As a result of such outreach efforts, 5,000 Connecticut workers are participating in work-sharing, up from 250 a year ago.
State of Washington. In this state 39,119 are participating, which is up from 6,039 a year ago.
State of Massachusetts. In this state 10,127 workers are, compared to 621 a year ago — and 458 employers, up from 31 last year.

ADVANTAGES OF WORK-SHARING PROGRAMS
The Work Sharing program can meet employers’ needs due to its built-in flexibility: Minimizes or eliminates the need for layoffs and the accompanying hardships for employees. Enables a business to retain trained employees and avoid the expense of recruiting, hiring, and training new employees. Enables employees to be retained during a temporary slowdown so employers can quickly gear-up when business conditions improve. Assists employers who need to reduce their work force permanently to use Work Sharing as a phased transition to layoff. Allows affected employees to continue to work at reduced levels with an opportunity to find other employment before an expected layoff. Treats employees more equitably than layoffs, which place the burden of economic adjustments for an entire business on relatively few employees. Allows almost all types of business or industry to use the Work Sharing program.

Many were mislead by Even though the National Bureau of Economic Research (NBER) believes that the Great Recession ended in July 2009, it is not true. Although the government (by late 2009) provided an estimated $4 trillion to keep the financial sector afloat, we are experiencing the effects of the recession even today.

CONCLUSION
Economic recession is a disaster to any country. It will cause many companies face closure, rise the unemployment rate and slow economic growth. But whether an economy is in a recession, people have no unified views. The Central Bank must consider the consequences in the implementation of a monetary policy. It has to consider both the promotion of economic development and the control of inflation. The effects of a recession on families lasts a lot longer than the duration of a recession. Ultimately, almost everyone suffers during an economic downturn. Families can survive by adapting to a new lifestyle, working together, and making changes to improve their future.

REFERENCES

1. ^ Jump up to: a b Kurtzleben, Danielle (August 23, 2014). "Middle class households' wealth fell 35 percent from 2005 to 2011". Vox.com. Retrieved 13 September 2014.

Websites used to compose the above:

"America's Great Depression - Causes and Cures" - http://www.amatecon.com/gd/gdcandc.html "H102 Lecture 19: The Great Depression and the New Deal" - http://us.history.wisc.edu/hist102/lectures/lecture19.html -
University of Wisconsin, Stanley K. Schultz, Professor of History

"Sliding into the Great Depression" - http://econ161.berkeley.edu/TCEH/Slouch_Crash14.html - University of
California at Berkeley

"Great Myths of the Great Depression" - http://www.uaca.ac.cr/acta/1998nov/lreed.htm - Universidad Autónoma de
Centro América

"Economic Surpluses" - http://www.sjsu.edu/faculty/watkins/surplus.htm
- San Jose State University

"Accounting for the Great Depression" - http:/www.stern.nyu.edu?~fperri/papers/account.pdf - a PDF file,
Acrobat Reader needed.

"Four Myths About America's Great Depression" - http://www.libertyhaven.com/theoreticalorphilosophicalissues/economichistory/fourmyths.html - From Liberty Haven

“Why Ernst & Young’s 10,000 New Hires Won’t Save the Economy” http://www.thedailybeast.com/articles/2012/09/20/why-ernst-young-s-10-000-new-hires-won-t-save-the-economy.html - The Daily Beast, Matthew Zeitlin , Shannon Stapleton, Reuters / Landov

The Great Recession of 2008–09: Year In Review 2009 http://www.britannica.com/EBchecked/topic/1661642/The-Great-Recession-of-2008-09-Year-In-Review-2009/286636/The-US-Response Work Sharing Unemployment Insurance Program http://www.edd.ca.gov/pdf_pub_ctr/de8714bb.pdf 9 Businesses That Thrive In Recession
By Janet Fowler | August 30, 2011 AAA |

http://answers.google.com/answers/threadview?id=178334

in dealing with a recession.
MATERIALS
* Luxury or Necessity: This site shows how the recession has affected the public in the United States. pewsocialtrends.org/pubs/733/luxury-necessity-recession-era-reevaluations * 10 Ways the Recession is Changing Britain: This site shows how the current recession has affected people in Great Britain. www.telegraph.co.uk/finance/financetopics/recession/5895459/10-ways-the-recession-is-changing-Britain.html * 5 Easy Ways to Reduce Recession Anxiety: This site shows ways to reduce fears about the recession. www.businesspundit.com/5-simple-ways-to-reduce-recession-anxiety/ * Pro Sports Not Immune to Recession: This site shows the effect that the recession has had on professional sports teams. www.pittsburghlive.com/x/pittsburghtrib/sports/s_600741.html * Yankees Slash Prices to Fill Costly Seat at New Park: This site also shows how the recession has affected sports teams. online.wsj.com/article/SB124096661843766403.html * Cash for Clunkers: This site explains the Cash for Clunkers program, also known as Consumer Assistance Recycle and Save Act of 2009. www.econedlink.org/lessons/docs_lessons/859_cashforclunkers1.pdf * The Act: This site highlights main points of the American Economic Recovery Act. www.recovery.gov/?q=content/act * The American Recovery and Reinvestment Act of 2009: This site also highlights main points of the American Economic Recovery Act. www.irs.gov/newsroom/article/0,,id=204335,00.html * How to Deal with Recession: This site shows strategies, including financial and career moves, to deal with the recession. www.goodhousekeeping.com/money/budget/deal-with-recession * Great Depression vs. Great Recession: This site explains that the current recession and the Great Depression have similar traits, but the Great Depression was far worse. money.cnn.com/news/storysupplement/economy/recession_depression/ * The Great Recession: This website explains that in this current economic recession, another great recession is not likely. money.cnn.com/2009/03/25/news/economy/depression_comparisons/index.htm * The Great Recession, Decline and Rebound in Household Wealth for the Near Retirement Population * Alan L. Gustman, Thomas L. Steinmeier, Nahid Tabatabai * NBER Working Paper No. 20584
Issued in October 2014
NBER Program(s): AG LS PE * 9 Effects of the Recession on Families and How to Cope * http://www.moneycrashers.com/effects-recession-families/ * By David Quilty

Why Ernst & Young’s 10,000 New Hires Won’t Save the Economy

http://www.thedailybeast.com/articles/2012/09/20/why-ernst-young-s-10-000-new-hires-won-t-save-the-economy.html
Shannon Stapleton, Reuters / Landov

EDD. Work Share Program http://www.edd.ca.gov/unemployment/Work_Sharing_Program.htm Companies Choose Shared-Work Program Over Layoffs
http://www.radioproject.org/2010/08/companies-choose-shared-work-program-over-layoffs/

Similar Documents

Premium Essay

Motivation - Organizational Behaviour

...1 Table of Contents Impacts of Environmental Forces on the staff of JUTC 2 Introduction The Jamaican Urban Transit Company Limited (JUTC) was established in 1998 by the government of Jamaica to provide a centrally managed state of the art bus service. JUTC was designed to be safe, modern and reliable system of transport, efficiently operated at a reasonable cost to commuters. This involved the construction of five depots within the Kingston, Portmore and Spanish Town areas. These depots are located at Ashenheim Road, Lyndhurst Road, Rockfort, Twickenham Park and Greater Portmore (JUTC, 2003). Throughout the years JUTC has been impacted by varying environmental factors, which has retarded the company’s viability and ability to remain competitive in the transportation sector. With improvements in technological landscape JUTC had to ensure that they provide a customer friendly, safe and economic transportation service. Despite making changes to match the operations of the global landscape the organization has struggled to maintain financial viability. This is evident as annually the company records millions of dollars in losses despite being subsidized by the government with limitations across the government sector imposed by the International Monetary Fund (IMF). The various financial and government limitations imposed on the organization have affected the psychological contract of employees at JUTC. Despite the limitations the general workforce remains committed to...

Words: 3539 - Pages: 15

Premium Essay

Environmental Analysis

...VIEW Strategic Human Resource Management Taken from: Strategic Human Resource Management, Second Edition by Charles R. Greer Copyright © 2001, 1995 by Prentice-Hall, Inc. A Pearson Education Company Upper Saddle River, New Jersey 07458 Compilation Copyright © 2003 by Pearson Custom Publishing All rights reserved. This copyright covers material written expressly for this volume by the editor/s as well as the compilation itself. It does not cover the individual selections herein that first appeared elsewhere. ii Permission to reprint these has been obtained by Pearson Custom Publishing for this edition only. Further reproduction by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom.com ISBN 0–536–72690–6 BA 996748 PEARSON CUSTOM PUBLISHING 75 Arlington Street, Suite 300 Boston, MA 02116 A Pearson Education Company iii iv Table of Contents SECTION ONE ................................................................. 1 An Investment Perspective and Human Resources .... 2 HUMAN RESOURCE INVESTMENT CONSIDERATIONS ...6 INVESTMENTS IN TRAINING AND DEVELOPMENT ..... 14 INVESTMENT PRACTICES FOR IMPROVED RETENTION ..................

Words: 132738 - Pages: 531

Premium Essay

Pricing

...A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills as well as the Super Bowl and NASCAR trophies. A cultural icon—its Tiffany Blue color is even trademarked—Tiffany has survived the economy’s numerous ups and downs through the years. With the emergence in the late 1990s of the notion of “affordable luxuries,” Tiffany seized the moment by creating a line of cheaper silver jewelry. Its “Return to Tiffany” silver bracelet became a must-have item for teens of a certain set. Earnings skyrocketed for the next five years, but the affordable jewelry brought both an image and a pricing crisis for the company: What if all those teens who bought Tiffany charm bracelets grew up to think of Tiffany only as a place where they Pricing decisions are clearly complex and difficult, got the jewelry of their girlhood? Starting in 2002, the company began and many marketers neglect their pricing strategies.2 Holistic hiking prices again. At the same time, it launched higher-end marketers must take into account many...

Words: 19446 - Pages: 78

Premium Essay

Developingstrategies

...evaluate prices? 2. How should a company set prices initially for products or services? 3. How should a company adapt prices to meet varying circumstances and opportunities? 4. When should a company initiate a price change? 5. How should a company respond to a competitor’s price change? As a high-end luxury goods provider, Tiffany & Co. knows the importance of preserving the integrity of its prices. Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills as well as the Super Bowl and NASCAR trophies. A cultural icon—its Tiffany Blue color is even trademarked—Tiffany has survived the economy’s numerous ups and...

Words: 19539 - Pages: 79

Premium Essay

Khan

...This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work’s original creator or licensee. Saylor URL: http://www.saylor.org/books Saylor.org 1 Preface Competing books are focused on the academic part of HRM, which is necessary in a university or college setting. However, the goal with this book is not only to provide the necessary academic background information but also to present the material with a practitioner’s focus on both large and small businesses. While the writing style is clear and focused, we don’t feel jargon and ten-dollar words are necessary to making a good textbook. Clear and concise language makes the book interesting and understandable (not to mention more fun to read) to the future HRM professional and manager alike. It is highly likely that anyone in business will have to take on an HRM role at some point in their careers. For example, should you decide to start your own business, many of the topics discussed will apply to your business. This is the goal of this book; it is useful enough for the HRM professional, but the information presented is also applicable to managers, supervisors, and entrepreneurs. Besides these differences, other key differences include the following:   This book utilizes a technology focus and shows how HRM activities can be leveraged using technology. We have also included a chapter on communication and information...

Words: 157258 - Pages: 630

Premium Essay

Maytag

...DESIGNER SENIOR PRODUCTION MANAGER ASSOCIATE PRODUCTION MANAGER PRODUCTION EDITOR COVER DESIGNER George Hoffman Franny Kelly Brian Baker Jacqueline Hughes Amy Scholz Kelly Simmons Marissa Carroll Harry Nolan Allison Morris Janis Soo Joel Balbin Eugenia Lee Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more information, please visit our website: www.wiley.com/go/citizenship. Copyright © 2014, 2009, 2006, 2004 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic,...

Words: 180086 - Pages: 721

Free Essay

Globalization

...GLOBALIZATION THE ESSENTIALS GEORGE RITZER A John Wiley & Sons, Ltd., Publication Globalization Globalization A Basic Text George Ritzer This balanced introduction draws on academic and popular sources to examine the major issues and events in the history of globalization. Globalization: A Basic Text is a substantial introductory textbook, designed to work either on its own or alongside Readings in Globalization. The books are cross-referenced and are both structured around the core concepts of globalization. 2009 • 608 pages • 978-1-4051-3271-8 • paperback www.wiley.com/go/globalization Readings in Globalization Key Readings and Major Debates Edited by George Ritzer and Zeynep Atalay This unique and engaging anthology introduces students to the major concepts of globalization within the context of the key debates and disputes. Readings in Globalization illustrates that major debates in the field are not only useful to examine for their own merit but can extend our knowledge of globalization. The volume explores both the political economy of globalization and the relationship of culture to globalization. The volume is designed so it may be used independently, or alongside George Ritzer’s Globalization: A Basic Text for a complete student resource. 2010 • 560 pages • 978-1-4051-3273-2 • paperback Order together and save! Quote ISBN 978-1-4443-2371-9 GLOBALIZATION THE ESSENTIALS GEORGE RITZER A John Wiley & Sons, Ltd., Publication This edition first...

Words: 168078 - Pages: 673

Premium Essay

Something

...Innovative Business Practices Innovative Business Practices: Prevailing a Turbulent Era Edited by Demetris Vrontis and Alkis Thrassou Innovative Business Practices: Prevailing a Turbulent Era, Edited by Demetris Vrontis and Alkis Thrassou This book first published 2013 Cambridge Scholars Publishing 12 Back Chapman Street, Newcastle upon Tyne, NE6 2XX, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2013 by Demetris Vrontis and Alkis Thrassou and contributors All rights for this book reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. ISBN (10): 1-4438-4604-X, ISBN (13): 978-1-4438-4604-2 TABLE OF CONTENTS Chapter One ................................................................................................. 1 Knowledge Hybridization: An Innovative Business Practices to Overcome the Limits of the Top-Down Transfers within a Multinational Corporation Hela Chebbi, Dorra Yahiaoui, Demetris Vrontis and Alkis Thrassou Chapter Two .............................................................................................. 17 Rethinking Talent Management in Organizations: Towards a Boundary-less Model Carrie Foster, Neil Moore and Peter Stokes Chapter Three .......

Words: 128975 - Pages: 516

Premium Essay

Stock Investing for Dummies

...Stock Investing FOR DUMmIES 2ND by Paul Mladjenovic ‰ EDITION Stock Investing FOR DUMmIES 2ND ‰ EDITION Stock Investing FOR DUMmIES 2ND by Paul Mladjenovic ‰ EDITION Stock Investing For Dummies® 2nd Edition , Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2006 by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. Requests to the Publisher for permission should be addressed to the Legal Department, Wiley Publishing, Inc., 10475 Crosspoint Blvd., Indianapolis, IN 46256, 317-572-3447, fax 317-572-4355, or online at http://www.wiley.com/go/permissions. Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the...

Words: 125643 - Pages: 503

Premium Essay

California an Interpretive History - Rawls, James

...CALIFORNIA CALIFORNIA An Interpretive History TENTH EDITION James J. Rawls Instructor of History Diablo Valley College Walton Bean Late Professor of History University of California, Berkeley TM TM CALIFORNIA: AN INTERPRETIVE HISTORY, TENTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2008, 2003, and 1998. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1234567890 QFR/QFR 10987654321 ISBN: 978-0-07-340696-1 MHID: 0-07-340696-1 Vice President & Editor-in-Chief: Michael Ryan Vice President EDP/Central Publishing Services: Kimberly Meriwether David Publisher: Christopher Freitag Sponsoring Editor: Matthew Busbridge Executive Marketing Manager: Pamela S. Cooper Editorial Coordinator: Nikki Weissman Project Manager: Erin Melloy Design Coordinator: Margarite Reynolds Cover Designer: Carole Lawson Cover Image: Albert Bierstadt, American (born...

Words: 248535 - Pages: 995

Premium Essay

Aasdgasdgasdfas

...in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Cohen, William A., 1937– A class with Drucker : the lost lessons of the world’s greatest management teacher by William A. Cohen. p. cm. Includes index. ISBN 978-0-8144-0919-0 1. Management. 2. Executives—Training of. 3. Drucker, Peter F (Peter Ferdinand), . 1909-2005. 4. Cohen, William A., 1937– I. Drucker, Peter F (Peter Ferdinand), . 1909-2005. II. Title. HD31.C589 2007 658—dc22 2007020976 © 2008 William A. Cohen All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in...

Words: 103006 - Pages: 413

Premium Essay

Book

...com/Johnson14e Michiel R. Leenders, D.B.A., PMAC Fellow Professor of Purchasing Management Emeritus Richard Ivey School of Business The University of Western Ontario Anna E. Flynn, Ph.D., C.P.M. Formerly Clinical Associate Professor Supply Chain Management Thunderbird School of Global Management Formerly Associate Professor Institute for Supply Management TM Johnson Leenders Flynn Purchasing and Supply Management Johnson Leenders Flynn MD DALIM #1093963 06/05/10 BLUE GREEN P. Fraser Johnson, Ph.D. Leenders Purchasing Management Association of Canada Chair Associate Professor, Operations Management Richard Ivey School of Business The University of Western Ontario Purchasing and Supply Management company issues and opportunities. Fourteenth Edition Purchasing and Supply Management joh77899_fm_i-xviii.indd i 6/9/10 10:05 PM The McGraw-Hill/Irwin Series Operations and Decision Sciences OPERATIONS MANAGEMENT Beckman and Rosenfield, Operations, Strategy:...

Words: 188430 - Pages: 754

Premium Essay

Purchasing and Supply Management

...com/Johnson14e Michiel R. Leenders, D.B.A., PMAC Fellow Professor of Purchasing Management Emeritus Richard Ivey School of Business The University of Western Ontario Anna E. Flynn, Ph.D., C.P.M. Formerly Clinical Associate Professor Supply Chain Management Thunderbird School of Global Management Formerly Associate Professor Institute for Supply Management TM Johnson Leenders Flynn Purchasing and Supply Management Johnson Leenders Flynn MD DALIM #1093963 06/05/10 BLUE GREEN P. Fraser Johnson, Ph.D. Leenders Purchasing Management Association of Canada Chair Associate Professor, Operations Management Richard Ivey School of Business The University of Western Ontario Purchasing and Supply Management company issues and opportunities. Fourteenth Edition Purchasing and Supply Management joh77899_fm_i-xviii.indd i 6/9/10 10:05 PM The McGraw-Hill/Irwin Series Operations and Decision Sciences OPERATIONS MANAGEMENT Beckman and Rosenfield, Operations, Strategy:...

Words: 188430 - Pages: 754

Premium Essay

Transsctions and Economics

...Transactions and Strategies Economics for Management This page intentionally left blank Transactions and Strategies Economics for Management ROBERT J. MICHAELS Mihaylo College of Business and Economics California State University, Fullerton Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Transactions and Strategies: Economics for Management Robert J. Michaels Vice President of Editorial, Business: Jack W. Calhoun Publisher: Joe Sabatino Sr. Acquisitions Editor: Steve Scoble Supervising Developmental Editor: Jennifer Thomas Editorial Assistant: Lena Mortis Sr. Marketing Manager: John Carey Marketing Coordinator: Suellen Ruttkay Marketing Specialist: Betty Jung Content Project Manager: Cliff Kallemeyn Media Editor: Deepak Kumar Sr. Art Director: Michelle Kunkler Frontlist Buyer, Manufacturing: Sandee Milewski Internal Designer: Juli Cook/ Plan-It-Publishing, Inc. Cover Designer: Rose Alcorn Cover Image: © Justin Guariglia/Corbis © 2011 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means— graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support...

Words: 234748 - Pages: 939

Free Essay

Where Am I Wearing

...Contents Preface Prologue: We have it Made Part I: The Mission Chapter 1: A Consumer Goes Global Chapter 2: Tattoo’s Tropical Paradise Chapter 3: Fake Blood, Sweat, and Tears Part II: My Underwear: Made in Bangladesh Chapter 4: Jingle these Chapter 5: Undercover in the Underwear Biz Chapter 6: Bangladesh Amusement Park Chapter 7: Inside My First Sweatshop Chapter 8: Child Labor in Action Chapter 9: Arifa, the Garment Worker Chapter 10: Hope Chapter 11: No Black and White, Only Green Update for Revised Edition: Hungry for Choices Part III: My Pants: Made in Cambodia Chapter 12: Labor Day Chapter 13: Year Zero Chapter 14: Those Who Wear Levi’s Chapter 15: Those Who Make Levi’s Chapter 16: Blue Jean Machine Chapter 17: Progress Chapter 18: Treasure and Trash Update for Revised Edition: The Faces of Crisis Part IV: My Flip-Flops: Made in China Chapter 19: PO’ed VP Chapter 20: Life at the Bottom Chapter 21: Growing Pains Chapter 22: The Real China Chapter 23: On a Budget Chapter 24: An All-American Chinese Walmart Chapter 25: The Chinese Fantasy Update for Revised Edition: Migration Part V: Made in America Chapter 26: For Richer, for Poorer Update for Revised Edition: Restarting, Again Chapter 27: Return to Fantasy Island Chapter 28: Amilcar’s Journey Chapter 29: An American Dream Chapter 30: Touron Goes Glocal Appendix A: Discussion Questions Appendix B: Note to Freshman Me Appendix C: Where Are You Teaching? Acknowledgments Copyright © 2012 by Kelsey Timmerman...

Words: 95921 - Pages: 384