http://www.vancouversun.com/news/story.html?id=1679027
Summary
Laura Secord is a well known chocolate brand in Canada. It has 129 different locations across Canada. In this article it talks about Laura Secord expanding its business by selling coffee as well. This topic is being evaluated because consumers have been asking for coffee to be sold at their multiple different locations. They have been evaluating whether or not they should sell coffee. According to the food service category 60-65 percent of instant consumptions are beverages. If coffee was sold at their locations they would try to connect chocolate and coffee together. However they are not sure about selling coffee because coffee has abundant of competitors while chocolate doesn’t and is always recession proof.
Connections
In chapter 10 it talks about microeconomics while involves the different type of businesses and competition. In this article Laura Secord is going to be against competition with Tim Hortons if they decide to start selling coffee. Laura Secord itself right now is already a well known brand, and even though there in premium space and it’s hard right now, they are everyday premium. If Laura Secord starts selling coffee and other beverages with chocolate in it, more people would go to Laura Secord instead. Laura Secord would have a bigger variety of not only beverages but food as well. Also with more competition the price would be lower and the quality of the goods would be better.
Personal Reflections
If Laura Secord does decide to join in and become competition I think it will succeed. With more of a variety of beverages and food it will attract more people. Also it would be a lot more convenient for people that want both coffee and food. As I mentioned earlier if the price is lowered people wouldn’t mind spending the money on a drink. It is also a bonus for the consumers because they are receiving better quality drinks for a lower price. Not only is money and quality of goods are positive factors, the fact that new products are introduced will attract more consumers. People are always attracted to new things and will want to try it out. If the goods are good, you wouldn’t even need to spend as much money on marketing the new product because word of mouth will spread rapidly. However there will always be those that dislike chocolate and are loyal Tim Hortons coffee drinkers that will not go, but this is only a small percentage.
Thursday, June 11, 2009
Tuesday, May 5, 2009
http://www.economist.com/business/displayStory.cfm?story_id=13579063&source=hptextfeature
You're hired, next year!
Summary
This article talks about how companies are cutting employment down without laying them off. Instead of hiring more employees to work in the main areas of the company, they hired more freelancers and consultants to save money. Instead of working to create more goods for the company, these freelancers and consultants helps the company cut down on employees. These freelancers and consultants suggest they give time off to employees without having to spend on employment benefits and the risk of competitors taking their employees. These articles also mention the relationship between universities and companies are going downhill. The amount of students guaranteed employment in a company is decreased significantly. Universities are now taking a further step and are helping their students hopefully to secure employment for them.
Connections
This article and chapter 8 connects because they both talk about employment and the different type of employment. In the article, companies are having abundance of employees take time off of work so that the company can save money and guarantee employment in the future. They do not have to pay for employment insurance because they are not working, but they are still employed. This doesn’t help the economy, it does not increase consumers spending, in fact this decrease consumers spending. The Companies are only doing goods to themselves and not the economy as a whole.
Personal Reflection
I think what the companies are doing is wrong; they are just protecting themselves and not the economy. At the end the companies will be the ones that will get hurt. The companies are one of the main components in the economy and if they are doing things that doesn’t help increase employment and consumer sale than the economy would take longer than needed to, to get out of the depression.
You're hired, next year!
Summary
This article talks about how companies are cutting employment down without laying them off. Instead of hiring more employees to work in the main areas of the company, they hired more freelancers and consultants to save money. Instead of working to create more goods for the company, these freelancers and consultants helps the company cut down on employees. These freelancers and consultants suggest they give time off to employees without having to spend on employment benefits and the risk of competitors taking their employees. These articles also mention the relationship between universities and companies are going downhill. The amount of students guaranteed employment in a company is decreased significantly. Universities are now taking a further step and are helping their students hopefully to secure employment for them.
Connections
This article and chapter 8 connects because they both talk about employment and the different type of employment. In the article, companies are having abundance of employees take time off of work so that the company can save money and guarantee employment in the future. They do not have to pay for employment insurance because they are not working, but they are still employed. This doesn’t help the economy, it does not increase consumers spending, in fact this decrease consumers spending. The Companies are only doing goods to themselves and not the economy as a whole.
Personal Reflection
I think what the companies are doing is wrong; they are just protecting themselves and not the economy. At the end the companies will be the ones that will get hurt. The companies are one of the main components in the economy and if they are doing things that doesn’t help increase employment and consumer sale than the economy would take longer than needed to, to get out of the depression.
Wednesday, April 1, 2009
http://www.vancouversun.com/business/Block+credit+card+companies+from+debit+business+CFIB/1453093/story.html
Block credit-card companies from debit business: CFIB
Summary
This articles talks about how independent businesses want the government to block banks from sending out credit cards such as Visa and Master Cards with new fees and features. With all the new fees and features for these premium credit cards, businesses will have to pay for them. Catherine Swift, president of the Canadian Federation of Independent believes banks are culprits because these higher fees hurt the individual businesses more than anyone else. Even though Swift asked to block these credit cards in Ottawa, both Visa and Master Card plans to enter the market in the fall to compete again Interac. As the fees increase for the credit cards, businesses will increase and good will increase as well to cover the cost.
Connection:
In this chapter we talk about the demand for money. People find it much simpler and easier to carry a plastic card around rather than money. It is also easier to use a plastic card compare to cash because you won’t feel like you’re actually spending that much money. Where if you’re using cash you will always know and feel how much money you’re actually spending. With all of these new fees and features it will increase people to use their credit card more. Which means individual businesses will have to pay for the services it requires. But with the economic conditions right now it will be hard for businesses to increase prices.
Personal Reflections
I personally think banks should continue having these new fees and features with Visa and Master Card. This will increase people to spend more money on goods; this is a way to get out of the current economic situation. Although goods may be raised, people wouldn’t notice that much of a price difference because their using a card rather than real cash. In the end the individual businesses are able to cover the expense that is if consumers purchase goods.
Block credit-card companies from debit business: CFIB
Summary
This articles talks about how independent businesses want the government to block banks from sending out credit cards such as Visa and Master Cards with new fees and features. With all the new fees and features for these premium credit cards, businesses will have to pay for them. Catherine Swift, president of the Canadian Federation of Independent believes banks are culprits because these higher fees hurt the individual businesses more than anyone else. Even though Swift asked to block these credit cards in Ottawa, both Visa and Master Card plans to enter the market in the fall to compete again Interac. As the fees increase for the credit cards, businesses will increase and good will increase as well to cover the cost.
Connection:
In this chapter we talk about the demand for money. People find it much simpler and easier to carry a plastic card around rather than money. It is also easier to use a plastic card compare to cash because you won’t feel like you’re actually spending that much money. Where if you’re using cash you will always know and feel how much money you’re actually spending. With all of these new fees and features it will increase people to use their credit card more. Which means individual businesses will have to pay for the services it requires. But with the economic conditions right now it will be hard for businesses to increase prices.
Personal Reflections
I personally think banks should continue having these new fees and features with Visa and Master Card. This will increase people to spend more money on goods; this is a way to get out of the current economic situation. Although goods may be raised, people wouldn’t notice that much of a price difference because their using a card rather than real cash. In the end the individual businesses are able to cover the expense that is if consumers purchase goods.
Monday, March 9, 2009
http://www.edmontonjournal.com/business/fp/Pressure+mounts+feds+spend/1347630/story.html
Pressure mounts on feds to spend
Summary
This article talks about how Canada has finally entered a recession after the fourth quarter. The Bank of Canada has been told to lower the interest rates, so that more money will be going out into the economy. This article also mentions that in the fourth quarter GDP dropped in capital investments, personal expenditures, home sales & prices, and exports till the sixth quarter. It also mentions how if Canada contracted, then all the other countries contracted as well. In US and Europe they contracted twice as quickly and in Japan four times as quickly. It also mentions the percentages of interest rates The Bank of Canada is cutting down to a really low amount.
Connections
In this chapter we learned about GDP and aggregate demand. In the article it talks about how the government urges The Bank of Canada to reduce tax rates so that more money will be put out in the economy hoping to get out of the recession Canada is in at the moment. If interest rate goes down people would be spending more, which would then increase demand of goods. If demands of goods are high the export and import will increase. This will cause the GDP to increase in the next quarter. If GDP slowly increases, eventually Canada will get out of this recession.
Personal Reflection
I think this is a good idea that more money is being pumped into the economy. With the help of low interest rates, it will interest people to start spending more. This will eventually lead to people investing again in houses, new goods, cars or any other expensive goods. Once people are starting to invest in them it means there is more money being put into the economy. If low interests gradually continue to lower, people will think that it is alright to start spending money on not only needs, but wants as well. The idea of having more money being pumped into the economy is definitely a good idea; I don’t think there are any flaws to it.
Pressure mounts on feds to spend
Summary
This article talks about how Canada has finally entered a recession after the fourth quarter. The Bank of Canada has been told to lower the interest rates, so that more money will be going out into the economy. This article also mentions that in the fourth quarter GDP dropped in capital investments, personal expenditures, home sales & prices, and exports till the sixth quarter. It also mentions how if Canada contracted, then all the other countries contracted as well. In US and Europe they contracted twice as quickly and in Japan four times as quickly. It also mentions the percentages of interest rates The Bank of Canada is cutting down to a really low amount.
Connections
In this chapter we learned about GDP and aggregate demand. In the article it talks about how the government urges The Bank of Canada to reduce tax rates so that more money will be put out in the economy hoping to get out of the recession Canada is in at the moment. If interest rate goes down people would be spending more, which would then increase demand of goods. If demands of goods are high the export and import will increase. This will cause the GDP to increase in the next quarter. If GDP slowly increases, eventually Canada will get out of this recession.
Personal Reflection
I think this is a good idea that more money is being pumped into the economy. With the help of low interest rates, it will interest people to start spending more. This will eventually lead to people investing again in houses, new goods, cars or any other expensive goods. Once people are starting to invest in them it means there is more money being put into the economy. If low interests gradually continue to lower, people will think that it is alright to start spending money on not only needs, but wants as well. The idea of having more money being pumped into the economy is definitely a good idea; I don’t think there are any flaws to it.
Thursday, February 26, 2009
Nortel cuts another 3,200 jobs
http://www2.canada.com/aboutus/help/nortel+cuts+another+jobs/1328160/story.html?id=1328160
Summary
Nortel Network Corp. is one of the biggest ailing telecom equipment makers in the world. This companied employed over 90,000 people in 2000 when technology was booming. But with the recession happening, they have been cutting employees since January. Just last Wednesday they cut another 3,200 workers world wide. But that is not the end of laying off employees according to Zafirovski the Nortel Chief Executive. Duncan Steward who is an analyst at DSAM Consulting analyzed Nortel and said in order for it to keep running it needs to have at least 15,000 to 18,000 people working. Not only are they making cuts, they are also reducing bonuses and cutting equity based compensation plans. Last month Nortel filed bankruptcy protection for Canada and United States.
Connections
In this article it talks about people being cut and being unemployed. Nortel is making big cuts is because the recession rate is the lowest since the Great Depression. The reason why Nortel made abundant of cuts is because the demand for their product has dropped a significance amount. With less demand for their product, it is no surprise they need to cut down on employees in order to make profit. But with cutting down on employees it increases the unemployment rate causing consumers to consume even less. This leads to the CPI rate to be low because people no longer have the money to purchase goods.
Personal Reflections
Nortel is making a decision that many other companies are making in order to save their company’s. I don’t think that it is necessarily a good idea for Nortel or any other companies to cut back on so many employees even if we are in a recession. If less people are being cut then more people will be employed, and less will be unemployed. Which would result with people having money extra money to purchase goods, demands for goods will increase, and employees will be needed again. Also if there are a huge number of unemployed people it can be bad cause there can be structural unemployment.
Summary
Nortel Network Corp. is one of the biggest ailing telecom equipment makers in the world. This companied employed over 90,000 people in 2000 when technology was booming. But with the recession happening, they have been cutting employees since January. Just last Wednesday they cut another 3,200 workers world wide. But that is not the end of laying off employees according to Zafirovski the Nortel Chief Executive. Duncan Steward who is an analyst at DSAM Consulting analyzed Nortel and said in order for it to keep running it needs to have at least 15,000 to 18,000 people working. Not only are they making cuts, they are also reducing bonuses and cutting equity based compensation plans. Last month Nortel filed bankruptcy protection for Canada and United States.
Connections
In this article it talks about people being cut and being unemployed. Nortel is making big cuts is because the recession rate is the lowest since the Great Depression. The reason why Nortel made abundant of cuts is because the demand for their product has dropped a significance amount. With less demand for their product, it is no surprise they need to cut down on employees in order to make profit. But with cutting down on employees it increases the unemployment rate causing consumers to consume even less. This leads to the CPI rate to be low because people no longer have the money to purchase goods.
Personal Reflections
Nortel is making a decision that many other companies are making in order to save their company’s. I don’t think that it is necessarily a good idea for Nortel or any other companies to cut back on so many employees even if we are in a recession. If less people are being cut then more people will be employed, and less will be unemployed. Which would result with people having money extra money to purchase goods, demands for goods will increase, and employees will be needed again. Also if there are a huge number of unemployed people it can be bad cause there can be structural unemployment.
Sunday, February 22, 2009
‘Credit card dieting’ latest trend in consumer frugality
http://www.vancouversun.com/business/Credit+card+dieting+latest+trend+consumer+frugality/1317960/story.html
Summary
Credit card dieting is the next big thing that is happening. With more and more people going on the new credit card dieting it can only mean people will be consuming less. With abundant of people consuming less, retail stores know that their sales will slowly drop. This article talks about how the economy is going into a recession, also talks about the cut backs on employee restaurants have to make in order to cover cost and make bare minimal profit. There are also ways people are learning how to save money during the recession. Instead of using their credit card or debit card, people are paying everything by cash. People are also using the quote “Only buy things you need, not want” as their motto to keep save up on their money.
Connections
In this chapter we learn about macroeconomics which is the area of economics that is concerned with the overall economy rather than individuals. In the article it mentions that abundant of employees got cut back on their jobs. With so many unemployed people seeking for jobs, the participation rates slowly decreases. As the participation rate decreases there will be even less consumers purchasing goods, which would slowly cause a recession which is a drop in economic activity. Since the participation rate is low, and a recession is going to happen it will only lead to demand deficient unemployment which results from lack of economic spending.
Personal Reflection
In my opinion the credit card diet is not a bad thing, it can help people save money up. The only reason people are going on this credit card diet is because prices for goods have risen, which caused consumers to consume less amount of goods. Not only has the prices has risen, many people got cut back on their jobs. I think the government should start up more jobs so that the participation rates increases again, therefore it will cause more people to purchase goods. If more people purchase goods, the prices of goods will drop and we will be out of the recession.
Summary
Credit card dieting is the next big thing that is happening. With more and more people going on the new credit card dieting it can only mean people will be consuming less. With abundant of people consuming less, retail stores know that their sales will slowly drop. This article talks about how the economy is going into a recession, also talks about the cut backs on employee restaurants have to make in order to cover cost and make bare minimal profit. There are also ways people are learning how to save money during the recession. Instead of using their credit card or debit card, people are paying everything by cash. People are also using the quote “Only buy things you need, not want” as their motto to keep save up on their money.
Connections
In this chapter we learn about macroeconomics which is the area of economics that is concerned with the overall economy rather than individuals. In the article it mentions that abundant of employees got cut back on their jobs. With so many unemployed people seeking for jobs, the participation rates slowly decreases. As the participation rate decreases there will be even less consumers purchasing goods, which would slowly cause a recession which is a drop in economic activity. Since the participation rate is low, and a recession is going to happen it will only lead to demand deficient unemployment which results from lack of economic spending.
Personal Reflection
In my opinion the credit card diet is not a bad thing, it can help people save money up. The only reason people are going on this credit card diet is because prices for goods have risen, which caused consumers to consume less amount of goods. Not only has the prices has risen, many people got cut back on their jobs. I think the government should start up more jobs so that the participation rates increases again, therefore it will cause more people to purchase goods. If more people purchase goods, the prices of goods will drop and we will be out of the recession.
Wednesday, January 21, 2009
http://www.financialpost.com/money/family-finance/story.html?id=1137321
The New Debt- free you
Summary:
Credit cards gives off the feeling of being wealthy, and who doesn’t like that feeling? Jamie Snider who was in school for 6 years and for 1 of the years he completely relied on his credit card rather than student loan to pay for school. After he was done with school, he realized his debt has double the amount of what it uses to be. He knew he was in deep trouble so he went to non-profit agency and got help. Now he has to work both day and night with two different jobs. Moral of the story is to don’t depend too much on your credit card; you still have to pay off the debt later on. Also abundant of people do not realize how much they end up spending on their credit card and how much interest they have to end up paying afterwards. According to the Credit Counseling Service of Toronto since credit card first came out the debt has been slowly increasing. So think twice about your using credit card, you don’t want to be stuck in deep water!
Connections:
In this chapter we’re learning about tax and how taxes are being used. In this particular story, it would be the best for him to have vertical equity, so he will be able to pay off his debt and save money up much quicker. There are two approaches to vertical equity benefits-received approach and ability to pay approach. In this case it is better for Snider to use ability to pay approach because while he is out working hard, he won’t be spending as much as money therefore he won’t have to pay as much. Snider should also be glad that double taxation isn’t permitted; if it was permitted he would probably be in debt for the rest of his life unless he won the lottery & even if he won the lottery he wouldn’t be super wealthy.
Personal Reflection
Although the approaches I mentioned above are not being used, but if it was being used, then Snider would be paying off his debt so much quicker as well as other. Eventually this would lead to spending more money because they are not able to pay off their debt much quicker. I am glad that double taxation is not permitted, if it was permitted it would take us years to save up enough money to buy something we really like; also it would be like robbing us. With all the debt rising, perhaps the government should change the tax system and try a different approach that would help people pay off their taxes more efficiently and quicker.
The New Debt- free you
Summary:
Credit cards gives off the feeling of being wealthy, and who doesn’t like that feeling? Jamie Snider who was in school for 6 years and for 1 of the years he completely relied on his credit card rather than student loan to pay for school. After he was done with school, he realized his debt has double the amount of what it uses to be. He knew he was in deep trouble so he went to non-profit agency and got help. Now he has to work both day and night with two different jobs. Moral of the story is to don’t depend too much on your credit card; you still have to pay off the debt later on. Also abundant of people do not realize how much they end up spending on their credit card and how much interest they have to end up paying afterwards. According to the Credit Counseling Service of Toronto since credit card first came out the debt has been slowly increasing. So think twice about your using credit card, you don’t want to be stuck in deep water!
Connections:
In this chapter we’re learning about tax and how taxes are being used. In this particular story, it would be the best for him to have vertical equity, so he will be able to pay off his debt and save money up much quicker. There are two approaches to vertical equity benefits-received approach and ability to pay approach. In this case it is better for Snider to use ability to pay approach because while he is out working hard, he won’t be spending as much as money therefore he won’t have to pay as much. Snider should also be glad that double taxation isn’t permitted; if it was permitted he would probably be in debt for the rest of his life unless he won the lottery & even if he won the lottery he wouldn’t be super wealthy.
Personal Reflection
Although the approaches I mentioned above are not being used, but if it was being used, then Snider would be paying off his debt so much quicker as well as other. Eventually this would lead to spending more money because they are not able to pay off their debt much quicker. I am glad that double taxation is not permitted, if it was permitted it would take us years to save up enough money to buy something we really like; also it would be like robbing us. With all the debt rising, perhaps the government should change the tax system and try a different approach that would help people pay off their taxes more efficiently and quicker.
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