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Apparently, Henry Ford realized the world was flat, too:
“This system of keeping certain nations independent on others economically must disappear,” he said. “When Russia and China and India and South America come into consuming power, what are you going to do? Surely you don’t think that Britain and America will be able to supply them! Surely you don’t visualize Britain and America as nothing but vast factories to supply the world! A moment’s thought will make clear why the future must see nation after nation taking over its own work of supply. And we ought to be glad to help the work along.” (From Douglas Brinkley’s Wheels for the World)
Posted by dan at 02:36 PM
The name may sound like an early reject from American Idol. But Starbucks’ new thick, dense chocolate drink is a winner. It’s like an espresso, but gentler and without the bitter aftertaste. As the wave of sugar and caffeine seeps into your system, you can feel a sense of well-being wash over you. And apparently it’s giving non-coffee drinkers a reason to come in during the afternoon doldrums. Starbucks reported a blowout quarter yesterday, and raised its forecast for the year. CEO Jim Donald told the Wall Street Journal, that results were so boffo in part thanks to better-than-expected sales of new products like. . . .Chantico.
Posted by dan at 04:13 PM
A poll of affluent business owners and consumers by Penn, Schoen & Berland for the McDonald Financial Group contained the following interest nugget:
When it comes to Social Security reform, business owners feel it is a good idea (52 percent) while affluent consumers are split (48 percent believe it is a good idea; 49 percent believe it is a bad idea). Owners of larger businesses are most in favor of Social Security reform with 59 percent saying it's a good idea. Additionally, 39 percent of business owners and 46 percent of owners of larger businesses think changes to Social Security will improve the economy, compared with 36 percent of affluent consumers who say so.
Posted by dan at 05:12 PM
The FT notes that Honda and other Asian car companies are looking away from what has been its most important market:
"The emergence of Asia as a driver of growth marks a shift away from a reliance on the US. Nissan Motor said this week that most of its expected growth in future sales would come from "global other markets", which includes Asia.The US market remains a fundamental source of sales and profitability, accounting for 53 per cent of Honda's net sales in 2004. But this was down from 56 per cent last year while sales to Asia as a percentage of net sales rose from 9.8 per cent to 11.3 per cent."
Posted by dan at 04:55 PM
Toyota, which is kicking the tar out of both GM and Ford in the world's largest car market, the U.S., is now exhibiting a gentlemanly concern for the welfare of its competitors. The Wall Street Journal reports that Chairman Hiroshi Okuda said the company might voluntarily boost prices in the U.S. to allow GM and Ford "time and room to catch a breath." It's not every day a giant company offers to meet one of its competitors on the fairway of competition and play with a handicap. The subtext: GM and Ford are in such pathetic shape that it's really no longer a fair fight.
It's doubtful Toyota's unilateral disarmament would have much effect. Even if Toyota raises its prices, buyers may still prefer their cars to those stamped out by GM. After all, the company yesterday conceded that two million of the vehicles it sold to customers needed just a little more work at the factory.
Posted by dan at 09:36 PM
If Neiman Marcus's customers are so rich, how come they can't pay for the stuff they buy there? For decades, Neiman Marcus has occupied an admirable niche as the destination of choice for extreme consumers. More posh than Saks, and yet more accessible than Bendel's, it's the master of convincing really wealthy people to pay lots of smack for stuff they don't need.
And yet today comes news, courtesy of the Times that Neiman, which has put its stores up for sale, "has been quietly running a parallel auction for its private-label credit card business." The unit has some $550 million in receivables--meaning that a sum equal to nearly one-sixth of the company's 2004 sales was bought on lay-away. So it turns out that even the nation's poshest department store has to use financing to goose sales--and profits.
Posted by dan at 05:36 PM