Archive for the 'Business News' Category

PR Lesson: FedEx Wastes No Time Addressing Embarrassing Video

Business News No Comments »

Over the holidays, a video went viral showing complete negligence by a FedEx employee, just tossing a computer monitor over a fence rather than properly delivering the item. See that video below, as well as the company’s response, which has been viewed rather positively by communications critics.

Local Brews Pouring Over Minds of Hoosier Drinkers

Business News No Comments »

Tom Schuman of the Indiana Chamber and BizVoice magazine interviews Ted Miller of Brugge Brasserie and the Brewers of Indiana Guild about the state of craft brewing in Indiana. Furthermore, see my story in BizVoice, based on conversations with Miller, folks from Sun King Brewing and the Lafayette Brewing Co., and others.

Resolve to Better Your Career in 2012

Business News, Wellness No Comments »

It’s safe to say there is always room for improvement.

And while it’s possible that you’ve made (and already broken) a few goals or resolutions for personal development in 2012, (did someone say they were going to do 100 sit-ups every morning or cut back on caffeine?) you shouldn’t forget to focus on improving your job performance as well.

The job market is a tough one, so while valuable, hard-working employees remain on the payroll, employers also understand that there is a wealth of talent for them to choose from should their employees begin to fall short.

Instead of sitting by complacently, make 2012 the year you follow through on your boss’ suggestions from your performance evaluations and take the necessary measures to continue to improve professionally.

To help you get started, here are a few helpful tips, courtesy of Challenger, Gray & Christmas, Inc.:

  • Find opportunities for more responsibility, which shows your employer that you are up to the challenge, thus increasing your value for the company
  • Depending on the size of the company you work for, this one might already be accomplished – go out of your way to meet leaders at least two levels higher on the corporate ladder
  • Become a joiner; and by that we mean join a committee – help plan the next company outing on the Fun Committee or join in with healthy workplace policies on a Wellness Committee. It can help you bond with co-workers you don’t normally interact with and shows your willingness to be involved
  • Get a mentor or become one – the benefits are endless
  • If your company offers any professional development courses or career-enhancing programs, take advantage of them
  • Increase your efficiency while decreasing costs. Employers are looking for ways to tighten up the bottom line, so they’ll be happy to take your suggestions under consideration and make a mental note that you’re working on their behalf
  • Learn everything you can about something and be the go-to person on the subject at your company; it will make you the most valuable player for that particular topic.

Decided 2012 is the year for a career change? Be proactive about it – increase your skill set, remain positive and do whatever is necessary to improve yourself both personally and professionally.

How do you plan to grow and evolve in the workplace this year?

Steak ‘n Shake to Shake Up Big Apple

Business News No Comments »

Over 8 million New York City residents and its myriad visitors are getting a major awakening today — and it doesn’t involve New York Jets coach Rex Ryan verbally assaulting anyone. (Hooray!) Today, they’ll be privy to what Hoosiers have been enjoying for decades — the wonders of a Steak ‘n Shake steakburger.

Steak ‘n Shake®, one of the most beloved and longest established brands in the premium burger and milk shake segment of the restaurant industry, is introducing its first Steak ‘n Shake Signature® restaurant on January 12, in New York City, immediately next to the Ed Sullivan Theater in Times Square.

The new, contemporary Signature restaurant will be smaller in footprint than existing Steak ‘n Shake formats, and will feature a counter-service-only model with a simple menu, primarily serving popular core items such as Steakburgers(TM) and milk shakes.

In addition, the opening of the New York City location will debut "The Signature Steakburger(TM)" – a 6 ounce 100 percent USDA certified Organic Steakburger. The Signature Steakburger is made of only the top grade of the finest cuts of meat including ribeye and New York strip, devoid of preservatives, hormones, and antibiotics.

The restaurant also will feature thin ‘n crispy fries that are fresh, hand-cut daily in the restaurant, and created from the finest russet potatoes. The innovative concept will also feature beer and fine wine.

"Steak ‘n Shake Signature prepares 21st Century fare delivering only the finest in quality burgers, fries, and shakes," said Sardar Biglari, Chairman and CEO of Steak ‘n Shake. "The ambiance is unmatched. The architecture was designed for Signature to appear sleek, modern, exotic, inviting and suitable for everyone’s enjoyment."

Biglari continued, "There are a lot of consumers who grew up with Steak ‘n Shake but now reside in New York City. We are reconnecting with them as well as introducing the brand to all burger aficionados who seek authenticity and distinction in quality and taste. Restaurant-goers today are discerning — they want to know about the source and preparation of the food. We always strive to give our patrons the best in quality — and at the lowest possible prices. The Signature concept is unmatched because every item we are going to serve New Yorkers will be the finest: from our 100% organic Signature Steakburger to fresh-cut fries, and hand-dipped milkshakes — we simply do not compromise on quality."

Should CEOs Send Mass Responses to Criticism?

Business News No Comments »

The question in the headline makes me think of the recent Netflix flap, in which its CEO emailed the company’s customers basically apologizing for some unsuccessful moves. As Best Buy now battles online retail giants like Amazon and faces criticism about annoying upselling and not meeting order demands around Christmas, company CEO Brian Dunn offered the following response on his blog. Here’s the post in its entirety (below). From a PR perspective, was this the right move?

Best Buy has been taking some criticism lately. As CEO, I know that criticism goes with the job, and I’m well aware we have some challenges. I also know that errors we make often translate into a poor experience for our customers, and that is simply unacceptable.

Still, while I agree with some of the commentary on areas we need to improve, I feel it’s important to set the record straight on statements about our company that are, in my opinion, not completely grounded in fact. And I feel the need to do so, in part, to make sure our 180,000 hard-working employees understand the whole story – and have the full context that allows them to develop their own opinion about what’s written and said about Best Buy.

Let’s start with a couple of examples where I think the critics got it right.

The cancellation of some internet orders just before Christmas was our fault, and it’s not representative of how we EVER want to treat our customers. I’ll spare you the technical explanation of how and why it happened, but we know we did not deliver a good experience and we’re truly sorry. We’ve worked to make amends with customers whose holidays were made less happy because of our mistake, and we’re working diligently to make sure it doesn’t happen again.

Another area where we have received fair criticism is the overall speed of the transformation of our business model – something we are working hard to address. We’ve accelerated changes to key elements of our model already (the significant expansion in the number of products available on Bestbuy.com and the launch of our online Marketplace are two recent examples), but we need to move even faster, particularly in creating a more seamless experience between our stores, web sites, call centers and services teams. We recognize people can and do shop from anywhere, and they expect thoughtful, helpful interactions from us every step of the way. We continue to invest in a number of areas – from employee training, to critical system enhancements – to ensure our customers always receive the kind of experience they deserve and expect from us, wherever and whenever they choose. But, simply put, that work needs to happen faster – and we’re taking significant steps to accelerate the pace.

Now, onto a couple of topics where I disagree with the critics.

First, some believe the internet has made physical retailing (i.e., stores) irrelevant. There’s no doubt that the internet, and the mobile web in particular, have changed the way people shop, but there is strong evidence that consumers continue to value the experience of shopping in stores. A recent study by the NPD Group, a leading market research company, notes that nearly 80% of consumer electronics revenue still moves through physical stores. Additionally, approximately 40% of customer purchases made through Bestbuy.com are picked up in one of our stores. And the truth is, traffic in our physical stores increased in our third quarter and has been trending positively for most of the year.

Finally, there are those who question the validity of Best Buy’s business model. This misguided perspective is especially troubling for me, because it blatantly and recklessly ignores overwhelming evidence to the contrary. Best Buy is a financially strong and profitable company that has generated more than $2.6 billion in cash flows from operating activities in the first three quarters of the fiscal year. We also delivered positive operating income in each of the first three quarters of fiscal 2012. We grew total market share in the third quarter according to the most recent public data available. We have closed down certain operations that were not profitable, which we expect to have a positive impact on our earnings going forward. And we are focusing the company on areas where we see the greatest opportunities for growth and profit: mobile devices and connection plans; enhanced digital and e-commerce strategies; growth in our services business; and expansion of our established business in China.

As I mentioned earlier, we fully expect to receive our share of criticism – we’re a big company and we don’t always get everything right. But this is one of those times when I felt it was necessary not only to acknowledge our shortcomings, but to set the record straight on issues where facts are being obscured by rhetoric.

Brian J. Dunn
CEO
Best Buy Co., Inc.

Broadband in America: Alternatives to GONs Needed

Business News, Technology No Comments »

Widespread broadband access is a noble goal. The question comes down to how expansion of current networks takes place. The Coalition for the New Economy wants to make sure such investments are both effective and efficient.

Read its latest study, released earlier this week. The group’s press release is below:

The Coalition for the New Economy today (Monday) released a study by Dr. Joseph P. Fuhr, Professor of Economics at Widener University in Chester, PA. The study outlines the complex and problematic history of government-owned broadband networks (GONs) and looks for alternatives for achieving universal broadband access.

“Policymakers around the country are hurriedly trying to find ways to extend high-speed broadband access to all Americans,” said Fuhr, “This is a noble goal, but in their haste some local lawmakers have made bad business decisions, opting to build public networks that often leave taxpayers deep in the red.”

The report cites several case studies that show GONs:

  • Do not meet their stated goal of universal service;

  • Fail financially because they lack clear, sustainable business plans, based on realistic cost-benefit analyses;

  • Are often duplicative;

  • Create an unfair playing field between the public and private sector; and

  • Are so costly they crowd out spending on other essential social services, including law enforcement, healthcare and education, as well as stifling innovation.

Fuhr says, “At a time of declining local revenues and rising budget deficits, taxpayers have the right to scrutinize how their local leaders are spending precious tax dollars. They deserve to know GONs are simply not the best, fairest or most cost-efficient way to achieve universal broadband access.”

In his study, Fuhr outlines a more effective way to extend broadband access, advising municipalities to explore public-private solutions. “For example, reducing the tax and regulatory burden on private telecommunications firms could be enough to compel these companies to invest in, and bring jobs to, underserved areas,” Fuhr says.

The Coalition for the New Economy (CNE), which commissioned Fuhr’s study, is dedicated to ensuring that all Americans have access to innovative technologies and that policies are fair, fiscally responsible and will allow for increased access and adoption.

Breaking Down the Milken Rankings

Business News No Comments »

Indiana, in recent times, is used to receiving better rankings. But then here are a few possible explanations for the results from the 2011 Milken Institute Best-Performing Cities Index:

  • Maybe the sum (the state as a whole) is better than the individual parts (the cities and metropolitan areas evaluated based on jobs, salary and economic growth)
  • Maybe the factors in play here, with a strong emphasis on technology, don’t match up with our strengths. There are many different ways, by many different groups, of evaluating economic performance
  • Maybe the No. 49 for Bloomington on the small metro list and No. 74 of Evansville (large metros) are not that bad

The State Science and Technology Institute offers why it believes some areas fared well, including the ability to:

  • Attract high-tech firms — Fort Collins, CO jumped 47 positions to the third best large metro in 2011 due in part to its ability to attract a significant number of high-tech firms
  • Build effective industry clusters — Charleston, S.C. continued a steady climb among large metros to 11th this year from 30th in 2009 on the shoulders of its aerospace and data-processing services clusters
  • Capitalize on diversified tech-based economies — Salt Lake City jumped from 49th in 2010 to the sixth best large metro in 2011 due to a diverse mix of high-tech industries including pharmaceuticals, medical devices, transportation equipment, computer design and data-processing services
  • Cultivate strong manufacturing cores — Logan, UT jumped from 19 to the number one small city fueled by its manufacturing sectors
  • Experience export-driven growth — Los Angeles rose four spots to sixth among the 10 largest metros driven by the resurgence of international trade, especially in the  allied product-manufacturing sector

San Antonio, one of four Texas entries in the top 10, headed the large metro list. Check out the rankings and the Milken commentary here.