The smoking ban at Caterpillar from coming Sunday have resulted the United Auto Worker union to file a law suit stating Caterpillar is promoing an unfair work practice against its workers. The union is complaining that this kind of regulation will go against guarantees in the UAW contract saying that smoking has been their privilege for more than 60 years.
On the other hand, Caterpillar points out that it's about time to finish smoking on its properties across the country and work places. The spokesman from Caterpillar stated that it would be disappointing if someone quick their job for such issue because what Caterpillar wants is just to provide the healthiest and safetest work environment possible for its employees. Also, he said that it includes not only Caterpillar's workers, but also the visitors from the outside.
In an effort to minimize the worker's complaints, Caterpillar is hoping to cooperate with UAW in order to find the right way to promote the company's new regulation and maintain its good relationship between employees and the company.
One of the main causes for such ban is to follow Illinois, "...where the heavy equipment maker is based, passed a law that prohibited smoking in the work place and elsewhere." (BusinessWeek)
I'm personally impressed with such ban on smoking because for me, it's quite outrageous (but in a good way) and surprsing to see the company is pursuing such policy that could be so controversial. It might cause a lot of talking for now; however, in a long run, it would create a good brand image for the company since Catepillar has such a bold and musculne image from thier business, having this kind of smoking ban would create a appealing or even a clean and softer characteristic of the firm. I hope Caterpillar would have find an appropriate way to deal for keeping a good relationship with its employees even after the smoking ban.
Reference;
"Smoking ban has union huffing at Caterpillar" BusinessWeek. May 30, 2008.
http://www.businessweek.com/ap/financialnews/D90VTO881.htm
20601008 - 12th Entry
Friday, May 30, 2008
Smoking ban at Caterpillar
Dell's effort to restore past reputation
I read an article about Dell's turnaround and it's future strategy. You know Dell once the most popular computer producer in the world. But now Dell's position in the market is being faded. But recently, Dell's sales forces are increasing and it exceeded expert's expectations. What's the reason of this rising? The author said that it's because of developing new market. In fact, Dell have very conservative aspects. Sometimes it looks like a stupid attitude. When Dell was a No.1 producer, they didn't try to develop other markets outside US. As of the result, Dell is now N0.5 in the market following HP, Apple, Acer, and Toshiba. In fact, Dell has very sophisticated ordering system and people really loved Dell's computers. But they failed to adapt the turbulent global market trend.
Now, Dell try to develop new market like China, South-east asia, and Europe. Especilly, they try to penetrate China's price sensitive market. China's consumers mostly don't have enough money to buy computers. Dell considered these factors and lowering their prices daringly. But many critics warn that Dell's innovation is like a venture. And they also pointed at the dangers of price sensitive market. Also, Dell is a huge company and this effort can make their products' quality. Accordingly, there can be many defective products and they can drop the reputation of Dell. In fact, Dell's strength was reliability and convenience. Experts suggest that Dell should read the customer's tendency with less information. Many global companies failed because of lack of information. But it's the reality and they have to cultivate the market. In other words, they have to learn the ability to read the customer buying tendency.
I think iRiver and Dell have in common. They both were the most honorable producer and also failed steeply. But there is one difference. iRiver was completely failed and Dell can be a No.1 producer again. I think Dell shows the way that Korean companies will pass through. Although now korean companies rule many parts of global market, some time they can be a failure and maybe cannot survive anymore. Our companies were survived from IMF, but I think the more dangerous crisis will come to Korea. We don't know the time, but we have to prepare for survival.
Author: Aaron Ricadela
Title: Dell Appears to Turn a Corner
Date: May 30, 2008, 12:01AM EST
Page: 2
reference: http://www.businessweek.com/technology/content/may2008/tc20080529_159057.htm
entry #12 20700067
Dell shares get boost from strong earnings report
Dell Inc. has beat Wall street expectations for first-quarter sales and profit. The world’s second largest seller of personal computers rise their shares up 9.9 percent and the investors will try to determine if the results were a one-term or a sign that CEO plan is working. Notebook shipments jumped 43 percent in the first quarter compared with a year before which made them a priority in developing products for emerging markets. Also, the Round Rock, Texas-based company rang up more sales overseas than at home for the first time. Their revenue rose up to 19 percent in Asia, 15 percent in Europe. Also, other areas helped Dell to rise their weak American market from cutting back on technology spending. An analyst with American Technology Research said “Dell did relatively well, but it was against low expectations.”
Much of the strength has come from international businesses. Dell is more dependent on U.S sales than HP Co. and sees U.S business customers as “holding back from spending” on desktops. And Chief Financial Officer Donald J added that U.S companies may continue to defer technology spending into this summer. Dell trails Hewlett-Packard Co. in worldwide PC shipments but leads in U.S sales but that could make Dell more vulnerable to a slowdown in the U.S economy. They earned $784 million which is 38 percents per share in three months. Their revenue rose 9 percent to 16 billion. Their strong Asia sales were partly due to a 140 percent surge at 1800 stores in China that sell Dell machines. By august of this year, Dell wil be in 3,500 Chinese stores.
However, there were some critics that Dell’s strong first quarter was helped by the weak dollar and unusually sharp job cuts, which might be more difficult to repeat
Dell’s strong cost controls resulted in part from cutting 3,700 jobs in the quarter.
They had eliminated 7000 jobs in the past year which is 8 percent of last year’s work force. Although that has been partly offset by 2700 jobs added through acquisitions. Dell is trying to cut costs of $3 billion by 2011 and their biggest challenges for the company now were continuing to control costs and to improve the product line.
Opinion & thoughts,
From this case, I saw how a company can get a great success by getting support from their international Business. Business in Asian and European Countries helped their financial report to perform better which made their stock price higher. But I see no major strategy that they would improve drastically in the future. The reason is that this change in stock had only occurred by the change in the exchange rate which is unstable and flexible. Also, I think the Asian and Eurpean Market will be more competitive soon because of the fast growing technology. Therefore Dell should prepare and launch their new, innovative product by strong R&D.
http://www.newsweek.com/id/139157/page/3
20620042 - entry 12
Hollys Coffee opens its first US store
I recently read an article announcing the fact that Hollys Coffee, Korea’s largest coffeehouse chain, opened its first store in the United States. It is really interesting not only because a Korean coffeehouse chain opened its store in US, but also because most of people don’t know Hollys is a Korean company. For that reason, I think this can be a good chance for us to study about Hollys, and get some lessons from its achievement.
Hollys Coffee opened its first store in Gangnam, in 1998. Though it was rather small at the beginning, it eventually became a successful business by the year of 2007, in which it opened the 100th chain in Gangnam. One of the reasons that made this possible is that Hollys did willingly offer franchising to many newcomers to the company. Also, the company always tried to provide the best product to customers. In addition, the company not only tried to satisfy the customers, but it also tried to give the best support to the franchisees and the employees. All these aspects brought this company into success in a relatively short period of time. Most of all, it is our national coffeehouse chain company which went through all the competitions with others – such as Starbucks – and survived. Eventually, it opened its first store in US, where all coffeehouse chain companies struggle to go in, and to survive. It really is a great achievement.
So now we end up wondering, ‘how could Hollys go in to American market?’ ‘How did it make it?’ There are some various reasons. First of all, Hollys itself is ready to compete in the global market with a build-up of know-how and expertise in the art and management of coffee brewing. Second, this achievement comes from the confidence of interpretation of Western coffee culture. Hollys knows what is and what to do in Western coffee culture. And the really ironic fact is that people actually don’t know that Hollys is a Korean national coffeehouse brand. It has no disadvantage of getting regarded as Korea-from or Asia-from in foreign countries. Plus, it provides some unique beverage menu such as yogurt-base shakes and sweet potato latte.
From this achievement and its on-going success, Hollys reminds us the fact that venturing is important. After all, how would we going to achieve or even get something if we don’t venture out at the beginning? Also, Hollys reminds us the fact that making business successful is all about our ability. Business is all about money. And to get the money, we have to be able to make moneys through business. So simple and so obvious, however, we should not neglect to think about it all the time.
Reference :
http://news.naver.com/main/read.nhn?mode=LSOD&mid=sec&sid1=108&oid=044&aid=0000072701
20700273 – Entry 12