1. Honda will launch a hybrid-only model in 2009:
It will produce 200,000 of the new hybrids per year in Japan
It will sell them initially in North America, Europe and Japan.
It will offer the cars at a "more affordable price level" than currently available.
2. It will launch its first-ever hybrid sports car, based on the CR-Z concept car.
3. It will continue to look to fuel cell technology.
4. It will also begin leasing a small number of its FCX Clarity hydrogen fuel-cell vehicles in Southern California for $600 a month.
5. It will introduce its new, clean, diesel engine technology into the U.S. in 2009
6. It is expanding capacity:
It is opening a new factory in Indiana in the US next fall.
It doubled capacity at its plant in Bangalore, India, to 100,000 this year and has begun building a second auto plant, which will be operational from 2009.
It will begin production at another new plant in Thailand in the second half of next year.
It is adding capacity at its Brazilian plant
It began construction of new factory in Argentina last month.
7. It does not have high expectations for plug-in hybrids, which can be charged overnight using a home electricity supply.
[Click here for full story at: BUSINESSWEEK.COM]
Thursday, December 20, 2007
REVENUE STRATEGY - CHINA MOBILE
China Mobile Ltd. gained 6.5 million customers last month by scrapping charges for incoming calls and expanding in smaller towns and villages, where fewer people have mobile phones.
[Click here for full story at: BLOOMBERG.COM]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - BLUESCOPE STEEL
1. BlueScope Steel Ltd., Australia's largest steelmaker, agreed to buy four U.S. building material businesses for $730 million, betting commercial construction demand will defy a worsening homebuilding slump.
The acquisition will double BlueScope's sales in the U.S. commercial and industrial building market, adding 23 plants from California to North Carolina.
2. It will fund the acquisition with a 364-day loan.
3. It will study further acquisitions in the North American building products market.
[Click here for full story at: BLOOMBERG.COM]
The acquisition will double BlueScope's sales in the U.S. commercial and industrial building market, adding 23 plants from California to North Carolina.
2. It will fund the acquisition with a 364-day loan.
3. It will study further acquisitions in the North American building products market.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - MORGAN STANLEY
1. Morgan Stanley wrote down its subprime-infected mortgage holdings by $9.4 billion.
2. It ousted Co-President Zoe Cruz, who had overseen the fixed-income unit responsible for the mortgage trades.
3. It quantified damages, quantified remaining exposure and assigned accountability.
4. It will eliminate 900 jobs, mostly in the mortgage units.
[Click here for full story at: BLOOMBERG.COM]
2. It ousted Co-President Zoe Cruz, who had overseen the fixed-income unit responsible for the mortgage trades.
3. It quantified damages, quantified remaining exposure and assigned accountability.
4. It will eliminate 900 jobs, mostly in the mortgage units.
[Click here for full story at: BLOOMBERG.COM]
Thursday, December 6, 2007
REVENUE STRATEGY - GENENTECH
1. Genentech espouses a radical set of management principles: Stay focused on the science. Tune out Wall Street's insistence on short-term profits. And leap at new drug opportunities "that other people think stink."
2. It had once increased research spending to 50% of the company's sales—more than twice what most drug companies spend on R&D resulting in a stream of hit drugs pushing sales up from $1 billion to $9 billion since 1999
3. It is taking on one of the most treacherous areas of medicine - diseases like multiple sclerosis, rheumatoid arthritis, lupus, and more than 80 other ailments that arise when the immune system becomes deranged, attacking the very tissues and organs it's supposed to protect.
4. It took insights of British physician Jonathan Edwards on its cancer drug Rituxan, that the drug's method of annihilating cancer-causing cells might also ease the agony of rheumatoid arthritis.
5. Its scientists rethought everything they knew about how the body's defense mechanisms go astray.
6. It launched a program to study the drug as a possible treatment for rheumatoid arthritis, MS, and lupus.
7. It deployed a third of its 1,000 researchers to pursue new drugs to fight autoimmune disease.
8. Its scientific journey has been guided by executives who more closely resemble the staff of an academic medical center.
9. It tries to hire scientists who could win the Nobel Prize not just someone who will do a good job.
10. Its CEO gets deeply involved in research even when it isn't anywhere close to yielding marketable products.
11. It has redesigned its Rituxan trials, building in extra patient checkups in hopes that physicians would spot dangerous side effects fast. It carefully tracks patients after they leave clinical trials.
12. It is looking for clues that will help "personalize" new drugs to groups of patients that are most likely to respond
13. It hired five autoimmune specialists from a single lab at the University of Minnesota to better match patients with drugs, 14. It is working on some completely new approaches to autoimmune disease considering ideas others might overlook.
[Click here for full story at: BUSINESSWEEK.COM]
2. It had once increased research spending to 50% of the company's sales—more than twice what most drug companies spend on R&D resulting in a stream of hit drugs pushing sales up from $1 billion to $9 billion since 1999
3. It is taking on one of the most treacherous areas of medicine - diseases like multiple sclerosis, rheumatoid arthritis, lupus, and more than 80 other ailments that arise when the immune system becomes deranged, attacking the very tissues and organs it's supposed to protect.
4. It took insights of British physician Jonathan Edwards on its cancer drug Rituxan, that the drug's method of annihilating cancer-causing cells might also ease the agony of rheumatoid arthritis.
5. Its scientists rethought everything they knew about how the body's defense mechanisms go astray.
6. It launched a program to study the drug as a possible treatment for rheumatoid arthritis, MS, and lupus.
7. It deployed a third of its 1,000 researchers to pursue new drugs to fight autoimmune disease.
8. Its scientific journey has been guided by executives who more closely resemble the staff of an academic medical center.
9. It tries to hire scientists who could win the Nobel Prize not just someone who will do a good job.
10. Its CEO gets deeply involved in research even when it isn't anywhere close to yielding marketable products.
11. It has redesigned its Rituxan trials, building in extra patient checkups in hopes that physicians would spot dangerous side effects fast. It carefully tracks patients after they leave clinical trials.
12. It is looking for clues that will help "personalize" new drugs to groups of patients that are most likely to respond
13. It hired five autoimmune specialists from a single lab at the University of Minnesota to better match patients with drugs, 14. It is working on some completely new approaches to autoimmune disease considering ideas others might overlook.
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - GENERAL MOTORS
1. General Motors Corp., the world's largest automaker, plans to invest as much as $5 billion in China over the next five years to expand its share of the world's fastest-growing major car market.
2. It will spend about $1 billion a year on car and engine development, production facilities, technical and after-sales support and infrastructure.
3. It is investing $250 million to build a research laboratory in China
4. It relies on Asia and Latin America for profit in contrast to its home market, where it is closing factories and cutting jobs. It is cutting first-quarter North American production 11 percent after its U.S. sales dropped by the same rate in November. It will sell more than 1 million Cadillacs, Buicks, and other models in China in 2008, a more than 150-fold increase in sales over a decade.
[Click here for full story at: BLOOMBERG.COM]
2. It will spend about $1 billion a year on car and engine development, production facilities, technical and after-sales support and infrastructure.
3. It is investing $250 million to build a research laboratory in China
4. It relies on Asia and Latin America for profit in contrast to its home market, where it is closing factories and cutting jobs. It is cutting first-quarter North American production 11 percent after its U.S. sales dropped by the same rate in November. It will sell more than 1 million Cadillacs, Buicks, and other models in China in 2008, a more than 150-fold increase in sales over a decade.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - BRISTOL-MYERS SQUIBB
1. Bristol-Myers Squibb Co. will focus on developing new drugs for cancer, diabetes and heart disease.
2. Its restructuring effort will allow the company to focus resources on developing new drugs and buying products and companies that can add to its lineup of experimental treatments
3. It reduced its sales force in 2002 to focus on specialist doctors instead of primary-care physicians as its drug portfolio changed.
[Click here for full story at: BLOOMBERG.COM]
2. Its restructuring effort will allow the company to focus resources on developing new drugs and buying products and companies that can add to its lineup of experimental treatments
3. It reduced its sales force in 2002 to focus on specialist doctors instead of primary-care physicians as its drug portfolio changed.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - BRISTOL-MYERS SQUIBB
1. Bristol-Myers Squibb Co. will eliminate about 4,300 or 10 percent of jobs over three years and close half its plants to trim $1.5 billion in costs.
2. It may seek buyers for its medical imaging, wound care and baby formula units. Mead Johnson Nutritionals, the infant-formula unit could be worth about $10 billion, while ConvaTec, the wound-care unit, may fetch $3.3 billion
3. It plans to reduce the number of brands from its older product lines by 60 percent by 2011.
[Click here for full story at: BLOOMBERG.COM]
2. It may seek buyers for its medical imaging, wound care and baby formula units. Mead Johnson Nutritionals, the infant-formula unit could be worth about $10 billion, while ConvaTec, the wound-care unit, may fetch $3.3 billion
3. It plans to reduce the number of brands from its older product lines by 60 percent by 2011.
[Click here for full story at: BLOOMBERG.COM]
Tuesday, November 20, 2007
REVENUE STRATEGY - HEWLETT PACKARD
1. Hewlett-Packard, the biggest personal-computer maker, launched Innovation Program Office in 2006 to help buy hip, nimble startups for its huge Personal Systems Group and inject big doses of the small companies' creative juices directly into the HP culture. Startups are even providing HP with a new customer-based system that accelerates product development in other divisions.
2. It has learned how to (a) develop cool, high-margin products that appeal to new consumer groups such as video-game fanatics; (b) use social media to conduct Web-based consumer research; and (c) inspire engineers in HP Laboratories to turn concepts into products faster.
3. Its businesses (computers, printers and imaging machines, storage devices and servers, and info tech service) have shifted their focus from developing cool technologies to making products customers want.
4. It is trying to market personal computers today as being friendly, not just fast and powerful.
5. It is not just selling fast printers, but pitching terrific printing experiences.
6. It has developed the HP Blackbird 002 personal computer as the first fruit of acquiring Voodoo, a fan-based, gamer-driven PC company. The Blackbird is so user-friendly that consumers who want to customize it themselves can do so without using tools. It takes 10 seconds to replace or upgrade a hard drive. It's powerful and fast with room for five hard drives to accommodate rich graphics.
7. Its Snapfish Labs has boosted the rate of customer-focused innovation because consumers can weigh in early on potential HP products.
8. Its acquisition of Tabblo, acquired in 2007 suddenly injected a Web culture it never had before. Tabblo signed the contract and released its Flickr service in only six weeks—vs. an expected three to four months.
9. Its new strategy is innovation via absorption—infusing the acquirer's culture with the target's culture. It isn't business process re-engineering. This is a fundamental shift in the culture of an organization.
[Click here for full story at: BUSINESSWEEK.COM]
10. It has leaned on a network of more than 100,000 retailers to help sell PCs, particularly the notebook models favored by consumers.
11. It has spent more than $6.5 billion on six acquisitions to bolster returns in software and turn a money-losing unit two years ago into HP's fastest-growing business.
[Click here for full story at: BLOOMBERG.COM]
2. It has learned how to (a) develop cool, high-margin products that appeal to new consumer groups such as video-game fanatics; (b) use social media to conduct Web-based consumer research; and (c) inspire engineers in HP Laboratories to turn concepts into products faster.
3. Its businesses (computers, printers and imaging machines, storage devices and servers, and info tech service) have shifted their focus from developing cool technologies to making products customers want.
4. It is trying to market personal computers today as being friendly, not just fast and powerful.
5. It is not just selling fast printers, but pitching terrific printing experiences.
6. It has developed the HP Blackbird 002 personal computer as the first fruit of acquiring Voodoo, a fan-based, gamer-driven PC company. The Blackbird is so user-friendly that consumers who want to customize it themselves can do so without using tools. It takes 10 seconds to replace or upgrade a hard drive. It's powerful and fast with room for five hard drives to accommodate rich graphics.
7. Its Snapfish Labs has boosted the rate of customer-focused innovation because consumers can weigh in early on potential HP products.
8. Its acquisition of Tabblo, acquired in 2007 suddenly injected a Web culture it never had before. Tabblo signed the contract and released its Flickr service in only six weeks—vs. an expected three to four months.
9. Its new strategy is innovation via absorption—infusing the acquirer's culture with the target's culture. It isn't business process re-engineering. This is a fundamental shift in the culture of an organization.
[Click here for full story at: BUSINESSWEEK.COM]
10. It has leaned on a network of more than 100,000 retailers to help sell PCs, particularly the notebook models favored by consumers.
11. It has spent more than $6.5 billion on six acquisitions to bolster returns in software and turn a money-losing unit two years ago into HP's fastest-growing business.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - HEWLETT-PACKARD
1. Hewlett-Packard Co., the biggest personal-computer maker, cut 15,000 jobs and closed offices since 2005
2. It will stop making digital cameras and seek an outside manufacturer.
3. It will buy back as much as $8 billion in shares.
[Click here for full story at: BLOOMBERG.COM]
2. It will stop making digital cameras and seek an outside manufacturer.
3. It will buy back as much as $8 billion in shares.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - CHINA MOBILE
1. China Mobile Ltd., the world's biggest wireless-phone carrier by users, added record subscribers (about 6.6 million) in October by cutting prices and expanding in smaller towns and villages, where fewer people have phone services.
2. In February it started a caller-pays billing system, which doesn't charge users who receive calls.
[China will accelerate the process of granting licenses for providing third-generation mobile-phone services to fixed-line operators to help them compete in the nation's telecommunications market]
[Click here for full story at: BLOOMBERG.COM]
2. In February it started a caller-pays billing system, which doesn't charge users who receive calls.
[China will accelerate the process of granting licenses for providing third-generation mobile-phone services to fixed-line operators to help them compete in the nation's telecommunications market]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - GERDAU
1. Gerdau SA, the largest Brazilian steelmaker, agreed to acquire Quanex Corp.'s vehicular metals unit which makes special bar quality, or SBQ, steel used to make axels and other critical parts of cars, trucks and other vehicles, to secure North American production of steel used in automobile parts and consolidate Gerdau as a global supplier and open new possibilities for growth in the global market.
2. It will pay $1.67 billion at $39.20 a share in cash for the unit after the spinoff of the company's building-products division exceeding the Nov. 16 closing price of $36.74 for Houston-based Quanex.
3. It will expand outside Brazil and target higher-value specialty products. It is expanding operations in the Americas, Asia and Europe to reduce costs and gain leverage with suppliers of scrap metal and energy.
4. It agreed to buy a 49 percent stake in the owner of Mexico's Aceros Corsa SA
5. Its Ameristeel unit in the U.S. acquired Midlothian, Texas-based Chaparrel Steel Co. for $4.22 billion.
[Click here for full story at: BLOOMBERG.COM]
2. It will pay $1.67 billion at $39.20 a share in cash for the unit after the spinoff of the company's building-products division exceeding the Nov. 16 closing price of $36.74 for Houston-based Quanex.
3. It will expand outside Brazil and target higher-value specialty products. It is expanding operations in the Americas, Asia and Europe to reduce costs and gain leverage with suppliers of scrap metal and energy.
4. It agreed to buy a 49 percent stake in the owner of Mexico's Aceros Corsa SA
5. Its Ameristeel unit in the U.S. acquired Midlothian, Texas-based Chaparrel Steel Co. for $4.22 billion.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - TRAVELODGE
1. Travelodge, the budget hotel chain plans to expand its presence in Spain after a pilot scheme. Spanish consumers' appetite for budget products - and rising internet usage - made it confident the move would be a success.
2. It would open about 100 hotels by 2020 in its £700m programme - initially targeting Barcelona, Madrid and Valencia.
3. It will open about 40 new hotels each year in the UK until 2020 - concentrating its programme in the Greater London area, as well as Wales and Scotland.
[Click here for full story at: BBCNEWS.COM]
2. It would open about 100 hotels by 2020 in its £700m programme - initially targeting Barcelona, Madrid and Valencia.
3. It will open about 40 new hotels each year in the UK until 2020 - concentrating its programme in the Greater London area, as well as Wales and Scotland.
[Click here for full story at: BBCNEWS.COM]
REVENUE STRATEGY - STOCKPICKR.COM
1. Stockpickr.com website processes information from Securities & Exchange Commission filings and provides ready-made investment signals that are proven to work
2. It is free; it makes money from advertising.
3. It attracts traffic by allowing investors to view the portfolios and latest publicly available moves of hundreds of successful pros, including Warren Buffett, hedge fund great George Soros, or mutual fund manager and Yale professor Martin Whitman.
4. Its visitors also form a virtual community whose members interact with each other, answering one another's questions and sharing knowledge about various strategies.
5. One of the site's most popular features is a function to compare ordinary investors' picks with those of the pros.
[Click here for full story at: BUSINESSWEEK.COM]
2. It is free; it makes money from advertising.
3. It attracts traffic by allowing investors to view the portfolios and latest publicly available moves of hundreds of successful pros, including Warren Buffett, hedge fund great George Soros, or mutual fund manager and Yale professor Martin Whitman.
4. Its visitors also form a virtual community whose members interact with each other, answering one another's questions and sharing knowledge about various strategies.
5. One of the site's most popular features is a function to compare ordinary investors' picks with those of the pros.
[Click here for full story at: BUSINESSWEEK.COM]
Saturday, November 17, 2007
REVENUE STRATEGY - GOOGLE
1. Google the Internet search and advertising company will bid alone at January's auction of wireless airwaves, but it's likely to need a partner to develop a network
[The auction, scheduled for January, gives participants a rare opportunity to assemble spectrum for a national network in a single swoop, potentially creating a competitor to existing mobile service providers AT&T and Verizon Wireless, a joint venture of Verizon Communications and Vodafone.]
2. It appeared ready to commit at least $4.6 billion to bidding for spectrum.
3. It owns large quantities of the fiber-optic cables necessary for carrying wireless calls over long distances but may also need to rely on national carriers such as AT&T and Verizon
4. It has made strides in the area of mobile software.
5. Google and 33 other companies including Motorola (MOT) and LG Electronics announced the Open Handset Alliance and a new cell-phone-software platform named Android that's designed to make it cheaper and easier to create mobile applications and services.
6. It has hired Andy Rubin, Google's director of mobile platforms, with years of experience in phone design.
7. It maintains its own local wireless network at the site of its Mountain View (Calif.) headquarters
8. It isn't ruling out partnering to build a network, which has to be carried out quickly
[Click here for full story at: BUSINESSWEEK.COM]
[The auction, scheduled for January, gives participants a rare opportunity to assemble spectrum for a national network in a single swoop, potentially creating a competitor to existing mobile service providers AT&T and Verizon Wireless, a joint venture of Verizon Communications and Vodafone.]
2. It appeared ready to commit at least $4.6 billion to bidding for spectrum.
3. It owns large quantities of the fiber-optic cables necessary for carrying wireless calls over long distances but may also need to rely on national carriers such as AT&T and Verizon
4. It has made strides in the area of mobile software.
5. Google and 33 other companies including Motorola (MOT) and LG Electronics announced the Open Handset Alliance and a new cell-phone-software platform named Android that's designed to make it cheaper and easier to create mobile applications and services.
6. It has hired Andy Rubin, Google's director of mobile platforms, with years of experience in phone design.
7. It maintains its own local wireless network at the site of its Mountain View (Calif.) headquarters
8. It isn't ruling out partnering to build a network, which has to be carried out quickly
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - GAP
1. Retailer Gap is building up its goodwill, which is likely to help its revenue in the long run.
2. It has pledged to do more to eradicate child labour after it emerged one of its Indian suppliers had been employing children as young as 10.
3. It will donate $200,000 to improve factory conditions in India as well as tighten up its own procedures.
4. It withdrew an order from sale after it was sub-contracted to a firm, which used children to embroider the product. The children involved will be paid until they reach working age, and then offered jobs.
5. It has suspended half its orders from its original contractor and put the firm on "probation" for the next six months.
[Click here for full story at: BBCNEWS.COM]
2. It has pledged to do more to eradicate child labour after it emerged one of its Indian suppliers had been employing children as young as 10.
3. It will donate $200,000 to improve factory conditions in India as well as tighten up its own procedures.
4. It withdrew an order from sale after it was sub-contracted to a firm, which used children to embroider the product. The children involved will be paid until they reach working age, and then offered jobs.
5. It has suspended half its orders from its original contractor and put the firm on "probation" for the next six months.
[Click here for full story at: BBCNEWS.COM]
EXPENDITURE STRATEGY - ANN TAYLOR STORES
1. AnnTaylor Stores Corp., the clothing retailer geared toward women 25 to 55, reduced inventory to counter slowing sales.
2. It reduced selling, general and administrative expenses as a percentage of sales.
3. It spent $15 million to buy back 500,000 shares.
[Click here for full story at: BLOOMBERG.COM]
2. It reduced selling, general and administrative expenses as a percentage of sales.
3. It spent $15 million to buy back 500,000 shares.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ANN TAYLOR STORES
1. AnnTaylor Stores Corp., the clothing retailer geared toward women 25 to 55, helped revenue by new stores, Web sales and purchases at factory stores. The retailer operates 921 stores.
2. It is adding bath products and a line of luxury apparel to its Ann Taylor chain
3. It is adding more printed, lightweight sweaters at Loft, its biggest chain, to draw in holiday shoppers as consumers rein in spending on clothes.
4. It plans to open a chain in the second half of 2008 targeting women in their 40s and 50s.
[Click here for full story at: BLOOMBERG.COM]
2. It is adding bath products and a line of luxury apparel to its Ann Taylor chain
3. It is adding more printed, lightweight sweaters at Loft, its biggest chain, to draw in holiday shoppers as consumers rein in spending on clothes.
4. It plans to open a chain in the second half of 2008 targeting women in their 40s and 50s.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - STARBUCKS
1. Starbucks will slow the opening of new U.S. stores over the next year by less than 10%
2. It will introduce fewer new beverages.
[It is under a massive assault from McDonald's, Dunkin' Donuts, and seemingly every other retailer with a brew pot in the back.]
[Click here for full story at: BUSINESSWEEK.COM]
2. It will introduce fewer new beverages.
[It is under a massive assault from McDonald's, Dunkin' Donuts, and seemingly every other retailer with a brew pot in the back.]
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - STARBUCKS
1. Starbucks will blanket the nation with TV commercials touting its holiday beverage and gift lines
2. It has reshuffled some executives
3. It was able to report a 4% increase in same-store sales with
a) two price increases and
b) the expansion of hot breakfast offerings to more locations.
[It is under a massive assault from McDonald's, Dunkin' Donuts, and seemingly every other retailer with a brew pot in the back.]
[Click here for full story at: BUSINESSWEEK.COM]
2. It has reshuffled some executives
3. It was able to report a 4% increase in same-store sales with
a) two price increases and
b) the expansion of hot breakfast offerings to more locations.
[It is under a massive assault from McDonald's, Dunkin' Donuts, and seemingly every other retailer with a brew pot in the back.]
[Click here for full story at: BUSINESSWEEK.COM]
Friday, November 16, 2007
EXPENDITURE STRATEGY - KRAFT
1. Kraft, the food giant, is shedding its Post cereals biz in a complex $2.9 billion transaction with Ralcorp to focus on other promising, growing brands.
2. It has structured the deal in a way that minimizes taxes, making it the equivalent of a $4 billion cash deal.
3. In the all-stock deal, Kraft shareholders will get Ralcorp shares and end up owning 54% of the new company.
[1. Kraft had already exited brands like Milk-Bone, Cream of Wheat and Minute Rice in a bid for reliable growth.
2. It is delivering on the restructuring promised to shareholders earlier this year.]
[Click here for full story at: BUSINESSWEEK.COM]
2. It has structured the deal in a way that minimizes taxes, making it the equivalent of a $4 billion cash deal.
3. In the all-stock deal, Kraft shareholders will get Ralcorp shares and end up owning 54% of the new company.
[1. Kraft had already exited brands like Milk-Bone, Cream of Wheat and Minute Rice in a bid for reliable growth.
2. It is delivering on the restructuring promised to shareholders earlier this year.]
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - WOOLWORTHS
1. Woolworths Ltd., Australia's biggest retailer, is appealing a decision by New Zealand's antitrust regulator to block it from buying Warehouse Group Ltd., that country's biggest general merchandise retailer. Woolworths already owns New Zealand's second-largest supermarket chain
2. It plans a 40 percent reduction in annual carbon dioxide emissions and impact on the environment by 2015 from a current level of 3.7 million metric tons by
a) changing the company's car fleet to more efficient vehicles,
b) working with transport suppliers to lower emissions and
c) cutting annual water usage by 200 million liters within three years.
(less pollution = more goodwill = more revenue)
[Click here for full story at: BLOOMBERG.COM]
2. It plans a 40 percent reduction in annual carbon dioxide emissions and impact on the environment by 2015 from a current level of 3.7 million metric tons by
a) changing the company's car fleet to more efficient vehicles,
b) working with transport suppliers to lower emissions and
c) cutting annual water usage by 200 million liters within three years.
(less pollution = more goodwill = more revenue)
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ORACLE
1. Oracle, one of the world's largest technology companies, has pledged to deliver Fusion a half-year early—in the first part of 2008. Fusion aims to
a) Knit together the best parts of Oracle's homegrown software and the array of products amassed through its acquisitions of PeopleSoft, Siebel Systems, and dozens of other companies and
b) Close ground on archrival SAP in the market for the software companies use to plan budgets, manage payrolls, and track customers.
2. It introduced a virtualization software product, dubbed Oracle VM that will help companies make more efficient use of their servers like the software from industry highflier VMware.
3. Its tight rein on expenses and strength in the flush energy sector could immunize it from the ills that have afflicted companies more closely tied to the beleaguered financial and automotive industries. 4. It benefits from the quarterly maintenance fees customers pay to keep up their software.
[Click here for full story at: BUSINESSWEEK.COM]
a) Knit together the best parts of Oracle's homegrown software and the array of products amassed through its acquisitions of PeopleSoft, Siebel Systems, and dozens of other companies and
b) Close ground on archrival SAP in the market for the software companies use to plan budgets, manage payrolls, and track customers.
2. It introduced a virtualization software product, dubbed Oracle VM that will help companies make more efficient use of their servers like the software from industry highflier VMware.
3. Its tight rein on expenses and strength in the flush energy sector could immunize it from the ills that have afflicted companies more closely tied to the beleaguered financial and automotive industries. 4. It benefits from the quarterly maintenance fees customers pay to keep up their software.
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - QUALCOMM
1. Qualcomm, one of the leading makers of chips that run cell phones, has been expanding into a range of other wireless technologies to move beyond its reliance on chips based on so-called Code Division Multiple-Access technology at a time when two of the biggest CDMA players, Verizon Wireless and Sprint Nextel, are considering technologies that could lessen their demand for CDMA
2. It purchased Firethorn, a provider of mobile banking services and the proposed secure contactless payments system by waving a mobile phone past a scanner, for $210 million because of the growing number of people using cell phones to carry out financial transactions.
3. It had created Brew, a software platform that developers can use to build mobile applications such as games,
4. It has made various software purchases, including Trigenix, a maker of cell phone menus.
5. It has joined the Open Handset Alliance, an effort by Google to create a package of wireless applications and services. 6. It was also one of the creators of the Skypephone, a mobile device running Skype's Web-calling service.
[Click here for full story at: BUSINESSWEEK.COM]
2. It purchased Firethorn, a provider of mobile banking services and the proposed secure contactless payments system by waving a mobile phone past a scanner, for $210 million because of the growing number of people using cell phones to carry out financial transactions.
3. It had created Brew, a software platform that developers can use to build mobile applications such as games,
4. It has made various software purchases, including Trigenix, a maker of cell phone menus.
5. It has joined the Open Handset Alliance, an effort by Google to create a package of wireless applications and services. 6. It was also one of the creators of the Skypephone, a mobile device running Skype's Web-calling service.
[Click here for full story at: BUSINESSWEEK.COM]
REVENUE STRATEGY - SHINSEI BANK
1. Shinsei Bank Ltd. plans to team up with Indian billionaire Rakesh Jhunjhunwala to sell mutual funds in the world's second-fastest growing major economy starting operations early next year.
2. Joining forces with Jhunjhunwala would give Shinsei faster access to an industry where mutual fund assets almost doubled to $142 billion in the 12 months through October.
3. Shinsei will own 75 percent of the business and Jhunjhunwala will hold 15 percent, they said. The remainder will be owned by employees.
[The Tokyo-based banks are turning to other Asian markets for growth as profits plunge.]
[Click here for full story at: BLOOMBERG.COM]
2. Joining forces with Jhunjhunwala would give Shinsei faster access to an industry where mutual fund assets almost doubled to $142 billion in the 12 months through October.
3. Shinsei will own 75 percent of the business and Jhunjhunwala will hold 15 percent, they said. The remainder will be owned by employees.
[The Tokyo-based banks are turning to other Asian markets for growth as profits plunge.]
[Click here for full story at: BLOOMBERG.COM]
Thursday, November 15, 2007
EXPENDITURE STRATEGY - PROMISE CO
Promise Co., Japan's largest consumer finance company, plans 15 billion yen ($135 million) of cost cuts in the next two years after acquiring rival Sanyo Shinpan Finance Co., by:
a) Uniting the technology platforms of Promise and Sanyo Shinpan
b) Reorganizing their marketing channels around September next year, and
c) Job cuts
It is resorting to cost cuts as law changes in Japan force Promise and its competitors to reduce the interest they charge borrowers. It will cap interest at 17.8 percent, down from 25.6 percent, effective next month. The planned cost cuts represent about 4 percent of the company's planned sales expenses for this fiscal year.
[Click here for full story at: BLOOMBERG.COM]
a) Uniting the technology platforms of Promise and Sanyo Shinpan
b) Reorganizing their marketing channels around September next year, and
c) Job cuts
It is resorting to cost cuts as law changes in Japan force Promise and its competitors to reduce the interest they charge borrowers. It will cap interest at 17.8 percent, down from 25.6 percent, effective next month. The planned cost cuts represent about 4 percent of the company's planned sales expenses for this fiscal year.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - DELPHI CORP
Delphi Corp., the largest U.S. auto- parts maker, has planned to change the payouts to creditors under its new Chapter 11 reorganization to plan exit from bankruptcy, giving creditors more securities instead of cash, because it wasn't able to obtain an exit loan as large as it had originally intended.
[Click here for full story at: BLOOMBERG.COM]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - WONSON INTERNATIONAL
1. Wonson International Holdings Ltd., a Hong Kong metals and securities trader, will diversify and buy the Jiangxi Jiangzhou Chinese shipyard for HK$3.5 billion ($449 million), aiming to broaden its revenue base by capitalizing on rising Asian demand for vessels.
2. It will compete with shipyard rivals in South Korea and Japan by
a) expanding its capacity to 250,000 tons by 2010,
b) improving its manufacturing processes and
c) maintaining low costs
[Demand for vessels is rising because of rapid economic development in Asian nations such as China and India]
[Click here for full story at: BLOOMBERG.COM]
2. It will compete with shipyard rivals in South Korea and Japan by
a) expanding its capacity to 250,000 tons by 2010,
b) improving its manufacturing processes and
c) maintaining low costs
[Demand for vessels is rising because of rapid economic development in Asian nations such as China and India]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - LAND SECURITIES GROUP
1. Land Securities Group Plc, the U.K.'s largest real estate investment trust, plans to split itself in three after a slide in the shares that has cut the company's market value by 3.6 billion pounds ($7.4 billion) this year.
2. Land Securities will separate Trillium, a property-management outsourcing company, from its London and retail property investment units over the long term.
3. It will form a venture with J. Sainsbury Plc, the U.K.'s third-largest supermarket chain called Harvest LP. Land Securities will contribute one supermarket in Hull operated by the grocery chain, while Sainsbury will contribute outlets in Thanet and Wandsworth.
[Land Securities is responding to
a) a drop in commercial property values,
b) higher borrowing costs
c) stricter controls on credit that have caused U.K. real estate stocks to decline 36 percent this year and
d) perhaps the belief that “REITs will only survive if they are specialists”]
[Click here for full story at: BLOOMBERG.COM]
2. Land Securities will separate Trillium, a property-management outsourcing company, from its London and retail property investment units over the long term.
3. It will form a venture with J. Sainsbury Plc, the U.K.'s third-largest supermarket chain called Harvest LP. Land Securities will contribute one supermarket in Hull operated by the grocery chain, while Sainsbury will contribute outlets in Thanet and Wandsworth.
[Land Securities is responding to
a) a drop in commercial property values,
b) higher borrowing costs
c) stricter controls on credit that have caused U.K. real estate stocks to decline 36 percent this year and
d) perhaps the belief that “REITs will only survive if they are specialists”]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - MATSUSHITA ELECTRIC
1. Matsushita Electric Industrial Co., the world's largest consumer electronics maker, plans to raise its lithium-ion battery output by 48 percent to meet demand for the product used in mobile phones and notebook computers.
2. It will spend 4.5 billion yen ($40 million) to build a new factory at the site of its existing Wakayama facility
The Nikkei newspaper speculates that it will spend 10 billion yen on the expansion.
[Click here for full story at: BLOOMBERG.COM]
2. It will spend 4.5 billion yen ($40 million) to build a new factory at the site of its existing Wakayama facility
The Nikkei newspaper speculates that it will spend 10 billion yen on the expansion.
[Click here for full story at: BLOOMBERG.COM]
EXPENDITURE STRATEGY - NOMURA HOLDINGS
Nomura Holdings, Japan's largest securities firm, last month reported its first loss in more than four years after the value of its U.S. mortgage investments plunged, forcing the company to:
a) close some operations,
b) cut staff and
c) shut its Chicago office.
[Click here for full story at: BLOOMBERG.COM]
a) close some operations,
b) cut staff and
c) shut its Chicago office.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - NOMURA HOLDINGS
Nomura Holdings Inc., Japan's largest securities firm, sold 65 billion yen ($583 million) of bonds in two maturities, offering wider spreads than in a previous sale
1. It priced 30 billion yen of 1.91 percent 10-year bonds to yield 40 basis points more than Japanese government debt with similar maturity.
2. It priced 35 billion yen of 1.39 percent five-year bonds to yield 33 basis points more than national debt.
3. In August it priced 34 billion yen of 10-year bonds to yield 32 basis points more than government debt.
4. It also priced 26 billion yen of five-year bonds to yield 27 basis points more than government bonds.
(A basis point is 0.01 percentage point.)
[Click here for full story at: BLOOMBERG.COM]
1. It priced 30 billion yen of 1.91 percent 10-year bonds to yield 40 basis points more than Japanese government debt with similar maturity.
2. It priced 35 billion yen of 1.39 percent five-year bonds to yield 33 basis points more than national debt.
3. In August it priced 34 billion yen of 10-year bonds to yield 32 basis points more than government debt.
4. It also priced 26 billion yen of five-year bonds to yield 27 basis points more than government bonds.
(A basis point is 0.01 percentage point.)
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - TELMEX
1. Telefonos de Mexico SAB, or Telmex, the largest fixed-line telephone company in Mexico, plans to spin off the faster-growing operations it has elsewhere in Latin America to unlock the value of the faster-growing part of his company. The new company, called Telmex International, will include carriers in Brazil, Colombia, Argentina, Chile, Ecuador and Peru
[The plan mimics a 2000 move to turn Telmex's mobile-phone operations into America Movil SAB whose $105 billion market value is more than three times Telmex's. The plan also may insulate the non-Mexican part of the business from increasing antitrust pressure (Telmex has about 90 percent of Mexico's phone lines, and regulators in Mexico want to curb its dominance). ]
2. Telmex will also split the Mexican business into a unit that serves higher-income consumers and faces competition, and one that serves rural areas and faces no competition.
[Click here for full story at: BLOOMBERG.COM]
[The plan mimics a 2000 move to turn Telmex's mobile-phone operations into America Movil SAB whose $105 billion market value is more than three times Telmex's. The plan also may insulate the non-Mexican part of the business from increasing antitrust pressure (Telmex has about 90 percent of Mexico's phone lines, and regulators in Mexico want to curb its dominance). ]
2. Telmex will also split the Mexican business into a unit that serves higher-income consumers and faces competition, and one that serves rural areas and faces no competition.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - GRAMEENPHONE
1. Grameenphone Ltd., the Bangladeshi mobile-phone company founded by Nobel Peace Prize laureate Muhammad Yunus, may buy other operators for more airwave spectrum to accommodate its target of adding 7 million users a year, as competition intensifies from rivals including Orascom Telecom Holding SAE.
2. It plans to encourage users to make more calls and introduce services such as Research in Motion Ltd.'s Blackberry device to increase average spending from less than $5 a month
3. It invested about $300 million in each of the past three years to meet demand
4. Its Village Phone Program offers loans to villagers to buy handsets, which are then used in the community as pay phones, earning the operators income.
[Grameen Telecom Corp. started the phone company with the aim of bringing services to 100 million villagers in Bangladesh. (Fortune at the bottom of the pyramid)]
[Click here for full story at: BLOOMBERG.COM]
2. It plans to encourage users to make more calls and introduce services such as Research in Motion Ltd.'s Blackberry device to increase average spending from less than $5 a month
3. It invested about $300 million in each of the past three years to meet demand
4. Its Village Phone Program offers loans to villagers to buy handsets, which are then used in the community as pay phones, earning the operators income.
[Grameen Telecom Corp. started the phone company with the aim of bringing services to 100 million villagers in Bangladesh. (Fortune at the bottom of the pyramid)]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - GENERAL MOTORS
GM has developed a hybrid technology that may be superior to Toyota’s for heavier vehicles. (Chrysler, BMW, and Mercedes-Benz interested in creating hybrid versions of their SUVs, turned to GM's technology.)
[In a few years GM may be earning more than a half-billion a year from other car companies licensing its technology, a big portion of which will be related to hybrids and plug-ins.]
[Click here for full story at: BUSINESSWEEK.COM]
[In a few years GM may be earning more than a half-billion a year from other car companies licensing its technology, a big portion of which will be related to hybrids and plug-ins.]
[Click here for full story at: BUSINESSWEEK.COM]
EXPENDITURE STRATEGY - UNILEVER
1. Unilever, the world's second-largest consumer-products company, is selling assets with revenue of about 2 billion euros ($2.93 billion) to focus on brands known worldwide.
2. It plans to cut as many as 20,000 jobs, or 11 percent of its workforce, to spur growth and improve profitability.
[Click here for full story at: BLOOMBERG.COM]
2. It plans to cut as many as 20,000 jobs, or 11 percent of its workforce, to spur growth and improve profitability.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - MCCORMACK & CO
1. McCormick & Co., the world's biggest maker of spices, agreed to buy Unilever's Lawry's seasonings for $605 million, adding marinades and meat-tenderizer products.
a) The transaction is all-cash and includes the rights to the brands and related inventory.
b) It doesn't include a Missouri manufacturing plant or any workers.
c) It will add to profit immediately.
2. McCormick will use cash, committed bank lines and commercial paper borrowings to fund the purchase.
3. It agreed to pay Unilever a $30 million breakup fee if the transaction doesn't receive U.S. regulatory approval.
4. It raised prices and made purchases to meet a goal of increasing annual sales by as much as 6 percent.
[Click here for full story at: BLOOMBERG.COM]
a) The transaction is all-cash and includes the rights to the brands and related inventory.
b) It doesn't include a Missouri manufacturing plant or any workers.
c) It will add to profit immediately.
2. McCormick will use cash, committed bank lines and commercial paper borrowings to fund the purchase.
3. It agreed to pay Unilever a $30 million breakup fee if the transaction doesn't receive U.S. regulatory approval.
4. It raised prices and made purchases to meet a goal of increasing annual sales by as much as 6 percent.
[Click here for full story at: BLOOMBERG.COM]
Wednesday, November 14, 2007
REVENUE STRATEGY - MOTOROLA
1. Motorola Inc., the largest U.S. maker of mobile phones, sued Hong Kong's VTech Holdings Ltd. for violating five Motorola patents: customized rings, keypads on thin phones, alerts for specific callers, ways to put icons on the phones and a method to display different functions, such as faxes.
2. It wants to block VTech from including the features on its phones, plus cash for past infringement.
[Click here for full story at: BLOOMBERG.COM]
2. It wants to block VTech from including the features on its phones, plus cash for past infringement.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - STX PAN OCEAN CO
STX Pan Ocean Co., South Korea's largest carrier of iron ore, grain and other commodities, raised 590.1 billion won ($647 million) in a Seoul share sale in September to expand its fleet as construction booms in India and China fueled demand for iron-ore shipments.
[Click here for full story at: BLOOMBERG.COM]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - CAPCOM
1. Capcom Co., publisher of the ``Resident Evil'' is seeking to revive earnings after losing arcade customers to home video game players such as Nintendo Co.'s Wii.
2. It is closing three unprofitable centers and opening eight larger stores that target women and families to help improve earnings at the arcade business
3. It will release new titles in the “Resident Evil”, “Monster Hunter”, and “Devil May Cry” game series.
[Click here for full story at: BLOOMBERG.COM]
2. It is closing three unprofitable centers and opening eight larger stores that target women and families to help improve earnings at the arcade business
3. It will release new titles in the “Resident Evil”, “Monster Hunter”, and “Devil May Cry” game series.
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - QANTAS
1. Qantas Airways Ltd., Australia's biggest airline, will buy 68 Airbus A320 family aircraft and 31 Boeing 737-800s worth at least $6.3 billion to help fend off competition from low-cost carriers. The smaller planes will give Qantas greater market accessibility and tax and fuel advantages. The narrowbodies will allow Qantas to increase its flight frequencies giving it a greater chance to carry more passengers
2. It plans to set up regional aviation bases in Darwin and Perth over the next two years through its Jetstar unit to serve Asian markets.
3. It was in talks with Jetset Travelworld Ltd. and others about its holidays unit.
[Budget airlines including Tiger Airways Pte and Virgin Blue Holdings Ltd. are adding flights in Australia to challenge Qantas and its Jetstar unit's 65 percent share of the market. Asia's surging travel growth and the emergence of low-cost carriers in the region has helped fuel demand for 737s and A320s, the world's two most popular planes.]
[Click here for full story at: BLOOMBERG.COM]
2. It plans to set up regional aviation bases in Darwin and Perth over the next two years through its Jetstar unit to serve Asian markets.
3. It was in talks with Jetset Travelworld Ltd. and others about its holidays unit.
[Budget airlines including Tiger Airways Pte and Virgin Blue Holdings Ltd. are adding flights in Australia to challenge Qantas and its Jetstar unit's 65 percent share of the market. Asia's surging travel growth and the emergence of low-cost carriers in the region has helped fuel demand for 737s and A320s, the world's two most popular planes.]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - ROCHE
1. Roche Holding AG, the world's largest maker of medical diagnostic tests, has sought partnerships and purchases to strengthen ties between its diagnostics and pharmaceutical units.
2. In June, it began its tender offer for Ventana Medical Systems, the Tucson, Arizona-based maker of diagnostic tests for cancer.
3. It has extended its tender offer for the outstanding shares of Ventana three times
4. It has refused to raise the $3 billion or $75-a-share offer price.
[1. Ventana started negotiations with Roche after months of resistance.
2. It signed a confidentiality agreement with Roche that will allow Roche access to non-public information regarding Ventana to better understand the company's business prospects.
3. Its board still considers Roche's offer grossly inadequate.]
[Click here for full story at: BLOOMBERG.COM]
2. In June, it began its tender offer for Ventana Medical Systems, the Tucson, Arizona-based maker of diagnostic tests for cancer.
3. It has extended its tender offer for the outstanding shares of Ventana three times
4. It has refused to raise the $3 billion or $75-a-share offer price.
[1. Ventana started negotiations with Roche after months of resistance.
2. It signed a confidentiality agreement with Roche that will allow Roche access to non-public information regarding Ventana to better understand the company's business prospects.
3. Its board still considers Roche's offer grossly inadequate.]
[Click here for full story at: BLOOMBERG.COM]
REVENUE STRATEGY - PORSCHE
1. Porsche, the world's most profitable carmaker, plans to boost its stake in fellow carmaker VW to 31% from 27% as it benefited from a strong financial performance from VW.
2. It reassessed the value of its VW stake and added a one-off positive charge to its accounts of 520.8m euros.
[Click here for full story at: BBCNEWS.COM]
2. It reassessed the value of its VW stake and added a one-off positive charge to its accounts of 520.8m euros.
[Click here for full story at: BBCNEWS.COM]
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