The situation for General Motors (GM) is dire. The company says it will run out of cash possibly before the end of the year and definitely by next June without raising more capital. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid wrote Saturday to Treasury Secretary Paulson to ask the administration to expand…
Newly identified problems with fasteners will further delay the Boeing 787 Dreamliner program (full story here at WSJ). What does this story tell us about business models and strategic risk?
Interesting story that touches on Wal-Mart’s “Win, Play, Show” strategy for product selection: Win — items where Wal-Mart can beat rivals with low prices on hot products, like flat-screen TVs Play — items like apparel where Wal-Mart can play but is unlikely to dominate Show — items that are one-stop shopping essentials like hardware, to…
In any franchise-based business model, there is always tension between the franchisor and the franchisees. The franchisor develops a system and brand(e.g. McDonalds, Marriott, Curves) and licenses it to franchisees. The franchisee is responsible for an initial investment and paying some type of royalty back to the franchisor. The tension comes when the franchisor tries to require…
In many companies, it is a management mantra to “take out cost”. What does it actually mean to “take out cost”? A great example is found here in a recent story about Costco. Some things to think about: “Taking out cost” does not mean indiscriminately slashing headcount or some vague blather about leadership. It means systematically evaluating…