Shared Flashcard Set


MGMT 4020 Final
Final - Classical Music
Undergraduate 4

Additional Management Flashcards




Bank of Japan's Easy Money
Past 6 years Japan's Central Bank securities and bonds holding increased 35%
-in that time ECB, England and the Fed increased by at least double

Shift to Easy Money Policy
-buying up long term Japanese bonds and bonds of other countries
-Pumps yen into the world economy, forcing currency wars and risking massive inflation
-Southern Asian countries dont like this, Japan will take their exports
Walmart Reaction to Payroll Tax Increase
Payroll tax cut expired, will take 2% out of people take home income, coupled with recent gas price increases

almost 50% of consumers curtail spending, consumers delay big ticket purchases, consumers are going to restaurants less

Walmart and other grocers are putting lower cost and smaller packages of shit on the shelves

Burger King cutting the Whopper price, McDonalds is moving advertising focus to dollar menu again

Tyson's saw a 10% shift from more expensive red meat to less expensive chicken products
Bernanke Bond Buying Strategy Report to Congress
Said we will continue to purchase $85 Billion a month of long term T bIlls and mortgage debts

Fed has already accumulated 2.8 Trillion

Said bond buying increased output by 3%

keeping long term interest rates low has increased durable goods sales and made the housing market recover

Some Senators argued the policy will encourage financial excess and a fake market success like the one that caused the recession
Samsung/Google Relationship
Samsung sells 40% of mobile devices that use Google's Android software

Google is concerned they are growing so big they will be able to pressure Google into sharing its search engine profits, they already get 10%

Google bought Motorola's Mobile unit to keep leverage over Samsung, they are developing the X Phone, which will challenge the iPhone

Samsung is leveraging by making Microsoft powered devices

Google hopes the entrance of HP and HTC into the mobile market will keep Samsung's market share down and fight its current growth
Leonard Riggio and Barnes and Noble
Riggio is Chairman and primary shareholder, he plans to buy the retail portion and go private, leaving the Nook and e-reading market

Riggio just doesnt like the new technology shit

Stock prices rose 11% in the wake of the news

The retail side has been recovering mostly, while the e-reader side is struggling due to new entrances into the market
Cablevision sues Viacom
Sued for anticompetitive behavior by forcing them to carry lesser watched Viacom channels in order to get the popular ones, following a long standing tradition of bundling channels

most people only watch 20% of the cable bundle they get

bundling is less expensive for Viacom because they get more ad revenue with more channels

Viacom argues that the provide gets more revenue from the bundle and that consumers will pay more for less channels without the bundle
Sequester Cuts
$85 Billion in sequester cuts, 2.4% cut

Deficit is falling, shrunk to $845 B from $1.4 T in 2009

White House and some Republicans want to rewrite tax code to increase revenues and revamp social entitlement benefits

46 M Americans get social security, which will grow by 40% by 2023 and run out of funds by 2016

Medicare will run out by 2024
China Inflation
China set its growth target for the coming year at 7.5%

This is good for the year, but growth will slow and will be hard to maintain

China's main goal is to increase domestic consumption to decrease reliance on exports and foreign investments

inflation will begin to rise, expected at 3.5% - this will be effective in keeping prices from rising too much

Factory workers have seen wage growth but that needs to expand to farmers and migrant workers

goal is to decrease economic inequality - 27% increase in healthcare spending and 2% of GDP deficit target
American Economic 4th Quarter Results
Estimates put us at a -.1% decrease, GDP ended up growing by .1%

Every GDP component grew except government spending

Policy makers can increase output this year by increasing taxes, decreasing spending, monetary policy and bond buying
App Market Growth
Apple and Google stores now offer over 700,000 apps each

Global app profits are expected to rise 65% this year to $25 Billion

The market is now extremely saturated with competitors and advertisement prices are rising

People spend about 2 hours a day and use about 8 apps frequently at a time

65% of heavily used apps last year aren on longer relevant

only 2% - 3% of the top 250 developers in app stores are new to the market
App "Do's"
Narrow your idea to something useful, throw out bad ideas

Learn to code

Build features that provide feedback

Test well

Cross promote
App "Donts"
Stick to one busines model

do a one stop development platform

Copy other peoples idea

Update too frequently

Build an app that could be a website
Corporate App Cost Cutting
Corporations are increasingly using apps as cost cutting measures to replace human labor

Dominos says app and online orders have reach 1/3 of all orders

apps can lower front end costs by 10% - 15%
Rovio Angry Birds
Angry Birds will be released as a cartoon series in a deal signed with Comcast

$106 M in revenue in 2011 with 30% coming from licensing and merchandise

Rovio has tripled its animator employees to 75 after buying a game developer and an animation studio

Rovio plans on releasing a full length movie with former Disney and Marvel producers
Disney Movies
New Disney movie studio head appointed

immediately approved reshoots for "Oz" that will add $15M to the $200M

Generated $722M operating income off of $5.8B in revenue last year

While the parks/video games and other Disney business make more money, the movies are what gives them their themes, it is very valuable for disney to own exclusive rights to their movies which makes the movie studio sector extremely important

New focus on action movies over drama, new "Pirates", "Tomorrowland" and "Star Wars"
K'Nex Production Moves Back to US
Bringing back production from China as wages and transportation costs happen, they also want to control safety issues with materials

Mostly they want to be close to use retailers to supply quicker because demand for toys is fickle

Goal is to return 100% of production to US

Cutting costs by moving to newer plastic materials
US Job Growth in February
Added 236,000 jobs - beat the monthly average of 195,000

Pushed the jobless rate to a low of 7.7%, but the number of discouraged workers also fell

Construction, healthcare and retail led the job adds while government lost jobs

Recovery is in effect but is endangered by taxes and gas prices cutting into consumer spending

Estimates put sequester cutting GDP by .5%
Americans Cant Retired Anymore
66% have saved for retirement
28% have no confidence in retiring
57% have saved less than 25k

total net worth of US households is $66.07 T, rose 1.8% in 4th quarter
Household Consumer Recovery
Deleveraging involves paying off debt or walking away from assets like houses

2.4% increase in household borrowing, represents a massive jump up

mortgage borrowing dropped by .8%

Household networth rose 1.8% to $66.07 T last year

household owned stocks valued $150B and home values rose to $450, households are feeling more wealthy with these assets on their balance sheets and are spending and borrowing more
Cyprus Rejects Bail Out
Government voted it down due largely to the tax on individuals deposits

Seen as a political move to leverage the offer against a possible Russian bail out to get better terms from a EU counter offer
US Dollar Strengthening
The Dollar is up 5% on the WSJ Dollar Index
-retail sales are growing faster than expected
-trading partners are weaker right now
-Euro fell 7.7%

Rising dollar makes foreign profits translate into less value, dollar is worth more foreign currency overseas

Monetary easing aka bond buying by the Treasury could cause inflation that will fuck this up
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