I am very pleased with the blog results last week. Most of you were able to post your comments without incident and many of you approached the issue from different perspectives. Keep up the good work!
However, there were a few students who plagiarized, perhaps without knowing. Remember to give credit when you use someone else’s work, and use quotation marks when you state someone else’s work word by word or with minimal changes. In addition, many of you expressed your opinions but forgot to back them up with facts. In the future, comments lacking supporting facts will not receive credit.
With regards to the increase in GDP of 5.7% for the 4th quarter of 2009, once you remove the change in private inventories, the real final sales of domestic product is only 2.2%. Restocking of inventories contributed 3.5% to GDP growth in the 4th quarter of 09. As expected, business inventories tend to increase as the economy comes out of a recession. Nonetheless, a 2.2% increase in GDP is in line with sustainable economic growth in the United States. When you consider the decline in government spending during the 4th quarter of 09, the rise in GDP must be credited to the consumer. Of course there were some government incentives that contributed to the increase and we will have to see if the consumer can continue to carry GDP growth over the next few quarters once government incentives begin to wane and inventories return to historical averages.
On a different note, productivity, or change in output per hour, was up 7% in the 4th quarter following increases of 8.1% and 6.9% in quarters 3rd and 2nd, respectively. Good for business, bad for unemployment since employers were able to get more out of every worker; and therefore, delayed hiring new workers. Consequently, the 5.7% increase in GDP did not result in a significant decline in the unemployment rate. However, over time, each worker reaches his or her maximum potential and further increases in GDP will result in new employment.
Furthermore, the unemployment rate declined during the month of January to 9.7% from 10% in December, and the broader measure that includes discourage workers fell to 16.5% from 17.3% in December. Historically high numbers, but it seems that unemployment has remained stable since last summer. And again, if GDP continues to grow at a modest pace, once productivity is maxed out, unemployment should go down.
As a business student, think about the opportunities this economic environment offers new businesses. With unemployment close to 10%, what kind of product or service can a new business offer in this marketplace? Be creative, think outside the box.
Hint: If you got a chance to watch the Super Bowl game, did you notice the commercials?
With unemployment close to 10%, maybe all businesses need is the right exposure. As a rising photographer, a service that can be offered in this marketplace is to allow beginner photographers to take pictures for local companies and also then create a website, which will expose their services to help promote those that are currently experiencing a high rate of unemployment and loss in sales. Because of their struggles, this new exposure will gather the public’s attention for hopeful, future consumers and employees. Their designs will be displayed throughout the surrounding cities in hopes to build up their business and employ more people. This service will help the economy decrease the unemployed rates and higher sales which can lead to a new start in this economic state.
Today the unemployment is stated to be at 10% as many new business owners are trying to offer a new product or service which they are trying to create a niche in the market . Something that seems to be trendy in the current market are localy made and enviromentaly friendly “green” products. Almost everyone from a large company down to a small hometown business are trying to change there business practices to become more sustainable . This is also something that many customers are requesting as they are becoming educated and are aware of the social and enviromental issues this make businesses adapt to the consumer demands and needs. This way of conducting business can create jobs locally in the community as these new business open and expand by supporting the community as a whole in a positive way .
As a business student and network marketer in green products and technology I believe that nework marketing is a strong and great things for many people whom do not have a job and are seeking for a new start and a job opportunity to work, but not only work be their own boss. I also like the idea that Dave Chappelle said “One great idea is to sell goods online, especially electronic gadgets”, the reason for this is that I myself sell things on ebay.
During these economic times it can be very difficult to make money. The obvious career choices that are dubbed “recession-proof” include health care professions, education, and, not surprisingly, alcohol sales. As a business student I see some light in this dark room. Running a casino, for instance, would be a great way to make money. I quote Robert De Niro in the movie Casino: “It’s like selling people dreams… and in the end we always get their money.” Another opportunity is accounting. In a time that forces everybody to count their nickels, why not be the person counting? It is tough to find work during a recession, but there will always be ways to make money.
If we as an society lived healthier lives we can help ourselves out tremendously.”Did you know? Obesity is the #2 cause of preventable death in the United States.60 million Americans, 20 years and older are obese,9 million children and teens ages 6-19 are overweight.Being overweight or obese increases the risk of health conditions and diseases including: Breast cancer, Coronary heart disease, Type II diabetes, Sleep apnea, Gallbladder disease, Osteoarthritis, Colon cancer, Hypertension and Stroke”.Getamericafit.org/statistics-obesity-in-america.html.If local hospitals had a program, in which obese individuals,or individuals close to the obese stage, can go to local Fitness centers for a reduced rate with personal training, meal plan,etc., until they can curve their weight, we will curve the national obesity numbers I guarantee.The local gyms would have ad’s in local hospitals making a respectible name in the community,and it therefore would draw other individuals, or make the obese ones trying to get healthy long term members.It would be funded by the goverment.This might sound like a waste of money, but let these following facts right here run through your mind.
The following numbers are from the same source that I had previously stated.
• Type II Diabetes ($63.14 Billion)
• Osteoporosis ($17.2 Billion)
• Hypertension ($3.23 Billion)
• Heart Disease ($6.99 Billion)
• Post-menopausal breast cancer ($2.32 Billion)
• Colon Cancer ($2.78 Billion)
• Endometrial Cancer ($790 Million). These are majorly contributed by obesity. Look at all those numbers. If we can curve obesity in the U.S.A we can have a more productive work force, and have more goverment money(therefore create new jobs),etc. You be the judge to what we can do with an healthier America, but this service would really help our economy and marketplace.This is my idea on local Fitness Centers,goverment and local hospitals getting into a partnership to provide a great service to improve the well being of the people in our country and marketplace.
The unemployment rate has been pretty consistent since the start of summer last year. This being said we need to figure out ways these unemployed workers put them selves in the market sort of speak, basically selling your self to a company to where you want to work. Many tools are available to unemployed workers such as monster their website helps many people look for jobs, that’s a great way of selling your self and showing those looking for employees what type of person you are. Therefore creating a business that operates like monster helping those millions of people looking for a job, make them want your product because the first concept of buying will be the need of recognition and the need is there for many unemployed workers.
As a business student I know two things : the best time to form a business is in a time of economic hardship where your business will stand out and prosper , and education is the best way to get ahead. What sells better in a recession than education? Colleges , especially community colleges are all booked up with people going back to school and some are even forced to turn away individuals. While the idea is still in the r&d phase , what if unemployed workers were able to take classes by other unemployed individuals in their respective fields , at little or no cost? People could take quick one day workshops on everyday things like networking and computer skills , or take more specific courses taught by other people who work in the industry. This could benefit the unemployed instructor who might receive some type of stipend for teaching the class and it will also benefit the students for taking an informative course and networking with other individuals. I don’t know if it’s a cost-effective idea , but I think it’s a good idea none the less!
In this kind of economic environment, money is obviously very tight, but seeing that hopefully workers are reaching their maximum potential in various work places, people will begin being hired again. A good opportunity for a new businesses, I believe, would to be able to offer the unemployed all sorts of online training and classes. This would teach them maybe the skills they would need to be hired by the companies already established and that survived the resession. With better educated people specialized in a variety of areas, such as health care, technology, and even trades, I feel that the economy would benifit greatly from a “training” type of business. As it seems, the worst is over, and hopefully unemployment will continue to go down.
“Unemployment has gone down from 10% to 9.7%,” as the New York Time’s, Peter Goodman, reported on Friday. Even though the market is still slightly in the dumps, some people are still opening new businesses. They need to do a few things that will help their business grow in the tough economy. First, they need to buy inventory in bulk, which could save the company money. Second, they could hire more workers and do all the work by hand, which would take more time, but would take out machines out of the workplace, which would also cut the cost in half because the owner wouldn’t have to pay for the machines. Another big factor in selling the product is advertising. If you watched the Super Bowl, you would have noticed that most companies drew the attentions of the viewers by creating commercials about things everyone likes. For example, many companies used alcohol or tobacco in their advertisements because many people enjoy alcohol or tobacco. Companies also used cartoon characters that everyone noticed. An example was Coca-Cola; they used the Simpsons characters, which almost every family knows who they are. Even though most companies are struggling through this “depression,” some industries are making profits and will continue to make profits no matter how bad the economy is doing. The first example is the alcohol industry, for example Anheuser –Busch. People will continue to buy alcohol because they are addicted to it or just because you like to drink while watching your favorite sports team or television show. Another industry that will survive is the tobacco industry. “The tobacco industry is one of the most profitable businesses in the country, making billions of dollars every year. But the costs of smoking are far higher than the income from cigarette sales,” as states on the cancer.org website. This shows that even if the economy is struggling, people will still buy tobacco and alcohol. Concluding from all this information, many companies are likely to fail with the economy struggling but if you create a product that attracts enough attention to the buyers, people will buy your product and your company will succeed.
I believe that the best option to decrease unemployment rates is to create movies or create a movie theater with lower ticket prices. Creating a movie or a movie theater is a great way to decrease unemployment rate because everybody loves a good movie. According to John D. Sutter of CNN “Movie ticket sales are way up in this down economy”. John also states that “Box offices saw their best January in history this year, with more than $1 billion in gross sales.” Movies are the best way out of recession and decreasing unemployment rate down because even with rough times happening all around us. Movies gives everyone a two hour release from the tough times.
There are many ways new business can offer in this marketplace is to increase jobs for the marketplace. The Super Bowl game, I notice the commercials is about Monster.com, where they help people find jobs. For example, “Plans to tackle job losses come in two flavors: Tax incentives to encourage businesses to hire, and direct government spending to stimulate demand and boost payrolls. Both will add to the nation’s mounting budget deficit, which is expected to hit $1.6 trillion. The Obama administration has proposed a combination of tax breaks and direct spending, including a $5,000 tax credit and payroll-tax cut for companies that hire new workers, $30 billion to jump-start lending to small businesses, aid to state and local governments and programs for displaced workers.” This would help out with the situation
I think that right now would be a great time to open an employment agency, that offers job skills training, life coaching services, personal image consulting, and resume writing services. During a time when the unemployment rate is close to 10%, people whose skills were once in demand are no longer needed. According to the Bureau of Labor Statistics, the labor force and trucking transportation industries have seen dramatic job losses, “Consequently when the demand for goods is stifled, the call for freight services is likewise sluggish.”. According to Money Magazine, Telecommunications Network Engineers, Systems Engineers, Personal Financial Advisers, Veterinarians, Senior Financial Analysts, are all expected to be the positions with faster job growth in 2010. With my new business idea, I believe that I can help those who used to work in another field, get the information and help they need to get into a field with potential, or atleast get them on the right track to getting back into the work force.
The high unemployment rate means that people are hungry for work, and as a new business owner this will be advantageous because there will be a larger number of people applying for every job. In this situation the employer can be more selective and only hire the best and the brightest, thus giving their business a better chance to succeed. President Obama, in a recent speech, said he wanted to give a tax credit to small businesses who hired new employees, this sounds like it should be good to help the unemployment rate, and also will help small businesses. Unemployment is stabilizing and consumers are going to feel more comfortable starting to spend money again but because we are just coming out of a recession I think it would be smart, as a new business owner, to sell products that are moderately priced and viewed as a good value. For example, people will be more likely to buy clothes from GAP than from Armani Exchange because although they are feeling more and more comfortable with spending again, the fear of the economy going back down again will hinder consumer’s willingness to buy high end, high priced items.
I believe that small businesses geared towards service have an excellent opportunity to thrive in this economy. More specifically, I think that franchise businesses are an excellent way for a prospective new business owner to get their foot in the door and take advantage of certain demands for the different services and goods that they can offer. According to USA Today, there are over 1,500 franchise companies in the United States today. That gives plenty to pick from, but I believe the best ones would be service geared franchises such as IT/computer repair, hair salons, etc. These certain types of service businesses can continue to thrive even while consumers cut their spending, and franchises allow people to quickly and easily get their business set up. I truely believe that creating new small businesses are an excellent idea in this current economy, but new business owners should be careful to pick a business that is in demand.
In general whenever there is high unemployment, long running recessions, and a general economic discontent among the populous there are three things people tend to turn to for temporal quietus of troubled minds and sooth of overstretched souls. These things prosper as such religion, liquor, and cheap entertainment (in fact the movie industry did not take off until the great depression mostly because millions of impoverished Americans were willing to spare a penny to forget their troubles for an afternoon, the ones that could afford it anyway). Another source of comfort for many during arduous times is religion, which is also an immense and tax exempt revenue generating entity that commands great numbers of devoted followers willing to part with their money upon if encouraged by their church. The combination of entertainment with the endorsement of religion (mostly Christianity in the U.S.) has proven in recent times to be a cash generating colossus, Kirk Cameron’s “Fireproof” earned $33,451,479 (Rotten tomatoes) on at budget of only $500,000 (CNN) simply because of endorsement by evangelical Christians. Further examples of this include “Passion Of The Christ” which made $611,899,420 on a budget of $30 million (wiki) while the biggest selling movie of all time “Avatar” has made $2,080,093,323 so far on a budget through not expressly specified is believed to be between $300-$500 million dollars (imdb), a simple analysis of these figures show that Fireproof made almost 67 times it cost, Passion roughly 20 times, and Avatar only about 4 times. Though these numbers are not always typical, entertainment that focuses on the religious niche generates exorbitant amounts of cash (not a new trend Christianity has always generated great sums of currency from selling indulgences to old time revivals to the medicasting chicanery of faith healing.) To attract an audience you must 1. Have something they want to see and 2. It has to be inexpensive to the consumer (also convenient helps). My proposition is to start a Christian version of Hulu that also includes user related content and some original content along with low budget movies and Christian television shows, it would be free to the consumer and run on a similar ad revenue model to Hulu (except religious programming is much cheaper than big budget tv and movies). Also Mormonism is the largest growing religion in U.S. currently and has a massive untapped market so if you did a similar site focused on Mormon programming it would likely see major growth. Of course I myself would never bring this idea to fruition as I find exploiting and manipulating the lack of critical analysis by any group through deep seated belief or fear for my own monetary gain to be somewhat unethical but that’s me.
I think that this economic environment is of some benefit to new businesses. Something offering services to those who are unemployed would stand out more. Something that would stand out in these times would be staffing company or job placement company, a company that will offer something to those desperate people looking for work. Not just a regular staffing company though, one offering something extra to guarantee job placements for their clients. A company that offers some skill training and career building classes to enhance curriculums and in turn expand opportunities for those who have no opportunities at the moment. That, I think would be a good idea for a new business. Even though there is lots of job placement companies already up and running, I believe a new one offering more and doing more for their clients will stand out.
Now, looking at it from different point of view, if you have started a new business you have the advantage of finding good well qualified employees. Considering a new company doesn’t always have the resources to pay a very well qualified, educated employee, the unemployment rate is offering a better opportunity for this new company. Where a few years ago you might be paying a ridiculous salary for a qualified, educated person to work for you, you might not be spending as much now that the unemployment rate is so high. Because so many people are out there with the qualifications you can choose and be picky about what your company will offer. I have seen instances where an educated person, with a career, qualified for great jobs is working such a great job and isn’t getting a great pay but that’s the reality right now and new companies could use this to their advantage.
My idea for a business that would do well in this economy is paper cellulose insulation plant.This business would turn recycled newspaper into cellulose insulation.My people are suprised to learn that cellulose is the most common building material in the world.There have been many cellulosic materials used over the years to insulate,including corn cobs,straw,cotten,sawdust,hemp and probably many more. Not only is cellulose insulation a great insulator with a high R factor(resistance to heat loss)this product has a long history of use in homes.This industry has over a half of century track record.There have been very few changes in this product over the years.There is a new light density mill that are now setting a new standard for this insulation.With state of the art machinery you could operate a small plant with as little as three men.I would hope to to find innovative ways to collect paper to make my end product.The companys recycling program would not only give us a way to become more active within our local community,but also gives you a way to conserve landfill spaces,educate children on the importance of recycling, creat a greener community and make a profit doing this.
Because the state of our economy is so bad, it is hard for any business, no matter what size it is to prosper and make revenue. Since almost 10% percent of United States citizens are out of work, I think a new type of business that would most certain prosper would be one that would help people find employment. Another idea that could be a potential favorite in a recession would be any company that produces food. According to powerhomebiz, “The key is to customize your products to fit in your buyers’ shrinking budget. I feel that any food product company or any company for that matter that keeps their customers happy, while dropping cost would catch any recession consumers eye.
To be honest there’s not many businesses that can offer a new product because lately most businesses has been slow and not a lot of people are shopping. But maybe a product that people can use.
Like a few have already said, it’s hard for new, unknown products to start coming out unless you can really show, instead of just telling, how it will save the buyer time and money. It seems like temp agencies and companies that post job listings like Monster.com would be actually doing very well. Monster is web-based, so enough people find the ease in using a website, rather than having to deal with waiting in lines and driving somewhere (which can end up costing lots in gas). Monster also has a great ad campagin that makes people remember the name of it. A website also isn’t as expensive as buying buildings and having more physical places of businesses (which I’m sure they have). Really, products are not need, but services are seen as time and money savers, which is what the unemployed people are looking for right now.