Saturday, July 17, 2010

Study: OMG, Facebook's Ending Tomorrow! What Do You Do?

BY Austin CarrThu Jul 15, 2010

End of  Facebook illustration

What would Facebook's 500 million active users do if the world's largest social network were to be shut down? Better yet, what would you do?

That was the topic covered in a study conducted at Stanford by Andreas Weigend, the former chief scientist of Amazon, who asked respondents to imagine a scenario where Facebook were shut down and all its data destroyed. Can we live without the service? The results provide insight into what matters most to users of social networks.

According to the study, approximately 40% of respondents would back up photos, compared with the 38.7% who said they would back up contacts, which suggests that pictures are just as important to social networking as having contacts. "Photos are a very important way to maintain richness in social relations," says Chuanyang Chee, who helped Weigend conduct the study. Indeed, the study attempts to show how social networks are important in creating a "collective memory," and how its features, such as photo albums, help contribute to "each individual's online autobiography." About 38% of respondents said photos were Facebook's most important feature, whereas only 28% said the newsfeed was its best feature.

Of course, a smaller percentage of respondents provided a refreshing answer to the question: They would do nothing if Facebook were ending. Chee says that this small segment actually didn't care about whether their Facebook account were deleted, but only because they either "already backed up all their contacts or because they use another program to store all their photos."

Still, there were some--an unfortunately tiny fraction of respondents--who would not be concerned if Facebook ended, even if meant losing all their data. "These are people who are in touch with their close friends--they already have all their necessary information," explains Chee. "So it's not as important to them to stay in touch through Facebook."
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Saturday, June 12, 2010

Open Thread: Will You Buy the iPhone 4?

BY Ariel SchwartzFri Jun 11, 2010

iPhone 4

As the New York Times has pointed out multiple times in the past few weeks, we can't get enough of our distracting gadgets. The newest bright, shiny thing to come down the technology pipeline is the iPhone 4, an ultra-sleek upgrade from the last version of Apple's popular smartphone.

The phone's impressive features include 40% more battery life than the 3Gs (300 hours of standby, 10 hours of Wi-Fi Web browsing and 7 hours 3G calling), an upgraded processor, gyroscope, front-facing camera, 5 megapixel rear camera that records 720p video at 30fps, and multitasking (finally!). Apple's 9.3 mm thin iPhone also offers an ultra high-resolution display--960 by 640 pixel resolution on a 3.5-inch screen--that has four times as many pixels as previous iPhones. Apple is rumored to be preparing to sell 3 million devices in the first month.

So here's our question: Will all these snazzy new features sway you to upgrade now, or will you wait? And if you have an Android phone, will this finally trigger you to make the switch? If so, why?


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Wednesday, June 9, 2010

Forget iPhone 4, Here's What Steve Jobs Didn't Mention During His WWDC Speech

BY Kit EatonMon Jun 7, 2010

iphone4

Today's WWDC speech by Steve Jobs was in some ways, surprising. Despite a veritable armful of rumors, Steve mainly talked about a handful of tech, with emphasis on the new iPhone 4. So what did he leave out, and when may it come true anyway?

New Mac Minis

mac-mini-hdmi

The Mac Mini is a much-beloved little computer, widely use as a home theater device and even as a server workhorse (due to its petite size and reasonable pricing). So why didn't Apple lavish any WWDC love on their smallest Mac? Strong rumors hinted at a big refresh with HDMI connectivity, after all.

Because the Mini is not a high profile world-beating device, like the iPhone or iPad, it's not high on Apple's priority list and simply isn't going to garner many headlines online or in the traditional press. Apple probably didn't want to water down the excitement about the iPhone 4 by announcing other new hardware. (Leaks have already muffled a bit of the thunder around the new iPhone as it is.)

When will we hear this news? Soon. We think it'll happen, and Apple will just slip out a special press release with some Jobs quotes and a splashy new Web page to advertise it.

HTML5, in the shadows

Jobs did mention HTML5 briefly during his address. But it was literally a mention in passing, and he didn't even play up the new promotional HTML5-ready Apple demo page. Instead Jobs noted HTML5 is one "platform" the company supports, an "open, uncontrolled platform that is forged and defined by standards alone." Apple is "fully behind" it, and its browsers are "in the lead" in supporting it. Apple's second platform is the "curated" iPhone OS (now iOS) for comparison.

Will Apple hit the news with HTML5? Possibly not in a special event, unless you're talking about a dedicated Jobs blog. Apple thinks its support for HTML5 is now self-sustaining in terms of news and media coverage, and probably didn't want to bring any hint of the Apple versus Adobe "war" into the Apple WWDC event.

iTunes in the cloud

Not a peep about iTunes during Steve's speech, which may be a surprise to some who were expecting news about a move to cloud-based storage and content streaming (possibly using tech from Lala, the streaming music platform that Apple recently acquired). The only mention of iTunes is in the new iPhone's specs page on Apple.com, where it's noted the device needs "iTunes 9.2" whereas the current version is 9.1.1.

Will iTunes 9.2 have cloud elements? We don't know. It'll have to ship before the new iPhone 4 goes on sale on June 24th, so it has to happen soon. We suspect a cloud-based iTunes would be a big enough revelation that Jobs would mention it in a big event so it won't appear in June. But it may merit a special "Come Feel Music's Future in the Air" Apple-style special event later this year.

MacBook Air revisions

Intel's got new silicon on the way that'll give Mac's slenderest model a big boost, and it's a premium piece of tech for Apple--they'll definitely support it through a basic spec upgrade.

When will the Air laptop get some love? Soon. Probably on a Tuesday, Apple's traditional new hardware launch day, as a minor mention in a press release.

External trackpad, the "Magic Slate"?

Many folk will have been saddened to not see this announced today--it's a device that'll surely sell by the boatload, thanks to Apple's marketing and impressive lead in multitouch technology. But the rumors about it today did reveal the "leaked" hardware had a copyright sign from 2009, so they may have been of a prototype, rather than shipping hardware.

When will the Slate go on sale? Sometime this year, we hope. If it does, we're guessing around October, a year after the Magic Mouse came out, as the two peripherals are kinda complementary.

Safari 5, OS X 10.6.4

Kinda surprising that these two "flagship" pieces of code didn't get much of a mention at Apple's developer conference. But maybe Apple's already supremely confident in its software offerings and doesn't feel the need to advertise single-point code updates. And don't forget Apple will be revealing more stuff to developers throughout this week's WWDC sessions.

Maybe Safari 5 and the new OS X tweak will get a proper "private" reveal to devs this week and a quiet launch soon.

UPDATE: In an email sent hours after the keynote, Apple announced the release of Safari 5 today.

Free MobileMe

Hmmm. We're scratching our heads on this one, as a free user level in MobileMe would be such a powerful boost to the iPhone's already prodigious powers. Maybe Apple's not got all its code in order yet, as they've been too busy messing with iPhone 4s, iPads and new versions of OS X and Safari.

Will we see this? Yes, we think so. But possibly as a big mention during another hardware/software release later in the year.

iPhone 4's HD video output powers

So here's something you probably didn't know, as it's not surfaced yet online: One thing Steve didn't mention is that the new iPhone outputs 720p-resolution video over a 30-pin to VGA connector cable, meaning it can drive your HDTV with HD-quality video. That beats the existing standard-def resolution, and almost rivals the existing Apple TV's powers.

Does this hint at a 1080p-capable Apple TV revamp? Very possibly, if you apply some twisty logic about why Apple didn't highlight this power.
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Friday, June 4, 2010

How DreamWorks Animation Creates New Technology and Markets It to the Masses

BY Noah RobischonToday

"There is this insatiable appetite to invent cool and interesting ways of storytelling," says Ed Leonard, CTO of DreamWorks Animation. But the technology behind these new forms of storytelling is evolving more rapidly than the audiences, who have a plethora of choices at the box office--not to mention cable, the Internet, and mobile phones.

Two years ago, when DreamWorks Animation released its first 3-D movie, there was only one other 3D movie in release--so only one place to screen the trailer. It's the job of Anne Globe, DreamWorks Animation's head of worldwide marketing, to interpret these new technologies for moviegoers, and in this case convince them that what's on screen today is not what your father saw in his 3-D glasses.

Globe and Leonard talked about the joy of innovating, and the challenges that follow, during a panel at Fast Company's Innovation Uncensored conference. To see more video highlights from Innovation Uncensored, visit this page. Or just sign up for our next event: The Most Creative People in Business 2010 on June 16 in New York City.
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Tuesday, May 18, 2010

Sustainability Faceoff: McDonald's vs. Starbucks

BY Ariel SchwartzMon May 17, 2010

mcdonalds starbucks faceoff

Comparing Starbucks and McDonald's may not seem to make sense at first, but the two chains actually have a lot in common--namely, they both promise quickie and easy food and beverages on the go, and both companies have recently ramped up sustainability efforts. In the new book The HIP Investor, author R. Paul Herman attempts to compare the two mega-chains. Below, we do the same.

Let's just be clear--the inherent unhealthiness of most McDonald's meals give the chain a major disadvantage, even when compared to Starbucks' high-calorie Frappucinos. That being said, McDonald's has made some inroads in sustainability. A few examples: a "green" McDonald's that offers an EV chargepoint, LED light fixtures, drought tolerant landscape plants, and an Energy Efficiency Education Dashboard; an environmental scorecard for suppliers; a successful sustainable fisheries program; and a next-generation fryer that allows restaurants to cook the same amount of product while using approximately 40% less oil than with traditional fryers.

But there's still plenty that would be would like to see. How about smaller portion sizes, for example? And yes, we realize that the "supersize" option is no longer available--but that's not enough. In an interview with R. Paul Herman, Bob Herman, the VP of Corporate Responsibility at McDonald's, explained, "We are offering choice--new menu items and new portion sizes, giving information to make these choices. This is a significant thing to do." McDonald's would also do well to use more grass-fed beef and increase its use of organic fruits and vegetables. And then there's the most disturbing question of them all: Why don't McDonald's burgers decompose?

Starbucks fares better on all counts. The coffee chain has a goal of using only responsibly grown and ethically traded coffee by 2015, and it hopes to have 100% reusable or recyclable cups by the same year. Starbucks takes the extra step of offers farmers incentives to prevent deforestation, with pilot programs currently underway in Sumatra, Indonesia, and Chiapas, Mexico. The company is also well-known for its partner (AKA employee) health care--the chain does, in fact, spend more on health care than on coffee bean purchases.

Is Starbucks perfect? Of course not. While McDonald's caters to a crowd specifically interested in fast food chains (if they don't go to McD's, they will probably head to Burger King or Wendy's), Starbucks has the unfortunate tendency to challenge local coffee shops for much-needed business. But the company is moving quickly toward sustainability, and so we have to declare it as the winner.

Check out the full HIP Investor chart below.



McDonald's Starbucks
Overview Over 31,000 restaurants in 118 countries; $23.5 billion revenue, 400,000 employees Over 16,000 locations in over 50 countries, $9.8 billion revenue (FY09); 117,000 partners (employees) **
Product Premium salads, fruit and yogurt parfait, and apple dippers in Happy Meal choices; packaging gives customers essential nutrition information in easy-to-understand icon and bar chart format In U.S., spends more on partner health care than coffee bean purchases; The largest purchaser of Fairtrade certified coffee in the world **
Management
Practices
19 of 25: Carefully managing supply chain to control costs and implement sustainability, and developing an environmental scorecard to measure supplier performance 21 of 25: Sustainability built into business vision, all performance metrics and product development decisions; From fiscal 2000 to 2009, farmer loan commitments totaled $14.5 million, goal is $20 million by 2015; Partners encouraged to volunteer, with a goal of 1 million hours of community service by 2015 **
Health

of 20%

In 2009 customer satisfaction is 70%; 82% of crew would recommend working at McDonalds to a friend 10% Customer satisfaction is 76%; all staff more than 20 hours/week have health care access 14%
Wealth

of 20%

Crew members earn an average of $7.60 per hour; 93% of eligible employees participate in 401(k) plan, made easier by $20 per month auto-deductions 9% Starbucks average hourly pay rates vary across the U.S. and the globe; baristas in the U.S. are eligible for a base rate increase after six months, and a performance based increase every six months thereafter.; The Stock Investment Plan allows eligible partners to buy Starbucks stock (up to 10% of base pay) at a 5% discount; Through the Bean Stock program, stock options granted annually to eligible partners in 16 countries from part-time hourly up to (but not including the director level based on the company's performance ** 13%
Earth

of 20%

About 82% of the consumer packaging used in its nine largest markets made from renewable materials and 30% of the material comes from recycled fiber. Despite testing of innovative materials, have not yet identified more sustainable packaging materials that are commercially viable 9% In fiscal year 2009, Starbucks served more than 26 million beverages in reusable cups, and approx. 70% (2,163) of its company-owned stores in North America that control their own waste collection recycled items made from one or more materials; Starbucks is working toward 100% reusable or recyclable cups by 2015 ** 12%
Equality

of 20%

37% of all U.S. owner-operators are women and minorities; 26.7% of worldwide leadership are women 15% Among managers, approx. 31% are ethnic minorities and 66% are women (6/1/2008-5/31/2009)** 12%
Trust

of 20%

Guidelines to determine the sustainability of fisheries developed in partnership with Conservation International 14% All suppliers that adhere to C.A.F.E. status undergo third-party verification; By 2015, Starbucks' goal is to purchase 100% responsibly grown and ethically traded coffee, which the company defines as coffee that has been third-party verified or certified, either through Coffee and Farmer Equity Practices, Fairtrade, or another externally audited system ** 13%
Human Impact

TOTAL, of 100%

Summary: McDonald's could stand to improve its sustainability, especially where food sourcing is concerned
56%
Summary: Starbucks trounces McDonald's on almost all counts
64%
Corporate Profit

of 20%

+30.1% return on equity (2008)

+20.4% annualized total return, including reinvested dividends (6/2004–6/2009

+23.4% annualized total return, including reinvested dividends (6/2006–6/2009)
+12.8% return on equity (fiscal 2009)

-6.2% annualized total return, including reinvested dividends (6/2004–6/2009)

-16.3% annualized total return, including reinvested dividends (6/2006–6/2009)

Read more Sustainability Faceoffs.

** = Updated Data From Starbucks

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Monday, May 17, 2010

Nintendo and American Heart Association Team Up to Earn Extra Life

BY Kevin OhannessianToday

Nintendo American Heart Association

Gaming giant Nintendo and the American Heart Association (AHA) are partnering to help Americans become more active. Starting in the next few weeks, Wii systems and the titles WiiFit Plus and Wii Sports Resort will feature the AHA logo and the motto, "Working together to promote physically active play as part of a healthy lifestyle." "Millions of Americans are involved in gaming, and Nintendo is the leader in that space," Dr. Clyde Yancy, President of the AHA, tells FastCompany.com. "This is an opportunity to use this platform to bring forward heart healthy messaging to millions."

Beyond logos, Nintendo and AHA will hold a summit to bring people from the fitness, health, and game industries. "The summit is really a multidisciplinary, multi-faced collection of experts that can bring a number of perspectives to the table," Dr. Yancy says. Cammie Dunaway, executive VP of Sales and Marketing at Nintendo, adds, "To bring together thought leaders who have never come together before is going to create something really impactful."

Heart disease and stroke are the leading cause of death and disability in the U.S., Dr. Yancy says, and 70% of Americans are physically inactive. Of that 70%, 40% say the reason don't incorporate physical activity into their lives is because it just isn't fun. "Nintendo is the expert at making experiences fun," Dunaway says. Over 29 million Wiis have been sold in the U.S.

More immediately, these Wii products will be featured at AHA's Start! Heart Walks, and material about the Wii will be available at the AHA Web site. A new Web site for the partnership, ActivePlayNow.com, is also coming. It will feature tests for users to determine their activity needs, info on physical activity including with the Wii, and information on the AHA events and the coming summit.

Since Nintendo launched the Wii, the company has released products that extend the console's relevance to fitness. It is expected to go further with the coming Vitality Sensor, expected to be featured at the game industry's E3 conference next month--although Dunaway declined to comment on those plans. Stay tuned for details on the Sensor and the Nintendo-AHA summit.
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How to Revamp Your Marketing Plan


How to Revamp Your Marketing Plan

How should Denim Therapy market its jeans repair service? Four entrepreneurs weigh in.

Courtesy Company

Denim Therapy is on a mission to save your favorite pair of jeans from a tragic demise. Denim junkies mail their jeans to the company's New York City headquarters, where the staff repairs holes and worn hems by weaving new thread into the damaged area. An average repair costs about $42 plus shipping and takes two weeks to complete. Francine Rabinovich founded the company in 2006 when she realized how attached people are to this wardrobe staple. "It's hard to find the perfect pair of jeans, and once you have them, you don't want to give them up," she says. Denim Therapy repairs about 400 pairs a month. To market the service, Rabinovich has bought advertisements on Google and relied on word of mouth, which has resulted in some mentions in fashion and lifestyle magazines. Her dream is to make Denim Therapy the go-to service for jean wearers. We asked four entrepreneurs to weigh in on how she can best meet her goal.

Pitch No. 1: Woo bloggers

Chuck Porter, co-chairman of Crispin Porter + Bogusky, an ad agency with offices in Boulder, Colorado, andMiami

"Ultimately, Denim Therapy is about fashion, and it makes sense to connect with a fashion audience. Fashion blogs have a gigantic readership and are increasingly influential in getting the word out about trends and services. Even major designers look to them for publicity. I think Rabinovich should reach out to several dozen of the bigger fashion bloggers. Offer to fix a pair of jeans and ask them to honestly write about the experience. If the service is as great as it sounds, she should have no problem getting positive write-ups from voices that carry weight in the fashion world."

Pitch No. 2: Be witty

Adam Rich, co-founder and editor in chief of Thrillist.com, a daily newsletter about events and trends in 13 cities

"This company has a lot of possibilities to reach customers using humor. I would suggest that Denim Therapy create advertisements that talk about the emotion of parting with a beloved pair of jeans, but with a funny twist. On guys' jeans, for example, the crotch area starts to disintegrate, but no one really talks about it. It would be a laugh to see an ad that brings that up. I would suggest placing ads online. They're cheaper than print, and you can measure how many people are clicking on them."

Pitch No. 3: Approach celebrities

Bill Weber, owner of Arborwear, a Newbury, Ohio, maker of durable outdoor clothing

"I think Denim Therapy could benefit from a strong PR campaign. People using this service are likely buying pricey denim, so the company needs to get coverage in fashion and lifestyle magazines its customers read. It also makes sense to reach out to the celebrities who appear in the pages of those magazines. Rabinovich should try to find a way to get a voucher for a jean fix in gift bags at award shows like the Emmys orGrammys. A celebrity endorsement can go a long way to boost the company's popularity."

Pitch No. 4: Go green

Susan Gregg Koger, co-founder of ModCloth, an online clothing retailer based inPittsburgh

"There is a huge eco movement right now in the fashion scene, and Denim Therapy fits right in. Instead of buying a new pair of jeans, which consumes resources in the manufacturing process, people can rehab their old ones. I think the company should capitalize on the eco-friendliness of its service by reaching out to eco-bloggers and environmental discussion boards. With this approach, Denim Therapy could reach a new audience, which would boost overall revenue."

Feedback on the Feedback:

Rabinovich plans to try many of these suggestions. She has decided to hire a fashion-focused PR agency to make a more aggressive publicity push. She has previously reached out to some fashion bloggers, but not systemically or extensively. "Hearing Chuck's suggestion encourages me to have a stronger connection with blogs, and we will likely use the PR agency we hire to help with that as well as reach out to magazines," she says. However, Rabinovich probably won't focus heavily on eco-bloggers. "We've been on a few eco-blogs, and I am not sure it makes sense for us to expend resources to target them," she says. "What we do is environmentally friendly, but that's not what we're really about."



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Marketing and Twitter

Debby Icide had never used Twitter, but all it took was one tweet to boost sales at Gaia Essentials, her small boutique in Moss Beach, California, that sells homemade organic soaps and all-natural skin care products. The enticing missive, which increased traffic to Gaia Essentials's website 400 percent in a matter of hours? It was part of a game called a Twitter treasure hunt.

Icide's is one of several small businesses in the Bay Area that participated in the game, in which Twitter users are asked trivia questions about local companies for the chance to win prizes. Jason Sutherland, the founder of Peninsula Shops, a Web-based community portal, devised the game as a way to promote local businesses. Every morning for a month, Peninsula Shops tweeted a trivia question about a company. In Icide's case, Twitter users were challenged to name the third ingredient in Gaia's Cacao Tangerine Soap for a chance to win a $25 gift certificate. To find the answer, visitors flocked to the store's website, and many stuck around to do some shopping.

A former Web designer who grew up in the Bay Area, Sutherland founded Peninsula Shops last year to be something of a "chamber of commerce on steroids," he says. Businesses pay Sutherland a fee -- $180 for an annual membership or $20 a month -- and Peninsula Shops markets them on Facebook, Twitter, and its website. The idea is to help small-business owners who either don't have the time or the technical know-how to promote themselves online. One of the store owners Sutherland signed up didn't even have a website or a company e-mail address. "The question is, How do you stay relevant?" Sutherland says. "At this point, it's important for every business to have some sort of digital presence."

Since last year, Peninsula Shops has signed up about 80 businesses, many of which, facing competition from big-box retailers and feeling the effects of the recession, desperately needed a new tactic to get customers in the door. That's what promptedMartha Merz, owner of Martha's Pastries, to join. Merz's bakery has been in operation for 21 years, but sales have slowed in recent years. "The whole environment has changed," she says. "We used to be busy early in the morning; now we're not. My guess is that it's because of unemployment. We're missing people who used to swing in before work." Before joining Peninsula Shops, she hadn't spent anything on advertising. "I'm not a tech-y person; I don't even use a computer," Merz admits. "And I've always thought advertising is too expensive, especially if you don't know what you're getting from it."

But with the Twitter treasure hunt, she quickly saw results. Whether drawn by the spirit of competition or the promise of free stuff, participants seemed to go out of their way to answer the questions. To win a $10 gift certificate, Twitter users had to identify which business was located at 325 Sharon Park Drive in Menlo Park, the address for Martha's Pastries. Of those who answered correctly, one winner was randomly chosen. Although the answer was easily tracked down with a bit of Googling, Merz also saw an increase in foot traffic that month; quarterly sales rose 7 percent. "What's special about Peninsula's approach is that it has created a level of brand engagement, which is rare," says Lon Safko, CEO of Innovative Thinking, a social media consulting company. "The treasure hunters who answered the clues were participating frequently." Certain giveaways in the Twitter treasure hunt garnered response rates of up to 26 percent, says Sutherland. By comparison, click-through rates for e-mail marketing campaigns usually hover around 5 percent. Plus, those who participate in the Twitter treasure hunt now receive frequent updates on Twitter and Facebook about deals and promotions from local small businesses.

Later this year, Sutherland plans to launch a campaign using Twitter's location-based features to automatically send special offers to Twitter users when they are near Peninsula Shops's members. For instance, when a Twitter follower gets within, say, 100 yards of Martha's Pastries, he or she might receive a tweet or text message saying something like: "Looks like you're in the neighborhood. Stop by Martha's Pastries and get a free coffee with the purchase of any baked good." Until then, Sutherland will continue to offer this sort of reminder manually. After someone tweeted about visiting the Barnes & Noble in Redwood City, California, Sutherland responded, suggesting that the person check out Kepler's Books, a 55-year-old bookstore in Menlo Park.

Kepler's Books, now a member of Peninsula Shops, had abruptly closed its doors in 2005 because of competition from national chains and sites like Amazon.com. The community rallied, and Kepler's reopened later that year with a new business plan and more than $1 million invested by locals who didn't want to see the family-owned business perish. Customers want to support cool small businesses like Kepler's, says Sutherland; they just need a little nudge. "Sometimes people just need to be reminded that they're part of a community," he says.


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Friday, May 14, 2010

Sustainability Faceoff: Coca-Cola vs. PepsiCo

BY Ariel SchwartzThu May 13, 2010

Coke Pepsi faceoff

It's easy to have an opinion in the Coke versus Pepsi taste wars, but things get a little murky when corporate sustainability is taken into account. In the new book The HIP Investor, R. Paul Herman attempts to sort out the sustainability claims of Coca Cola Co. and PepsiCo. So who comes out on top?

Coke's most impressive step toward sustainability is its "Commitment 2020" plan, which outlines the company's goals over the next 10 years. These include: a carbon footprint reduction of 15% (from a 2007 baseline), minimizing water use, recovering 100% of packaging, and increasing recycling. Coca-Cola has also pledged to phase out hydrofluorocarbons (HFCs)--potent greenhouse gases used as refrigerants--by 2015. Lisa Manley, the Director of Sustainable Communications at Coca-Cola, explained the company's commitment to using local resources in an interview with Herman: "There are some places we use sugar cane, in Europe there is sugar beet, and there are some places we use corn syrup. We look at what is available in the local market and what is the cost structure."

The company still has a long way to go, however, especially where water is concerned. Coca-Cola used 300 billion liters of water in 2007--just 2% less water than the company used in 2002. The company has, however partnered with the World Wildlife Fund to cut down on water use. And it plans to improve water efficiency by 20% by 2012 compared to a 2004 baseline.

PepsiCo, on the other hand, has committed to cut water use by 20%, slash fuel use by 25%, and cut electricity by 25% by 2015 compared to 2006 levels. And like Coke, the company is committed to removing HFCs from vending machines. PepsiCo has also made strides in food sustainability--the company owns SunChips, which recently unveiled the first 100% compostable chip bag.

But Pepsi isn't perfect. The company has been accused of draining aquifers in areas where water is scarce, and it hasn't exactly made strides in cutting some of the most toxic ingredients from its products--benzoate compounds in soda, for example. Still, we think that the company ultimately trumps Coke for its achievable yet impressive goals.

Check out the full HIP Investor chart below.


PepsiCo Coca-Cola Co.
Overview Products found in over 200 countries; $43.3 billion revenue, 198,000 employees Over 3,000 beverage products sold in over 200 countries; $31.9 billion revenue; 92,400 employees
Product In 2006, 43% of PepsiCo net revenues in North America came from Smart Spot products, and Smart Spot eligible products represented two-thirds of growth in North America; goal of deriving 50% of all U.S. revenues from Smart Spot eligible products by 2010 In 2007, Coke launched 450 new beverage products, including 150 low- and no-calorie options, increasing that share of its product portfolio by 17% from 2006 to 2007; to date, its 700+ low- and no-cal products, account for approximately 23% of their 2007 unit case volume
Management
Practices
20 of 25: Environmental Sustainability Leadership Team and Environmental Council (2007) Established a leadership team to ensure that environmental impacts are considered in the organization 20 of 25: In 2008, the company started including sustainability as a tool to evaluate business plans and performance
Health

of 20%

Customer satisfaction in 2008 is 84%. Frito-Lay has 28 sites recognized by OSHA for safety; systematic wellness approach for staff, 60%+ participation rate for eligible employees 8% Customer satisfaction in 2008 is 85%; 2.3 safety lost-time incident rate; Coke is expanding its nutrition labeling, but slowly 7%
Wealth

of 20%

A majority of employees have access to Pepsi’s stock-based compensation program; CEO earned 241-X an average employee’s salary 14% Employees may contribute 10% or up to $8,000 to the stock option plan; CEO earned 477-X an average employee’s salary 10%
Earth

of 20%

As of 2006, Frito-Lay achieved a GHG reduction of 8.8% from 2002 baseline and reduction of 16.1% from 1999 baseline In 2007, Pepsi reduced its “absolute distribution footprint” (energy) by 4.3% despite shipping 10.3% more products 11% 300 billion liters of water used overall in 2007, a 2% decrease since 2002; 2.47 liters of water/liter of product in 2007; 85% compliance with internal water treatment standards in 2007 9%
Equality

of 20%

$1.13B in purchases from minority- and women-owned supplier businesses

7 of 13 Board members are female or ethnic minorities

17% $366MM in supplier diversity spending (Increase by 23% from 2006)

4 of 14 Board members are female or ethnic minorities

16%
Trust

of 20%

LEED certification in some facilities, internal audits; 26 PepsiCo International facilities are ISO 14001 certified 12% Coke’s system has 146 facilities that are OHSAS 18001 certified, including 37 of our Company-owned sites 12%
Human Impact

TOTAL, of 100%

Summary: PepsiCo wins in most areas, but it could do more to make its products healthy
62%
Summary: Coke scores points for sustainability, but it needs to work on Board member diversity
56%
Corporate Profit

of 20%

+34.8% return on equity (2008)

+3.7% annualized total return, including reinvested dividends (6/2004–6/2009

+3.8% annualized total return, including reinvested dividends (6/2006–6/2009)
+27.5% return on equity (2008)

+1.8% annualized total return, including reinvested dividends (6/2004–6/2009)

+6.7% annualized total return, including reinvested dividends (6/2006–6/2009)


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Wednesday, May 12, 2010

This TV Will Cost You $550,000 (Bodyguard Sold Separately)

BY Austin CarrToday

Panasonic 3D TV

Yesterday, at a corporate gathering in New York City, Panasonic showed off their latest plasma 3-D television--the biggest in the world, weighing in at 1,500 pounds and measuring 152 inches, crushing the last record the company held of 103 inches. But why stop at that monstrous size?

According to Jim Noecker, head of Panasonic's business development for professional displays, it's because this was the largest size that wouldn't require multiple glass panels to cover the screen. And with its insane resolution of 4k by 2k, the TV is the equivalent of nine 50-inch displays, says Noecker.

"If you lay it on its back, you could probably see it from space," he joked.

Hopefully that's worth the half-a-million dollar price tag, as it also sets a record for being one of the most expensive televisions in the world, walloping the $140,000 Yalos diamond-encrusted 46" TV, but trailing the $2.26 million Stuart Hughes' PrestigeHD--which is coated in 28 kilograms of 18k rose gold, embossed with diamonds, and hand-sewn with alligator skin (i.e., not exactly a fair comparison).

While the displays are largely built-to-order, it's unclear whether or not the television's never-absent bodyguard (seen below and above) is included in the price.

Panasonic  big TV
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The Fast Rise and Fall of the Nexus One, the Tragic "GooglePhone"

BY Dan NosowitzMon May 10, 2010

Nexus One

The history of the Google Nexus One is a lesson in hype, in marketing, and how one mistake can doom an otherwise solid phone. The news prompting this retrospection? Sprint has announced that it will not sell the troubled handset, dooming it to a life on perennial fourth-place network T-Mobile (and AT&T, sort of). But what happened? Wasn't the "GooglePhone" supposed to dethrone the iPhone and change the way we buy smartphones?

Rumors of the mythical GooglePhone have been around for years. The original Android phone, the T-Mobile G1, was the first smartphone to use Google's Android operating system, and could be thought of as the first real GooglePhone. But as the Android family widened to include phones made by HTC, Motorola, Samsung, and Sony (some with very un-Android-looking skins on top), rumors popped up that Google themselves were working on a phone they could truly call their own.

Fast forward to mid-December, 2009. The Motorola Droid, the very first Android 2.0 phone, has been released on Verizon to ridiculous sales (it reached a million units sold faster than the iPhone) and widespread acclaim. Google had a heavy hand in designing the Droid, which was released with an untouched version of Android. What more could they want? Yet rumors persisted, and suddenly took form: the Nexus One. It would outclass every other phone on the market. It would be sold directly by Google, bypassing the traditional carrier system. It would be the purest distillation of Android possible, because Google would design every millimeter of hardware and software.

The Nexus One was officially announced by Google on January 5th, 2010, though it was handed out to Google employees and leaked like crazy for the few weeks before the announcement. It did indeed have top-of-the-line hardware, made by Google's best Android friend, HTC. But that's where the promises stopped being fulfilled. The software? Just Android 2.1, which brought relatively minor or aesthetic changes like live wallpapers and extra homepage screens. The distribution was slightly unusual for North America, but not particularly innovative: It was sold either unlocked or locked to T-Mobile, directly by Google--European manufacturers have been selling phones this way for years.

The biggest problem? It launched on T-Mobile exclusively. T-Mobile's been a good partner for Google, but they're also the smallest of the big four wireless networks. It's the same problem that doomed Palm's Pre: No matter how good the phone is, you can't count on people switching to a different (especially not a smaller) network for it. Google also had some extra problems due to their inexperience as a retailer--users were often unable to talk to a real human at Google for support, and customer service was widely regarded as lousy. Requests were done by email, often taking several days to return an answer.

The Nexus One launched on AT&T, but only in its $530 unlocked form. Unlocked phones aren't the norm here in North America, and users balked at spending so much when competitors (like the iPhone) were subsidized. And so began the Nexus One's death. The Nexus One sold surprisingly poorly, despite pretty good reviews--only 20,000 in its first week, and by the first quarter of 2010, it had only 2% marketshare of Android phones.

Verizon launched the HTC Droid Incredible, essentially a Nexus One with HTC's Sense UI skin on top and a better camera--easily the superior option, given HTC's tweaks. And now that Sprint's upcoming HTC Evo 4G, the country's first 4G phone, is soon to see release, why would Sprint bother also stocking a phone like the Nexus One that apparently nobody wants?

The Nexus One isn't a bad phone by any stretch--it's certainly the best on T-Mobile, and one of the best currently on the market. But it's still dead. It was doomed by hype, by poor marketing choices, and by failure to live up to expectations of the smartphone revolution. If there's a Nexus Two, you can bet Google won't make those same mistakes again.
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Monday, May 10, 2010

Mobile savings Coupons

On March 24, there was an interesting article from Brandweek.com written by Malyhina that really interested me.

Supermarket chain Great Atlantic & Pacific Tea Co. (A&P),located in New York Metropolitan area, has started offering with mobile coupons for their customers. Club members can now accepting savings promotions from their phones.
Customers can create an account online as a club saving member. With their club membership, they can view new savings avaliable through their text messages. Then customers can use their savings from their club membership card as they swipe their card at the register to buy the discounted items.

Supermarkets are beginning launch more effective ways to get their customers to go their stores. Effective saving promotions can really attract customers to go shop at their stores. Customers tends to buy more than what they can save with their coupons and this effective strategy can really increase their sales.

What do you guys think?
Do you think this is a good idea for companies to expand their sales?
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Saturday, May 8, 2010

providing health care adds $1,500-2,000 to the cost of every car it produces in America


The health-care squeeze

Business is right to be scared by the costs of Obamacare

Mar 25th 2010 | From The Economist print edition

"...global competition has intensified dramatically, the life expectancy of companies has shrunk, and General Motors complains that providing health care adds $1,500-2,000 to the cost of every car it produces in America. The system seems designed to inflate costs. Employees feel no compunction about undergoing expensive treatments, since the company pays. The fact that employer-provided insurance is untaxed blunts employers’ incentives to control costs...."


“IT MAY not happen in my lifetime,” Bill Clinton joked about Barack Obama’s mammoth health-care bill a few days ago, “or Dick Cheney’s, but hopefully by Easter.” The joke proved prescient: Congress passed the bill the very next day and the president signed it on March 23rd.
It is undoubtedly a momentous achievement—the biggest change in America’s welfare state since the 1960s and a determined attempt to bring health-care coverage to the country’s 46m uninsured. But amid all the celebration it is worth asking a prosaic question. What does health-care reform mean for the source of the country’s prosperity—business?
The answer to the question is not particularly edifying, though not for the reason that the Republicans would have us believe, with their apocalyptic warnings about “nationalisation”, “socialisation” and “death panels”. The most striking thing about Obamacare is not what it does, but what it fails to do.
Obamacare has taken the most idiosyncratic feature of American health care—the fact that the onus for providing health insurance falls first and foremost on companies rather than on individuals or the government—and set it in concrete. Companies with more than 50 employees will now be legally obliged to provide health insurance for their workers or else face fines.
Critics from both the right and the left have long argued that putting business at the heart of the health-care system is not a must but a bug. Left-wingers point out that employer-provided health care fails to control costs while leaving the government with a huge bill (Uncle Sam pays about half the cost of health care). Conservatives argue that costs would come down if individuals rather than companies were responsible for their own insurance. But Mr Obama insisted from the first that Americans who liked their existing cover would be able to keep it.
America is the only rich country that makes use of this halfway house of a system. It is an historical accident: employers began offering health insurance during the second world war as a way of attracting workers at a time when wages were fixed by the government. It became ever more elaborate and expensive during the post-war boom when big companies ruled the roost and when international competition was muted. Mighty unions added new features to their “Cadillac plans” with the same enthusiasm that Detroit added tail fins to real Cadillacs.
Today that world has vanished: global competition has intensified dramatically, the life expectancy of companies has shrunk, and General Motors complains that providing health care adds $1,500-2,000 to the cost of every car it produces in America. The system seems designed to inflate costs. Employees feel no compunction about undergoing expensive treatments, since the company pays. The fact that employer-provided insurance is untaxed blunts employers’ incentives to control costs.
Researchers at the RAND Corporation have made a brave attempt to gauge the impact of America’s health-care system on business. They analysed the performance of 38 industries over the 19 years after 1986. They also compared the performance of America’s industries with their Canadian equivalents to make sure that they were not simply measuring global trends. They found that industries with a high proportion of workers enrolled in company-provided health-care schemes grew more slowly than those with a lower proportion.
From Main Street’s point of view the Obama administration has done too little to control the costs of this flawed system. True, the non-partisan Congressional Budget Office estimates that the reform will leave the federal budget deficit $143 billion lower in 2020 than it would otherwise have been. The administration has also talked endlessly about “bending the cost curve downward”. But the $143 billion estimate is based on the fairy-tale assumption that Congress will not increase the level of reimbursement it pays to doctors for Medicaid. And almost all of the curve-bending measures have been abandoned in the fight to pass the bill.
The most reasonable assumption for Main Street is that health-care costs will either continue to grow at the same pace as for the past decade—or accelerate. This is a looming disaster for American business. The proportion of GDP devoted to health care has grown from 5% in 1962 to 16% today. Rising health-care costs appear to have suppressed wages, as firms seek to make up for the expense. America spends 53% more per head than the next most profligate country and almost two-and-a-half times the rich-country average. With health-care costs rising much faster than general inflation and 500,000 baby-boomers now becoming eligible for Medicare every day, health-care spending is likely to hit 20% of GDP by 2017 and 25% by 2025.


Small consolation

The health-care reform is not without its merits from business’s perspective. The administration has tried hard to lighten the burden on small businesses, the engine of American job-creation. The bill exempts companies with fewer than 50 employees from the obligation to provide health insurance. It also creates insurance exchanges that allow small companies to buy insurance at a discount (because the clubs pool risks and administrative costs). But even such sensible changes hardly make up for the bill’s failure to control costs. The share of three- to nine-person companies offering health insurance declined from 58% to 49% between 2002 and 2008 for the simple reason that it was too expensive.
The Republicans are promising to “repeal and replace” the bill. But a glance at the history of big welfare reforms demonstrates two things. The first is that new entitlements are almost impossible to repeal. The second is that overhauls of something as complicated as America’s health-care system only come once in a generation. Harried business people will be dealing with the consequences of Obamacare for years to come.

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Friday, May 7, 2010

What made Avatar so successful?

Why Is 'Avatar' Defying the Usual Box Office Patterns?



Here's how it usually works with a blockbuster. It'll have a big opening weekend, then drop off about 40 percent the next weekend, then lose 40 percent from that the next weekend, and so on. Diminishing returns. Everything's front-loaded nowadays: huge opening, then a quick fall-off. This is how it's been for the last decade or so, and the pattern has been remarkably consistent regardless of the film's reviews, marketing, or quality.

Some examples: The Lord of the Rings: The Return of the King made $72 million its first weekend; then $50 million; $28 million; $14 million, $10 million, $6 million, etc. (All figures courtesy of Box Office Mojo and refer to U.S. grosses.) Spider-Man went $114 million, $71, $45, $28, $14, $10, $7, etc. Transformers: Revenge of the Fallen was $108 million, $42, $24, $13, $8, $4, $3, etc. The only thing that varies significantly is how big a drop-off there is from the first weekend to the second weekend. That's where overwhelmingly negative reviews or bad word of mouth plays a part. But even for beloved films, there is SOME loss of audience from week to week. Studio executives are thrilled when something loses less than 50 percent the second week.

But not with Avatar. Avatar opened to $77 million. By the usual standards, it would have been expected to make about $45 million the next weekend. Instead, it made $75 million. This past weekend, its third, it made $68 million. The previous record for a movie's third weekend was $45 million, set by Spider-Man. To still be making this kind of money at week three is unheard of. Why is this happening? Some theories, after the jump.

Its opening weekend wasn't actually all that big. $77 million is a lot of money, but as far as opening weekends go, Avatar's was only the 28th best of all time, right behind The Da Vinci Code. Four other films in 2009 alone had bigger openings. When a movie starts at $100 million, it almost has to drop the next weekend simply because you start to run out of people who haven't seen it. But Avatar had a rather mild opening (comparatively speaking), and thus had enough of an audience pool to draw from in the ensuing weeks.

It's a family event. Now, some movies do manage to retain their audience from week to week. But those are almost always animated films and family movies. Kids don't necessarily see a movie opening weekend -- they're at the mercy of their parents -- so the audience gets spread out over time, rather than being jammed into the first three days.

Avatar isn't a kids' movie -- its animated, blue-skinned aliens notwithstanding -- but its content is tame enough that many parents have no problem taking the whole family. It doesn't have any major profanity, the violence is abundant but not graphic, there's no nudity, and the sex is mild and implied. The story is (ahem) pretty easy to follow, and the amazing 3D visuals are bound to keep kids' attention. And don't forget: Avatar toys were included in McDonald's Happy Meals. So even if the film isn't appropriate for little kids, parents are bound to think it is.

It has broad appeal. Unlike most huge moneymakers, Avatar isn't a sequel, nor is it based on a book or a comic book or a TV show. That may have hurt it at first -- no built-in audience -- but in the long run it seems to be helping. When a film is tied to a particular demographic, it can turn off people who aren't part of that niche. (We all knew people who refused to see Lord of the Rings or Transformers solely because they didn't like the kind of people who were seeing it.) Avatar doesn't have that problem. It's a sci-fi film, but it doesn't have a preexisting geekiness to polarize the audience.

Word of mouth. Most successful movies rely at least somewhat on positive word of mouth to keep the theaters full, but what does that buzz usually boil down to? "I loved it! It's really funny/exciting/awesome!" Avatar has something specific that admirers can point to: It looks like nothing you've ever seen before. Even reviewers who didn't care much for its bland, surprise-free story had to admit the visuals were terrific. I've heard from many, many people who acknowledge straight up that the story is mediocre -- but who don't care, because man, just LOOK at it! Space Mountain doesn't have much of a story, either, but it's fun to ride. Surely this type of buzz has persuaded a lot of people to give it a chance who otherwise wouldn't have. And when those people are blown away by the 3D visuals, they tell their friends, and so on and so on.

James Cameron made a pact with Satan. How else do you explain Titanic being the highest-grossing film of all time? Seriously, think about it. Someone should look into this.

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