Thursday, September 29, 2011

Fakers in the Nfl?

Fakers in the NFL? Perry Fewell doesn't refute faking is remarkable to me. It seems as of people really don’t seem to care about integrity anymore. Speaking from knowing the game and living the game, I can somewhat understand why NFL player Perry Fewell did what he did. But speaking on it was unnecessary. I feel that if one chooses to do something to this degree that he or she should not let others know because this is how drama and thing start up. Yet at the same time, he wants his team to win. And in order to slow down the tempo of the opposing team Perry felt that he should fake an injury to slow down the clock of the game. Very controversial right, the cost and benefits of faking an injury on the professional level are very crucial. Essentially the cost of faking an injury is tearing down ones pride. While the benefit is that your team may walk away with an away with victory. In Perry Fewells case it seems as if he cares more about the benefit of faking an injury more so than the cost. Which I feel like is very common in the world today, people just think about the benefit more the cost.

Floyd Mayweather vs. Victor Ortiz

The fight between Floyd “Money” Mayweather and Victor Ortiz was a huge success bringing in a profit of two million dollars to the MGM Theater in Las Vegas. In addition to that  paper view costs were as high as $59.99 accumulating tons of money. The MGM accommodates 17,000 people which means more people to purchase food and drink. This would be a demand as the demand for food and drinks go up the cost would go down. If you attend the fight you might have to weigh the costs and benefits. The cost would be paying for your ticket, driving or flying to the Theater and other things. The benefits would be a great memory that would last a life time. The MGM got a lot of money from this event as well as Mayweather who took in an impressive 40 million dollars after he cheap shot Ortiz in the 4th round to win. This event could be seen as a luxury good. The fight isn’t something that we need and can’t live without but is something that we get enjoyment out of.

Sprint to Get iPhone 5

Sprint Nextel Corp. will begin selling the new version of the Apple iPhone in mid-October, people familiar with the matter said, filling a huge hole in the No. 3 U.S. carrier's lineup and giving Apple Inc. another sales channel for its popular gadget. Many sources have said that Sprint will begin to sell the iPhone in October. Me as a Sprint user, hearing of this excites me greatly. Sprint iPhone 5 will get unlimited data plan. This may separate the competition between AT&T and Verizon, because these carriers do not offer an unlimited data plan with the iPhone. I think that many people will switch from AT&T and Verizon to Sprint, mainly because Sprint will offer unlimited data one, and that Sprint has much cheaper data plans. The competition will rise between these companies and many people will be switching to these companies, because almost everyone wants an iPhone. Then the other carriers that don’t carry the iPhone will be left behind. Right now the top three phone carriers are AT&T, Verizon, and Sprint. With Verizon at number one, AT&T at number two, and Sprint at three. I think that Sprint will move up to number one with the release of the new iPhone, because Sprint will offer the cheapest plan with the iPhone.

Kamil Heerji

Money making

What a better way to start of the season to have two of the top ranked teams in the nation play in one of the largest football stadiums in the nation. LSU easily gobbled up the 38,000 tickets they were promised for their fans and Oregon did aswell the 15,000 they were promised. Doing so, LSU shattered their record for fans at an away game. Standing tickets for the game went for sale as early as July 8th. It is hard to think of a better way for making money with two such great teams and so much room to put their fans. The cost of the facility to play in was very expensive, but in return people have great interest in coming to your facility to watch teams play. With such a large alumni base from LSU in the Dallas Forth Worth metroplex, it was a pretty easy decision to come watch your favorite team, at an amazing facility. With gas prices high now a days you really must weigh out the cost and benefits of driving 400 miles to watch your nationally ranked tigers play. The cost might be a couple hundred bucks for a round trip down to Arlington, but the benefit might be a memory of a life time.   Luke H.

Netflix Users Are Faced With A Challenge

Netflix users are facing a new dilemma.  In an effort to increase their profits Netflix has split into two different firms, Netflix and Qwikster, and separated their two services by giving Netflix the video streaming capabilities and Qwikster the DVD’s-by-mail capabilities.  At the same time, the company is raising their prices.  This has had unforeseen consequences, however, and more and more customers are looking for alternative firms that provide the same service.  The Substitution Effect can be seen in this predicament.  Outraged by raised prices and the necessity to create another account with Qwikster, Netflix users are leaving Netflix and giving more business to its substitutes.  Services like  Redbox, Hulu Plus, and even Apple’s iTunes are experiencing newly-found success in a market previously dominated by Netflix.  Even though travelling to a Redbox station or creating a Hulu Plus account may require some extra effort, customers are considering these to be a better solution than the opportunity  cost : paying more for the same service from Netflix.
Paxton S

Maybach-Aston Martin Alliance

Mercedes-Benz flagship brand, Maybach, has been struggling in today's economy due to their high prices of luxury cars exceeding $400,000. The two luxury models have not been revised since their introduction since 2002, and Daimler is looking for a new host to re-design and produce the car at Daimler's expense. Daimler wants to increase sales of Maybachs by increasing appeal rather than decreasing price. Aston Martin has been collaborating with Daimler to produce the Maybach 62 and 57 in exchange for Mercedes AMG engines and drive trains, along with money. Aston Martin was owned by Ford in 1994 through 2007, providing V8 and V12 engines and drive train designs and engineering to Aston Martin, but their deal will soon expire. Mercedes is known to make the greatest engines in the world, and Aston Martin wants to produce cars with these new engines. Aston Martin is also depending on Mercedes to provide engineering for Aston's new flagship line, Logonda, which is expected to launch within the next 5 years with an ultra-luxury SUV based of the Mercedes GL-Class SUV. As for the fate of Maybach, Daimler wants to hand over the manufacturing of Maybach to Aston Martin or shut down the company entirely. As of September 27, 2011, news reports that the proposed alliance is falling apart, indicating the possibility of death to Maybach as well as a delay to the Longonda brand. Maybach is looking forward to cutting down their production variable costs by letting Aston Martin, who is already has the means to produce Maybachs at high quality. Although the alliance isn't leaning towards the better, compromises may be made in the near future.

-Stephen Renard

Wednesday, September 28, 2011

What's next for the Baby Boomers?

Along with many others born in the era of what is known as the Baby Boom, more and more of these (now adults) are being forced to retire at a later age than expected, or desired. However on the other hand, due to health risks, disabilities, and other setbacks some adults even have to decrease their hours or change the type of work they do to accommodate their aging, without giving up a steady income. A recent example of this was when the CEO of the innovative company Apple, Steve Jobs, stepped down from his throne after deciding that his health was more important. Along with the frightening idea of the inability to work, comes the concern of job loss. As Forbes states “when workers 55 and up lose their jobs they remain unemployed for a year on average with devastating consequences for their retirement savings.” This is a direct hit for the large number of Baby Boom children, trying to attain financial stability and eventually reach a relaxing retirement.

Lauren S.

Big 12 Television Rights

The presidents of Big 12 pledged to grant there television rights to the league for the next six years. This choice will bring in larger revenue for some schools, but that larger revenue will come from the schools that were receiving higher revenue. The schools decided to split not only the revenue from its contract with Fox Sports like it has in the past but also now to include the revenue that is brought in from ABC, ESPN, and Fox that have been weighed more to the teams that played on these networks the most. This agreement plays a large part in keeping the Big 12 together. This is because if a school was to seek admission into another league it’s television revenue would continue to go to the Big 12, which leagues the teams are seeking would hopefully for the Big 12 not want them because the league wouldn’t make a profit from having the team in their league. This action of making the revenue stay in the league makes the schools think about the trade-offs of being able to leave league for better money options for their school because their tv rights are stuck with the Big 12. The Big 12 also says that they are going to re-activate its expansion committee in seek of expanding the league and also seeking more revenue. The conference stated that they other issue that they are going to discuss in the future such as equal revenue sharing.

Travis Skaife

Tuesday, September 27, 2011

High End, Low Prices

Target is a higher end discount store, that often has well known, upscale designers come in and create an exclusive line available for a limited time at unheard of prices.  When the Missoni collection became too big for even Target to handle, their website crashed and were unable to meet the demand.  This not only lost revenue, but also customers.  They put a lot of effort into advertising the event to increase demand for the product.  Such advertising included ads in Vogue, a popular high fashion magazine, and even creating a temporary store in New York at the beginning of fashion week.  This advertising drew much attention, and Target didn’t supply enough for the demand.  With their lack of supply Target lost precious revenue.  Had they either raised the prices or increased the quantity supplied, Target could have benefited from the demand they created.  When customers’ demands weren’t being met, their frustration increased.  Even orders online were delayed or deleted all together.  Customers are turning from away from Target to buy and sell the same goods on eBay for twice the price.  This secondary market, along with Target’s website crashing within the first twenty four hours are prime examples of excess demand.  This affirms Target’s need to readdress the demand curve for their Missoni goods to gain revenue and customers.  

Friday, September 23, 2011

There is More at Stake than Basketball Games

The NBA Lockout, that is still in effect, is a major problem for a lot of concerned parties. If the players and owners do not come to an agreement soon it could be catastrophic. The owners will lose a significant amount of revenue if the preseason and exhibition games are cancelled. Even though the owners are not obligated to pay the players a salary they still have their fixed costs. They have to maintain the facility, and employ all the team’s coaches, trainers, doctors etc. It is in the owners’ best interest to give up a little revenue in the short term so that they can have all the events scheduled for this year and make up the profit loss by making sure they can cover the fixed costs and variable costs with the revenue they bring in from ticket sales, food sales, merchandise sales, and television revenue. The cities that host the teams are losing money on hotels, food, and other incidentals that they count on to make their yearly revenue. The players also have a downside for keeping the lockout in effect too long. They cannot play in other leagues to make their normal salary because of their contracts. If that happens they will have to focus more on their needs like house payments instead of wants like buying a new car or going on a trip to the Caribbean. All parties involved have to find the right margins for their own interests. They must also be able to justify the deal they want and need so they do not lose too much profit and salary in postponing the season for too long.

Blair S.

Beneficial or Brainless? TCU's Bold Move to The Big East

TCU football recently made a bold move away from the Mountain West conference to join the much more prestigious Big East. All seemed well for the Horned Frogs, and they could finally be considered a legitimate contender and vie for a National Championship bid, until recently when the conference realignment continued. Many schools have now made big switches away from their long time conferences, like A&M and Nebraska from the Big 12. Although the move seemed great at the time, many schools have now decided to dash from the Big East to different conferences, once again weakening the competition and posing questions about an automatic bid. The Big 12, the conference that also denied TCU initially, holds the Horned Frogs fate in their hands. Many Big East schools such as Louisville, Cincinnati, and BYU, have shown interest in the Big 12 and with high competition schools leaving the conference, it’s not a sure thing that this move will benefit TCU in the long run. Before finalizing all aspects of the move, TCU needs to weigh their costs and benefits of moving conferences, and deciding which would be the best for their athletic programs. The ultimate goal of a National Championship bid may not become a reality, and in a more stable conference, although they may be the smallest school, they could eventually have a smoother ride to their ultimate goal.