Monday, February 28, 2011

Why Let Charlie Sheen End It for Others?


By now the world is aware of Charlie Sheen’s antics causing “Two and a Half Men” to be canceled. There have been many responses from the business media, from aspects of the millions that will be lost from the cancellation, the hypocrisy of letting Sheen stay hired for so long despite his many problems throughout the years ("Insulting Chuck Lorre, Not Abuse, Gets Sheen Sidelined" by David Carr), and the psychology of the reasons people get themselves fired (“Why Do Smart People Do Dumb Things?” by Anne Fisher). I did not write about the blowup because I didn’t know exactly what Sheen said and also it is a known fact that he is an addict either on drugs or alcohol. Let me say that if Sheen is still dealing with demons, I wish him a strong recovery. I am writing about this because my first reaction: Why cancel the show because of Sheen?

I don’t work in Hollywood but I can remember a good amount of shows that have replaced cast members. The cancellation of the show means the loss of jobs. I am angry that one person’s actions spreads the consequences to people not involved in the action. I don’t watch the show but it has been running for many years and has been a success for all who are on the show, on the set and off. I certainly understand the reasons to fire Sheen. After all, can any one of us publicly insult and threaten our boss and still keep our job? No. No one has that much power in his or her position unless you are your own boss. Thus, firing him came as no surprise. Sheen’s actions are foolish and for him to be surprised at this firing surprises me.

So, the business point of this post is sometimes people in your business or job can mess things up for everyone. The result should not be to punish every one including those not involved in the disagreeable action. When the troubled person is someone who has repeatedly shown signs that they will go further with their antics, there should be a plan to handle their eventual firing.

Thursday, February 24, 2011

Overstock.com Caught Gaming Google and Gets Punished


Overstock.com broke some Google rules and they must pay with search rankings. “Google Penalizes Overstock for Search Tactics” by Amir Efrati reports that Overstock.com has dropped in rank for most “common searches”. About two weeks ago, I read a New York Times article “Search Optimization and Its Dirty Little Secrets” by David Segal about JCPenney also having broken policies concerning natural search rankings. According to that article and this one, Google has a strict policy concerning search rankings. Part of the science of search rankings is the amount of links to a website which exist. Specifically, links using certain phrases such as “dresses”, “sunglasses”, etc. The more links back to your website, the higher the site ranks for those phrases.

The offense arises when links are unnaturally created. In JCPenney’s case, they were accused to overloading links on “empty” or irrelevant sites. Thus, when certain shopping terms/ phrases were searched, JCPenney was #1. When Google found out, they reconfigured their algorithm and also “manually” punished the company. According to the article, “On Feb.1, the average Penny position for 59 search terms was 1.3. On Feb.8 when the algorithm was changing, it was 4. By Feb. 10, it was 52.”

Overstock.com’s offense is “the retailer offered discounts of 10% on some merchandise to students and faculty. In exchange, it asked college and university websites to embed links for certain keywords like ‘bunk beds’ or ‘gift baskets’ to Overstock product pages”. The consequence was they went from amongst the top 3 to ranking between 40 and 70. Overstock’s response is that they will work hard to stay within guidelines and Google hasn’t given too much information or insulted the website.

Wednesday, February 23, 2011

Entrepreneur.com: Last Day of 2 Weeks to Startup Series


This is the last day on “Two Weeks to Startup” Series. To recap, Kimberly Stansell has written 9 articles so far for 9 days of preparation for building a startup. I have written summations of the articles in four posts.



This article is all about selling. Prepare a plan on the ways in which to sell your product or service to prospects. The plan should include aspects of your business the customer should know as they are being pitched. The two important points of the article are to understand any and all problems prospects have with the product/service and to be passionate about the product/service no matter the struggles. Acknowledging problems indentified by customers can help you understand your product/service from their perspective and will teach you to tailor the sales pitch.

Passion has to do with exciting your customer. Think about Steve Jobs and the way he presents an Apple product. He does it will full passion and confidence in the product; most can’t help but to be excited with him. Customers can’t ignite passion in you and will not push a product for you.

As usual, read the series on Entrepreneur.com. I think the articles are a good resource for entrepreneurs with not much of an idea or guide on starting up. Clearly, the information I sum up and the actual articles are guides, meaning that entrepreneurs should take the time to do vital research. In no way does the article or my posts serve as the entire information needed for a start up. Entrepreneur.com also has many other resources for entrepreneurs. 

Monday, February 21, 2011

Groupon is Going to China!


After becoming a high valued company, experiencing doubts about that value, a Super Bowl commercial fiasco, and a host of consumers frustrated with the service, Groupon is keeping it moving by going into a new market. “Groupon Gears Up to Expand Into China” by Loretta Chao reports the company has made preparations for the arrival. The article reported the domain Gaopeng.com is registered in China and the Beijing office is established. China is a good market considering China has the highest Internet user population in the world. The problem for Groupon might be the fact that there already exists group coupon websites in China. Other things to consider are that Groupon has been having some rocky moments.

The most obvious of such moments is Super Bowl. Groupon surprised everyone by entering the Super Bowl ad market. The ads came a few months after Google offered $6 billion for the company, giving the company a very high value. There was this aura surrounding the company about the reasons Google would offer so much. Were they worth that much money? CEO Andrew Mason gave an interview in which he spoke highly of his company but refused to give a numbered value. His strategy was to feed into the excitement about their potential value; essentially, the company rode high on their suspected value. Within this excitement they enter Super Bowl despite Super Bowl usually being for bigger companies well established.

Well… we should all know how Super Bowl turned out for Groupon. CEO Andrew Mason is quirky and sarcastic but that does not translate well in 30 second commercials. The commercials were a parody on celebrity endorsed PSAs. The commercials were received as insults on the charities or social issues mentioned in the commercials. Despite Groupon actually donating money to these charities, it was not translated to the audience. Long story short, Groupon pulled the ads; not a good introduction into a major ad market.

Friday, February 18, 2011

Time Inc. CEO Jack Griffin Fired After Less Than 6 Months


It only takes six months to test a CEO? Jack Griffin was hired in August as Chairman and Chief Executive of Time Inc. Yesterday, it was announced he’s been fired. According to “Time Inc CEO Jack Griffin Ousted” by Jennifer Saba, the problem is he clashed with the company. The statement from Time Warner Inc Chief Jeff Bewkes:

“Although Jack is an extremely accomplished executive, I concluded that his leadership style and approach did not mesh with Time Inc and Time Warner”

Apparently, his employees didn’t like his leadership style. There were “behaviors” that drove his image as a bad leader. The fear was he would encourage executives to leave; instead, the company let him go. I would hope Time Inc made an effort to speak with Griffin about his leadership style or to “make it work”. Either he was a horrible boss not willing to change or had a style not willing to be accepted by executives. This ousting leaves me with the question: Was the board/ company not aware of his leadership style when they placed him as CEO? Time Warner should have known; I would assume the company/ board has a detailed process for picking a CEO, including taking a look at their leadership styles used in their previous positions. Six months does not seem like enough time to work with a CEO. 

Entrepreneur.com: Their Guide to Your Startup, Days 7 to 9.


Here’s another post about Entrepreneur.com’s “Two Weeks to Startup” Series by Kimberly Stansell. I’ve previously written about days 1 to 6, which can be found in the post archives. This post is going to be days 7 to 9, Develop a Marketing Plan, Build Your Support Team, and Execute Your Marketing Plan, respectively. Remember, I’m offering quick summations, reading the articles will give much more valuable info (because if I repeated every single thing that would be plagiarism).


Marketing is essential to introducing your business to the intended target audience. At this point, with research done from day 2 and parts of your business plan written from day 4, the marketing aspect of your business should have already taken shape. With the plan, you go further by figuring the means of promoting your business, e.g. social media, print, or personal.

The article also states a customer service plan needs to be made along with the marketing plan. Customer service plan consists of ways to keep customers and build customer loyalty. For service, retail or client oriented businesses, a detailed policy “[considering] money-back guarantees, buying incentives, and the resolution of customer complaints” is needed.


The title is pretty self-explanatory. The most important point is your team should be defined with broad, important ranges “from contractors and suppliers to advisory board members and employees”. Other than actually interviewing people, look amongst your network for those who have the qualities to benefit you and your business.


Action. The keyword is action. Not only do you execute the plan, but it is now a portion of the job. You can’t just set up the ads, the site, and promotions and then wait. Do the work to reach out to your audience. The article gave more examples of things to do. But essentially the marketing plan is suppose to be a plan well thought out from Day 7. We’re working in days so there’s always room for improvement. Just be prepared, have a plan, and act.

All the articles include links to other sources on Entrepreneur.com and downloadable resources. For a list of the Kimberly Stansell's articles in the series so far, go here.

Wednesday, February 16, 2011

Iman: CEO of IMAN Cosmetics feeding an Ignored Consumer


Iman is an international fashion icon, having graced major runaways and many fashion photo spreads. Since 1994, she has been a businesswoman. She is the founder and CEO of IMAN Cosmetics. The company makes cosmetics and skincare products for women of all color tones. Despite the bad economy, her company is making about $25 million. Iman was featured on Black Enterprise Business Report; the video is featured on the website.

The short interview featured a look into her transition from model to businesswoman. Her inspiration for the company came from an experience while doing a photo shoot. The makeup artist informed her he did not have makeup for her skin color. From there, Iman built her company. She stated on the interview “It’s not about race but skin tone”. The reality is most major cosmetic lines do not carry makeup for women of color or have enough range to include the different multitude of tones and shades for such women. Her company not only fixes her problem but also feeds a much-ignored consumer demographic, women of color who wear makeup. From my experience, the makeup industry is still lacking in recognizing women of color as a consumer. Quite frankly, as a paying consumer, I’m pissed. Yet, I’m also satisfied to know some major lines are making an effort to feed my demographic and that Iman has done this for many years.

The business point is she found an audience and became one of the only companies to satisfy this audience’s needs. As an entrepreneur, one can sometimes find inspiration by appealing to ignored groups. The meaning of group can include a giant range. Example: Todd Greene found it hard to shave his head so he created a modified razor to fit in his hand and now he runs HeadBlade; it satisfies bald men.  His story was featured on “How I Made My Millions” by CNBC.

Iman is a great businesswoman. Despite other cosmetic companies similar to hers and the economy, her company stays successful. Now, Iman also sells fashion handbags and accessories on Home Shopping Network and is the host “The Fashion Show” on Bravo. 

Tuesday, February 15, 2011

Borders Books To File for Bankruptcy & it's No Surprise


This week the business world is anticipating the official bankruptcy filing from Borders Group, Inc. Considering within the last two to three months the company has experienced financial problems, Bankruptcy is not a surprise All bookstores have experienced a loss in sales from the rise of the eBook market. Borders and Barnes & Nobles are considered the two major book retailers. Barnes & Nobles has been able to stay afloat and Borders has declined. I read “Borders Eyes Store Closings and Liquidations” by Tom Hals and Jennifer Saba and “Chapter 11 for Borders, New Chapter for Books” by Mike Spector and Jeffrey A. Trachtenberg.

Borders has not paid 6 major publishers and owes millions of dollars. Recently the company acquired financing but with tough stipulations that they would have to come up with some capital. The company’s idea was to ask publishers to turn their debt into loans. Now, the proposal has been denied and bankruptcy is the only option. The company will be able to operate after filing but will clearly lose stores and employees.

 From reading about the bookstore and my experience as an avid reader, three things have the hurt company: competition from major retailers entering the book market, the delay of the company entering the e-book market, and the change of executives.

Monday, February 14, 2011

Entrepreneur.com: Their Guide to Your Startup - Days 5 & 6


I’m back with another update on Entrepreneur.com’s “2 Weeks to Startup” Series. I have previously written about Days 1 to 4, which can be found in post archives. Also, my posts are quick summaries; take the time to go to the website and read the articles. This post will be about Day 5 and 6.


As an Entrepreneur, you will need money. Even if you run a non-profit, money is needed to cover costs. The article mentions many ways to find financing:

Microloans: “private and SBA-backed agencies make loans from a few hundred dollars to $250,000”

Crowdfunding: “a way of networking with people online willing to invest usually smalls amounts of money…”

Niche or specialty loan: loans given to certain groups such as minorities, women, students, etc. or certain types of business

Venture or angel funding: great ideas can get large amounts of funding but in exchange, for a portion of the company. The process for venture or angel funding can be a long process and as the article points out, needs a well-put-together business plan. I learned a little about the process from watching the reality show “Start-up Junkies”.

Take the time to search online. One of the websites I visit for quick business news and resources is theCashflow.com. The website is about helping small urban entrepreneurs. On the website, the creators offer $10,000 funding to businesses. It is an application process, and the site is filled with stories on funded companies. There might be other similar sites or major business sites that have their own funding program.


The name is very important. The name identifies your business and is your brand. But sometimes we like names that might be taken. The article advises to take some time to search through public resources to be sure the prospective name of your company is not taken. Also, search the website. Every time I think of my future domain name, I put it in the address bar or Google it. The article also offers a link to a trademark database.

The next step is to hire a trademark professional to help ease the process of trade marking your name and then, the next step is to determine the type of business you will have, for tax purposes. For all of the paperwork, the article states, your city should have a business resource center.

As stated read the articles for more information and for links to other similar articles on the website.

Friday, February 11, 2011

Entrepreneur.com: Their Guide to Your Startup


Entrepreneur.com has continued their Two Weeks to Startup Series. The series can be found on the website. Recently, day 3 and 4 have been posted by Kimberly Stansell.


Obviously, most businesses need money to start. Startup investment needs to cover costs for up to 6 months. The article warns that not all businesses will see revenue quick. Also, not all businesses make profit in the first year. For an idea of costs to expect, Stansell offers to seek free resources that can provide you with a draft of startup costs. And better to overestimate costs than to underestimate. Of course, the article features worksheets to help with configuring costs.


The article states the business plan is the roadmap of your startup and the means to obtaining resources such as a loan. The business plan should also be considered the most important part of your business, if you plan on introducing it to outsiders. Whether for marketing, investors, or potential partners, all will need to see a business plan or a draft of one to consider working with you. While you can market your business without the plan, the plan includes the details most do not have time to mention in an elevator speech.

The three main parts of the plan are the business concept, the marketplace section, and the financial section. While they are only three parts, they will take a lot of consideration. The article includes great resources: the website’s business plan guide, a guide from the U.S. Small Business Administration and the website’s sample business plans. All of the links can be found on the article.


Walgreens Competes Directly with Major Brands


Walgreens is stepping up their game to get you to buy their store brand products. The company is starting a national campaign for their store brands. According to “Walgreens Launches Campaign to Push Store-Brand Products” by Tanzina Vega, the campaign will consist of ad commercials placed before popular shows, website ad comparing their products to other well known brands, sponsoring bloggers for post reviews, and their continuing print ads.

For most of the commercials, the star will be the Walgreen pharmacist. The message will be that if a pharmacist can recommend Walgreen brand products, they must be just as effective as other brand products. Other aspects of ads will include direct comparison to other brands in areas such as price and ingredients. According to article, many bloggers have been given free samples of Walgreens brand product and/or payment in exchange for their honest review.

Store brand products have gained some consumers as a consequence of the bad economy and a lost in confidence from major brands, such as Johnson & Johnson who experienced a year full of recalls.  I think the campaign will do well as I too find myself buying store brand over major brand. But I tend to also compare store brand prices amongst different stores. While Walgreens may convince consumers to stop depending highly on major brands, how will they compete against Walmart store brands or CVS store brands?

Wednesday, February 9, 2011

Let Entrepreneur.com Guide You to Your Startup


Entrepreneur.com is doing something really great. For two weeks, they will offer a series: 2 Weeks to Startup. Everyday from this Monday, Kimberly Stansell will give a day-by-day guide on gearing towards creating your startup business.

“Two Weeks to Startup: Day 1. Finding the Right Fit” is the task about evaluating your skills, interests and background and finding the business that would work with them. Things to do are to think about favorite interests, think of your resume, overview your personality, and speaking with people you know in businesses you’re thinking about opening. The article includes links to tools to help find the right business.

“Two Weeks to Startup – Day 2: Research Your Business Idea” is, as the title states, about research. First, find your niche. Your niche is dependant on the audience of your product or service. Not just the audience you want to reach but the audience that will honestly go to your business. Then, conduct market research. According to the article, three important areas of research: industry information, target market, and competition. Also use public free secondary sources. Secondary sources are mostly previous market research done about your product/ service, industry, audience or competition. This article also includes forms and links to tools to help with market research.

Today “Calculating Your Costs” should post on Entrepreneur.com. 

Tuesday, February 8, 2011

Employee Fired for Insulting Sup on Facebook Reaches Settlement


A few months back, there was a story about an employee who insulted her supervisor on Facebook and then was fired. She went to the National Labor Relations Board to represent herself against her employer. The issue at hand is that to fire her over Facebook is “equivalent” to firing employees who converse amongst themselves.

According to “Company Settles Case in Firing Tied to Facebook”, the case is settled. To quote the article:

“Under the settlement, American Medical will revise its ‘overly broad rules’ to ensure that they do not improperly restrict employees from discussing wages, hours, and working conditions with co-workers and others while not at work, and that they would not discipline or discharge employees for engaging in such discussions, the labor board said in a statement”

The story made news because this is one of the first major stories of an employee being fired due to social media use. I have only listed my job title and employer on LinkedIn because I use LinkedIn as a public resume in case I need to change jobs. If I communicate with my connections, I do so privately. I’m naturally a private person, I don’t update my job title on Facebook and I have yet to list my employer twitter. At one point, I listed my previous position as a bookseller on Redroom.com because Red Room is about literature.

Monday, February 7, 2011

AOL Buys The Huffington Post to Become Huffington Post Media Group


What do you call it when a struggling company buys a successful, popular entity? A golden combination for that struggling company. AOL which been declined in the past few years, has acquired the Huffington Post, resulting in a combination of the companies named Huffington Post Media Group. According to “Betting on News, AOL is Buying The Huffington Post” by Jeremy W. Peters and Verne G. Kopytoff, AOL is paying $315 million for the acquisition. A great price considering The Huffington Post started with $1 million.

For The Huffington Post, they are receiving capital to help them grow bigger and faster. They will also have the ability to pay investors in the company considering the company hasn’t shown interest in an IPO. Arianna Huffington, co-founder and Editor-in-Chief will gain more titles, becoming president and editor-in-chief of Huffington Post Media Group. According to the article, “the arrangement will give her oversight not only of AOL’s national, local and financial news operations, but also the company’s other media enterprises like MapQuest and Moviefone.” She states on her post on The Huffington Post her resolution for the site was to go global and offer better video content. She sees this “merger” as Huffington Post’s ability to achieve those resolutions.

Friday, February 4, 2011

Viacom's Dvd Sales Drop Brings Down Overall Revenue

Viacom has been doing pretty well with their t.v. sector as their cable networks has been performing well. The box office has also done well with critically acclaimed, Oscar-nominated films that premiered in the last quarter. But their home entertainment arena is suffering. According to “Viacom Profit and Revenue Decline as DVD Sales Drop” by Tim Arango, revenue in home entertainment dropped 44%. The 44% decrease dropped overall revenue by 5%. Despite whatever other positive earnings the company had, DVD decline offset it all.

Phillippe Dauman, President and COO, responded with confidence that Viacom would bounce back in the upcoming quarters. He stated: “We expect our home entertainment results to improve as we now move past the last few quarters of difficult year-to-year comparisons.” But the reality is DVD sales have dropped because home entertainment has evolved to on demand streaming. Netflix previously reported having an amazing fourth quarter, and Amazon will be going into the media streaming business also. A 44% decline is not just a bad quarter but also a sign that Viacom needs a different strategy for their home entertainment sector.

Steve Stoute Talks About Branding and the Recording Artist

I was cruising through Brandmakernews.com and came across, a post on Steve Stoute. Steve Stoute is the founder and CEO of Translation. Translation is a successful advertising agency whose purpose is to match celebrities with brands that properly complement their image. Steve recently did Influencers In-depth Series and was interviewed about the concept of cool. The video was featured on the post.

About halfway through the interview/ documentary, Stoute begins to talk about branding and recording artists. Stoute formerly worked in the record industry for many years so being in advertising he has a fresh unique perspective on combining advertising with artists. He talked about how today branding with artists doesn’t make sense. Seven years ago, the industry was not declining and before then, artists would not be branded with a product/ service that did not complement them.  An example of a bad combination he gave: Tiger Woods and Buick. Most did not believe that Woods would drive a Buick considering his wealth and the ad failed. He stated: “Artists would only do things that make sense to them, things that shared values”. Since the decline of the industry, “A lot of artists are aligning themselves with brands that they don’t have shared values with”.

For Stoute, an unnatural combination between artist and brand is a one-way relationship by which the brand is using the artist. His purpose and belief is that truth must come out within the branding; with that truth, the match will be received well by consumers. As a consumer and a music lover, I agree that when artists are paired with products /services I can’t imagine them using, it seems very fake and can ultimately destroy the personal brand of the artist. I encourage you to watch the video. Stoute knows what he talking about; his quest for natural partnerships between celebrity and product/ service has led to much success for his company.

Thursday, February 3, 2011

What Not to Do When Your Company is Caught in Sticky Situation?


While watching CNN, I caught a small segment dedicated to a Planned Parenthood scandal. A pro-life group had done an undercover sting where had a young woman acted as a 14 year old prostitute and a man acted as her pimp. The sting was to uncover Planned Parenthood employees who would give “advice” to the pimp and thus, abet child prostitution. The news was that there was one recording of a manager giving such advice.

Stuart Schear, Vice President of communications from Planned Parenthood gave the official response to the scandal. The anchor had simple questions such as: Is this episode indicative of practices at many clinics? How does the organization feel about the manager? What will the company do to prevent this? Schear responded that the manager was fired but followed by stating the group behind the tape is focused on bringing down Planned Parenthood and this is about them trying to take away women’s rights. The anchor quickly responded by asking questions focused on the situation. A couple more times, Schear would switch the conversation to the group and their pro-life efforts against Planned Parenthood. At one point, the anchor stated she wants answer to this situation because many Planned Parenthood patients would see this as alarming.

Quick News: Groupon Enters Superbowl Advertising & Dow Jones bounces to 12,000

"Groupon buys Super Bowl Ad" by Laurie Segall reports…

At Sundays’ Superbowl, Groupon will enter the roster of Superbowl ads.  Ads are running about $3 million dollars. With recent fundng of about $950 million and an estimated value of over a billion, Groupon has placed themselves in an ad spot worthy of its supposed value. Groupon has not given the cost of the ad.

"Stocks drift as Dow holds 12,000" by Ben Rooney reports…

After the Dow Jones experienced a bad Friday, it came back by closing over 12,000 two days in a row. The S&P 500 closed yesterday above 1,300. February has started off great for the market but there is still some caution. On one hand, the economy is going better than expected but people are watching out for the impact from the crisis in Egypt.

Of course, everyone is watching for oil; it is expected to increase as the Egypt crisis escalates. The article listed some companies who made a name for themselves after yesterday’s closing. Notable ones: Time Warner and Electronic Arts with reports of good earnings and Borders, whose stock has been plunging.


Amazon: The Next Netflix Competitor


With Netflix beating out their competitors with on demand streaming, they might have a new competitor: Amazon. According to “In This Corner, Netflix. In the Other Corner…Amazon?” by Danny King, some Amazon customers received a taste of unlimited streaming from the website last weekend. The preview is an example of Amazon’s future venture into the on demand streaming business.

The article notes that Netflix will still have a greater title selection and high-resolution choices. But Amazon could become a formidable opponent when Netflix’s contract with major media companies ends in a few years. Amazon being an older company and having more capital could entice studios to grant them contracts and thus, better and more content.

The future is clearly digital streaming; major rental companies have fallen with Redbox being the most viable physical rental company. Netflix has already placed themselves as the top digital streaming company. They previously reported a great fourth quarter and the move to digital streaming has forced the cable industry to seek ways to compete on that level. Now, Amazon will be a direct competitor to Netflix. In the end, it could bring about more choices for consumers as both will work hard to outdo the other and catch customers.