Sony CEO Stringer Unaware of Attack 3 Years Ago and Still Surprised by April Attack

Here we go again. I previously wrote about Sony’s failure to inform customers of a data breach in reasonable time, and then subsequent failure to notify customers directly, by email, of their remedies. Since the April data breach, the theory behind the attack is hackers were seeking revenge for Sony suing hackers who modified their system (modifying or unlocking a console is considering hacking). It is also known that Sony did not have an effective firewall in place to defend the PlayStation network and those who wrote on company forums months before the attack noted this. Sony has been bashed in the media and by security experts as not being prepared despite threats of an attack. I recently read “Sony Chief Stringer Blindsided by Hackers Seeking Revenge” by Cliff Edwards, Michael Riley and Joseph Galante. As the title suggests, CEO Stringer is sticking by his claim that the massive hacker attack was a complete surprise.

But… oh but…

“Three years earlier, the company faced three breaches in Europe, including one in which Sony said some PlayStation Network user data might have been stolen.” Since then, evidence proves Sony did not put in a good security defense to prevent or lessen the wounds of a future attack. Another attack has happened since the April attack: the So-net Entertainment Corp. was breached, Sony websites have been down in some countries because they were targeted, and the PlayStation network is still down in some countries. The response from Stringer to the criticism of their security and response of previous attacks:

“Sony believed it had ‘good, robust security,’ Stringer said. He rejected suggestions that the company is paying for a lack of vigilance and said he was unaware of the 2008 intrusion on the PlayStation Network”

Google to Announce Mobile Credit Cards on New Phones

Google’s next move is to turn your phone into a credit card. “Google Expected to Introduce a Wireless Payment System” by Tara Siegel Bernard and Claire Cain Miller reports Google should be introducing the “mobile payment” service tomorrow. Google will be teaming with MasterCard and Citibank to make the credit card phones usable at PayPass terminals.  Macy’s, American Eagle Outfitters and Subway are also joining the venture.

The article reports many companies have been working on mobile credit card services for years but lack of consensus amongst those involved seems to prevent introduction. Newer models of Android phones and the Nexus S will include the near-field communication chip, which allows phones to be scanned and credit card information to be digitally read.  None of the companies involved in the deal have commented and Google has not made public acknowledgement of it.

Personally, I am not attracted to having a credit card connected with my phone. Lately, security breaches have reminded consumers that the more integrated our information becomes with advanced technology the more crucial security is. If Google is smart, they should already have security answers lined up and an ironclad security feature with the new phones that will have the chip. Also, it will take time for this to adapt and expand; the article reports, “only merchants in San Francisco and New York will participate”. With so many companies that would have to participate in order for expansion, it will take time to overhaul the retail system.

Campaign Against McDonald's to Change Unhealthy Marketing Continues With Letter

The health food revolution is not done with McDonald’s.  “McDonald's Under Pressure to Fire Ronald” by Julie Jargon of WallStreetJournal.com reports, “550 health professionals and organizations have signed a letter to McDonald’s Corp. asking the maker of Happy Meals to stop marketing junk food to kids and retire Ronald McDonald.” This letter is actually going to be a full-page ad running in major newspapers. The campaign is also asking the company to report it “health footprint” and “the financial impact of fighting various measures like the San Francisco ordinance passed last year that established nutritional standards for kids’ meals that come with toys.”

Fast food companies and food makers are under federal pressure to not market unhealthy food to children. The article reports marketing standards are regulated to children between ages 2 to17. The federal agencies setting these standards: FTC, FDA, CDC, & the USDA.

I grew up at a time when Ronald McDonald was a very prominent mascot, along with the Moon Man (awesome if you know who I’m talking about), and Happy Meal toys were a little more extravagant. But despite growing up in a low-income background, I didn’t eat McDonald's on a consistent basis. Fast food, of any kind, was considered a once-in-a-while meal. Times have changed. People are busier today; families don’t always have time to make meals. Also, food makers and fast food companies are getting very clever with value meals/prices. Despite the minimizing of Ronald McDonald and the retirement of the Moon Man, children are exposed to a lot of unhealthy food.  

Owner Allowed to Lockout Players - Again

As the football spins in the drama that is the NFL labor disputes… Back in March, the NFL owners imposed a lockout on players after mediation failed. A lockout means no work, whatsoever, for the players. After this, the player’s union decertified as a means to file a suit to end the lockout. Last month, a judge ruled the owners must lift the lockout.

The draft went on as scheduled; young hopeful happy men without a clue that soon the lockout would be reinstated. Yesterday, an appellate court ruled that the owners can lockout players. “NFL Owners Win Ruling to Continue Lockout” by Matthew Futterman reports, “as a result, barring a settlement, the NFL lockout will continue through the appeals process, which could last into the summer”.

Training camps are planned in July and the season in September. The NFL stated that they hoped this new decision would lead to a more negotiations to prevent a delay of the season.

Of course, the NFL would say they hope for more negotiations; they don’t have to worry about paying players and as stated in my first post on the lockout, the owners are financially stable to survive a season cancellation.  On the other hand, some players are not financially stable to handle a work-less season and with freshly drafted rookies awaiting their future, the lockout clearly gives the owners the upper hand.  As before, I’m still hoping for an article detailing the potential financial impact of a cancelled season. I perceive that a cancelled season would be bad news for many major cities who receive economic benefits from home games and not to forget advertising and the niche businesses that cater to fans during the season.

Please remember the NFL is a business. I’m not a hardcore fan but I write about the disputes because it’s business news.

Will Artists Get Paid from LimeWire Settlement?

Last week, LimeWire and the music industry reached a settlement in their almost five-year courtroom battle. According to “Getting a Slice of LimeWire’s Pie” by Ben Sisario and reports across the internet, LimeWire will be paying $105 million to the industry. This is good news for the recording industry but is it any news for artists whose material is the basis of the piracy battle? Sisario reports that artists may not see any piece of the settlement.

Of the money that came from court battles with Napster, Grokster, Kazaa, and  “other file-sharing services, little if any of that money has made its way to artists”.  The article reports the money breakdown theory presented by lawyers and executives as:

“…record companies would divide the settlement according to their market share, and keep a large portion – perhaps half – of whatever remains after paying their considerable legal expenses (the case lasted five years). The remainder would be applied to artists’ accounts, probably according to their share of sales at the label. Artists who have recouped their royalty advances should receive checks”

Study Showed 35% of Entrepreneurs have Dyslexia

In 2004, the Cass Business School reported that 20% of entrepreneurs in England identified themselves as dyslexic in a poll; in America, the figure was 35%. According to “Dyslexia Fosters Entrepreneurs?” by Eric Markowitz of Inc.com, there is an intriguing phenomenon in which researchers find those with dyslexia are able to do well as entrepreneurs. I would never think that a dyslexic entrepreneur is anything to ponder out of the norm but 35% in America and 20% in England are significant percentages as both are more than those with dyslexia in the population. (According to article, 4% of England’s population had dyslexia in 2004. I tried to “google” the percentage of those in America, at a glance, it seems the figure is around 10% to 15%). According to the New York Times, which is quoted in the article, “The study also concluded that dyslexics were more likely than nondyslexics to delegate authority and to excel in oral communication and problem solving and were twice as likely to own two or more businesses”.

The article was inspired by Journey into Dyslexia by Alan and Susan Raymond, a documentary that “examines the role of dyslexia in the lives of successful entrepreneurs and corporate leaders around the world.” The article lists Ben Ross, Steve Walker, Carol Greider, Richard Branson, Charles Schwab, Ted Turner, John Chambers, and Henry Ford as dyslexic prominent business people. So what are the theories as to why such a significant percentage of entrepreneurs are dyslexic? Here are some from the article:

“They come to the realization that society pronounces the number of skill sets that are necessary for success that they don’t seem to have. And they go out and build the environment in which they will impact.”

- Carl Schramm, CEO of the Ewing Marion Kauffman Foundation to advance entrepreneurship, who appears in the documentary.

Microsoft Looking to Buy Skype

Last week, I saw a L.A. Times tweet stating Google or Facebook might buy Skype. Facebook would buy Skype to fully incorporate it with their social media creating a Skype-facebook service which would bring FaceBook to another phase of communication; it would be a genius move for Facebook. Previously when reading about Groupon refusing Google’s buyout offer, I learned that Google has had a bad experience moving into social media; thus, I could not see that collaboration happening. Yesterday, I read Microsoft is most likely to buy Skype. “Microsoft Near Deal to Acquire Skype” by Anupreeta Das and Nick Wingfield reports the deal may be close and the price tag is estimated between $7 billion and $8 billion.

Skype would become an extension of Microsoft’s efforts to further market their brand and gain market share. Beyond XBOX and their office suites, Microsoft has their mobile operating systems, kinect, and Bing (all three have major competitor[s]). Skype could give Microsoft many ways to utilize the service and possibly bring Microsoft the popularity of Skype. The article reports integrating Skype to the Windows phone might not be the easiest route as “Skype could give consumers a way to make cheap phone calls over the Internet from mobile phones, without paying higher rates to the carriers” and carriers wouldn’t support a Skype phone.

Sony Tries to Pacify Consumers but Notifies Through Their Blog

I’m cruising through various websites, checking business news. I find “Sony Chief Says Playstation Network to Return Soon” by Nick Bilton of NYtimes.com. The first line reads: “Sony posted a series of announcements on its PlayStation blog Thursday” and I pause. I begin to fury with anger; my boyfriend has/had a PlayStation Network account and he received no email from PlayStation announcing any update on the security breach and PSN outage. I clicked the link to the PlayStation blog and read two announcements from the company “A Letter from Howard Stringer” and “Sony Offering Free ‘AllClear ID Plus’ Identity Theft Protection in the United States through Debix, Inc.”.

Howard Stringer is the Chairman, CEO and President of Sony Corporation. The summation of the letter from Stringer and the Identity Theft Protection announcement:

According to Sony, there is no proof that “any credit card or personal information has been misused”. But they will play it safe and offer Identity Theft Protection to all PSN and Qriocity consumers.

Sony will email a code to customers to sign up for the free 12 month Identity Protection program provided by Debix, Inc. “one of the Industry’s most reputable identity protection firms”. The program consists of “but are not limited to”: “Cyber monitoring and surveillance”; “Priority access to licensed private investigators and identity restoration specialists”; and “A $1 million identity theft insurance policy per user”.

Gap Fires Head Designer

Gap has been and is experiencing some issues. Like most companies attempting to solve their problems, Gap, Inc. looked towards their executives. The first place they attacked was merchandising; “Gap Dismisses Design Chief as Brand’s Slow Sales Persist” reports “three months ago… [The Gap] fired the top business-side executive overseeing its Gap division”. Now, with sale recovery being slow, Gap fired Patrick Robinson, its head designer.

Robinson has an impressive design history. According to the article, he’s “designed for Paco Rabanne, Perry Ellis, Giorgio Armani, and Anne Klein, and had been nominated for a Council of Fashion Designers of America award, the industry’s equivalent of an Oscar.” The assumption was a designer with this history could turn around Gap. He joined in 2007 at a time in which the Gap became a lost brand amongst the other basic, young, trendy, competitive brands.

According to the article, Robinson did a good job at creating single popular clothing pieces but didn’t do a good job at creating complementary pieces into an outfit. “But tops never seemed to go with bottoms, and dresses and outerwear were puzzling, too.”

Expand, Change, Brand: 3 Companies that Survived the Housing Crisis

Writing about the state of the housing market isn’t engaging news; the dire state of the market is a known fact and truly amazing news will be news stating the market has somewhat gotten on its feet. I catch up with my real estate desire by indulging in HGTV shows, especially “Selling New York” and I previously enjoyed the last season of “Million Dollar Listing”. I always have an interest in the ways people help themselves stay afloat and thus, keep their industry going. “Home-Remodeling Businesses Get New Business Models” by Jason Fell of Entrepreneur.com showcases three home improvement companies and the changes they have implemented to adapt to economic conditions. I’m going to try my best to give a quick summation for each business; please refer to the article for more info.

Princeton Air Conditioning Inc.

This company originally focused on air conditioning and heating. 2008 was the beginning of change. “Company president J. Scott Needham laid off 10% of his 40 person staff and called an emergency meeting with his top managers” and began to consider changing his target market. He decided to make his business a franchisee of GreenHomes America and expanded the business to “offer energy-efficiency services, including insulation, high-efficiency hot-water systems, and geothermal heating and air-conditioning systems”. The result: 2009 revenue 17% higher than 2008 at $6.9 million and 2010 revenue was $8.5 million.

Formerly Crossroads Custom Carpentry, now River’s Edge Project Management

Matt Vetter’s business was home remodeling and centered in Detroit, MI. But as Detroit struggled so did Crossroad Custom Carpentry. 2006 was a turning point with revenue dropping and Vetter considered targeting the restaurant business. He started River’s Edge Project Management “which assists quick-service restaurant franchisees with new store construction and development”. The business was funded by whichever remodeling jobs he could do and he built his client list from his network. 2007 he got his first client and according to the article “revenues last year were up about 70% over 2009”.