GDP Improves 4% in Second Quarter

The winter chill has thawed and the economy has rebounded 4% in the second quarter surpassing the governments expectations by 3%. In a spat of heightened economic activity improvement marks a continued trend of increasing economic gain after one of the nation’s worst recessions. The numbers provide some relief for those worried about the previous quarter’s retraction.

“Today’s advance estimate of real GDP is a positive signal that our economy is continuing its steady rebound,” stated U.S. Secretary of Commerce Penny Pritzker. She also highlighted that it is necessary to continue work to ensure the rebound is long lasting. 

The plan is to encourage “more companies to export, increase foreign direct investment in the United States, strengthen regional manufacturing and economic development hubs, ensure workers have the skills to find jobs businesses need to fill, and unleash more of our data, all of which helps businesses grow and create American jobs.”

The numbers are complemented by an increase in retail and food services sales, durable goods orders, wholesale trade, new residential sales, personal income, employment and improvement in exports. Housing construction was down substantially but didn’t seem to be creating significant drag. 

Despite the downturn in new construction the overall factors have been positive. Improved international outlook, higher consumer spending, and slack in the system seems to be tightening. Hopefully it will maintain its momentum into the next few quarters.

The Federal Reserve is also cutting its bond from $25 billion from $35 billion. The program was designed to encourage businesses to spend instead of save. As the economy moves to a cruise control stage there is less need for government interference. 

We have a lot to feel thankful for as we move out of the recession period. Increased economic activity will require additional adaptation and investment by companies. With any luck the parity costs of manufacturing with nations like China may provide additional help with investment stimulus and job creation.

Moving to More Difficult Concepts in Management Education

Management education focuses on the development of business gurus that seek to run companies for greater expansion and profit. These programs often talk about management skills, people skills, business skills, finance, and many other primary functions of a manager. A paper by Waddock & Lozano (2013) helps us think beyond primary knowledge and into concepts like reflective practices that develop awareness, systems thinking, and ethical values. 

Reflection is a process of understanding oneself in a context of events. Those who are reflective think about the business, its impact, and themselves and can understand events. This understanding leads to better management practices in the future. 

Students that develop reflective thinking are more thoughtful about how business practices impact others around them. Without reflection decisions can be limited and self-interested and such thinking has led to major calamity not only for businesses but also stakeholders. 

A higher order concept called systems thinking should also be developed in students. Systems thinking takes time to develop and master. It is a process of understanding how the pieces create an entire system and how that system operates in the market. 

Systems’ thinking is particularly important in international businesses where supply chains, information networks, social networks, and processes have a larger impact. Each of the pieces fits within the whole of the operation and needs to be well thought out. 

Finally, understanding and implementing ethical values in businesses. The use of unethical practices not only damages commerce but also the reputation of the business and the effective management of people. Students should be aware of ethical considerations when making choices. 

Management students often do well grasping the basic business conceptions offered in any course. They may have more difficulty understand the more complex issues associated with reflection, systems thinking and ethic. The concepts require many connections between the various concepts of business and greater societal responsibility. It may be wise to introduce these concepts in the undergraduate level and try and connect them tighter in the graduate level. 

Waddock, S. & Lozano, J. (2013). Developing more holistic management education: lessons learned from two programs. Academy of Management Learning & Education, 12 (2).

Trash isn’t Sunken Treasure-Keeping the Ocean Clean

The ocean is a precious resource that shouldn’t be wasted on poor habits.  For those living on the coast and in the coastal lifestyle you know how important the ocean is to your way of life and the recreational activities you enjoy. Sailing, surfboarding, diving, snorkeling, and kayaking are just some of the fun activities in the San Diego area.  Pollution and waste damage the environment for everyone and with a little care our beaches can be cleaned and improved.

Last weekend I decided to take my snorkel and Nexus phone to La Jolla Cove in an attempt to see some of the ocean wildlife. Paddling along the ocean top and diving for interesting objects on the bottom I came across a lady’s sandal. A fairly expensive one at that so I’m sure she didn’t intentionally part with it!

I didn't know Nemo was doing retail?

It didn’t take much to clean up the mishap. I just dived down, grabbed it and came back up to the surface, swam near the shore and flung it onto the beach thinking I would make my way back later.  I was pleasantly surprised that someone obviously saw the relay pitch and picked up the sandal and threw it away. Teamwork among strangers.

A lost sandal is likely to be a tide accident where the water creeps up to a beachgoers gear and snags something to bring to the bottom.  Waves are a little like squirrels in this regard. However, the sandal wasn’t the only thing on the bottom. Plastic bags, cans, and other items do make their way into the ocean floor and add to the collection of growing debris.

There is an estimated 6.4 million tonnes of garbage that enter the oceans every year (Karpus, 2012). Discarded items make their way through the food chain and back onto our dinner plates. Yum! Would you like a side order of silicone with your shell fish? Few things occur in our environment that doesn’t eventually impact us in one way or another. 

Much nicer without the shoe.

The amount of garbage has accumulated to the point that it is changing the ecosystem. According to a study conducted by the Ocean Voyages Institute in Sausalito California there is a floating patch of garbage that adjusts seasonally off the coast of California (1). It moves around in a huge circular pattern being pushed around by ocean currents while fish swim and eat among it.

Not all is lost. Organizations like the San Diego Port Tenant Association conduct dives to collect trash. Coming up on August 24th Operation Clean Sweep that will remove large and small debris from the ocean floor. In 2012 they gathered over 50,000 pounds of junk. If you are a diver and interested you may want to visit their site at http://www.sdpta.com/cleansweep.php

A few tips can be helpful:

-Keep your gear bundled together and away from potential tides.

-Throw away your garbage in the plentiful garbage cans in the area.

-If you see trash, pick it up and throw it in the garbage can.

-Support organizations that focus on clean-up operations.

-Tell your friends not to throw their trash.

-Teach your kinds to respect the environment.

-I understand the water is cold but go fetch your sandal! jk.

Karpus, L. (2012). Plastic in our oceans.  Alive: Canada’s Natural Health & Wellness Magazine, 355.

Call for Papers: 3rd International Seminar on Entrepreneurship and Business

December 14^th, 2014
Location: Kota Bharu, Malaysia

ISEB 2014 is organized to catalyze the knowledge sharing and the exchanging of innovative ideas on entrepreneurship and business internationally. The seminar will especially encourage and facilitate experts and scholars to present their empirical findings and best practice outcomes related to entrepreneurship, and at the end, gain important inputs for the improvement and development of current and new strategies. This seminar will be also the main platform for any participants to build constructive network and collaborative research and development worldwide.

Web address: http://fkp.umk.edu.my/ISEB2014/