Treasury Secretary Mnuchin recently stated the advantages of a weak dollar and this in turn caused the need for some damage control from President Trump that stated the U.S. policy is to have a stronger dollar. The problem is that there are advantages and disadvantages to a strong and weak dollar.
Strong Dollar Issues:
-More purchasing power internationally.
-Foreign products are cheaper.
-Supplies are cheaper.
-Foreign labor is cheaper.
-More international strength.
-Investment often moves overseas to cheaper alternatives.
-American products are expensive.
Weak Dollar Issues:
-American labor is cheaper.
-Additional investment in local markets.
-Improved manufacturing by American companies.
-American products are cheaper.
-Less purchasing power and less influence.
-Less purchases of foreign products.
Each as their own advantages or disadvantages. In the long run, a slightly deflated dollar by say 15% can make American businesses more competitive. But this can't be done overnight because we neither have the industries to service our own supplies nor are our businesses capable of adjusting that quickly in their purchasing and supply processes. A slightly deflated dollar can work to our advantages is managed over a 5 year period.
Thursday, January 25, 2018
How Poorly Designed Application Forms Can Damage Your Business
Filling out online job applications can be a job in and of itself. During the selection process it is believed that longer forms weed out the motivated candidates from those that are not that interested. This is a fallacy of thinking that can have big impact on the type of candidates your company receives.
We seem to gravitate in our processes toward complexity. It helps us feel like we justified our position but it doesn't work well. Just like you wouldn't make purchasing a product difficult for your customer you don't want to make it difficult for candidates to apply.
These forms can be complex and sometimes don't work right. A single answer that doesn't fit within the specific criteria outlined by the data field and the entire application cannot be submitted. After a half hour of searching the candidate might give up.
Therein lies the problem.
Bigger and longer is not better here. To ensure that all candidates have an opportunity to apply it is important to keep the application process simple. High quality candidates might be turned off by the tedious process and believe the company is not managed well.
Trying to get too much information is tedious.
Applicants create resumes for a reason and then they need to manually transfer that information to fields that don't often fit well with their work experience. With today's database search capabilities all of these fields may not be necessary.
The best ones I have seen out there have just a few components that include:
-A short survey to ensure match.
-Cover letter, Resume, and Document Upload
-Verification of Contact Information
-EEOC Form
-Initials and Submit
Keeping it simple will increase the functional use of the system and encourage high quality candidates to apply.
We seem to gravitate in our processes toward complexity. It helps us feel like we justified our position but it doesn't work well. Just like you wouldn't make purchasing a product difficult for your customer you don't want to make it difficult for candidates to apply.
These forms can be complex and sometimes don't work right. A single answer that doesn't fit within the specific criteria outlined by the data field and the entire application cannot be submitted. After a half hour of searching the candidate might give up.
Therein lies the problem.
Bigger and longer is not better here. To ensure that all candidates have an opportunity to apply it is important to keep the application process simple. High quality candidates might be turned off by the tedious process and believe the company is not managed well.
Trying to get too much information is tedious.
Applicants create resumes for a reason and then they need to manually transfer that information to fields that don't often fit well with their work experience. With today's database search capabilities all of these fields may not be necessary.
The best ones I have seen out there have just a few components that include:
-A short survey to ensure match.
-Cover letter, Resume, and Document Upload
-Verification of Contact Information
-EEOC Form
-Initials and Submit
Keeping it simple will increase the functional use of the system and encourage high quality candidates to apply.
Breckenridge's Charm as a Skiing Destnation
If you love the outdoors and the mountains then you will like Breckenridge. A place where people who love to climb the mountains, hike, and ski go to get away from their busy lives. Beyond having world class ski hills in the area you will find the lodging to be quaint and satisfying. Walking around the village there will be plenty of opportunities to shop and eat.
It looks much like a European village lined within a few blocks. Not much parking but the overall atmosphere is very clean and inviting. People are friendly and the food is good. A touch on the pricey side but you will enjoy yourselves anyway.
It looks much like a European village lined within a few blocks. Not much parking but the overall atmosphere is very clean and inviting. People are friendly and the food is good. A touch on the pricey side but you will enjoy yourselves anyway.
Convenience and Price are Two Major Sellers Online
We are price sensitive people. In most cases online shoppers will skip over a higher quality product for a cheaper one. Their goal is to extend their purchasing power with cheeper products.
Those that offer the cheapest price in these ecommerce sites often win and are even encouraged by Amazon. More purchases mean more revenue for the vendor and the online shopping marketplace.
Convenience is fostered by making purchases easy and ensuring the product is delivered in a timely manner. Without this convenience people will often just drive down to the local store and not have to wait.
If your an online retailer you can always consider improving delivery times and using a low cost pricing strategy that is just a few cents lower than the competition. This doesn't address the unfortunate evils of "race to the bottom" mentality. However, business is about making a sale now because without sales you have nothing. Just make sure you balance your long term strategies.
The Good and Bad of the "Gig Economy"
The Gig economy offers lots of great opportunities for those who want to pick up some extra work but may not be so great for those who are seeking full-time employment. It is a process of limiting benefits and costs to employers but unfortunately comes at a price whereby job seekers will have a harder time staying fully employed.
During the past recession people had 2-3 part time jobs to maintain full-employment. Not everyone had medical benefits so the concepts of Obamacare was developed. The gig economy was born out of the need to have flexible business costs that can add staff when needed and not renew contracts when they are not needed.
For those who are employed full-time the gig economy can allow them to pick up some extra cash and income. Yet they already have their medical benefits and retirement in works. F'or them it is a bonus to get some extra work.
The other problem is that people are not able to have rights within the workplace. A false complaint and you might not get another contract. Very little recourse in the process. While "at will" employment also touts this issue it can be a little more risky to fire an employee that has otherwise done a great job.
Depending on who you are you will like or hate the gig economy. If you are highly skilled and educated it will work in your favor. If you are lacking skills and need consistent employment you are not going to find much of it out there beyond odd jobs. The gig economy could contribute to the income gap.
During the past recession people had 2-3 part time jobs to maintain full-employment. Not everyone had medical benefits so the concepts of Obamacare was developed. The gig economy was born out of the need to have flexible business costs that can add staff when needed and not renew contracts when they are not needed.
For those who are employed full-time the gig economy can allow them to pick up some extra cash and income. Yet they already have their medical benefits and retirement in works. F'or them it is a bonus to get some extra work.
The other problem is that people are not able to have rights within the workplace. A false complaint and you might not get another contract. Very little recourse in the process. While "at will" employment also touts this issue it can be a little more risky to fire an employee that has otherwise done a great job.
Depending on who you are you will like or hate the gig economy. If you are highly skilled and educated it will work in your favor. If you are lacking skills and need consistent employment you are not going to find much of it out there beyond odd jobs. The gig economy could contribute to the income gap.
Wednesday, January 24, 2018
The Problem With GE is that Its Too Big to Manage
Large organizations have economies of scale that make them efficient in their purchasing power and transactions. However, when those internal transactions become more difficult to manage, or expensive, the company begins to lose its competitive edge. Being too large may be GE's biggest problem and they may not be able to untangle.
The problem with GE is that it got really big and all of the different components such as aircraft divisions and electricity are so intertwined it may not be possible to break them apart. Why would breaking them apart be helpful?
Typically there is a healthy spot in size where efficiency is possible but not so large that it begins to look more like a bureaucratic institution.
As size increases beyond the helpful size it becomes more expensive to run. There are inefficiencies in management decision-making, large costs in facilities, lack of innovation, and general slow down in capacities. This makes them ripe for either a major shack-up and revamp, breaking apart, or continuing to decline. Some of the less profitable parts are likely to be sold off.
The problem with GE is that it got really big and all of the different components such as aircraft divisions and electricity are so intertwined it may not be possible to break them apart. Why would breaking them apart be helpful?
Typically there is a healthy spot in size where efficiency is possible but not so large that it begins to look more like a bureaucratic institution.
As size increases beyond the helpful size it becomes more expensive to run. There are inefficiencies in management decision-making, large costs in facilities, lack of innovation, and general slow down in capacities. This makes them ripe for either a major shack-up and revamp, breaking apart, or continuing to decline. Some of the less profitable parts are likely to be sold off.
Why Did Budweiser take Such a Beating? Changes in Trends
Budweiser took a beating but they were not the only one's. Miller Lite and Coors Lite also declined in total shares. The only difference is that Budweiser switched to the number three spot as the industry takes a downturn. There may be some market trends going on here.
-While these industries think of their beer as premium they are now seen as somewhat generic compared to craft beer. Americans are changing their tastes and moving to wine and craft beer. The new generation will likely keep this trend going.
-There is a movement toward the boutique. This is something large businesses might have some difficulty overcoming.
-Trends toward healthy and organic. To be honest these mainstream beers are low in calories and probably healthier for you than many craft beers. They may be able to tout this to their benefit.
-Old Brands. These brands are getting old and loosing their flair. They have lost their specialty flavor that was once associated with European traditions, draft horses, and a simpler life.
-Flavor can be improved. While I find the plain flavor appealing many want something more fruity or citrus oriented like craft beer. They may want to consider blood orange, coastal, and other flavors found in craft brew parlors.
-While these industries think of their beer as premium they are now seen as somewhat generic compared to craft beer. Americans are changing their tastes and moving to wine and craft beer. The new generation will likely keep this trend going.
-There is a movement toward the boutique. This is something large businesses might have some difficulty overcoming.
-Trends toward healthy and organic. To be honest these mainstream beers are low in calories and probably healthier for you than many craft beers. They may be able to tout this to their benefit.
-Old Brands. These brands are getting old and loosing their flair. They have lost their specialty flavor that was once associated with European traditions, draft horses, and a simpler life.
-Flavor can be improved. While I find the plain flavor appealing many want something more fruity or citrus oriented like craft beer. They may want to consider blood orange, coastal, and other flavors found in craft brew parlors.
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