The First Entry
Well, this is the first entry for this blog, which needs to be maintained per my writing class requirements.
So I guess I should talk about something particularly business related.
GM... lets pick on the beast of the automobile world.
There has been recent news about GM possibly being acquired by Renault-Nissan because of various short comings by GM this year. (http://www.purchasing.com/article/CA6357257.html). A quick gander at their financial statements of the preceeding years show that GM has over 33billion dollars of inventory. Now, I dunno about you, but if I were running a company, my main goal would be selling my entire inventory. This goes to say that if people aren't buying your products, they are probably trying to tell you something is wrong. (http://finance.yahoo.com/q/bs?s=GM&annual). I mean it has more than TRIPLED since 2003, and cars from the previous model year don't exactly appreciate in value...
With gas around $3/gallon and destined only to increase (an entire tirade in and of itself) more and more soccer moms are opting for the the Ford Focus wagon than that giant gas guzzling Escalade.
Also it appears that some DRASTIC managerial decisions need to be made in order to save this company. I personally would rather see them sell all of their liquid assets and invest all of that into a money market account as it would almost definatnly yield a higher return compared to the stagnant trend as seen on this 50 year chart (compared to Microsoft to provide you with some amount of contrast on % returns) http://finance.yahoo.com/q/ta?t=my&s=GM&l=on&z=m&q=l&c=msft .
So I guess I should talk about something particularly business related.
GM... lets pick on the beast of the automobile world.
There has been recent news about GM possibly being acquired by Renault-Nissan because of various short comings by GM this year. (http://www.purchasing.com/article/CA6357257.html). A quick gander at their financial statements of the preceeding years show that GM has over 33billion dollars of inventory. Now, I dunno about you, but if I were running a company, my main goal would be selling my entire inventory. This goes to say that if people aren't buying your products, they are probably trying to tell you something is wrong. (http://finance.yahoo.com/q/bs?s=GM&annual). I mean it has more than TRIPLED since 2003, and cars from the previous model year don't exactly appreciate in value...
With gas around $3/gallon and destined only to increase (an entire tirade in and of itself) more and more soccer moms are opting for the the Ford Focus wagon than that giant gas guzzling Escalade.
Also it appears that some DRASTIC managerial decisions need to be made in order to save this company. I personally would rather see them sell all of their liquid assets and invest all of that into a money market account as it would almost definatnly yield a higher return compared to the stagnant trend as seen on this 50 year chart (compared to Microsoft to provide you with some amount of contrast on % returns) http://finance.yahoo.com/q/ta?t=my&s=GM&l=on&z=m&q=l&c=msft .
posted by Kyle at 5:49 PM
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