oil woes

Gas prices not affecting you? Think again. (http://www.msnbc.msn.com/id/15390209/)

This website helps to illustrate how essential oil is to the fundamental economy of the world. With OPEC acting as one of the worlds most powerful cartels by threatening to cutback production, President Bush is “asking” them to reconsider.

He is aware of how drastically oil prices affect the economy, by stating, “I would hope that the OPEC nations understand that high prices of oil could wreck economies.”

The massive increases in oil prices we have witnessed in the last year have had a massive impact on economy.

Swaying to Consumer Demand

Automobile companies are swaying to consumer demand for more available models of diesel engines as found here (http://www.msnbc.msn.com/id/15319803/).

Diesel models are most commonly found in heavy duty trucks. As listed in the website, there are 3 diesel cars available, none of which are made by a domestic car company. The domestic auto makers should take note of this, as there appears to be a large demand for diesel passenger cars in the U.S. market. I can say from my own personal experience that I am looking at purchasing a diesel car in the near future.

Also, because the newer diesel fuels are already available around the country, it is time for auto makers to re-introduce the diesel car to the U.S. Market.

Diesel automobiles have amazing fuel mileage, and they are no longer “loud, noisy, or noxious.”

Learning from mistakes

Walmart appears to be learning from its mistakes as found in this article (http://www.chinadaily.com.cn/bizchina/2006-10/18/content_710681.htm). In one of the best decisions their management have made since expanding internationally.

As opposed to their usual strategy of forcing their American business culture on their new stores in other countries, the giant retailer is opting to buy out a chain of Chinese based stores.

Many of the local residents are supportive of this due to the synergy created by the merging of these two entities.

Apparently their management is learning the concequences of their seeming inflexibility in the international setting.

What Were They Thinking PT 2?

Two British Airways executives have quit in response to a fuel-surcharge fixing scheme.

As read here, (http://today.reuters.com/news/articleinvesting.aspx?type=governmentFilingsNews&storyID=2006-10-09T094454Z_01_L09205863_RTRIDST_0_AIRLINES-BRITISH-AIRWAYS-UPDATE-2.XML) they attempted to communicate their intentions with Virgin Airways, who in-turn reported them to the British OFT.

This harkens back to the Field of Dreams quotation, “If you build it they will come,” only it should read “If you do it you will get caught.”

BA faces stiff penalties if found to be price fixing. Obviously the executives at BA have never encountered Game Theory. They may have made some money in the short run, but they will have to pay probably three times as much back in penalties.

This simply proves that the consequences of our actions affect more than just ourselves. I think these guys should have taken W204 before their promotions. A little ethical dilemma that could have been avoided may cause one of the biggest airlines to pay $560 million dollars. Things are not looking good because of the recent hits the airlines have taken in response to 9/11 and increased fuel prices and a fine that large will not help this company either.

Food for Thought

Whatever happened to the "if I work hard I can get that promotion" deal that used to be one of the prominent facets of the business world?

It appears through my personal experience that this is no longer the case. Having worked retail for five years, I have found that the majority of the managers managers in the organization are hired from outside sources. Long forgotten is the motivation to work hard in order to work one’s way up the ranks of the organization.

Why should we? Why should we for lack of a better term “bust our asses” when all we are grudgingly given is the $0.25/hr raise that happens every year more or less? We can work half as hard, get our raises, and not have to worry about scoring that promotion, because it will invariably be given to someone outside the company, whom we veterans of the company will have to train anyways:

just some food for thought.