Economics

This is the first time that I have had the opportunity to be in an Economics class so coming into the semester I wasn’t really sure that I knew what Economics was. From the course material that we have covered thus far, and the material that we will continue to study the remainder of this semester, I have come to understand that Economics is part of our day to day lives. The book that we were assigned to read, The Undercover Economist, helped me to better understand the whole of Economics.

While reading this book it helped me to really think about where the money that my wife and I make really goes and to what extend we are being overcharged for certain items that we purchase. One of the main examples that Tim Harford used in The Undercover Economist is the one of coffee. He takes the reader through the entire process of what happens when we purchase a coffee. I liked the fact that he made you think about what it really would cost to make the coffee. He puts it into a perspective that is simple to understand and really makes you wonder what other things could be the same. He really went into detail of the whole process of making coffee and not only just the producing of the coffee itself, but the buildings that coffee shops are put into and the rents that are charged. It really gives you a perspective that isn’t always thought of in our daily lives. It made me understand why places like Starbucks are able to have buildings in such centralized locations. From the readings it all boils down to who is willing to pay the highest price because they know that the location is going to allow them to make profit. The examples used in the book are of big cities with metro’s and large squares.

Each day we make decisions. We decide whether or not to wake up, whether or not to go to school, whether or not to do our homework, etc. Each of these decisions is an economical decision. When we make these choices we are saying that the alternative is not of the same importance to us. For instance, where I work we are extremely slow at the moment. When my coworkers and I arrived at work on Monday we were given a choice. Since that we are so slow at this time we were given the opportunity to take any day this week off. Each year each employee is allotted a certain number of days off with pay and we were told that we could have any day this week off without pay and we would not be punished for doing so. It was very tempting to me to just say okay I don’t have to work the rest of this week. Yet, as I thought more about it I decided that working would be the best idea so that when my next paycheck came I would still be receiving some money. This was an economical decision.

Where are we willing to spend our money? Why are we willing to spend our money where we spend it? These are some of the questions that were addressed in this book. One of the major decisions we as humans make is where we spend our money. We spend our money on certain items because that money is worth whatever it is that we are purchasing for the price that it is at. I love Zero bars. I just love the white nougat chocolate and caramel. Theses candy bars are difficult to find. They aren’t as popular as snickers or Kit-Kat’s, but when I see one in the store I am willing to pay whatever the price is to enjoy it. If a Zero bar was 2 dollars I would still buy just one. If snickers were 2 dollars I would not be willing to pay that same price because it isn’t worth it to me.

One of the examples that are presented in the book was that of a line in a supermarket. “You can see the phenomenon at work at the supermarket checkout. Which line is the quickest? The simple answer is that it’s just not worth worrying about.” I like this idea, the idea that “it’s just not worth worrying about.” This is something that could happen each day because we are often at stores and I know that I have always looked to find the “fastest” line. The readings make you think about whether or not it is really worth your time to find this fast line because if everyone knew which line was fastest they would join it and it wouldn’t be the fastest line anymore. It really is as simple as that, if everyone knew which line would be fastest, it wouldn’t be the fastest line anymore because everyone would join it. It really doesn’t matter what line we choose to go to because you’ll get checked out in the slower lines and the time difference, if there is any, will be marginal.

Five skills desired in a prospective employee

In today's business world employers look for employees with qualities they feel will be most beneficial to their company. With that in mind I would like to talk about five qualities that many companies desire as they go through the interview process.

In any area of today's business world communication skills are extremely desirable. Companies want individuals who are able to communicate through writing, public speaking and conversation. They also seem to like individuals who can speak foreign languages.

Another desirable skill is the ability to work in teams. Working in teams is a large part of business today and companies look for individuals who have success in working with others.

Leadership skills are essential for future employees seeking upper level positions. The ability to help others understand their roles and perform those roles at a higher level than before. The ability to lead groups effectively is regarded very highly by employers.

Many companies desire employees who are able to solve problems. These are known as analytical skills. The ability to reason through difficult situations can bring success to the company and individual who can solve problems using reasoning.

Strong ethics are very desirable. Making the right decisions in difficult places comes back to an individuals ethics. According to dictionary.com, ethics is "a system of moral principles." It also says that it is "that branch of philosophy dealing with values related to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions."

There are many other skills that employers look for in employees and these are a few that I thought stand out above others.

The Power of Strategy

I found an article that talked about the power of strategy. It was targeted towards teaching students but I felt like it was very applicable to a business setting. The article talked about strategy used during chess.

An example that came to my mind is the men's basketball team here at Utah State. They put in hours each day preparing for opponents. They practice their offense each day planning on how best to attack an opponents defense. This is how they strategize to win games. Strategy is a huge aspect in the success the basketball team has.

The article talks about "a powerful student-centered approach to teaching" that greatly benefits the students. In a business setting this could be applied by management in instructing employees on important aspects of their jobs. The instruction helps students "integrate new information with what they already know, in a way that makes sense--making it easier for them to recall the information or skill at a later time."

My old job required me to understand many different procedures and a strategic approach would have helped me better understand and remember the procedures. These types of courses can bring much benefit to companies because their employees will be able to better perform their jobs.

To Whomever Grades

The blog that was due on February 5 was posted on my wife and I's blog. I emailed Marianna about the problem but I don't know if she relayed that information to you. I post the blog page and apologize for the inconvenience. Thanks!

http://rileyandaubree.blogspot.com/2010/02/professionalism-in-classroom.html

Wal-Mart Plans to Be Greener

Wal-Mart recently announced a plan to make their supply chain greener by 2015. They announced Thursday that they would be cutting "20 million metric tons of greenhouse gas emissions from its supply chain...the equivalent of removing more than 3.8 million cars from the road for a year."

Wal-Mart plans on pushing their suppliers to examine the way "carbon lifecycle of their products, from the raw materials used in manufacturing all the way through to the recycling phase." They are also asking suppliers to "rethink how they source, manufacture, package and transport those goods." Wal-Mart plans to have executives working with suppliers on ways to accomplish this feat.

The article that I read talked about how this will not only benefit the environment, it will also benefit Wal-Mart, which in turn will benefit the customers. These benefits will come by Wal-Mart saving money through suppliers, which will help them maintain their low prices and could lead to even more savings for the consumer. For consumers this is always great news, because everyone wants to save money while still getting quality product.


http://www.nytimes.com/2010/02/26/business/energy-environment/26walmart.html?ref=business

Toyota President to speak with congress

The president of Toyota Akio Toyoda is planning to testify before congress sometime next week about the recalls here in the United States. Toyoda said "he looks forward to speaking directly with Congress and the American people." Toyoda was given an invitation from the House Oversight and Government Reform Committee, which he accepted rather than facing a subpoena.

Is this a wise decision for the company? Will this bring answers to the problems Toyota's vehicles have had? Will he answer how the company is planning on fixing the problems they now face?

Over the last four months there has been a recall of approximately 8.5 million vehicles. They have been recalled because of gas pedal questions, accelerators being jammed into the floor mats, and issues with the brakes on several vehicles. Two of those vehicles, the Corolla and Matrix, have received 168 complaints with reports of 11 injuries and eight crashes.

Representatives from New York and California said that the testimony of Toyoda "will be helpful in understanding the actions Toyota is taking to ensure the safety of American drivers." It sounds like Mr. Toyoda wants to make sure that he can regain the trust of those customers loosing faith in Toyota. He is putting himself on a national stage and will surely come prepared with answers to the questions he will face.

I think that this will be very beneficial for his company. I feel like Toyota will work out the issues and will once again begin building quality vehicles for drivers throughout the world.

http://www.deseretnews.com/article/700010511/Toyota-pres-will-testify-to-Congress

Advertising Costs A Risk?

This past weekend the National Football League hosted the Superbowl in Miami, Florida. The game showcased the league's top two teams, the Indianapolis Colts and the New Orleans Saints. Fans tune in to the game to watch some of the sports greatest athletes perform on a huge national stage, to witness a spectacular halftime show, and to view commercials. Over the years commercials have become as entertaining as the actual games.

For this year's game it was estimated that companies would be paying an average of 2.5 to 3 million dollars for a 30 second commercial. The question I am asking is, are these advertising costs worth the large sums of money?

As I watched Sunday's game I was curious to see what companies were going to take the risk of advertising during commercial breaks. What kind of benefits does Superbowl advertising bring to a company? Advertising increases value for consumers. When companies are able to "differentiate themselves and highlight their unique selling points, advertising stimulates competition in the marketplace." Advertising can also stimulate economic growth.

With only 30 seconds to catch the eye of consumers companies have to be clever in their approach to commercials. They want to have something that makes consumers want their product and be willing to pay money to get it. After watching some of the commercials I was impressed with some of the advertising. I like Doritos already but after seeing some of their commercials I will more than likely buy Doritos next time I go get groceries. It appears to me that advertising is very beneficial for companies. Advertising expenses are worth the costs.