Business Consultant's Digest April 19th, 2012 | arc mercury

by Derek Greer

As a business consulting firm we focus on small businesses, startups and the middle class entrepreneur.? Knowing the value of time, here we share news items that we believe have the deepest impact on small business.

Top stories being reported today in the Wall Street Journal:

• Economic Reports Fan Fears-Rising layoffs, falling home sales and slowing manufacturing activity are sparking fears that the economic recovery is headed for a springtime stall for the third year in a row.
• Disappointing economic readings weighed on the stock market, with the Dow industrials dropping 68.65 points, or 0.5%, to 12964.10.
• The Fed said banks will have a full two years to bring their businesses in line with the ?Volcker rule? before regulators start enforcing it.
• The House passed a Republican plan to cut taxes on small businesses by as much as 20%, a measure the party characterized as its answer to President Barack Obama?s ?Buffett Rule.?
• Small-Firm Loans Lagged -Lending to small and medium-size businesses after the recession recovered more slowly in the U.S. than in other countries.

Wishing everyone a productive day from arc mercury business consulting!

by Derek Greer

As a business consulting firm we focus on small businesses, startups and the middle class entrepreneur.? Knowing the value of time, here we share news items that we believe have the deepest impact on small business.

Top stories being reported today in the Wall Street Journal:

• Economy Faces Spring Stall-Signs of a stalling recovery intensified as applications for unemployment trended higher, and separate reports noted weakness in housing and manufacturing.
• Old Brands Get a Second Shot-Entrepreneurs Snap Up Rights to Revive Popular Names From Days Gone By-Get ready for the return of Astro Pops, Boast logo shirts, National Premium beer and the Seafood Shanty restaurant chain?all names that had avid followings in their time.?The difficult economy is prompting many entrepreneurs to try to revive old brands from the dead?or the near-dead.
• Gasoline futures prices are on the decline after a sizzling start to the year, easing pressures on drivers and the U.S. economy and raising the prospect that prices at the gas pump could be headed lower still.
• Europe?s bold program to address the region?s financial crisis by injecting cash into the banking system is running out of steam.
• The CFTC and SEC reduced the number of companies that will face oversight on the use of derivative contracts known as swaps.
• U.S. multinational companies increased their work forces at home by 0.1% in 2010 while expanding overseas employment by 1.5%.
• Vital Signs: Mortgage Applications Slump-Home mortgage activity has slipped. The?Mortgage Bankers Association?s index of mortgages to buy a house fell 11.2% last week after the federal government raised fees on certain mortgages. Applications have been essentially flat this year even though home sales are up ? most likely a reflection of the flurry of purchases by investors who are paying cash for properties.

Headlines read the ?Economy Faces Spring Stall? due to a still struggling housing market and continued unemployment. ?The good news however, gas future prices are moving lower, possibly giving consumers an ease at the pump helping increase disposable income that can be used to purchase goods from our local small businesses instead of drained at the pump.

An interesting yet?concerning?statistic to note is in 2010 U.S. multinationals increased their overseas workforce by 1.5% while expanding their workforce here at home by only 0.1%. ?This is frustrating news given the circumstance of our current unemployment rate which still hovers around 8.5%. ?One of my blogs earlier this week briefly discussed globalization and its effect on our economy. ?There are many pros and cons to be debated, however, in this regard it is clear that shipping American jobs abroad at a faster rate than employing American citizens here in the States is a trend that needs to be evaluated. ?This does not mean companies should simply hire more Americans just because, there are two sides to this equation. ?On one side companies are trying to be cost effective in order to produce quality goods and services at the most valuable price, which in turn helps Americans provide for their families at a much lower cost. ?On the other hand, Americans here at home are in need of good paying jobs with benefits to provide them with the security to live a prosperous life. ?The question then is how can these two sides be aligned? ?The cost of living for most Americans is much higher than the cost of living in countries like India, Mexico and China (popular outsourcing countries). ?How can American workers compete with this and how can American companies continue to provide superior value without off-shoring? ?For business consultants this is a very powerful question. ?The answer is simple, instead of looking to cut cost in only one area (HR), companies need to strive for operational?efficiency in every aspect of their business. ?This allows companies to continue to cut costs while at the same time keep a happy, productive and well educated American staff. ?At the same time, Americans need to recognize how important it is to stay on the cutting edge of education and technology to always stay competitive in this ever changing global marketplace, regardless of the?disparity?in cost of living.

Wishing everyone a productive day from arc mercury business consulting!

by Derek Greer

As a business consulting firm we focus on small businesses, startups and the middle class entrepreneur.? Knowing the value of time, here we share news items that we believe have the deepest impact on small business.

Top stories being reported today in the Wall Street Journal:

• Stocks surged as an auction of Spanish government debt was well received and companies posted positive earnings reports. The Dow industrials rose 194.13 points, or 1.5%, marking their sixth triple-digit move this month.
• Europe could suffer a prolonged economic downturn unless it takes stronger action to fight its debt crisis and prop up growth, the IMF said.
• The gap between America?s highest-paid and lowest-paid workers is widening, according to figures released by the Labor Department.
• Facebook?s Zuckerberg negotiated mostly on his own for the acquisition of Instagram, bringing in the board when the deal was all but done.
• First Solar is cutting 2,000 jobs and shutting a factory as the company contends with a solar-panel glut.

Wishing everyone a productive day from arc mercury business consulting!

by Derek Greer

As a business consulting firm we focus on small businesses, startups and the middle class entrepreneur.? Knowing the value of time, here we share news items that we believe have the deepest impact on small business.

Top stories being reported today in the Wall Street Journal:

Apple shares have dropped significantly since April 10th, losing almost 10% of it?s share price. ?Some say this is just a correction, while some say Apple may be headed for a continued decrease. ?Either way, it is showing the weight this tech giant is able to swing. ?This ?correction? has shocked the S&P which without Apple?s decline would have shown a .14% increase but instead fell .05%. ?The blue chips are up .6% coming to 12921.41. ?Spain continues to struggle and may need to seize control of regional governments to continue austerity measures throughout the country. ?Debt costs continue to rise above 6% for Spain?s 10 year government bonds signaling the expectations of mid-term investors as being uncertain of Spain?s ability to rein in their Deficit which still sits around 8.5% of the countries GDP. ?As a business consultant and small business?adviser?these issues may seem far removed, however. ?This is far from the truth, if Spain doesn?t find a way to get their financial house back in order, then the entire Euro is threatened which in-turn directly affects our recovery hear at home. ?Continued pressure will exist for local businesses trying to grow and create jobs. ?On a larger scale we are all more connected than ever, globalization continues to bring the entire financial world in all of our backyards whether we welcome it or not. ?The good news however, we are aware of this so we can leverage this boundary breaking phenomenon to out?advantage. ?How specifically is a much longer conversation but in a nut shell, it requires us all to take on a more global view when considering our businesses and the broader economy.

Wishing everyone a productive day from arc mercury business consulting!

by Derek Greer

As a business consulting firm we focus on small businesses, startups and the middle class entrepreneur.? Knowing the value of time, here we share news items that we believe have the deepest impact on small business.

Top stories being reported today in the Wall Street Journal:

• European banks are bracing for a wave of ratings downgrades in coming weeks that could intensify pressure on the fragile industry and further undercut recent efforts to defuse the Continent?s long-running financial crisis.
• Cashing out: Improved cash flows and aging owners are driving a three-year high in?small-business acquisitions this year, Maeghan Ouimet reports in Inc.com, citing data from BizBuySell.com.
• Global Housing Fears Spur Calls for Fixes-Four years after a deflating U.S. housing bubble sparked a global financial crisis, housing worries in the U.S. and other countries are weighing on the world economy.
• China Loosens Grip on Yuan-China?s move to widen the yuan?s trading range is seen as an important step toward addressing complaints about its currency policies.

Wishing everyone a productive day from arc mercury business consulting!

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