RUNIN MARKETEER

Online Marketing Campaign

2011-12-08T10:13:00.000-08:00

Facebook: Targeted ads: $1,000 per month.

Google: 2 Targeted ads: $250 per month

Yelp: $1,000 per month

Total: $2,250 per month ---> $27,000 per year

SaladCreativity.com

Domain Name: $10
Development: $10,000
Hosting: $50 per month ---> $600 per year

Sub Total: $10,600

Grand Total: $37,600

Yelpers -- Just How Many are There

2011-12-07T17:17:00.000-08:00

According to Tech Crunch, Yelp is now drawing 50 million users a month to its 17 million reviews.
So just how many Yelpers are there? If Yelp has 17 million reviews and an average Yelper writes 100 reviews, then there are approximately 170,000 Yelpers. There are roughly 150 locations worldwide, including many small cities, that makes about 1,300 users per city. But Yelp is in just about every city or town in California, some with only a couple hundred Yelpers. So bigger cities like NYC, DC, LA, SF probably has several thousand Yelpers (2,000 -- 10,000)

Large city -- 8-10,000
Medium city -- 4-7,000
Small city -- 1-3,000

Salad Eaters in DC

2011-11-30T05:47:00.000-08:00

So you are a health conscious salad eater in DC. Then you likely fit into one of these categories. Not to worry if it's not totally clear cut -- it's not meant to be. You fit into whichever box you define and there is a whole lot of gray. Good thing is that age, race and occupation are not much of a factor in determing which bucket you belong in -- it's how you live your life, what's important to you, who you hang out with your overall mission locally and nationally. And if none of these categories fancy you, then we either overlooked a category or perhaps you should question whether you're able to fog up a mirror. Offended yet?

Yuppie -- Young Urban Professional. Originally, they were baby boomers but today the generation range has expanded from 20s to 60s, so age is really not much of a factor anymore. Many wear high-fashion clothing, drive nice cars (so they have disposable income) and care about their image. Can be easily found on M Street in Georgetown and along Bethesda Row. Also found near college campuses -- take a look at Fraternity Row.

Photography by Della Chen

Urbanite -- This term has evolved in the last 10 years. Similar to Yuppies, but more socially conscience (Environment, Poverty, World Hunger, etc). Many work in non-profits. Dress and image are not as important to them but they still try to maintain a professional-looking image. Generally older than Yuppies Can find them around Sweetgreen carrying their own resusable salad bowls. Willing to pay $15 for a salad and bottled water. So willing to spend money on food and drink and are just as social as Yuppies.

Hipster -- Social animals who like to wear Indie or Retro clothing as well as enjoy Indie music. Tend to be in teens to early 30s.

Contrary to public opinion, they are well educated and are early adopters of technology. Hipsters love to congregate in urban settings such as McPherson Square. They are vocal in their beliefs and many are active in protests. Go to Freedom Park and you find lots of them occupying all areas of DC.

Socialite -- As the name implies, highly social and active in networking and promoting oneself. Normally as attended prestigious universities and has a well-paying job. Can be wealthy and usually chooses a career path in art, literature or law. Many are bilingual -- known to hang out at Embassy Row.

SipwithSocialites.com

Fashionista -- Someone with a penchant for shopping and a natural flair for combining both current and vintage fashionable trends. Think of Sex and the City and Lady Gaga. Trendy but don't expect them to be shallow or materialistic, and yes, it can even be a guy. Fashionistas are highly regarded today. Like Yuppies, they are found in Bethesda and Georgetown

Wonk -- an intellectually curious person who is an expert in a field. Many are knowledgeable Washington insiders, focused fervently on an issue and passionate about creating meaningful change. Many are part of the growing DC Tech trend and attend meetups throughout the city. You are focused, smart, committed. Wonks can also be found hanging around major university campuses (Champs) and near Georgetown, AU and UMD. Generally, you wouldn't know one if you spotted one because appearance doesn't really define a Wonk.

American University

DCist -- if no other category fits you perfectly, than you are most likely a DCist. You are well rounded and care about a lot of things. You care about news, events, food and culture but not to the extent of any of the other demographic groups. In short, you are a moderate in your lifestyle, kind of one of each of everybody. You are intelligent and caring but you're likely not the one trying to save the Earth.

Lifestyle Demographics in the Nation's Capital

2011-11-23T14:41:00.000-08:00

So are you a Washingtonian -- You live, work, shop in or around the Nation's Capital? (Bethesda and Arlington included) After work, you attend events around the beltway. On weekends you also hang out in DC and you prefer shopping on Connecticut Avenue rather than at the Potomac Mills Mall.

Then you likely fit into one of these categories. Not to worry if it's not totally clear cut -- it's not meant to be. You fit into whichever box you define and there is a whole lot of gray. Good thing is that age, race and occupation are not much of a factor in determing which bucket you belong in -- it's how you live your life, what's important to you, who you hang out with your overall mission locally and nationally. And if none of these categories fancy you, then we either overlooked a category or perhaps you should question whether you're able to fog up a mirror. Offended yet?

Yuppie -- Young Urban Professional. Originally, they were baby boomers but today the generation range has expanded from 20s to 60s, so age is really not much of a factor anymore. Many wear high-fashion clothing, drive nice cars (so they have disposable income) and care about their image. Can be easily found on M Street in Georgetown and along Bethesda Row. Also found near college campuses -- take a look at Fraternity Row.

Photography by Della Chen

SipwithSocialites.com

Sports Fanatic -- Someone who is crazy about most major professional sports: NFL, MLB, NBA, NHL, Soccer, etc. Can be found in sports bars and often attends games in the Verizon Center, Nats Park and Fedex Field. Loves beer as well as wings, burgers and sandwiches. Can be found on non sports days wearing a sports jersey. Favorite part of town: Chinatown

Politico -- Someone whose life or lifestyle revolve around politics (Federal or State). Can be a Hill Staffer, Pentagon Puzzle Palace worshipper, Lobbyist, Govt employee whose after hours life is centered around networking with other other politicos or anyone who enjoys politics and chatting about the topic. Can we found in watering holes in Capitol Hill (Hawk n Dove) and even Pentagon City (Champs). If they watch Sunday morning political shows as fervently as a Sports Fanatic watches Sunday afternoon football, then they are beyond recovery.

Economist -- Someone who sees something that works in practice and wonders if it would work in theory. Usually works in the field of economics, finance, business or social science. Many work at the World Bank or are K Street insiders lobbying the government or working as a Consultant for Booz Allen, advising the government how best to earmark their precious, shrinking dollars. While Economists tend to be social, the practice what they preach, meaning they keep a budget and are frugal spenders. They would rather pay $6 for a salad at McDonald's then $10 for a salad at Chop't.

Wonk -- an intellectually curious person who is an expert in a field. Many are knowledgeable Washington insiders, focused fervently on an issue and passionate about creating meaningful change. Many are part of the bourgeoning DC Cocktail Tech trend and attend meetups throughout the city. Can also be found hanging around major university campuses (Champs) and near Georgetown, AU and UMD. Generally, you wouldn't know one if you spotted one because appearance doesn't really define a Wonk.

American University

DCist -- if no other category fits you perfectly, than you will have to resort to being a DCist. It's a catch all term that means a lot but also very little. You care about news, events, food and culture but not to the extent of any of the other demographic groups. In short, you are a moderate in your lifestyle, kind of one of each of everybody. You are intelligent and caring but you're likely not the one trying to save the Earth.

Flickr: dcJohn

So this is the Lifestyle bucket list -- all 10 of them. You fit in one of them so you best get to know your neighbors. How 'bout if 2 or 3 also know my name. Well, there's only one dominant one. You're only one today and tomorrow you can try out a new label.

Any more buckets I left out? Sure, it's not humanly possible to catch everyone. How about the Surburbanites? Oh, you mean those who live in Woodbridge or Gaithersburg. First, sorry about your commute. Secondly, sorry for missing out on City Living. Third, I'm afraid we had to exclude you and your 1.5 kids, your medium-large size dog and yes, your luscious, green back yard...

Social Media has been a Bane not Boom for Marketeers

2011-05-06T12:31:00.000-07:00

With the big rise in social media, everyone has so many attractive options right now, they can pick and choose which event to attend, what to read online, what causes to support, which store/restaurant to visit and so on.

In a town like DC, there's always been a plethora of events. The only issue, we didn't know about 90% of them. Unless someone emailed you or called you directly, you were oblivious. Now just about every open event can be marketed to anybody which leaves a socially active person with dozens of choices a day (not to mention, his/her personal events).

Yes social media is a double edged sword -- it gets the word out to the masses but it also makes marketing massively difficult. Last week, I attended a happy hour organized a major national company -- with less than 10 people showing up. There were more people from the organization than there was of us. At the end of the evening, I was assured a raffle prize because there were only 3 attendees left. I won the T-shirt and 2 tickets to a concert.

With Yelp, diners have the final word, and if they are not completely satisfied with their dining experience, they can certainly make the restauranteurs regret it -- so yes, restauranteurs have it a lot tougher today, also.

So the power of peeps has risen astronomically. For us marketeeers and event planners, it's getting harder and harder to attract people to take a look, to read, to subscribe, to attend, to shop. Even worthwhile events that are free have trouble attracting attention. Many people are also signing up for multiple events at the same time ,waiting until the last minute, or simply not showing up.

Now if content online is not targeted directly at you, no one is going to pay attention to it. Today, all the online ads are targeted to you and you only -- this is called door-to-door marketing. In the future, all online news will be targeted to the individual.

This is becoming the same with events. So what's good for the peeps is now tougher for the planners.

QuickMedx -- Rapid Growth Ahead.

2011-03-29T14:00:00.000-07:00

1) What is the QuickMedx business model?

QuickMedx’s business model is to provide fast and convenient testing centers in high-traffic, retail environments that are close to pharmacies (McDonald’s of simple health-care services). For a payment of $35 per visit, patients are provided rapid testing, diagnosis, and prescriptions for 11 common illnesses by a certified nurse practitioner. This service provides an alternative (although not a replacement) to visiting the primary care physician's office or emergency room for simple cases.

2) Is the QuickMedx business model viable?

Yes, the QuickMedx business model is viable for the following reasons:

1. The company pioneered a unique concept; at the time of the case, there appears to be no competitor in its niche.

2. Many common illnesses are easy and quick to diagnose. Patients familiar with these common illnesses (e.g., strep throat) know the symptoms, prognosis, and likely treatment and just want confirmation and the right prescription to get their loved one on the road to recovery with as little wasted time as possible.

3. Early sales indicate the concept appeals to the targeted market segment (busy middle- and upper-income families), and produces even stronger financial results in lower-economic demographic regions, where many blue-collar workers did not have insurance coverage and simply want an inexpensive alternative for basic illnesses.

4. QuickMedx wisely chose to keep cash flow as simple as possible, by dealing only with retail customers and avoiding the morass of filing insurance claims for its patients. This helped the company avoid the administrative and float costs involved in insurance claims.

5. The business is modeled on the concept made famous by McDonald’s: a limited menu that enables the business to serve customers quickly and affordably.

6. QuickMedx and its host client (Cub Foods) focused on risk management. Together they developed refinements and releases that helped make the company less vulnerable to lawsuits than more versatile (and more expensive) clinics.

7. Strong leadership by the founders helped to preserve the concept through birth and initial growth, and makes it more likely that their vision will remain intact going forward.

8. QuickMedx’s exclusive deal with Supervalu that allows them the right to integrate with any of the 800 stores nationwide. In the event that Supervalu doesn’t allow QuickMedx to enter a particular market, it must release QuickMedx from its obligation and allow it to find a different retailer.

3) How quick should QuickMedx grow?

QuickMedx's growth should be rapid for the following reasons:

1. Kiosks are relatively easy and inexpensive to build and operate.

2. There are many possible locations in retail and universities

3. High standardization makes it relatively easy to franchise the concept, in addition to growing through direct investment in new locations.

4. The company retains the option of dealing with insurers.

5. Their service was attractive to both unions and members of unions (due to lower costs and 100% reimbursement of claims) which leads to a huge boost in sales.

6. The company could also increase the number of conditions that it diagnoses and treats in future.

7. There is an abundant pool of nurse practitioners to staff the kiosks.

8. QuickMedx benefits from Supervalu/Cub food’s advertising that promotes QuickMedx as an added feature of that particular store.

4) Is QuickMedEx a "disruptive" innovation?

Yes, QuickMedx is likely to be a disruptive innovation because it serves the needs of abundant, low-income customers with few cheap alternatives and busy high-end customers seeking simple, convenient service. Locating in partners’ retail stores helps minimize costs, enabling the company to undercut other providers when consumers are stressed about costs and convenience.

Should Google Return to China?

2011-02-23T19:53:00.000-08:00

Poor Children are More Prone to Eat Junk Food

2011-02-12T23:08:00.000-08:00

I live in Congress Heights, a blighted community that just two years ago got our first grocery store. Before IHop opened last year, we had no sit-down restaurants and our choices for food was relegated to Popeyes or Chinese carry-outs. Three years ago, our first Subway opened on Martin Luther King Ave.

First Lady, Michelle Obama

Still there is a dearth of quality, wholesome food in our area which explains why low income people eat more unhealthy and have more health problems than the upper class?

There are many reasons that contribute to this vast separation:

Food Deserts:
As mentioned, there are many areas that simply are not serviced by grocery stores, let alone healthy food. A food desert is any area that is not serviced by a grocery store or Mom and Pop store that sells healthy food within walking distance or reasonable commute distance.

Income:
We all know that fast food is cheaper than healthy food. When your budget for food is minuscule, fast food seems to be the winning option.

According to the 2010 US Census, single parents comprise 70 percent of all poor families with children. The US is slowly becoming a two caste system with marriage and education as the line of separation. In the top one-third of the population, children are raised by married parents with a college degree. In the bottom third, children are raised by single parents with no college education.

Convenience:
When both parents are working or when there is only one parent, there is often no one available to prepare meals at home, making fast food a very easy alternative. According to the US Census, among single parent families, 26.6% live in poverty.

Life's Stress and Addiction
According to a March 28, 2010 study in "Nature Neuroscience," fast food is addictive. The study likened the effects of high-calorie fast food to those of cocaine or heroin, in animals.

There are also claims to the structural changes to the brain because of fast-food consumption.

The stress of low-income thus may lead to craving of unhealthy food.

And the effects of childhood obesity can be devastating.
Childhood obesity leads to better chances of obesity as an adult and raises the cost of health insurance for everyone.

So, shall the government fight childhood obesity by regulating fast food? Shall the city step in to regulate the construction of new fast food restaurants in healthy-food deprived areas? How about banning trans-fat oil or even regulating the advertisements that appear to target children.

A July 2010, Rasmussen Poll shows that 36% believe that the government does not regulate fast food enough.

"There is no way that the first lady can or should go into someone's house and tell them what to eat — it doesn't work. It wouldn't work in my household — in fact, I would resent it. But what I do know that parents want is they want help."

-- Michelle Obama

The First Lady has created a healthy campaign targeting childhood obesity called "Let's Move."
The First Lady is also working diligently with Wal-Mart to reduce the amount of sugar, sodium and trans-fat in their food options (without raising the price).

People need help and even reach out to get some. They know ultimately eating better is their choice, but when the odds are stacked against you, we all need to step in and intervene.

When the local DC government started regulating the licenses of liquor stores in Anacostia and Congress Heights, public drunkenness, loitering and crime started decreasing.

Source:

Urban Institute: Low-Income Working Families

McDonald's Response from Danya Proud

2011-02-05T16:59:00.000-08:00

From: "Proud Danya" <Danya.Proud@us.mcd.com>
Date: Feb 20, 2011 3:55 PM
Subject: RE: Happy Meal Toy Study and Survey
To: "Chito Peppler" <chito.peppler@gmail.com>

Good afternoon,

In response to your inquiry, please find below a statement for your use:

February 16, 2010

MEDIA STATEMENT

“While we share in the desire to find a meaningful solution to the growing problem of kids' health and nutrition, we believe taking away a toy from a kids meal
does absolutely nothing to improve children’s health, nutrition or well-being.

We are extremely proud of our Happy Meals which give our youngest guests wholesome food and toys of the highest quality. Getting a toy with a kid's meal is just one part of a fun, family experience at McDonald's.

Public opinion has – and continues to be - overwhelmingly against this idea. It does not reflect what consumers want, nor is it something they asked for.Parents tell us they want to have the right and responsibility to make their own decisions and decide what’s right for their children – not lawmakers.

Any fair and objective review of our menu and the actions we’ve taken will demonstrate we’ve been responsible, we’re committed to children’s well being, and we’ll continue to learn and take action for our customers that is guided by science and facts.

Banning a toy is not the way to fight obesity or improve children’s well-being. Solutions will come only from education and awareness based on science and fact.”

Danya Proud, Spokesperson
McDonald’s USA

McDonald's Happy Meal Toy Survey

2011-02-05T07:13:00.000-08:00

Should McDonald's be allowed to put toys in their Happy Meals? Obesity in children has tripled in the last 30 years. The American Academic of Pediatrics considers advertising to children illegal since they do not have the cognitive capability to understand deceptive marketing.

Download Create Chart1. McDonald's claim that the Happy Meal does have one healthy option: chicken nuggets, apple dippers, juice and low-fat milk. However, children do not always pick the healthy option. McDonald's claim that their freedom to advertise is protected under the First Amendment.
	answered question		58
	skipped question		1
		Response Percent	Response Count
Including the toy in the Happy Meal is ethical		34.5%	20
The toy is deceptive marketing but McDonald's should be allowed to include a toy		34.5%	20
The toy is deceptive marketing so McDonalds should NOT be allowed to include it.		19.0%	11
Not sure		6.9%	4
Other (please specify) Show Responses		5.2%	3

The Most Influential Man Who Never Lived

2011-02-04T05:23:00.000-08:00

He was the most famous man who never lived. The iconic image of this rugged, handsome cowboy riding off in the sunset was indelibly stamped in the hearts and mind of both smokers and does who staunchly opposed it. He was so effective in tugging both the heart strings and pocket strings of people of all ages all over the world and personally responsible for the suffering of millions that he was eventually banned from TV, print and billboards.

In 1999, Marlboro settled a lawsuit agreeing to remove all cowboys from billboard ads. This ended one of the most mythical, successful and hated brand icons in the advertising history.

Leo Burnett, the former Peoria Journal reporter turned advertiser, created the Marlboro man in 1951. The success was astronomical. Marlboro sales increased nearly 3,250% in 1955.

In 1964, Phillip Morris refreshed the image by putting him in mythical Marlboro country. In 1971 cigarette ads were banned from TV, but the vivid image of the rugged cowboy smoking a cigarette endured.

Even today if you see a picture of a cowboy riding off in the sunset, you may immediately think of Marlboro Man. In fact, USA Today has ranked him number one in the 101 list of most influential people.

That is because Marlboro has indelibly stamped this rugged image into the hearts and minds of people all over the world.

At least for this generation, the image belongs to them. Marlboro gets free advertising and don't even need to do the work.

For example, if you search for the word "cowboy" in Google, the very first picture that comes up is the one above.

Are Happy Meal Toys Bad for Waistlines?

2011-02-04T03:47:00.000-08:00

Should McDonald's be allowed to put toys in their Happy Meals. The Center for Science in the Public Interest (CSPI) is suing McDonald's to remove the toys. Claiming that childhood obesity rates have more than tripled in the last 30 years. McDonald's claim that the Happy Meal does have a more healthy option: chicken McNuggets with low fat caramel dip, apple dippers and low fat milk. Still the Washington-based consumer advocacy group stated that many children opt for the less healthy option. Further study shows that McDonald's staff automatically serve the hamburger and fries to the kids without mentioning the healthy option.

Say "No" in Santa Clara
Already, California's Santa Clara County voted in 2010 to ban restaurants from giving away toys with high-calorie meals. The problem with the toys according to the CPSI is that kids will nag parents to get the meals because of the toys.

First Amendment
McDonald's is defending their position based on the First Amendment. However, the CPSI claims that the free speech clause does not give companies a blank check to advertise deceptively to individual groups especially children.

Brilliant Marketing Campaign
Ever since the first Happy Meal was sold in 1979, McDonald's has released thousands of varieties of toys. They also earn advertising revenue by marketing movie and Disney promotions. In 2005, Disney celebrated their 50th Anniversary by releasing a special edition toy comprised of Mickey, Minnie, Goofy, Pluto, and others. Today, Happy Meal toys are popular collectors items. A 11-year old kid recently sold his 7,000-piece collection at an auction in England for $11,000 US.

Too Many Empty Calories
A 2006 study by the Journal of Pediatrics shows that the average child consumed up to 165 calories more than needed and some teens took in as many as 1,000 calories more each day than needed. A recent article in the Journal of the American Dietetic Association states that kids are not only eating more, but they are getting empty calories -- food that are high in calories, fat, or sugar, but low in nutrition.

Should Big Government Regulate?
Supporters of consumer advocacy groups state that the government should step in to protect groups against such vices as obesity, smoking, drinking, etc. Marketers in general will try to push their products zealously -- that's their job. The job of consumer advocacy groups and the government is to keep them in check. Thus we should not allow companies to advertise as they wish, right.

Touted for Ethics

McDonald's touts that it has recently received an A+ rating at the Better Business Bureau for its "proven record of trustworthiness and ethics in its customer-related business practices."

Socially Responsible?
Researchers have proof that children are drawn to meals associated with toys.

They further state that companies are offering these toys as a form of marketing to lure children to purchase the meals.
The key issue here is whether this is deceptive. Because children do not yet have the reasoning to understand unfair marketing. "The American Academic of Pediatrics considers advertising to young children to be inherently deceptive and exploits children under the age of 8 years."

Exercise is the Antidote
Meanwhile, advocates of McDonald's claim that the best way to fight childhood obesity is more exercise and less time spent watching TV or playing video games.

Should advertising fast food to children be illegal? Certainly, there are many questionable cases. But what is the government's role? The FTC, FCC and BBB already have their hands full of deceptive marketing claims. They cannot tackle every one of them. And when it affects critical issues like childhood obesity, consumer watchdogs and even the American public are now stepping up to the plate to pinch hit.

Google Tweets in Hong Kong

2011-01-28T10:35:00.001-08:00

The New Tool to Democracy: Social Media

2011-01-27T08:01:00.000-08:00

As a public affairs officer in the US Navy, I was intimately familiar to the power and pull of the social media revolution. Tweets, status updates, blogs, microblogs, and yes, even Vlogs, have been indispensable tools to communicate in a viral medium as well as to track the pulse and viability of a story long after it is written and forgotten.

Credit: thepunch.com

During the Iran presidential elections in the summer of 2009, the US State Department specifically requested that Twitter not be taken down for maintenance. This request substantiated the geopolitical value of Twitter and forever changed the landscape of social media in government, politics, and yes, even diplomacy.

A mini revolution ignited in Iran after the flawed Presidential election of dictator Mahmoud Ahmadinejad. Meanwhile, the Iranian fascist government virtually choked off the flow of news to and fro Tehran. Many Iranians who protested that the election was rigged did so via Twitter. Twitter, not CNN, evolved as the ideal medium because it was real-time, was shot-gunned by the people closest to the action, could be deployed by virtually anyone with a computer or cell phone and was virtually impossible for the government to track or block.

During a revolution, crisis or emergency, Twitter really showed its spunk and stamina. Forward to the present day: Egyptians vividly remember Iran's Islamic Revolution of 1979, almost a generation ago. The unprecedented uprising of how the people threw out an indominable monarch has been magically weaved into the anecdotes of society as cohesively as the tales of Sinbad have become an endearing part of Arabian culture.

Credit: Washington Post

However, history is never fully flawless. Diplomacy is screened through dense filters manipulated by the ideology of totalitarian states. In today's dramatic string of Middle East uprisings, social media has been the decisive medium to execution.

So could this revolution happen without Facebook? It is no coincidence that Mark Zuckerberg was chosen as the 2010 Time Person of the Year.

Just as Twitter was instrumental in Iran, Facebook has been even more crucial to the development of political ideology that has led to this historic uprising. Without Facebook, poverty, struggles and tension would still exist in Egypt. But without a Facebook, there would be virtually no way for these tensions to escalate to a boiling point and no way for disparaged Egyptians to vent their anger at Mubarak and no way for that anger to be fostered via uprisings across nations and borders.

Greenwashing -- Navigating the Complicated Eco-babble

2011-01-26T22:57:00.000-08:00

"So even if the plastic bags were to degrade within a year in an open-air environment, most Americans do not compost their plastics making the 'degradable' claim irrelevant."

Greenwashing is not a recent phenomenon. For the last 20 plus years, the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service or company has surely existed.

But in the last few years, the use and abuse of green advertising has sharply escalated as companies strive to meet burgeoning consumer demand for products that will help save Mother Earth for our children's children.

Just make your weekly pilgrimage to Whole Foods and there are surely a whole slew of products that claim to be ozone-safe, eco-friendly, carbon-negative and made with renewable energy.

They all sound well and good and makes me feel extra eco-altrusitic (until I go home and slaughter a whole pig for dinner) But will they really make Mother Earth beam with pride? Or perhaps more importantly what do these terms mean and do these products meet the industry standard set by the consumer-coddling Federal Trade Commission?

I, for one, have been shamelessly ignorant on the nuances of the meaning of the term biodegradable. These state-of-the-art bags made of "oxo-degradable" plastics are made to degrade in the presence of oxygen and sunlight (within three years).

But lately, research has shown that some of these bags don't degrade as quickly as advertised. Also, if these bags get buried in a landfill (which they often do), without access to light and air, they will not degrade at all. Furthermore, the temperatures and humidity level has to be ideal in order to facilitate the decomposition. Moreover, oxo-degradable bags may not degrade in a compost (something I've long thought about and have long procrastinated)

So even if the plastic bags were to degrade within a year in an open-air environment, most Americans do not compost their plastics making the "degradable" claim irrelevant.

There are two clear imperatives. Consumers need to be better eco-educated in the terminology and applications of these standards . Additionally companies' hands and feet need to be held to the fire to the proper adoption of these newly-defined standards.

What is one way, that consumers, companies and the government can work together collaboratively? One easy and cost-effective way to check each other is to logon t Twitter.
This link will take you to the latest tweets on greenwashing.

Perhaps, the FTC should periodically keep a big brother eye on Twitter (by using apps like Twitterfall) to see what consumers are ~~tweeting~~ saying. Surely, consumers can be the first one to report claims of greenwashing and the FTC can also gauge consumer awareness of the new guidelines. (After all, it was a private citizen -- not the FTC -- who decided to sue Taco Bell, this week for false advertising.)

On that note, companies should be monitoring their Twitter pages to respond to any consumer who has a question on their Environmental responsiveness claims (Yup, Taco Bell, has yet to respond to my Re-tweet).

But does the FTC need to police every claim? Perhaps, that would not be the best use of our precious government dollars? Many of these claims do not appear to be malicious or deliberately deceptive. That is why the FTC should focus instead on polishing their education and awareness campaign on the new greenwash guidelines.

In addition, the FTC may want to consider adopting a new coding strategy similar to the universal Energy Star for the EPA. Energy Star works because companies aspire for its seal of gold and consumers trust it as if it was platinum.

Surely, with a field so large and with a lexicon full of nuances, many so called "green" product claims may plummet through the abysmal cracks. But perhaps, progress, not perfection, is what we should be aiming for.

Taco Bell Meat Washing?

2011-01-26T00:01:00.000-08:00

Dee Miles, who represents the plaintiff, said Taco Bell calls its product "taco meat filling" inside the company, but beef to customers

"The 'chicken' and 'carne asada steak' served by Taco Bell is, in fact, chicken or carne asada steak," the lawsuit says. "The 'seasoned beef,' however, is not beef."

Taco Bell simmers 100 percent U.S. Department of Agriculture-inspected beef in a "proprietary blend of seasonings and spices" to give it a signature taste and texture, Taco Bell President Greg Creed said in a statement.

All seasoning ingredients are listed on the website, he said.

SEASONED GROUND BEEF

Beef, Water, Seasoning [Isolated Oat Product, Salt, Chili Pepper, Onion Powder, Tomato Powder, Oats (Wheat), Soy Lecithin, Sugar, Spices, Maltodextrin, Soybean Oil (Anti-dusting Agent), Garlic Powder, Autolyzed Yeast Extract, Citric Acid, Caramel Color, Cocoa Powder (Processed With Alkali), Silicon Dioxide, Natural Flavors, Yeast, Modified Corn Starch, Natural Smoke Flavor], Salt, Sodium Phosphates. CONTAINS SOYBEAN, WHEAT

"Unfortunately, the lawyers in this case elected to sue first and ask questions later -- and got their 'facts' absolutely wrong," Creed said..

Let's see what Taco Bell Tweeters are saying in the Twitter World:

2010 -- A Disastrous Year for Google in China

2011-01-23T18:05:00.000-08:00

Will Google Strike Gold in 2011

2010, to put it lightly has been a solemn year for Google in China, and it started exactly a year ago with the cyber attack to Google's Gmail accounts. Here's a rough chronology of what happened and what didn't go so well.

· Chinese cyber attack at Google (Jan 2010)

o Linked to mainland and targeted Chinese human rights workers’ Gmail accounts

· Google announces that it will stop cooperating with China’s censorship (March 23, 2010)

· Google exits China by moving servers to HK (Users visiting Google.cn are auto directed to Google.com.hk) (March 2010)

· China blocks some Google service in mainland.

o Google’s R&D in China is impacted

o Google is being criticized for making this move unilaterally (without consulting Chinese staff)

Google advises China users to use VPNs and proxies to access Google sites (that are blocked).

· China’s economy continues to grow at 10 percent

· Google’s competitor: Baidu.com controls 71.7% of market share in China

· China renews Google’s license (to operate in China for one more year) – July 2010

o Google placated Chinese officials by putting an extra search box on Google.cn which when clicked takes you to Google.com.hk

· Eric Schmidt lobbies for Google to return to China

· Brin and Page decides against Google return to China

· Google Failures in Web 2.0 (Unable to gain traction in the social networking realm)

o Buzz (Has a huge privacy flaw -- anyone can see who you follow and the people following you)

o Wave -- too difficult and the trend died quickly

· Media reports Eric Schmidt loses focus and is accused of not being visionary.

· Facebook gaining tremendous market share (of time spent online) from Google

o Many Google high-prized engineers jumping ship to Facebook

Many of the engineers are drawn to a smaller company and ability to shape its growth

o Zuckerberg visits China (Dec 2010)

o Facebook valued at $50 Billion

o Facebook is considered more cool and hip than Google

A new feature film called Googled “The End of the World as we Know it” by Ken Auletta is announced. Adam Sandler to play Sergey Brin. (Aug 2010)

C China raises interest rates (Dec 2010) putting strain on Asian markets

2011

Eric Schmidt steps down as Google CEO (Jan 2011)

· President Hu visits US (Jan 2011)
Yuan hits 17-year high against the dollar
Hu wants the Yuan to become the world's currency

o Google CEO not present for State Dinner (Several other CEOs invited)

· China waits and sees how Larry Page will deal with China. Visit portrayed as the beginning of a new era of bilateral relations.

C What's in store for 2011:

G Google is focusing on tapping growing revenue from Chinese companies who will advertise on Google's websites. Although sales will grow, it will slow as more and more users switch over to Baidu.

China with 800 million mobile phone users is the largest in the world. And Google has been gaining market share on Apple and Blackberry. Scalability not search is in fact Google's greatest skillset and best hope to leverage China's booming economy.

It Google succeeded by scaling its search vs Yahoo. It also won hands down in scaling advertising vs the traditional media companies. And now, the next battle ground will be mobile -- Will Google scale or fail?

Cemex -- Mexico's Steady Rock in a Turbulent Economy

2011-01-22T21:55:00.000-08:00

Mexico is experiencing tremendous problems. Their drug war is weighing on the economy and the unprecedented violence is damaging tourism.

But not all Mexican firms are gravely affected by the burgeoning drug empire. CEMEX, the third largest cement maker in the world, is based in Monterrey.

Founded in 1906 at its lone facility in Northern Mexico, CEMEX today maintains production facilities in more than 50 countries. Throughout the years, its focus on reducing costs, standardizing business processes, technology and organizational structure has transformed this company into a key player in the world cement business.

In this article, we will analyze how CEMEX expanded and the Global Integration and Local Responsiveness pressures surrounding CEMEX's drive to globalize.

At their inception, the concrete and cement industries were fragmented because the high cost of transportation prevented much competition.

First, CEMEX had many important customers.

Who is Cemex's largest customer? The United States of course. The US not only imports more cement than any other nation, they are Mexico's next door neighbor and in 1994 signed an agreement to eliminate barriers of trade and investments between these two countries and Canada.

Keep in mind, none of these customers were multi-national, meaning for each location, there would be several multi-national customers.

Cemex 50 lb bag Mesh Sand in Home Depot

Cemex has capitalized on the growth that the US experienced last decade. The US simply could not buy enough portland cement from U.S. producers. Meanwhile Cemex was able to sell cement to the US at lower prices than their American counterpart without the restrictions of tariffs and trade barriers after NAFTA was signed in 1994.

Other important customers: Europe has increased significantly in the last decade. But lately, that growth in the West has slowed, but demand in Asia has picked up. Meanwhile, Egypt's construction industry is booming. So it appears that even if one part of the world is experiencing a slowdown in construction, there is always other parts of the world that is experiencing a boom.

Mexico Earthquake
In 1985, Mexico City was hit by a devastating earthquake that killed over 10,000 people. The severe damage to so many buildings was blamed on lax enforcement of building codes. Because so many people were left homeless, CEMEX was busy contributing to the rebuilding of the city.

High Barriers to Entry (Aggregates and Cement)
Aggregates and cement are upstream products with high barriers to entry with initial investments starting at $50 million. Initially, there is little product differentiation.

Concrete and asphalt are downstream products with few barriers to entry, short payback periods and ability to distinguish between products.

Stepping Out at Home

In 1989, CEMEX was facing mounting competition in Mexico. In addition, the Mexican construction business was very unreliable.

They started consolidating its position in the Mexican cement market by acquiring Mexican cement producer Tolteca, making CEMEX the second largest Mexican cement producer and making the Top Ten list in the world.

And when they started to acquire, they began to realize that they had found their niche. The CEMEX way was an outstanding method of doing business and they maintained tight centralized controls.

Going Global

So when did Cemex start going global? They made their first international acquisition in 1992. In 2004, they acquired RMC of Great Britain for $5.8 billion and 15 years after their first acquisition in 2007, they won a majority stake in Australia's Rinker Group.

RMC -- Different Strokes

The acquisition of RMC altered the geographic landscape for business. This deal opened up France, Germany and several Eastern European countries. RMC was a highly decentralized company that differed from country to country. On the other hand, CEMEX had a single way of doing business and a standardized operating and engineering culture.

In the 25 years, leading up to the Rinker deal, CEMEX has grown from a small firm of 6,500 employees and $275 million in revenue to a global leader of 65,000 employees and $21.7 billion in annual revenue. Today, CEMEX brings in annual sales of more than $15 billion with only 15 percent of the sales being generated in Mexico.

Foreign Direct Investment

CEMEX relied heavily on FDI. For companies in the cement business, the only cost-effective way to globalize is to acquire plants in different, strategic locations throughout the world. Because of its weight, cement could not be easily shipped from one country to another.

First, CEMEX targeted developing nations, especially those who would be experiencing future construction demand. They purchased cement companies that were being run inefficiently and transferred its skill sets and customer service savviness to those locations.

CEMEX plant in Fairborn,Ohio

Presence of Multinational Competitors
In 1992, CEMEX was facing competition from Holcim at home. As a result, CEMEX acquired a major stake in two Spanish cement companies, Valenciana and Sanson, giving it a majority share in one of Europe's largest cement market.

At that time, Spain was an attractive country to invest in. They had just entered the European Monetary Union, and working in Spain allowed CEMEX to tap the lower cost of capital.

So CEMEX's global expansion was first spurred by local competition. Their further growth overseas was spurred by subsequent global competition

In the Cement and concrete business, there is not much distinction from one brand to another. Buyers make decisions primarily on price resulting on global pressures in cost reduction.

Carbonate rock quarry used for cement production, Aruba

The main barrier to competitive entry in the cement business is access to rock quarries. Since rock and gravel is difficult to transport, it is critical to have access to a rock quarry nearby. CEMEX operates more than 560 rock quarries strategically around the world.

CEMEX Way

CEMEX's success is attributed to how it acquired companies and how it integrated with them after the merger. CEMEX standardized business processes, technology and organizational structure throughout the world, while catering to the individual company and host country needs.

This technique made CEMEX's process unique. Instead of eliminating the company's prior practices, CEMEX catalogued and stored these practices in a centralized database. These steps were then compared against current practices.

The benefits of the CEMEX Way was extremely profitable. From 1991 to 2003, their earnings grew more than 18 percent annually.

Information Technology

CEMEX has been a clear leader in the implementation of Information Technology. Because ready-made cement has only 90 minutes before solidifying, precise time of delivery is crucial. CEMEX is able to track their trucks using GPS, radio transmitters and satellites, allowing the company to control the production and distribution. Customers receive lower costs and stellar customer service -- both hallmarks of CEMEX.

The key to CEMEX's foreign direct investment success was creating a reliable communications grid. CEMEX did this by creating CEMEXNET, a global satellite communications system. Leadership was then able to easily conduct "virtual inspections" of CEMEX's operations remotely.

Environmental

Cement production accounts for as much as 5 percent of global emissions of CO2. CEMEX is reducing its carbon footprint by shifting to renewable energy and by using biomass as inputs to its kilns. CEMEX is striving for 18 percent of their electricity to come from renewable energy sources. A new 250-megawatt wind farm in Mexico will provide one quarter of CEMEX's electricity needs in Mexico.

So why did CEMEX globalize? Pankaj Ghemawat, who teaches at the Harvard Business School, has collected data that shows that globalization has profound limits. Ghemawat states that CEMEX becomes profitable only by buying capacity in foreign countries thus reducing the number of competitors resulting in higher prices for the cement.

Haiti

CEMEX has two terminals in Haiti which supplies almost 70% of the local market. Today, CEMEX and CHF International are working together to train young Haitians to make better concrete blocks.

In the past, Haitians made concrete blocks that were of low quality. CEMEX is teaching these men how to make exact measurements of good quality water and sand in the cement mix.

CEMEX is also providing the proper technology to mix the cement: Bicycle powered mixers instead of mixing the cement on the ground.

Pretty soon, there will be many strong cyclists in Haiti to compete in the Tour de France.

Will CEMEX capitalize greatly on the future Haiti reconstruction? Since CEMEX is local and they have established a great rapport and training regimen with the local populace, it appears that CEMEX will surely be in the thick of things.

Recently the Haiti reconstruction fund approved US$65 million for rebuilding damages homes and homes in Port-au-Prince.

CEMEX

GLOBAL INTEGRATION PRESSURES	HIGH	MEDIUM	LOW
Important multinational customers			X
Presence of multinational competitors	X
Large investment intensity		X
Technology intensity in design, production		X
Pressures for cost reduction		X
Universal needs	X
Access to localized resources		X
LOCAL RESPONSIVENESS PRESSURES	HIGH	MEDIUM	LOW
Different customer needs			X
Differences in distribution channels			X
Availability of local substitutes		X
Market structure (local competition)		X
Host government demands		X

Google at an Ethical Crossroad

2011-01-21T14:43:00.000-08:00

I was surprised to hear this week that Eric Schmidt is stepping down as CEO of Google. The reasoning from the media is that after the cyber attacks last year, Schmidt felt that Google should stay in China while Page and Brin wanted to pull out.

After Schmidt lost that battle, he also lost some momentum and apparently he may also be losing some of his bounce in his step.

Google has been showing slow growth in its search market share and with Facebook coming off a banner year,
some of Google's most prized engineers have lately jumped ship.

A Great Decade, A Difficult Year

For the last year, Google has had a strained relationship w/ China especially after the cyber attack incident and Google put a kibosh on censorship by pulling their servers out of China and setting shop in Hong Kong. Although HK is part of the People's Republic of China sovereignty, their censorship is not applied there as there are special entities recognized by international treaty.

(For example, if you can read this blog, then you are not in China).

Since then China has blocked Google extensively and this week, Eric Schmidt did not attend President Hu's State Dinner at the White House despite the fact that several CEOs including Microsoft's Steve Balmer was there. Irrelevant, perhaps, but things are adding up.

Said Hello to Baidu

Google is also losing market share (of online time spent) in a big way to Facebook (A lot of their high prized engineers have already jumped ship).

From Seeking Alpha

This is a critical juncture for the world's largest open-source company. Where Google proceeds needs could be home run or a double play since and the road to the World Series goes through Beijing. China is not just a communist regime, it is also the fastest growing region in the world. Every country either trades with China or gets smothered by its vast economic engine.

Google's Partners from Shanghai
An excerpt from Google's official blog: "We launched Google.cn in Jan 2006 in the belief that the benefits of increased access to information for people in China and a more open internet outweighed any discomfort in agreeing to censor some results."

Do No Evil
Prior to Google's decision to no longer succumb to China's demands, they were criticized heavily by Amnesty International and Human Rights Watch for contradicting the company's "Don't be Evil" ethic.

Human Ethics

Many say that China's web censorship laws are a bold affront to the core principals of human rights. Paradoxically, the number of bloggers and the number of Chinese citizens who are willing to express themselves personally, professionally and politically has exploded to an unprecedented scale. At the same time, China is cracking the hammer on political dissent and has the largest number of jailed journalists and cyber dissenters in the world. The 2010 Nobel Peace Prize was awarded to Liu Xiaobo, who is serving an 11-year sentence for writing about democracy.

With all its ethical and moral flaws regarding censorship, some say still that a China with Google is far better than a China without -- even Google execs tempered this statement lately.

Trying to Salvage e-Business

Although Google's web search is restricted and their reputation tattered, Google is currently targeting Chinese companies to advertise on their international search sites. However, Google's open defiance of Beijing has severely hampered Google's once shiny star. When Google pulled out, numerous business deals with Chinese internet companies were irrevocably damaged -- some went completely belly-up.

Google's Reasoning to Enter

A statement on Google's official blog, tempered this statement:

We launched Google.cn in January 2006 in the belief that the benefits of increased access to information for people in China and a more open Internet outweighed our discomfort in agreeing to censor some results.”

Google knew absolutely what they were getting into. They formed ties and the corporate world were willing to take calculated risks. In many ways, Google has an ethical responsibility to maintain these ties. Surely Google was fully aware (with the exception of the cyber attack) of all the power and dogged tenacity of the Great "Fire" Wall of China. So why are they pulling out now?

That is why Google cannot completely ignore the Sleeping Dragon -- the most populous nation on Earth and the world's largest and fastest growing internet market -- with the number of people online exceeding the number of people living in the United States. We must work through our differences, agree to compromise, and strive to develop the world wide web so that we can better understand how the East and West can better collaborate to serve people from all over the Earth.

Media Pressure on Courts
Despite, China's tight clampdown on the internet, China does occasionally bow to pressures from the internet.

Take the case of Deng Yujiao, a young woman who rebuffed sexual advances by a government official last year, then stabbed him to death when he attempted to rape her. She was arrested, prompting a massive protest, online, with civil rights organizations petitioning for her release. Even the traditional Chinese media sided with the woman. Bowing to the pressure, the government cleared all the charges against Deng, and arrested and dismissed two officials who were present at the scene of the incident.

Facebook
From yesterday's L2 Social Graph clinic at George Washington University, I heard that there's no signs that China will open up to Facebook. China simply is not worried. They have Baidu, and they don't feel Facebook provides them with any tangible value. However, Zuckerberg's visit last month has paved the road ahead for potential entry -- Baidu execs are now calling for Facebook to entere China. But China does not have a great substitute for Google and the Chinese people need access to this quintessential search tool to promote free trade and extensive outreach around the world.

China Simply Doesn't Give a Hoot
Ultimatums and harsh unilateral actions don't appear to work in China. In the end, they only hurt Google and those who depend on the internet to do business. Google is losing touch of a vibrant economy and culture, one that we desperately need to collaborate with so that we can better understand and leverage each other's strengths in order to promote free trade and globalization in this vibrant and volatile marketplace.

So did Google make the right ethical decision to pull out. How about their partners that they are supposedly dissing? What should be Google's next move? Should they consider returning. Would this be the lesser of two evils?

Please chime in below.

Greenwashing and the FTC

2011-01-20T16:34:00.000-08:00

Last October, the Federal Trade Commission released new guidelines on greenwashing.

According to Sourcewatch.org, greenwashing is the unjustified appropriation of environmental virtue by a company, an industry, a government, a politician or even a non-government organization to create a pro-environmental image, sell a product or a policy, or to try and rehabilitate their standing with the public and decision makers after being embroiled in controversy.

It seems like the FTC wants companies to completely ditch the sweeping claims of "green" or "eco-friendly". Instead the FTC wants companies to be very specific and substantiate their statements.

The guidelines created in 1992 were last revised 12 years ago.

The revised Guides caution marketers not to make blanket, general claims that a product is “environmentally friendly” or “eco-friendly” because the FTC’s consumer perception study confirms that such claims are likely to suggest that the product has specific and far-reaching environmental benefits. Very few products, if any, have all the attributes consumers seem to perceive from such claims, making these claims nearly impossible to substantiate.

However, it appears that there will be a steep learning curve because the public is still very uninformed on green concepts and companies may still continue to exploit old rules (perhaps even due to ignorance or misunderstanding).

The problem of Green washing appears to be significantly grave.

TerraChoice, an environmental marketing company, conducted a study which found that almost all of the environmental claims made for consumer products are false or misleading.

BP's Blemished Image

2010-08-15T16:53:00.000-07:00

In 2000, BP hired one of the world's most esteemed PR firm, Ogilvy & Mather, to create a global brand transformation. The slogan, "Beyond Petroleum" was created to show that BP transcended the oil sector by being innovative, progressive and environmentally responsible.

The company abandoned its 70-year old shield-style logo to a new cheerful, green sunburst. To many, the new image and message was a huge contradiction since BP's investment in renewable energy paled in comparison to what BP spent in extractive oil. So in a sense, many people felt that BP had changed its image but not its stance in being more environmentally friendly.

Social responsibility is an ethical ideology that both organizations and individuals should embrace and incorporate.
For example in my household, I am doing my best to conserve energy, water, to take public transportation when possible (I just signed up for a year-contract with Zip Car), and to even ride my bike to school.

BP's focus on social responsibility was a brilliant strategy ushered by a very shrewd PR firm. Many would agree that it was honorable and definitely fashionable for BP to accept global warming as a reality, while competitors like Exxon Mobil completely ignored this trend.

Deep Horizon was not the first incident

In 2005, a major explosion destroyed a gasoline-filled tower at BP's Texas City refinery. Investigations showed that BP had ignored its own safety protocol. In 2006, BP also experienced a 4,800 barrel oil spill in Alaska. Despite its history of accidents and environmental disasters, BP is still trying to tout its environmental image.

However, while BP was polishing their philanthropic image, they were neglecting a very basic principal that would impact not just their image but their bottom line.

If BP had just reallocated some of their funds that they frittered away on marketing towards safety, security and the implementation of back ups, then perhaps their corporate social image would be a lot rosier today that it was after the historic oil spill and beyond our immediate future.

Was BP guilty of greenwashing? Obviously history shows that BP's rebranding was deceptive. Perhaps their motives for being environmentally sensitive was genuine and despite the fact that Deepwater Horizon explosion was an accident, if BP was truly environmentally conscious, they wouldn't have skimped on proper testing, back-up measures and inspections.

BP's advertisement budget during the spill neared 100 million. Their goal was to inform Gulf coast residents and the rest of the US about the progress of the recovery effort. By now, BP's disingenuous advertisement that they are developing low-carbon, renewable energy sources will fall on deaf's ears.

How The Mighty Meltdown Could Have Been Averted

2010-05-13T08:32:00.000-07:00

What caused the meltdown -- Simply stated, the housing bubble:

By Summer 2007, the housing market was in trouble: falling prices, inventories rising and foreclosures rising.

Early Signs:

Although a housing bubble is difficult to predict, there were early signs starting in 2004. Perhaps economists should have noticed that Freddie Mac was financing risk-laden loans as an early indicator. Many economists and government leaders simply failed to pay attention to the warnings or ignored it altogether -- all this happening under President Bush's watch.

Bear in Bankruptcy

Then two Bear Sterns (Global investment bank/securities trading brokerage) hedge funds are forced into bankruptcy. They had invested in AAA-rated mortgage backed securities. The prices of these securities had declined steeply.

Ironically as these investor losses mounted starting in 2006, Bear Sterns increased their exposure, thus resulting in more heavier losses.

Saving Bear

In early 2008, the Federal Bank of NY provided an emergency loan to try to avert the company from collapsing.

In March 2008, the Fed tried hard to find a buyer for Bear. Prohibited from lending money to Bear, the Fed decided to lend money to JPMorgan, which, in turn, provided the funding to Bear.

FREDDING AND FANNIE in Conservatorship

In September 2008, Secretary Paulson informed Fannie and Freddie that the government is taking an 80% ownership in each.

Treasury Secretary Henry Paulson (who previously served as the CEO of Goldman Sacks) stated that placing Fannie and Freddie conservatorship "was the only form in which I could commit taxpayer money to the Government Sponsored Enterprises (GSE)."

Who to Blame

9/11 occurred early in President Bush's watch. Since then he experienced a major hurricane that nearly wiped out New Orleans and got the US involved in two major wars that we are losing, resulting in many casualties and over a thousand wounded.

Sadly, while the administration was focusing on the war, their attention was diverted from the economy.

Many people judge the president's legacy mainly by the economic performance during the term. For Bush, the economy lost ground resulting in lower median household income, higher unemployment and the number of Americans without health insurance spiking (4).

So GW Bush began his term with the worst attack on American soil since Pearl Harbor and is ending it with the worst financial crisis since the Great Depression -- what does that tell you.

Did the terrorists get want they wanted after all? Perhaps it wasn't just bricks and mortar and innocent people they were after -- they were targeting capitalism, and perhaps the previous administration had fallen for the bait.

Bush Wanted to Transfer Oversight of Fannie and Freddie to HUD. Barney Frank's Objection was Devastating

After the accounting scandals, this was a good idea. President Bush did not feel that Congress could do its job. But Rep Barney Franks, the ranking Democrat in the Financial Services Committee, strongly opposed it. This turned out to be a big mistake, because reining in Fannie and Freddie could have significantly alleviated the housing crisis.

Belligerent Fuld

Lehman Brothers was next in the chopping block.

On Sept 2008, Lehman filed for Chapter 11 bankruptcy protection after many of its clients departed due to drastic stock losses. This filing was billed as the largest bankruptcy in U.S. history (1).

They had to sell Lehman, but CEO Richard Fuld (2) was brazen and he wanted a higher price. The last straw -- he was in Korea trying to work a deal. But Fuld wouldn't budge on the price.

On Oct 6, 2008 Fuld testified before the US House Commitee on Oversight and Government Reform on Capitol Hill regarding the bankruptcy of Lehman.

CNBC reported that Fuld was attacked and "knocked out cold" at the Lehman gym due to their declaration of bankruptcy. Fuld representatives denied this news report.

Nobody Wanted to Buy Lehman

Bank of American and Barclays were candidates but estimated that Lehman had approximately $ 30 million of bad loans on the books.Sadly, the government was not willing to guarantee a portion of it.

Regret letting Lehman Go

Secretary Paulson and other conservatives did not realize how interrelated Lehman was -- even more so than Bear. So the fall of Lehman deeply afflected the global markets, global credit and freezing the markets.

Why is AIG Affected?

If this is a housing/mortgage crisis, then why is an insurance company that specializes in home and life insurance affected -- there is no major natural disaster -- that is exactly the same question that I chewed on.

American International Group (AIG) takes a huge hit because they had put tons of money betting that firms like Lehman would never go bankrupt.

AIG experienced a liquidity crisis when its credit ratings were downgraded below "AA" in Sept 2008.

But the US government would not let AIG fail. Letting AIG fail would not only affect the U.S. economy, it would be disastrous to the world economy.

Bailout -- Famous quote: "We May not have an Economy Monday."

The emergency plan asks for $700 billion to buy up toxic mortgage sercurities from the banks without an oversight mechanism from Congress.

Both Lehman Brothers and Bear Sterns were major players in the sub-prime mortage business. They loaned money, in the form of credit, to non-bank lenders.

Lehman brothers knew what they were getting into, and they should have realized the risk and possiblity for disaster.

AIG Backlash

in March 09, AIG executives faced public outlash for providing retention benefits of $165 million after the government bailout of $182.5 billion was approved (3).

Final Analysis

The mortgage crisis which started in 2007 was spurred by a sharp rise in mortgage delinquencies and foreclosures in the US.

About 80% of the mortgages issued from around 2005--2007 were adjustable-rate mortgages (I know, I was issued a couple of them from refinances on a few homes in SE DC which I used mainlh for repairs and renovation.

Some may argue that the American public should have been on its toes and applied some pressure on these companies to stop such risky investment. But lets face it, middle class America was able to purchase homes that they would have never dreamed of buying in the past, and the average person would assume that these large banking and investment firms would have been reasonable and not have invested more money than they could risk in investments that were very risky.The books should have all balanced out. Liabilities should never have been greater than assets.

Paulson let Lehman fail:

References:

(1) "Lehman folds with Record $613 Billion Debt", Marketwatch Sept 15, 2008

(2) "Bruiser of Wall St Dick Fuld Looked After his People, but didn't know when to Quit" Times online, Sept 16, 2008

(3) "After AIG rescue, Fed may find more at its door", Reuters, Sept 17, 2008

(4) "Closing the Book on The Bush Legacy", The Atlantic, Sept 11, 2009

Crisis Camp and Cloud Computing in Haiti

2010-04-13T12:32:00.001-07:00

Crisis Camps and Cloud computing in Haiti

View more presentations from Chito.

S Curve Of Twitter 50 Mil Per Day

2010-02-24T21:30:00.001-08:00

Check out this SlideShare Presentation:

S Curve Of Twitter 50 Mil Per Day

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How Twitter Can Make Money

2010-02-15T18:36:00.000-08:00

As a public affairs officer in the US Navy, I am fully acquainted to the power and pull of Twitter. Twitter has been an effective tool to communicate with media as well as to track the pulse and viability of a story long after it is written.

Last summer, the US State Department was keenly interested in the service and reliability of Twitter. A mini revolution occurred in Iran after the Presidential election of Mahmoud Ahmadinejad took place in June. Meanwhile, the Iranian government virtually choked off the flow of news from Tehran. Many Iranians who protested that the election was rigged did so via Twitter. Twitter was the ideal medium because it was fast, could be employed and leveraged by almost anyone with a computer or cell phone and was difficult for the government to track or block.

During a revolution, crisis or emergency, Twitter really showed its astounding strength and amazing news delivery ability. I would like to see this medium continue to grow and expand as a communications and news medium and to continue to serve the public to make an impact in people’s lives, especially during times of emergency or distress.

Twitter is a pretty simple concept that uses API that gives RESTful access to the Twitter database and does not have a lot of components or moving parts. The simplicity of the user interface has resulted in the development of several hundred applications that has further fueled its growth. Although these applications have boosted Twitter’s demand and exposure, Twitter does not see revenue from any of these applications. Many of these applications are popular with users because of ease of use and their ability to provide a very specific but valuable function for free. My goal is to focus on Twitter’s Revenue Stream. That is because Twitter needs to find a long-term way of making money in order to stay viable. Although advertising is the primary way for other social media companies like Google and Facebook to make money, this technique may not be ideal for a micro blogging company like Twitter. Eliminate Problem Areas: Twitter unlike other social media sites like Facebook and websites like Google face challenges leveraging on advertising. That’s because a tweet is limited to 140 characters and there is not much space to employ ads and to charge companies for them. Twitter has recently (Oct 2009) worked a deal with Google and Bing to open up their tweets to these search engines. Data mining is critical because no other tool provides the depth and breadth of information that Twitter can. Twitter is not only good for marketers and advertisers, governments and analysts can use them to get a pulse on sentiment and behavior even before it is noticed or confirmed.Twitter can provide publishers and developers a way to plug into their data feeds to extract data and patterns. The advantage is that roughly 20% of tweets include branding. The potential drawback is that you cannot verify the accuracy of tweets or even verify who the sender is. Governments and large organizations can go on Twitter to send propaganda (such as Iran)

Since Twitter maintains and owns the tweets made by their members and they receive several million tweets a day all over the world, Twitter can really capitalize on their unique but value-added data flow and trend analysis obtained by data mining their information. In November 2009, www.royal.pingdom.com conducted a study to measure how many tweets were sent per hour. The highest number of tweets measured was 1,841,289 per hour on Oct 27, 2009. At this rate, Twitter will process almost 10 billion tweets per year.

Some of the data mining can be conducted simply by using the search function within Twitter. The vast majority of the data mining can be conducted using several hundred of the different applications that have been developed for Twitter.

How can we the consumer use data mining to extract useful data?

• Search for someone at a particular place: Use with Foursquare or Gowalla to find an eyewitness in a particular location at the time news occurred.

• See what topics are trending nationally and locally: Your home page on Twitter will show you what’s trending right now either network wide or by your location. Also check out Trendsmap (using data from another great site, What The Trend). For instance, check out this local trendsmap data to see what topics keep coming to the top of Twitter in the DC area right now.

• See tweets on a map: Check out Bing’s Twitter and Foursquare maps to see searchable tweets and check-ins on a map. For a new map, go to bing.com/maps/explore and select the map app you want.

From ZombieJournalism.com

http://zombiejournalism.com/2010/06/data-mining-information-from-twitter/