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Teri Bernstein, MBA, CPA has been teaching full time in the Business Department of Santa Monica College since 1985.  Prior to that, she worked in Internal Audit and Special Financial Projects for the 1984 Los Angeles Olympics, CBS, Inc., and Coopers & Lybrand (which is now part of PricewaterhouseCoopers).  She attended the University of Michigan and Wayne State University.


  • BuzzFeed's "King of Memes" shares somes secrets

    Jonah Peretti in the offices of BuzzFeed; photo by Benjamin Lowy Here is the official story of how BuzzFeed got started. Its founder, Jonah Peretti , was a 27-year old grad student who ordered some customizable Nike shoes on a "break" while working on his master's thesis at MIT. Peretti wanted the word "sweatshop" printed on the shoes; this gave rise to a string of email's with Nike's customer service department. image from 2001 ad for customizable Nike shoes Peretti forwarded the amusing email thread to some friends, who forwarded it to more friends...and soon Peretti had his moment of fame--he was on the Today show talking about labor practices with Nike reps. The "viral" spread of the email was an " internet meme ." Peretti pondered why goofy themes spread like crazy while important ideas did not seem to catch on. He developed BuzzFeed--which is an eclectic mix from the erudite to the ridiculous--to research what catches on and what does not. He applies his evolving theories to both the articles and the ad content on the site. By the way, the articles ARE the ad content. Virgin Mobile USA has posted several articles on BuzzFeed, and noted that one "paid-for-post" for Valentine's Day , "urging consumers to 'break up with their carrier'," produced a "95 percent spike in sales that day,” according to Ron Faris, Virgin Mobile's head of brand marketing. Virgin America has some informative "posts" as well. Detractors have complained that mixing up ads with content violates an important tenet of a free society ( Andrew Sullivan, The Dish ), but it seems to be working for BuzzFeed. Sources: " Does BuzzFeed Know the Secret? " by Andrew Rice, New York Magazine , April 7, 2013. Follow up: What is the BuzzFeed headline today? Will this headline be "going viral" in your opinion? Why or why not? What are the factors that contribute to an internet story becoming a meme? Read the entire article in New York Magazine and check out these sites for more data: Meme01 and Meme02 Who coined the term "meme"? What does it mean? Why are memes important to today's businesses?

  • The Van Halen contract: "No brown M&Ms"

    [View:http://community.cengage.com/GECResource/themes/gew/utility/ :550:0] from youtube , posted by rockfan7777 "M&M's (WARNING: ABSOLUTELY NO BROWN ONES)." This is part of a rider, page 40, to the 1982 concert contract of the rock band Van Halen . It is sometimes joked about by those making fun of the excesses demanded by rock stars demanding diva treatment. But, according to band singer David Lee Roth, there was a good reason for this clause. Van Halen was the first band to travel with a huge number of big lights. They would contract for facilities that could deal with their electricity and space requirements, but sometimes they would get to a venue and find that one thing after another that was clearly designated as needed in the contract was not available. Therefore, the M&M clause was inserted as a " bright line test ." David Lee Roth explained: “If I came backstage and I saw brown M&M’s on the catering table, it guaranteed the promoter had not read the contract rider, and we had to do a serious line check.” Sources: " Van Halen explains the U.S .government " by Ezra Klein, Bloomberg News , April 30, 2013. Follow up: What is a "bright line test" or "bright line rule"? Give some examples from other situations. Note the disparity in reactions possible between hearing the short version of the M&M clause story, and the longer explanation. What miscommunications can occur from limited information?

  • Econ 101 by Stephen Colbert via Comedy Central

    [View:http://community.cengage.com/GECResource/themes/gew/utility/ The Colbert Report Get More: Colbert Report Full Episodes , Indecision Political Humor , Video Archive :550:0] Last week I cited a column written by Paul Krugman about the debunking of the "austerity" approach to economic downturns and debt that led to sequestration. Several political leaders promoted the austerity approach, partially based on a paper by Carmen Reinhart and Kenneth Rogoff of Harvard University. Thomas Herndon , a grad student at the University of Massachusetts, detected s ome math errors in the spreadsheets in the Reinhart/Rogoff paper, and also found that they had ignored data that did not support their hypothesis. Paul Krugman's article was a timely response to the "uproar" that ensued. Stephen Colbert weighed in about the Reinhart/Rogoff paper in the video clip above from The Colbert Report of April 23rd. Colbert also interviewed Thomas Herndon later in the same show. For those of you unfamiliar with Stephen Colbert , his on-screen persona symbolizes one point of view, but his message often connotes the opposite point of view. This works to his comic advantage, but could be a dangerous ploy for a marketer, as it may produce misunderstandings. Colbert's show is not likely to sway anyone's opinion, and the two sides to this issue continue to produce controversy. Nevertheless, the data delivered by Colbert (when it can be separated from the non-factual parody or satire) might hold a viewer's interest longer than the Krugman article on the same topic. Colbert's approach widens the possibilities for communicating information about economic issues. Sources: " Stephen Colbert discusses and mocks the problems resulting in basic mistakes made in a study by Reinhart and Rogoff" episode of The Colbert Report, by Stephen Colbert, et. al., Comedy Central via YouTube , airing April 23, 2013, published April 24, 2013. " Reinhart-Rogoff uproar settles nothing ," by Caroline Baum, Bloomberg View , May 1, 2013. Follow up: Watch the video and read the Krugman article. Which did you enjoy the most and why? From which piece did you learn more, and what did you learn? Watch the remainder of The Colbert Report for April 23, 2013, in which Colbert i nterviews Thomas Herndon . What did you learn? Which segment of the show was more effective at communicating about the economic theories at issue? Discuss the pros and cons of using humor to communicate about difficult (or boring) and controversial subjects.

  • Stop doing these 8 things for a better work day

    Increasing productivity and managing interfaces are obviously business goals in manufacturing operations and in service businesses with billable hours. But productivity and interpersonal interactions in an office setting are vitally important to an individual's career growth as well. Here are some suggestions from a recent column from Inc. magazine's website: Don't check your smartphone while you are having a conversation with someone. Pay attention. Be present. Let the other person know they are important. Don't multi-task during a meeting--treat the meeting with importance. Don't think about celebrities others who have no impact on your life...the people who actually ARE in your life are the ones who will help you grow and succeed. Don't let your phone interrupt you with notifications of every email, tweet and message. You be in charge, and check your phone periodically when it is convenient for you. Don't dwell on the past--learn from your mistakes and then take a breath and turn your thoughts to something else if your brain tries to start re-writing history, or makes you tense by dwelling on errors. " The past is just training ." Don't wait till you are certain of success...just act with the intention of doing your best. You don't want to miss opportunities. Don't talk about anyone behind their back. Don't say "Yes" when you mean "No." It's easier if you also remember this saying as well: " No" is a complete sentence. Don't try to convince yourself by giving excuses to someone else. It might be hard to say "No" but it is even harder to live through all the moments that result from saying "Yes" to something that doesn't work for you. Source: " 8 things you should NOT do every day, " Jeff Haden, Inc.com , April 8, 2013. Follow up: Which of these suggestions might you consider? What additional "bad habits" are hampering you at work or school on a daily basis?

  • What do entrepreneurs REALLY think about the minimum wage?

    image from www.staffinglink.com Recent research has produced two opposite outcomes regarding entrepreneurs' attitudes toward raising the minimum wage: Result #1: two-thirds of entrepreneurs support raising the minimum wage ( Small Business Majority -SBM) Result #2: 93% of entrepreneur oppose raising the minimum wage ( National Federation of Independent Businesses -NFIB) One might conclude that there is a lot of variation in entrepreneurial ranks (they are a diverse lot), but as it turns out, the language used in the questions may have skewed the outcomes of each of the surveys. " When the Small Business Majority asked its minimum-wage question, it stated the amount of the current minimum wage -- $7.25 an hour -- but did not mention how much the minimum might rise. You can understand how a business owner would listen to this question and think, 'Well, $7.25 sounds awfully low. My people get more than $7.25 anyways, and keeping up with inflation sounds fair. Sure, let’s raise the minimum.' " On the other hand: The NFIB survey " asked if respondents were in favor of amending the state constitution to include a 14% increase in the minimum wage. It didn’t state the current minimum. This sounds like a bigger deal...Most entrepreneurs didn’t get 14% raises last year, and they don’t want their payroll costs to go up by that much, either ." Plus, mentioning that the state constitution would have to be amended made it sound serious. So--which survey was more fair? Or, were both flawed? Source: " Who Speaks for Entrepreneurs? ," by Kimberly Weisul, Inc.com , April 25, 2013. Follow up: What do you think is the "real" result? Which question was phrased in the more objective and fair way? How would you word a survey on this topic to produce the most objective results? How do you feel about the minimum wage, for yourself and for others?

  • Industrial terrorism...or just an another accident?

    image from nydailynews.com The tragedy in the fertilizer plant in West, Texas killed 12 people and injured 200 in a fire that turned into a blazing explosion that trapped workers. These statistics are worse than the statistics from the bombing at the Boston Marathon. Both events injured innocent people, who were occupied with tasks that had no political significance. Yet the Boston tragedy was immediately labeled "terrorism"; the tragedy in Texas was headlined as an "accident." Bruce Machart recalls his own grisly experiences with foreseeable industrial accidents, from 18 years ago when he was working in a factory. In industrial management, these accidents are called "LTAs"--"lost time accidents," a phrase which seems to belie their life-altering severity. Nevertheless, Mr. Machart points out that the devastation to families in Boston and families in Texas are not different. They both feel like terror. Yet, the media has spun the results a little differently. " Lives have been 'lost' in Texas," notes Machart , "but in Boston, by God--lives have been 'taken'." image from news.yahoo.com One thing for certain, "spin" has been a major player in the communication about these tragedies. Politicians have used the events to gain political capital. Barney Frank said that increased regulation--bigger government--might have prevented the tragedy in Texas. Commentators on the other side countered that small businesses can't afford the costs of increased safety and regulation. I don't know. Could more safety precautions have been taken? Or was the accident inevitable, as Machart implies was the case in the industrial setting with which he was experienced? Clearly, the language we use to talk about events can change the way we feel about them, and can influence the way we deal with the underlying causes of destructive events. There is debate about the ethical obligations that business have to maintain safety standards when regulations are not in place or are not enforced. Perhaps talking about these events as equally tragic is a way to influence corporate behavior regarding safety. Source: " Only an Accident ," by Bruce Machart, New York Times , April 23, 2013. " Democrats Invoke Boston, West To Defend Government's Role ," radio story by Ari Shapiro, National Public Radio, April 26, 2013. Follow up: Do you think that the bombing in Boston and the explosion in Texas should both be labled "terrorism"? Why or why not? What are the downsides of using inflammatory labels? Are there any positive effects?

  • Confidence: skill or liability? Crowd-sourcing may have answers...

    [View:http://community.cengage.com/GECResource/themes/gew/utility/ :550:0] "Real Beauty." Dove , a Unilever brand, has an advertising history of encouraging normal-looking women to see themselves as beautiful. This video highlights what David Brooks, in a NYT editorial, perceived as a confidence issue for women. He decided to use "crowd-sourcing" as a survey vehicle. He encouraged readers to email confidence@nytimes.com with the answers to these questions: A generation after the feminist revolution, are women still, on average, less confident than men? A re women still more likely to flow into different domains in your organization? Do we undervalue the talent for self-criticism the women display in that video? The common phrase that came to my mind when I first saw this was "Reality check!" Neither the men nor the women had an accurate perception of their personal attractiveness. In general, the men saw themselves more positively than a third party saw them; women saw themselves more negatively. Is the assertiveness that comes with a more positive self-image a business asset? In my experience, it is better to have perceptions that are "right-sized" for the situation. Nevertheless, I am curious about the experience of others. I look forward to reading the results of Mr. Brooks' crowd-sourcing experiment. Source: " The Confidence Questions ," by David Brooks, New York Times , April 23, 2013. Follow up: What do you think of Dove's video? How would you feel if you looked like one of the women portrayed as the "negative picture"? How might this affect Dove's intention? What marketing technique is Dove employing by shooting and publicizing this video? What do you think will be the results of David Brooks' crowd-sourcing sociology experiment? What are your answers?

  • Anti-fragility: thriving in chaos

    image by Neil Houghton; related article linked below Nassim Nicholas Taleb is a big thinker. His latest book is about the concept of "antifragility," which he defines first as being the opposite of fragile. But his thesis is that the condition of antifragility is beyond resilient and strong in the face of adversity--it is a response in which things actually improve when the environment is chaotic . Taleb's approach uses three responses to disordered situations: fragile, robust and antifragile. Neil Houghton has used a four-dimensional approach to understanding responses, as illustrated in the grid above. One way to extract meaning from the chart is to locate points on the red tetrad--"stable" and "robust" for example. One consequence of this combination of responses is being "rigid." On the left side of the chart, at points on the green tetrad, you can see "difference" and "coherence." The possible outcome of these states of being is "emergence." I think that "emergence" is one of the positive outcomes that Taleb was imagining in his theoretical approach (though many reviewers object to the tone and manner in which he makes his point). I like these approaches toward understanding chaotic situations, because they expand the palette of choices individuals perceive as responses, and they suggest possible outcomes. The axiomatic premise is reality-based: Disorder will arise...and we don't have to be afraid of it. " Ice-breakers " at parties or conferences increase people's stress initially, but often create camaraderie and connection soon thereafter. Dumping a messy drawer onto a table is a good way to start to improve it. Life-threatening disease can cause individuals get into better shape than ever. In some businesses, " zero-based budgeting " can lead to more profitability after a period of severe disruption. Nevertheless, there are many situations where a calm and orderly approach produces the best results. Sources: " You are all soft! Embrace Chaos! ," by Michiko Kakutani, New York Times , December 12, 2012. " Antifragility and the future ," by Neil Houghton, wordpress.com, December 30, 2012. Follow up: If you are a business student, do you think that you are being prepared well for a business life where successful individuals must thrive in chaos? What courses, skills and activities have you participated in that have enhanced your ability to stay calm and think under pressure? What situations, in your experience, might gain from disorder? What situations are likely to suffer from disorder?

  • Consumer relations: Top ten complaints

    image from www.funnyjunk.com Complaints. We all have experienced unfair treatment or poor products. Sometimes the situations are so egregious that consumers take their complaints to a higher level. The Federal Trade Commission (FTC) keeps track of the complaints it receives involving businesses. Last year, the FTC received over two million complaints, and they recently published the top ten categories into which those complaints fell: Identity Theft Debt collection Banks and Lenders Shop-at-Home and Catalog Sales Prizes, Sweepstakes and Lotteries Impostor Scams Internet Services Auto-Related Complaints Telephone and Mobile Services Credit Cards Some of these complaints involve real fraud, but some result from poor communication and unskillful customer relations. Dealing with complaints that escalate can be costly for businesses...and in the current environment of immediate social networking, business mistakes can be instantly (and unilaterally) publicized. Businesses can also adopt a pro-active approach to customer relations that is positive and effective. Real-life complaint outcomes are delineated in columns written by The Haggler , David Segal, published in the New York Times . These tell the stories of consumer complaints that have gone unresolved, and the various strategies that are employed--with the added pressure of a published outcome--to achieve a fair outcome for both sides. The world is not perfect. Mistakes happen. Miscommunications can lead to consumer disappointment. How businesses handle these imperfections may be more important than what actually happens. No legitimate business wants a complaint to escalate to the FTC. Source: " Top Ten Consumer Complaint Categories ," source: Federal Trade Commission, published in Insurance Journal , March 29, 2013. Follow up: What management techniques can be used to avoid mistakes before they happen? What kind of "complaint department" does your business have? If you are going to school, what are the avenues for complaints about grades, instructors, or worse? How well does the complaint management system work? Describe your experience with complaining to a business, or filing an official complaint with a government agency. Were you successful? What techniques worked well and what failed?

  • Soft skills: taming your email

    image from www.salterbaxter.com Who among us have complained that we do not get enough email? Most of us are sitting on a huge pile of it, which varies from very important to annoying. Every business that each of us connects with seems to have mastered the art of putting us on a mailing list. Even our friends and relatives have us on lists. The mountain of email has to be excavated. Strategies have to be implemented to stay on top of things. Jenna Wortham suggests several strategies, starting with setting aside a few hours with coffee and good music and getting ready to dig in: Get rid of notifications from services such as Facebook and Linked In by changing the settings on those sites. Unsubscribe where you can. Set up filters to redirect emails from friends and relatives who regularly forward things you don't have the time (or the inclination) to read. Use the new Apple Mail feature to give some emails "V.I.P status." Set aside timed email sessions and don't check your email otherwise. Communicate by Messaging or Twitter when possible--for convenience and speed. Purchase an email organizer, such as Sanebox , Mailstrom , Mailbox , or Inbox Pause . Take the time to retrain yourself. I didn't feel so bad when Ms Wortham mentioned that she had 40,000 unread emails, which an app she'd purchased had identified as a "normal" amount of traffic. No wonder most of us feel overwhelmed! Source: " How To Lighten The Crush of Email ," by Jenna Wortham, New York Times , April 10, 2013. Follow up: How many emails are in your work inbox? How about at home? What are your current strategies for managing your email? Regular weeding? Read-it-and-toss? Discuss what works, what doesn't, and how you'd like to improve things. What are the downsides of some of the suggestions in the article--for example, of filtering or using an outside program?

  • Co-worker "good looking"? Keep it to yourself...

    image from whotv.com A few days ago at a fundraiser, President Obama said that Kamala Harris, the Attorney General of California, was " by far the best-looking attorney general in the country ." The President apologized the next day, and it seemed to be no big deal, but some research has indicated that even positive comments--judgments of ANY kind--can have a negative impact on how the person receiving the compliment is perceived. In the study cited in the article below, the person being complimented was a woman. The research was set up like this: subjects were shown similar biographies of two hypothetical Congressional candidates--Dan and Jane. No physical description of either candidate was given. Jane was preferred slightly (49%-48%). Then, in another version, there was a "neutral description of Jane's appearance"; she trailed by 5%. In Version 3, there was a positive physical description of Jane: Jane trailed by 13 %. In Version 4, there was a negative physical description of Jane: Jane also trailed by about 13 %. Go figure... any physical description of Jane, the female candidate, caused her potential success to decline. The study's authors concluded that " even a complimentary comment like Obama's is both inappropriate and damaging in a professional setting. It primes people to think of a woman's appearance, and that's apparently enough to keep them from thinking about her actual qualifications ." I'd like to see another study done where the man's physical appearance was remarked upon, and see what the results are in that case. Sources: " Here's Why 'Good Looking' Is Wrong and Damaging , " by Kevin Drum, Mother Jones, April 8, 2013. " Name it. Change It. Women's Media Center. She Should Run " survey by Chesapeake Beach Consulting, Lake Research Partners. [pdf file--open with Google Chrome if using a Mac] ThinkProgress Follow up: Think of a work or classroom situation where you have observed or been given a compliment that has made you (or someone else) uncomfortable. What are the social dynamics at play in such a situation? What were the job classifications and relative "rank" of the individuals involved. Have you ever intervened or spoken up when an inappropriate comment has been made--either a compliment or something more damaging? What was the situation? What are the choices a person or bystander has in a situation like this, and what are the pros and cons of each course of action? Would this type of comment be considered "sexual harassment" in your workplace or school environment? What are the parameters for interpersonal conduct where you work or go to school?

  • Sequestration: how it would work in your own home

    " Sequestration ." The dictionary definition looks pretty grim. Here's the Merriam-Webster version: Noun The action of taking legal possession of assets until a debt has been paid or other claims have been met. The action of taking forcible possession of something; confiscation. Synonym seizure John Schwartz takes a satiric attempt (I think) in this article, to illuminate the reality of Federal sequestration by making analogies to what it would mean in a personal budget to apply parallel techniques. One of the underlying premises is parallel to the "no new taxes" position of some in Congress, as well as standard financial-advisor wisdom: It is easier to cut spending than it is to increase income. Therefore, the spending cuts that Schwartz suggested implementing included: cancelling all house tours and golf outings (this was to parallel the White House edict, though no real cost savings could be expected, since there were no tours or golf outings before) informing Bank of America unilaterally that the family would be paying less on their mortgage (the B of A executive he talked to said that the unilateral action could lead to foreclosure, but there was a proper process that would preserve the family credit rating) telling his son to "get shorter" (these are "across-the-board" cuts) cutting down on cat food and kitty litter (hmm) making dishwasher repairs himself Schwartz didn't get much co-operation from his family members, and concluded that the lack of co-operation might be country-wide. Sources: " The Kitchen Table Sequester ," by John Schwartz, NYT Business Day , April 6, 2013. Follow up: What is a "satire"? Does this article fit that definition? Get a copy of The Onion for other examples of this writing style. How effective is it at communicating the message? What are the major pitfalls of this technique? What are the possible benefits of this communication technique? What other tools of persuasion are used in this article? What do you think about sequestration? Has this article changed your view of it, or made it more clear? Discuss your reaction. How could the article have been improved?

  • April Fools' pranks that can get you in trouble...

    image from article linked below It is always a little risky in the workplace to use humor of any kind. But "pranks" can be particularly risky...even on a day devoted to pranks: April Fools' Day. Forbes published an article last year listing 8 rules for using humor in the workplace. One of them was using humor to make people feel more comfortable, rather than less comfortable. Pranks seem counterproductive to that aim. The local newspaper daily in my town, the Santa Monica Daily Press , runs an annual April Fools' Day issue. The lead article is always one that is surprising, but reasonably plausible. On each page the articles become more and more absurd--the Letters to the Editor and the Daily Horoscopes being the absolute "give-aways" that something is afoul. But being fooled at all means feeling "foolish"...and that might not be a great way to be seen at work. The Marketplace article mentions three pranks that definitely don't work in the workplace: Plastic on the toilet seat Pretending to cut off one's finger, leaving fake blood everywhere Pulling the fire alarm (this prank is also illegal) I'm not so sure how the fake crime scene pictured above would play out, either. The prank they "recommend" is linked below. Source: " 3 April Fools' Pranks You Shouldn't Pull At The Office (and 1 You Should), " by Adam Allington, Marketplace , American Public Media, April 1, 2013. Follow up: What April Fools' pranks were pulled in your workplace this year? What kind of humor is allowed in the corporate (or school) culture you work in? If you belong to a fraternity, how are things different there? Have you ever gotten into "hot water" by using humor inappropriately? List five rules that you would observe to maintain a good reputation--check out the Forbes article if you want some suggestions. Any comment about the stapler in jello prank from the TV show The Office , mentioned in the Marketplace article? I don't know if I would recommend that one either...what do you think?

  • "New Jersey in a Bottle": marketing problems for a fine wine

    image from eastcoastwineries.blogspot.com If you are selling a high-end, classy product, it appears that an association with "New Jersey" does not have the same marketing appeal as, say, "France," "Italy," or even "California." The fine-wine industry in New Jersey has learned this lesson, and has taken to marketing its products truthfully--if not transparently--as being from the "Outer Coastal Plain." Amalthea Cellars is a New Jersey winery owned for the last 30 years by Lou Caracciolo. He makes a $33/bottle cabernet sauvignon blend. But he's had a hard time selling it--both because of New Jersey's reputation (I'm thinking " Snooki ") and the reputation of the all-too-syrupy cheaper wines usually produced by vintners from The Garden State. The above map is provided just in case you have a hankering to go on a wine-tasting expedition and your don't happen to be near more traditionally famous vineyard areas... At any rate, Lou Caracciolo and other New Jersey fine-wine makers have "branded" their wineries' location as " The Outer Coastal Plain " (think "Napa Valley") rather than "New Jersey." Their Outer Coastal Plain Vineyard Association is "dedicated to the establishment and promotion of sustainable and economically viable viticulture in the Outer Coastal Plain AVA of New Jersey." In addition, Caracciolo has convinced one of the major low-end sweet wine makers, Tomasello Winery ,(see the map), to make a $48 bottle of fine, dry cabernet. Worth a try, if you are a wine drinker? The Outer Coastal Plain Vineyard Association hopes so. Sources: " The Trick to Selling Fancy Wine From New Jersey: Don't Say It's From New Jersey, " audio feed and article by Robert Smith, NPR, Morning Edition, March 29, 2013. Follow up: Check out the Outer Coastal Plain Vineyard Association website. What is an " AVA "? What is " branding "? Why is it important to a business, especially a business like Amalthea Cellars?

  • Planet Money: get the app...and get the story behind business decisions

    image from National Public Radio Planet Money is a National Public Radio news-magazine about financial matters. The audio articles are short and interesting tidbits--often focusing on business decisions that don't make headlines, but are important to business practices in both large and entrepreneurial companies. They also do pieces that help the listener put financial headlines into an more understandable context. For example...The article I've linked to is about a business decision made by Sloan-Kettering Hospital, a top-rated cancer facility that values its cutting-edge reputation. When a new drug became available to treat colon cancer, they evaluated the efficacy of the new drug vis-a-vis an older drug that was available at half the cost ($11,000 per month vs. $5,500 per month). The clinical results of the drug were the same: a 1.4 month increase in lifespan. Sloan Kettering made the decision to NOT USE the newer drug, based on cost. Because a cost-based decision is very unusual in the arena of top-ranked cancer hospitals, two Sloan-Kettering colleagues teamed up to explain their decision in an New York Times op-ed piece, " In Cancer Care, Cost Matters ." If there had been a difference in outcomes that favored the more expensive drug, however, they would have opted to use it, or provide it as an option to patients. In this particular case, they made an unusual business decision, and protected their reputation by being transparent about it in a widely-read newspaper. At any rate, stories about Amish entrepreneurs, con men and the transportability of money have also run recently in the NPR series. For people interested in business, Planet Money is a great resource. Sources: Planet Money: the app from iTunes and National Public Radio . Follow up: Download the app and use it. Now access Planet Money via the URL on your laptop. Notice anything different? What effect does the difference have on your assessment of the app? Discuss some of the articles with your business school colleagues. What were the most interesting? What did you learn?
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