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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.


  • Tiny Hachette publishing is taking on Amazon

    image from the prnewswire Michael Pietsch (rhymes with "beach"), the CEO of the Hachette Book Group, is in a battle with Amazon over pricing and availability issues regarding manipulation of the market for books. All of the other book publishers are waiting to see what happens. Other publishers have been afraid to take a stand against Amazon, because of Amazon's tremendous clout. Amazon has huge volume and it is willing to sacrifice profits in pursuit of market share. Not every publisher can afford to pursue that strategy. But Pietsch seems willing to get the issues on the table in order to not lose everything in the long run. Unfortunately, because Amazon and Hachette have signed confidentiality agreements, the nitty-gritty details of their dispute remain secret. Nevertheless, other publishers guess that Amazon is trying to sell Hachette e-books at bargain prices, and Hachette is trying to maintain their profit margins. One tactic that Amazon is using to prevail in this fight is to deliver this message to potential customers wanting to buy a Hachette title: Image from Amazon...when they are trying to delay shipping your book, whether they have it or not... This is a risky strategy for Amazon, because delays tend to annoy customers. Amazon's "branding" includes being customer-friendly, so any delay tactic might tarnish their image. Nevertheless, it also thwarts sales of Hachette titles--especially for those customers who are loyal to Amazon via their Amazon Prime relationship, or those who have an Amazon gift card to spend. Other customers take the bait and switch to another title recommended by Amazon when they are on a Hachette author's pages. The "currently unavailable" strategy is also used by Amazon in dealing with independent, single-book-inventory booksellers (who know they have delivered inventory to Amazon's warehouses). Even if the titles are somewhere in Amazon's inventory, Amazon can put these low volume items on the back burner without tarnishing their reputation for delivery within two days...if they say the title is "currently unavailable." The roots of this dispute go back to before the 2012 Justice Department anti-trust lawsuit against book publishers. Five publishers were found to have conspired to raise e-book prices. They'd banded together to try to maintain their profits in the face of the Amazon undercutting of prices. [See: " Can eBooks get past the price-fixing scandal? "] The settlement included a two-year period where Amazon was allowed to discount e-book prices. That agreement has expired, and now Hachette is stepping up and bargaining on principle. Pietsch insists that books are a special kind of product and cannot be treated like some of the other mass-produced items sold by Amazon. A major Hachette author, James Patterson, supports Pietsch and has said, " Amazon also, as you know, wants to control bookselling, book buying, and even book publishing, and that is a national tragedy. ” Other booksellers may want Hachette to win, but like scared schoolchildren in the face of a bully, they are standing quietly on the sidelines, fearful of the retaliation that has already been directed at Hachette. Meanwhile, some customers are upset by Amazon's policies. " If Amazon thinks I don't care about its silence, it's wrong. I take it personally that the company doesn't think it owes me even a half-baked explanation for why I can't buy some books from it, " complained Jack Shafer, writing for Reuters .In addition, some legal observers think that Amazon is risking government anti-trust action. Who will "win" in the long run? Source: " Hachette Chief Leads Book Publishers in Amazon Fight " by Jonathan Mahler, the New York Times, June 1, 2014. " Amazon Absorbing Price Fight Punches ," by David Carr, the New York Times, June 1, 2014. F ollow up: Read the articles and previous post linked above. In hindsight, do you think that the anti-trust suit brought against the publishers in 2012 may have had the unintended consequence of creating a better environment for an Amazon monopoly? Give your reasons. What do some established authors think are the risks of this stand-off? How might this affect sales? What are the marketing and potential sales issues for Amazon, and for the publishing industry as a whole?
  • Apple bites Beats: will it get its groove back?

    Image above of The Beats by Dr Dre headphones cradling the Apple logo , signifying the new merger Jimmy Iovine has agreed to sell Beats Electronics to Apple Inc . for $3 billion. Beats Electronics, the maker of Beats by Dr. Dre premium headphones, currently has a contract with Hewlett Packard to integrate Beats hardware with their machines. (The HP contract will not be renewed when it runs out in 2015.) Apple seems to be buying a company that brings to the table some attitudes and features that Apple lacks. "Human curation" (rather than algorithms) drive the music selection of Beats' streaming music services. The Beats headphones couldn't be more unlike the Apple ear buds--they deliver sound quality far superior to what the tiny ear buds even attempt to offer. But Jimmy Iovine does share the key quality of showmanship coupled with "reality distortion" that Steve Jobs used to create a memorable business story. One claim that Jimmy Iovine makes about Beats is that it it built its $500 million business over three years while spending "zero dollars" on marketing--just by using their ability to "harness the media." They can talk all they want. It will still be a treat to see what products evolve from this partnership. Source: " A New Irreverent Spirit at Apple " by Vindu Goel, the New York Times BITS, May 29, 2014. F ollow up: Have you listened to music using Beats Electronics headphones? What are the pros and cons, compared to Apple ear buds? Compare and contrast this new acquisition by Apple with Beats Electronics' partnership with Hewlett Packard.
  • How much would a Made-In-America iPhone cost?

    Ironically, the image above is from the Moto X, which can be made in America for approximately the cost of making it overseas. "How much would an iPhone cost if it were entirely made in the U.S.?" This question was posed on a recent Marketplace radio-cast. The supporting data had already been analyzed by IHS Technology . The bottom line? A 100% American-made iPhone would cost around $2,000...compared to the $650 - $850 retail cost of the iPhone on the market today. It turns out the the increased price is partly due to labor costs and partly due to supply-chain issues for component parts. Labor in the U.S. is two to three times the cost of labor in China, where the phones are currently manufactured. But access to the needed parts is a larger factor. Whole "villages" have evolved around iPhone manufacture in China (for example, Shenzen) . Component parts are nearby and few logistics problems exist to keep the assembly lines for iPhones moving. In addition, labor costs for the manufacture of component parts--the most expensive of which is the display-- are also a factor . Source: " How much would an all-American iPhone cost? " by Stacey Vanek Smith, Marketplace, American Public Media, May 20, 2014. F ollow up: Does it matter to you where the iPhone is made? Is maintaining production facilities and production jobs in the USA a value to you? List your reasons. Read the link regarding the Moto X as well. One point in that article is that customization is possible with the Moto X. What do the authors of that article see as the pros and cons of American production for that phone? What percentage mark-up, from cost to retail, is IHS assuming in arriving at the $2,000 retail estimate?
  • Wanna make $21 per hour at McDonald's? Move to Denmark

    image from reuters In Denmark, there are two McDonald's wage levels: $21 per hour applies to adults 18 years of age and over. $15 per hour is the minimum wage for workers under 18 years old. Even the lower wage level is more than double the minimum wage for adults in the U.S.--and it exists in a public policy environment where health care is universal. These wage levels were not McDonald's idea. They were bargained for by a union--and putting that union in place required years of work. Sometimes the discussion in the U.S. media around the minimum wage ignores the profits being made by large corporations. The talking points center on the hurdles all costs are for small businesses just starting up. An additional argument for a higher minimum wage is that boosting wages for the lowest paid workers also boosts the salaries of entry-level professionals. This might mean less profit for stockholders of corporations like McDonalds--or fewer bonuses at the highest levels of management. Nevertheless, it also might mean that the social service costs of low-income wage earners are shifted away from middle class taxpayers and onto the corporations who are profiting from the labor provided at these low wages. What do you think? Source: " I’m making $21 an hour at McDonald’s. Why aren’t you? , " by Louise Marie Rantzau, Reuters: The Great Debate , May 15, 2014. F ollow up: One definition of the "minimum wage" is a " living wage ": the wage level that, with full-time work, can support a four person family at a lowest-rung middle class level. What do you think would be the living expenses at this level? What are the pros and cons of raising the minimum wage in the U.S.? What would be your definition of "minimum wage"? Is the concept of a "living wage" relevant? Would one wage work for the entire country? Research the wages paid at Chipotle, Costco and Walmart. How do minimum wage laws affect large corporations and small businesses differently? Have you ever supported yourself while being paid a minimum wage? Explain how that worked or didn't work. Read the article to find out how working for the current U.S. minimum wage affects others, if you do not have experience of your own.
  • Toyota criminal penalties: Are fines a real punishment? Why isn't Toyota in jail?

    image (of a Prius that had accelerated to 90 mph on a mountain road) from the Colorado State Patrol, published in the Los Angeles Times Toyota recently entered into an agreement to pay a multi-billion dollar settlement as a result of a known problem that caused deaths. The documented problem was that of sudden, unexplained acceleration. Last week, Toyota settled a criminal case brought against it by the Justice Department. Various lawsuits remain, but costs to this point include: $1.6 billion settlement of civil claims in a class-action lawsuit on this issue a $1.2 billion payment to the Justice Department, a criminal penalty, relating to wire fraud issues National Highway Traffic Safety Administration fine, which is capped by law at $35 million an agreement that Toyota will not be allowed to deduct its criminal penalty on its tax returns, which means that the American taxpayer will not lose out because of this settlement Part of the Justice Department agreement also stated that no individual executives will be prosecuted for these injuries and deaths related to the sudden acceleration problem. “The rules of evidence sometimes do not allow you to use certain kinds of evidence and certain documents against individuals, although they might be admissible against the company itself. Although there is an admission that they were individuals who engaged in conduct which provides for a basis to bring a case against the company, they are not charged here,” explained Preet Bharara, the U.S. attorney for the southern district of New York. Toyota can afford these penalties, as its current year profits total about $19 billion. If an individual person had committed these crimes, it is unlikely that they would get off without any jail time. Here are some mandatory minimum sentencing guidelines for individuals: Mandatory sentencing guidelines, Federal, from Wikipedia But Toyota is still allowed to operate. Toyota's stockholders continue to make money. According to the doctrine of " Corporate Personhood ," corporations have many of the rights as individuals. But if a corporation has the benefits of a person, should it also not be subject to the same criminal penalties? Source: "T oyota sudden-acceleration suit is ratified ," by Tina Susman and David Hirsch, The Los Angeles Times , March 20, 2014. " Toyota admits deceiving consumers; $1.2-billion penalty is record, " by Jerry Hirsch, The Los Angeles , Times, March 19, 2014. Follow up: What do you think? Is manufacturing a car when you know a defective part will cause deaths a punishable crime? Is it better to charge money penalties or to give the corporation the same penalty a "person" would receive: inability to work for a time period. What are the pros and cons of shutting down a corporation the same way an individual would have his or her business life shut down by incarceration? Should individual executives be prosecuted? Discuss the pros and cons. Comment on the agreement that Toyota cannot deduct its penalties from its taxes. Can individuals deduct fines such as parking tickets on their tax returns? Discuss the reasons for tax deductions and how criminal penalties fit into that logic.
  • Coffee convenience bad for the environment (and expensive)

    image from www.coffeemarvel.com As a committed coffee enthusiast, I periodically pine for a Keurig single-service brewing machine. The problem is, the little cups that that machine requires are not only expensive--they are bad for the environment. Still--the convenience and the visual artistry of it all does speak to me. I have to admit that the first time I tried to use this machine--at a motel--I had no idea how to manage it, and I made every mistake, creating a colossal mess. Now, however, I am an expert, and each morning--as I am either making my pot of home brew or walking the 1/2 a block to my neighborhood coffee house--I fantasize about what it would be like to have one of those splendid little single-brew machines. I'm not alone. In 2008, single-pod coffee sales were $132 million; in 2013, they were $3.1 Billion. But there are issues. First, to properly recycle the remains of the pods means separating the aluminum top, from the plastic pod, from the wet coffee. Do users really do that? Probably not. Moreover, the #7 plastic that almost all of the K-cups are made from is not recyclable. In addition: there are a lot of tiny cups to recycle. To put it in perspective, the 8.3 billion cups produced last year by Green Mountain for Keurig machines would circle the earth more than 10 times. For now, I'm sticking to home-brewed or my Tall red-eye half-caf dark in a personal cup at my local coffee place. Source: " Your Coffee Pods' Dirty Secret ," by Maddie Oatman, Mother Jones , March 19, 2014. Follow up: Make a chart comparing the cost of a cup of coffee, 5 cups, 10 cups, 20 cups, 100 cups and 365 cups brewed vs. K-cup. What can you conclude from this analysis? What are all of the environmental and health issues of these cups, according to the article?
  • China wants U.S. milk

    image from www.trust.org: powdered milk produced by Fonterra, and were part of a bribery scandal. Above is a picture of a shopping aisle in China--fully stocked with powdered milk. In the above photo, however, the milk is being removed because of a bribery scandal involving a foreign company that paid to have its product stocked on these shelves. The market for non-domestic milk product in China is particularly high for two reasons--breastfeeding is unpopular, and the 2008 melamine-tainted Chinese milk that poisoned over 100,000 infants is still on the minds of parents. Responding to this demand are tiny farming towns in the United States. The town of Fallon, Nevada, has built huge processing plants to convert milk into powdered milk for shipping overseas--since shipping to nearby California has been thwarted by "Real Milk from Real California Cows" advertising campaigns. image from Fallon, NV production plant from the article linked below Because U.S. milk consumption has plateaued, the new Chinese market represents a growth opportunity. Source: " China's thirst for milk gives dairy farmers a boost ," by David Pierson, The Los Angeles Times , March 15, 2014. Follow up: What might happen to domestic milk availability and prices as a result of factories being built to process powdered milk for overseas shipment? Is this production and sales system sustainable? Why or why not?
  • GM auto defects ignored for years; deaths mounted

    Kelly Ruddy's Chevy Cobalt from the NYT article linked below Here is the problem with several low-to-mid-priced General Motors (GM) cars: suddenly--even at freeway speeds--the car stalls out, totally losing power to the engine, steering, power-assisted brakes, and air bags. When did GM first become aware of these problems? Since 2003 an average of two complaints per month have been filed with the National Highway Traffic Safety Agency (NHTSA) about these random "shut-downs." Who knows how many complaints were lodged with GM, but didn't make it as far as the NHTSA? What was done? Even when former Congressman Barney Frank intervened on consumers' behalf in 2010, the NHSA responded: “ At this time, there is insufficient evidence to warrant opening a safety defect investigation .” By this time, there had been at least 78 deaths and over 1500 injuries due to the sudden ignition failure problem. The NYT analysis shows that the NHTSA as well as General Motors seemed to ignore data relating to this problem. The vehicle recall now in place involves 1.6 million vehicles. Source: " Auto Regulators Dismissed defect tied to 13 Deaths " by Hilary Stout, Danielle Ivory and Matthew L Wald, New York Times, March 8, 2014. Follow up: With whom does the responsibility for car defects lie? The manufacturer? Government regulators? The consumer who buys the less-than-top-of-the-line car? Who should "pay" for damages and why? Do you think that government regulation takes the responsibility off the shoulders of the manufacturer? When a manufacturer becomes aware of a defect, what communication, financial, production, and legal procedures should kick into place? Are the issues only "civil" or are they possibly "criminal"?
  • Sweet-to-the-core product launch

    image from article linked below Pictured above is one of Ben & Jerry's new "core" ice cream flavors: Hazed and Confused. There is a core of Nutella (chocolate/hazelnut), surrounded by hazelnut ice cream and chocolate ice cream with fudge chips. The products in this launch have multiple ice creams in one yummy container. Ben & Jerry's is a company that started in 1978. During that time, they have expanded world-wide and have remained profitable. One way that they have continued to thrive has been to adapt their product line on a regular basis. This product launch is one innovation. The other products that are a part of this launch are: That's My Jam Chocolate Peanut Butter Fudge Salted Caramel I wish I could say I'd already done a product taste test. Which flavor do you think will be most successful? Source: " Ben & Jerry's Nails It With New Core Ice Cream Flavors, " Huffington Post, February 25, 2014. Follow up: Read about Ben & Jerry's on their website, linked above. What attributes make Ben & Jerry's different from other corporations, and in what way is it similar in terms of structure? What are Ben & Jerry's "core" values? How do they influence the following: marketing campaigns? product manufacture? employee relations?
  • Drugs made in India found to be substandard...and a lot of our Rx are imported from India

    image from " Bad Medicine" American Enterprise Institute From the New York Times: " India, the second-largest exporter of over-the-counter and prescription drugs to the United States, is coming under increased scrutiny by American regulators for safety lapses, falsified drug test results and selling fake medicines ." The FDA has recently increased its inspection schedule of Indian drug producers, and has banned the export of several generic version of medicines including Accutane and Cipro, which had been found to be adulterated. Worries about drugs produced in India reached a high point last week, when the Indian drug producer Ranbaxy (which had been found in violation of safety violations "too numerous to count") asked the FDA to please let them continue to ship drugs while they are trying to fix the problems. The FDA said no. I would say that Ranbaxy is "unclear on the concept" of the importance of drugs being produced to a high standard of safety. But the problem is not just with that one firm in India. G. N. Singh, India's Drug Controller General, said in an interview with The Business Standard : “ If I have to follow U.S. standards in inspecting facilities supplying to the Indian market, we will have to shut almost all of those .” Some of the problems that have occurred include: over 100,000 orders were knowingly shipped of antibiotics with no medicine in them the World Health Organization study estimated that 1 in 5 drugs made in India are fakes counterfeit medicines in a hospital in Kashmir resulted in hundreds of infant deaths drugs shipped to Uganda had counterfeit labels from Cipla, a company which tries to maintain high standards. I have started looking at the labels that are on the medicines provided through my health plan. Sure enough--almost all of them are made in India. Hmmm... Source: " Medicines Made in India Set Off Safety Worries ," by Gardiner Harris, New York Times, February 14, 2014. Follow up: What are the possible remedies for this situation? What might you do to protect yourself? Would you pay more for drugs manufactured in the United States? Would a private auditing company's seal of approval be better? Who should be in charge of regulation of drugs taken by Americans? The U. S. government? The Health care provider that contracts with the drug companies? Explain your thoughts on this matter.
  • Body parts: an entrepreneurial business opportunity?

    image from blog.mannequin.com OK...These are mannequin body parts. So I guess it isn't quite as gruesome as real body parts. But who knew they would represent an entrepreneurial opportunity? Actually, the business-- Mannequin Madness --has been in existence for 15 years. The revenues are modest but not inconsequential: they range from $500,000 to $800,000 annually...and the work involves selling, renting and recycling mannequins. The entrepreneur, Ms. Henderson-Townsend, says that she was perusing Craigslist one day...and came upon a person selling mannequins and parts. She bought the entire inventory for $2500. She first ran a rental business part time, but, when her employer went bankrupt in the following year, she pursued the business full time. She found that it was moderately easy to accumulate the non-biodegradable mannequin parts as inventory...which she then recycled to Sears, Nordstrom, Ralph Lauren and Kohl's. The Environment al Protection Agency gave her an award for recycling more than 100,000 pounds of mannequin in a year. She hopes her newly independently-contracted "controller" can help her figure out how to manage and control her business and her profits. In addition, she ha s been reading: “ How Rich People Think ” by Steve Siebold. She is trying to develop her "million dollar mindset" in order to maximize her business potential. Sources: " Turning Body Parts--Mannequin Body Parts--Into a Business ," by Coleen DeBaise, The New York Times--Small Business, January 9, 201 4. “ How Rich People Think ” by Steve Siebold, published by London House Press, July, 2010. Follow up: What wacky business opportunity can you brainstorm, given that this one was viable? Check out the book “ How Rich People Think ” by Steve Siebold. Do you think it will help Ms. Henderson-Townsend achieve her goals?
  • Outside the box: high pay for workers increases profits

    [View:http://community.cengage.com/GECResource/themes/gew/ utility/ :550:0] " The Good Jobs Strategy " TEDx at Cambridge 2013 Zeynap Ton , an MIT professor, has studied retail sector jobs and profits, and has found that companies who pay workers well are more profitable in the long run. She found that, initially, cutting jobs and hiring minimum-wage workers produces short term gains, but when customer satisfaction decreases, sales and profits suffer. Originally writing in the Harvard Business Review , Ton noted that companies that offer high pay, flexibility, advancement opportunities and personal autonomy were also profitable. She profiled four companies in particular: Costco, Trader Joe's, Quiktrip and Mercadona (a Spanish company). photo taken by Wilfredo Lee for AP photo These were some of the practices employed by those companies that helped the human resource plan work: simplification of the product offerings and fewer sales promotions; training of employees in mastery of a wide range of tasks; letting employees make minor decisions (enriching individuals' expertise and job buy-in, as well as lessening the need for management time) elimination of waste in all other areas but staffing--such as advertising and logistics management. Adam Davidson's article in the NYT Magazine delineates his personal experience with the furniture retailer IKEA. IKEA changed their human resource strategy between one visit by Davidson and a second visit. Davidson's first experience was terrible--lost in the huge store, and unable to find staff capable of helping him, he vowed never to return. When he reluctantly DID go back--the experience was totally different (he was even greeted at the door by someone who pointed him directly to the area he needed to go to). What had happened in the meantime was that IKEA had hired an " operations management " firm named Kronos , who helped them set up a system along the lines of Ton's research. Sources: " Thinking Outside the (Big) Box, " by Adam Davidson, New York Times Magazine, January 5, 2014. " The Good Jobs Strategy ," by Zeynap Tom, published by New Harvest, January 2014. Follow up: Check out the stock prices for Walmart and Costco from 10 years ago, five years ago and today. What conclusions can you draw from an analysis of stock prices, compared with human resource policies? According to the NYT Magazine article, what other researcher backs up Ton's claims, and how many dollars in increased sales can be obtained for every dollar spent on workers? What does the field of "operations management" or "workforce management" entail?
  • What's new in "social" for 2014.

    image from vimeo of additional social media predictions from 2Factory Social media. Who would have thought, ten years ago, that this would be a major focus for marketers? In 2013, young people tired of Facebook...but that is partly because of the newer products and trends on the horizon. One take on what is coming up: Single purpose is better than multi-purpose . Apps are where it's at to deliver specific services. Want a social resale shopping experience? Try Poshmark . Do you want to do some free reading? Try Wattpad . Are you a Mormon...and do you need a marriage-minded date? Try Tinder. Temporary is better than permanent ...and its corollary: anonymity is newly popular . With all of the privacy issues and the realization that so much of one's internet life is permanently available, apps that let data disappear are appealing. Have a look at Snapchat . "Swiping" is the short path to everything. Need a Christmas tree? A kitten ? A few finger taps on your smartphone and you can have what you want. Delivered. Video has begun a new leap forward . The mini-experience of Vine is just the beginning. As memory space becomes more compact and high definition cameras are even available on phones, the video universe will continue to open up. "From zero to hero in record speed." Apps can come out of nowhere and go viral. " Hockey stick growth " (and its corresponding sudden decline) is becoming the new life cycle for social media products. Who knows what will grow in 2014... Source: " 5 things to expect in social in 2014 ," by Jennifer van Grove, CNet news, December 31, 2013. Follow up: Watch the vimeo link from 2Factory (linked under the image at the top of this post). List and describe the additional trends in social media delineated in that presentation.
  • Pepsi taking over the snack world

    Image from www.thrillist.com Pepsi has reached a deal to be the soda and snack food supplier to the rapidly growing Buffalo Wild Wings restaurant chain. This caught my eye for several reasons--not the least of which was that my alma mater, the University of Michigan, is playing in the Buffalo Wild Wings BCS Bowl game this holiday season (against Kansas State). This new deal means that Pepsi products--the colas, and Mountain Dew--will be supplanting any Coca Cola products in the restaurant from here forward. In addition, other Pepsi brands, such as Doritos corn chips, will be incorporated into the menu items at Buffalo Wild Wings, just as Doritos have been incorporated into the menu at Taco Bell. What will we see in the future? A "Dorito-encrusted wing" or a "Mountain Dew cocktail"? Hmm. Spokespersons for Buffalo Wild Wings (Sally J. Smith) and PepsiCo (Kirk Tanner) said that they look forward to taking advantage of Pepsi's relationships with entertainers and sports players as well as increasing the tie-ins with fantasy football. PepsiCo’s chief executive, Indra K. Nooyi, agrees with pursuing these strategies. The new partnership will be following some of the marketing synergies that have worked between Pepsi and Taco Bell. Source: " Pepsi Deal Underscores An Emphasis On Snacks ," by Stephanie Strom, New York Times, December 11, 2013. Follow up: How much has Buffalo Wild Wings grown over the last three years? What has happened to Pepsi sales over the same time period? What does this say about Pepsi's decision-making strategy for the future?
  • Business tool: Naps

    image from www.citytowninfo.com Brian Halligan is the CEO of HubSpot , an "inbound marketing software platform." His experience is that all of his brilliant ideas arise either when he is falling asleep or just waking up. Even though these epiphanies arise only once or twice a month, it is important to him to nap on a regular basis, and he encourages his workers to do the same. Much of his workforce is part of "Generation Y." He has rethought the business culture and his management style in terms of what motivates and nourishes those in this generation. Some of the preferences Halligan tries to cater to include: workers wanting to work wherever they can work workers wanting freedom, but who are also willing to take on huge responsibilities workers wanting to change jobs about every six months (so he changes routines and assignments frequently) workers being motivated more by learning than by money. Halligan's philosophy about Human Resource management seems radical, but he seems to have been willing to adapt with the times--an important attribute in an information-technology-based company. Source: " Brian Halligan, Chief of HubSpot, on the Value of Naps ," by Adam Bryant, The New York Times, December 5, 2013. Follow up: What is an "inbound marketing software platform"? What is a "seam head"? What is "VORP"? Do naps work for you in the same way they work for Halligan? How do your own sleeping patterns either help or hinder your working life? Do Halligan's views about the "Gen-Y" worker ring true to you? Why or why not?
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