http://www.canada.com/story.html?id=795502&p=2
Summary
Many credit cards are offering travel reward points as one of their many perks. When selecting a credit card, its not only about the interest rates and affiliations, but rather the rewards that come with using that card. Travel rewards are one of the most popular ones out there for credit card holders. For each dollar spent, the Royal Bank Avion Platinum Visa Card gives one reward point. BMO Bank of Montreal’s Mosaik Gold Air Miles rewards program is being re-launched. Not only can card holders redeem more flights using less reward miles but the interest rates are slightly lower than most of the other cards. Scotia Gold Passport Visa’s best selling point is their flexibility. They ensure that “you can book flights on any airline, to any destination, at any time of the year, without blackout periods, limited seating or Saturday night stay restrictions”. Most of the credit cards that have travel reward programs charge cardholders an annual fee of usually $90 - $120. Some credit cards require a minimum annual income frequently $25,000 to $35,000 and most often give bonus points when you sign up.
Connection
This article connects well with what we’ve been learning in chapter 14 about how banks are involved in businesses and how a bank is actually a business of its own. One of the many revenues that enter a bank are the credit cards that they have associated themselves with. By offering their clients credit cards, they can charge interest fess, annual fees, and so on. But to attract consumers to get their bank’s credit card, they must offer perks to pull them into wanting to have that credit card. Different credit cards are trying different methods to draw in consumers so they can make more revenue. Even though credit cards are most often used at the time of purchase and swiped through a machine, I’ve heard that some credit cards also provide cheques, which could be very handy. By allowing cardholders to have larger amounts in their transactions, the bank benefits from this largely. If the cardholder fails to make their full payment, the bank is entitled to charge interest on the amount owing and continue piling on interest until the full amount is cleared. Credit card agencies bank on this deficiency of the clients in order to make prodits, as they charge high interest rates for delayed payments.
Reflection
Even though I am not of age to have a credit card, I know which credit card I would like to have when I can get one. The reason why my father uses the credit card from President’s Choice because they offer reward points and once you reach a certain amount you can use those points and get something that will make you believe it’s worth it to be using a credit card from that company. Because my dad is a man like any other father and guys tend to be lazy, he likes to do his shopping all at one store. So when he heard about the credit card that is affiliated with SuperStore, he knew he had to get one. Once he collects a certain sum of 20,000 points I believe he can get $20 worth of grocery from SuperStore free of charge. This method that SuperStore uses works extremely well because they carry almost everything, which allows customers to easily accumulate points, thereby successfully luring them into the program.
Monday, November 24, 2008
Tuesday, November 18, 2008
Chapter 12: Auto Executives Plead for Emergency Aid
http://www.financialpost.com/news/story.html?id=970258
Summary
Three Domestic auto manufacturers beg for financial aid from both the Canadian and US government. Letting everyone know that if they can’t survive this crisis, it will ultimately be the average families that get affected and both countries’ economy will suffer a fair amount of damage. GM, Ford, and Chrysler all requested the legislators to “approve US$25-billion in emergency bridge loans”. In unison, the three representatives that appeared before the legislators claimed that if even one automaker goes bankrupt, the whole auto sector would crumble and a domino affect will arise which would result in a lost of jobs for millions of workers and ultimately lower government tax revenue. “ “What we need is liquidity because we’re bumping up against our minimum cash levels now, as is Ford, as in Chrysler,” David Paterson, GM of Canada’s vice-president of corporate affairs.” The auto sector is slowly declining. Over the past 15 years, 500,000 jobs relating to this industry have been lost for US workers.
Connection
To make it through the current economic crisis, companies need an adequate amount of capital to keep their company out of danger. By using various methods, one being cash discounts as we have learned in chapter 12, will temporary assist the company gain more capital which will hopefully keep that company out of crisis. Cash discounts are very beneficial to both the consumer and the retailer. By paying the bill earlier, the consumer will be able to save some cash and this guarantees that the company’s accounts receivables will be paid off. Even though cash discounts will help with the situation, it is only a temporary solution. These small payments are not enough to keep the company running forever. It would be wiser to think of another approach to maintaining that cash flow.
Reflection
Even though these three auto manufacturers are located in Detroit, if they actually do go bankrupt, they have a much larger impact than only in Detroit. A manufacturing company in one city may appear like there’s no connection whatsoever with another city half way across the country, but what if the parts that the auto plant uses is imported from that other city half way across the country? By closing down any one of the three auto manufacturers, there will always be something else that will be affected. Whether it be negatively or positively, no one can be sure until the incident occurs. As I have recently learned in Geography12, “A system is an interconnected set of elements”. In more simple terms, all systems are connected and if there is any disruption in one of the systems, this change will have effects on the other systems. So the representatives are correct in the sense that one auto manufacturer going bankrupt will cause an unbalanced system, which will also cause a dramatic decrease in jobs and affect the citizens.
Summary
Three Domestic auto manufacturers beg for financial aid from both the Canadian and US government. Letting everyone know that if they can’t survive this crisis, it will ultimately be the average families that get affected and both countries’ economy will suffer a fair amount of damage. GM, Ford, and Chrysler all requested the legislators to “approve US$25-billion in emergency bridge loans”. In unison, the three representatives that appeared before the legislators claimed that if even one automaker goes bankrupt, the whole auto sector would crumble and a domino affect will arise which would result in a lost of jobs for millions of workers and ultimately lower government tax revenue. “ “What we need is liquidity because we’re bumping up against our minimum cash levels now, as is Ford, as in Chrysler,” David Paterson, GM of Canada’s vice-president of corporate affairs.” The auto sector is slowly declining. Over the past 15 years, 500,000 jobs relating to this industry have been lost for US workers.
Connection
To make it through the current economic crisis, companies need an adequate amount of capital to keep their company out of danger. By using various methods, one being cash discounts as we have learned in chapter 12, will temporary assist the company gain more capital which will hopefully keep that company out of crisis. Cash discounts are very beneficial to both the consumer and the retailer. By paying the bill earlier, the consumer will be able to save some cash and this guarantees that the company’s accounts receivables will be paid off. Even though cash discounts will help with the situation, it is only a temporary solution. These small payments are not enough to keep the company running forever. It would be wiser to think of another approach to maintaining that cash flow.
Reflection
Even though these three auto manufacturers are located in Detroit, if they actually do go bankrupt, they have a much larger impact than only in Detroit. A manufacturing company in one city may appear like there’s no connection whatsoever with another city half way across the country, but what if the parts that the auto plant uses is imported from that other city half way across the country? By closing down any one of the three auto manufacturers, there will always be something else that will be affected. Whether it be negatively or positively, no one can be sure until the incident occurs. As I have recently learned in Geography12, “A system is an interconnected set of elements”. In more simple terms, all systems are connected and if there is any disruption in one of the systems, this change will have effects on the other systems. So the representatives are correct in the sense that one auto manufacturer going bankrupt will cause an unbalanced system, which will also cause a dramatic decrease in jobs and affect the citizens.
Monday, October 27, 2008
Chapter 12: The best cities for small business
http://www.financialpost.com/small_business/story.html?id=892376
Summary
According to recent analysis, big cities are not a good place to start a small business. Entrepreneurs are more successful in smaller cities than in the larger ones. Even though a lot of Canadians are concentrated mainly in the large cities, small businesses in these cities seem to be weighed down by the many taxes that the city places on businesses. “There are secrets to success, and the more you see start-ups and small businesses operating in your community, the better off the whole community is going to be,” Ted Mallet, CFIB’s chief economist says. CFIB (Canadian Federation of Independent Business) has set up a list of criteria that they evaluate the cities on. On that list of strong entrepreneurial success cities include a lot of cities from Saskatchewan, Alberta, and BC. It appears that Western Canada is better off than those cities in Eastern Canada.
Connection
In chapter 12, we’ve learned about cash discounts and allowances which could be applied to this situation. In determining which cities would be a good place to start small businesses, we can not neglect the actual business techniques that the owners use. Even if the city is a very suitable place to start a small business, the owners still have to come up with clever ways to attract customers. By having items on sale once in a while, customers are more likely to come into the store and have a look around and perhaps purchase something. When an item is on sale for 20% off, the bookkeeper has to include it in their books using the new account that we’ve learned – cash discounts and allowances.
Reflection
Sometimes small businesses can’t afford to have items on sale because they already don’t make a lot of profit off the products, but then there are times when they have to compete with the larger organizations that they just have to sell their items for less. Especially since the economy is going downwards, it’s a smarter decision for businesses to quickly sell whatever inventory they have at hand so they have more capital which will help their business survive the hardship. Having read this article, I’ve realized that it’s very true about how small businesses tend to not be able to survive the bigger cities. Because of the large competition in large cities, small businesses aren’t as likely to be able to survive.
Summary
According to recent analysis, big cities are not a good place to start a small business. Entrepreneurs are more successful in smaller cities than in the larger ones. Even though a lot of Canadians are concentrated mainly in the large cities, small businesses in these cities seem to be weighed down by the many taxes that the city places on businesses. “There are secrets to success, and the more you see start-ups and small businesses operating in your community, the better off the whole community is going to be,” Ted Mallet, CFIB’s chief economist says. CFIB (Canadian Federation of Independent Business) has set up a list of criteria that they evaluate the cities on. On that list of strong entrepreneurial success cities include a lot of cities from Saskatchewan, Alberta, and BC. It appears that Western Canada is better off than those cities in Eastern Canada.
Connection
In chapter 12, we’ve learned about cash discounts and allowances which could be applied to this situation. In determining which cities would be a good place to start small businesses, we can not neglect the actual business techniques that the owners use. Even if the city is a very suitable place to start a small business, the owners still have to come up with clever ways to attract customers. By having items on sale once in a while, customers are more likely to come into the store and have a look around and perhaps purchase something. When an item is on sale for 20% off, the bookkeeper has to include it in their books using the new account that we’ve learned – cash discounts and allowances.
Reflection
Sometimes small businesses can’t afford to have items on sale because they already don’t make a lot of profit off the products, but then there are times when they have to compete with the larger organizations that they just have to sell their items for less. Especially since the economy is going downwards, it’s a smarter decision for businesses to quickly sell whatever inventory they have at hand so they have more capital which will help their business survive the hardship. Having read this article, I’ve realized that it’s very true about how small businesses tend to not be able to survive the bigger cities. Because of the large competition in large cities, small businesses aren’t as likely to be able to survive.
Thursday, September 25, 2008
Chapter 11: The War on Retail Crime
http://www.canada.com/vancouversun/news/westcoastnews/story.html?id=feeb35bc-c991-4155-b09c-e6e0d11a7efd
Summary
Crime rates have always been steady. It doesn’t matter how well the economy is doing, there is always people who feel the need to steal. General manager of loss prevention at London Drugs, Tony Hunt conducts an interview with a shoplifter. With advancements in technology, retail stores are constantly upgrading their systems and adding new security features. London Drugs works hard to prevent shoplifting by following these phrases: ‘nowhere to hide’, ‘blast-proof glass’, ‘surprise, you’re on closed-circuit tv’, ‘you must be this tall’, ‘can’t crack the code’, ‘no clean sweeps’, ‘tested on thieves’, ‘shoplifters beware’, and lastly ‘so much to touch’. If retail stores were to use some of these strategies, shoplifting in their store wouldn’t’ be much of a problem.
Connection
When people think of theft in a retail store, everyone automatically thinks of someone stealing from the storefront. But internal thief is just as likely or even more so than external. Even though large stores like London Drugs use computers and scanners to keep records of the inventory at hand, it is very important that they do a physical count at least once a fiscal period. By doing so, the company can have accurate numbers on the quantity of their products that are still in stock. With accurate numbers, the store can determine when to restock as well as precisely provide consumers with correct information. Not only that, but once a precise number is determined, the accountant can accurately produce financial documents.
Reflection
Even though conducting a physical inventory count is very time consuming and tiresome, it is extremely beneficial to the company. Most companies take a lot of precaution to external shoplifting and often neglect internal thief. Having worked in retail before, I realize the importance of physically counting inventory to ensure the numbers the computers provide are close to the quantity that we have. Being an ultimate consumer, I would appreciate updated numbers when it comes to the quantities in stock in this or another location of the store. If I were given false information which led me to believe the store that’s at the other end of the city still had 5 more of the products that I want and, gullible as I am, I drive all the way there to find out that they in fact did not have a single one. Experiencing situations like this would annoy customers and eventually lead to decrease in customer loyalty which lowers sales and revenues.
Summary
Crime rates have always been steady. It doesn’t matter how well the economy is doing, there is always people who feel the need to steal. General manager of loss prevention at London Drugs, Tony Hunt conducts an interview with a shoplifter. With advancements in technology, retail stores are constantly upgrading their systems and adding new security features. London Drugs works hard to prevent shoplifting by following these phrases: ‘nowhere to hide’, ‘blast-proof glass’, ‘surprise, you’re on closed-circuit tv’, ‘you must be this tall’, ‘can’t crack the code’, ‘no clean sweeps’, ‘tested on thieves’, ‘shoplifters beware’, and lastly ‘so much to touch’. If retail stores were to use some of these strategies, shoplifting in their store wouldn’t’ be much of a problem.
Connection
When people think of theft in a retail store, everyone automatically thinks of someone stealing from the storefront. But internal thief is just as likely or even more so than external. Even though large stores like London Drugs use computers and scanners to keep records of the inventory at hand, it is very important that they do a physical count at least once a fiscal period. By doing so, the company can have accurate numbers on the quantity of their products that are still in stock. With accurate numbers, the store can determine when to restock as well as precisely provide consumers with correct information. Not only that, but once a precise number is determined, the accountant can accurately produce financial documents.
Reflection
Even though conducting a physical inventory count is very time consuming and tiresome, it is extremely beneficial to the company. Most companies take a lot of precaution to external shoplifting and often neglect internal thief. Having worked in retail before, I realize the importance of physically counting inventory to ensure the numbers the computers provide are close to the quantity that we have. Being an ultimate consumer, I would appreciate updated numbers when it comes to the quantities in stock in this or another location of the store. If I were given false information which led me to believe the store that’s at the other end of the city still had 5 more of the products that I want and, gullible as I am, I drive all the way there to find out that they in fact did not have a single one. Experiencing situations like this would annoy customers and eventually lead to decrease in customer loyalty which lowers sales and revenues.
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