Archive for November 19th, 2012

B-School students get some satisfaction … at some schools.

November 19, 2012

Punch line: Business week releases results on which B-Schools have the most and least satisfied students.

* * * * *
Excerpted from businessweek’s, “Can’t Get No Satisfaction: The B-School Happiness Index”

Which business schools have the most satisfied students?

That question will in large part determine which schools make it to the top of the list and which are consigned to rankings oblivion.

Student satisfaction counts for 45 percent of the final ranking, while recruiter surveys contribute an additional 45 percent and a review of faculty research adds the final 10 percent.

Picture1

It’s worth noting how closely student satisfaction tracked with teaching quality and career services this year.

Four of the five schools with the most satisfied students were on our lists of schools with the most highly-rated teachers and career services.

Three of the five programs with the least-satisfied students were on our list of schools with the most poorly rated career services.

Don’t look for the highly ranked MBA programs at Harvard, Wharton, and Stanford to top the list of schools with the most satisfied students.

As a rule, students come to such programs with super-high expectations and, in our surveys, are generally reluctant to give them the highest marks.

But the elite programs get their revenge in other ways: Recruiters love them.

Edit by BJP
* * * * *
Follow on Twitter @KenHoma

Stock market: This year, beware the Ides of December …

November 19, 2012

The stock market usually does well in December: gaining ground in 75% of Decembers since 1928 while earning a 1.5% average monthly return … second best of the 12 months .

But , as we’ve harped before …

Capital gains taxes are scheduled to rise at the start of 2013 from a 15% rate to 23.8% (20% plus a 3.8% tax associated with ObamaCare.

image
Source

According to Goldman Sachs:

The nearly 9 pp hike in capital gains taxes is similar in magnitude to the 9 pp rise in 1970 and the 8 pp rise in 1987.

In both prior cases S&P 500 posted negative returns in December as investors locked-in the lower tax rate.

The S&P 500 fell by 1.9% in December 1969 and 2.8% in December 1986.

Merry Christmas!

* * * * *

Have homeownership (and home prices) bottomed out?

November 19, 2012

Couple of interesting charts from Prof. Mark Perry

The home ownership rate in the US has fallen to about 65% … down from a peak over 69% during the housing boom & bubble.

Couple of observations:

  • With roughly 120 million households, that converts to about 5 million housing units … a rough indicator of how many folks bought homes that they couldn’t afford – either from the get=go or impacted by the recession
  • Big question: have we reached bottom or do we have another 1% – 1 million units – to go?  Lots of analysts are saying we’ve reached bottom … but that requires an inflection point, right?

image

= = = = =
Note surprisingly, home prices map closely with the homeownership rate … except for the past couple of periods – with house prices trending up and homeownership still trending down.

Raises questions:

  • Is the recent home price strength just a blip that will fall back into pattern?
  • Or, are home prices a leading indicator that we’ve reached bottom?

image

* * * * *

How to goose Mickey D’s sales …

November 19, 2012

For the first time in awhile, McDonald’s reported a drop in same store sales … and fired the U.S. President.

Now, industry mavens are proffering advice for turning things around …

image

Reported in USA Today, here are some of the ideas:

  • Push new products, new meal occasions and acta bit less fast-food-ish and a bit more like Panera or Chipotle.
  • Fix dinner … dinner is where McDonald’s struggles most … make dinner far more inviting with a dish that isn’t just another sandwich … such as a more upscale chopped steak platter … add baked potatoes at dinner
  • Serve breakfast all day … “bring back customers who come for McMuffins, but not burgers.”
  • More monthly specials … limited-time-only products, such as McRibs, are huge …have a new one every month to keep folks returning.
  • Sell sausage …  put a $1 bratwurst — not a hot dog — on the menu
  • Stop price creep … food got too expensive at McDonald’s ..  “reinvigorate” the $1 price point “to reconnect with price-conscious consumers.”
  • Consider home delivery …  Burger King is testing home delivery, and McDonald’s should, too.
  • Lure Millennials. Much like the Republican party, McDonald’s must appeal more to women, minorities and Millennials.

= = = = =
Ken’s Take
:

1) Geez, don’t panic guys … there is a tough economy out there

2) Stay true to your core … remember when Taco Bell tried to go upscale and started to lose its base – young males looking for cheap food.

3) It’s all about the dollar menu – the McDouble for $1 is a powerful magnet !

* * * * *

The Mellow Mushroom mascot is following you … and not just on Twitter

November 19, 2012

Punch line: With its “Follow Me and I’ll Follow You” campaign, pizza chain Mellow Mushroom turns the popular online phrase “following” into a real-life brand action.

* * * * *

Excerpted from Ad Age’s, “Follow Pizza Chain Mellow Mushroom On Twitter, And It’ll Follow You Back — In Real Life”

Mellow Mushroom is watching you

When you follow brands on Twitter, at best you get a smattering of decent jokes littered across your Tweetdeck timeline, and at worst, you’re bombarded with promotional tweets that practically beg you to unfollow them.

Pizza place Mellow Mushroom does neither. Fitzgerald + Co offers you a little stalker with your Twitter follow with “Follow Me and I’ll Follow You,” a campaign that told people that in return for following the company on Twitter, it would follow you.

The catch? They’d follow you in real life, dressed as Mellow’s stoned-looking mushroom mascot.

The brand stalked 20 Mellow Mushroom followers in a week (with help from the followers’ friends and family), and recorded the whole thing using hidden cameras.

Want to see the result? Watch @acuemma get followed by clicking here.

Edit by JDC

>> Latest Posts