Mark Zuckerberg- Time Person of the Year 2010

Check out this article which names Mark Zuckerberg Time Magazine's Person of the Year 2010:

http://www.time.com/time/specials/packages/article/0,28804,2036683_2037183_2037185,00.html

It's got some very interesting points, debunking some of the myths about the man that would have come up since last year's hit film The Social Network. What is perhaps most interesting is what he calls the "Facebookization of the Web." Do you think that social networks are the way the web will be in a post-google world? Is there really as much value in his company as people seem to think?

The fine line between controlling inflation and keeping growth alive

In Unit 4 we see that the MPC uses the interest rate as a way to control inflation and stimulate economic growth. This short article illustrates just how fine a line the Bank of England has to walk to make sure that they control inflation without hurting the economy. Business leaders here talk about how they would be upset if the interest rate were to rise, just as we talked about in our Unit 4 lessons.

http://www.nebusiness.co.uk/business-news/latest-business-news/2011/01/19/bank-warned-rate-hike-will-hit-uk-growth-51140-28010980/

Article found by Sunny Ricketts

How do interest rates affect economic growth?

Take a look at the following aritcle from the Daily Mail:

http://www.dailymail.co.uk/news/article-1348463/UK-inflation-triggers-mortgage-rate-rise-fears-cost-living-increases.html

In Unit 4 we learn that interest rates are designed to slow down economic growth when it gets too 'hot' and to keep inflation at bay. One of the effects is that a high interest rate effectively gives people with mortgages less disposable income. This article is all about that and what people are doing in order to keep their mortgage rates low before there the rate goes up.

Well done to George Miller for finding the article.

China's Growing GDP

Here is an interesting article which deals with China's GDP:

http://www.guardian.co.uk/business/2011/jan/21/china-confirmed-worlds-second-largest-economy

There are several links to the kinds of economic influences we would see in Unit 4:

1. President Obama encourages his chinese counterpart, Hu Jintao, to raise the value of the Chinese currency, the Yuan. This exchange rate rise would make currently cheap Chinese exports more expensive for Americans to buy, making American products more competitive in the USA compared to Chinese ones.

2. The rapid growth comes with fears that inflation in China might grow as well, just as we talked about with inflation rising in the boom period of the business cycle.

Steve Jobs- The Man at Apple

This has some real links to the leadership section in Unit 4, but it's also just interesting to see the effects of one person's leadership:

http://edition.cnn.com/2011/TECH/gaming.gadgets/01/17/steve.jobs.leave/index.html?hpt=T1

http://money.cnn.com/2008/11/09/technology/cook_apple.fortune/index.htm?hpt=T1

Steve Jobs helped to create Apple. Since he rejoined the company in the late 90s he's been responsible for making them one of the most successful brands in the world. Now he's sick, and there's talk of him going on sabbatical. These aritcles explain the effect that may have on the company.

Isn't it incredible that one person can have such an impact on a company? It goes to show that leadership is worth something- just ask any apple shareholder who loses share value if Mr. Jobs steps down!

Thanks to Tom Donovan-Brady for finding the aritcles.

Price of Copper Rises

http://www.bbc.co.uk/news/business-12110141

One could look at this in several ways. First, it illustrates the danger for businesses when prices of raw materials increase. Second, it demonstrates the supply-demand relationship in commodities markets.

VAT Rises from 17.5% to 20%

An excellent example of Political influence on business in our PEST analysis framework:

http://www.bbc.co.uk/news/business-12099638

Basically, this article has everything you could ever want to know about Value Added Tax.

Two things going on here- first, the effect on businesses. With a new increase in VAT businesses will either have to raise prices (which would do what to demand, given Price Elasticity of Demand?) or cut into profits (which no business likes).

Second, what is the wider effect? The article mentions that increased VAT could lead to higher inflation rates. What is inflation, and why would the VAT increase contribute to higher inflation levels?

Finally, perhaps the most interesting part of the article is the idea that VAT is a 'regressive' tax, meaning that it hurts poorer families more than rich ones. Poorer families spend more of their income on consumption, so this tax hits them more. Is that right? Is that fair?

More Facebook

More interesting information on Facebook vs. Google:

http://www.guardian.co.uk/technology/2011/jan/04/faceboook-mark-zuckerberg-google?intcmp=239

Facebook Worth $50bn

An interesting article from The Guardian:

http://www.guardian.co.uk/technology/2011/jan/03/facebook-value-50bn-goldman-sachs-investment

What is particularly interesting is why Facebook had decided to remain a Private Limited Company rather than become an PLC and what it means when they have over 500 shareholders in US law. When Google had over 500 sharholders they would have had to publish their accounts, to they decided to 'go public' and become a PLC. Clearly, companies like Facebook value their privacy- which is why they remain an Ltd. for as long as possible.

Also very interesting to see how much the 26 year old Mr. Zuckerberg is worth!