Essay: Phone Companies Are Developing Fuel Cells Too

The article "Phone Companies are Developing Fuel Cells Too", found at BusinessWeek.com, discusses how phone companies have begun using fuel cells as a source for backup power. Phone companies are using this idea as an alternative to diesel powered backup generators. The technological development surrounding the use of fuel cells in cellular base stations will help in times of crisis. Other areas involving the use of fuel cells are also being investigated by many phone companies.

Phone companies have started using fuel cells in their backup stations for many reasons, including the fact that they are quieter, more environmentally friendly and also cheaper than the alternative, diesel generators. According to Sprint CEO, Dan Hesse, finding ways to improve energy use has been one of the company's "biggest priorities". It's a good sign that Sprint looks to improve this sector of their company, as it's network accounts for about 80% of it's total energy use.

Backup fuel cells will also help in times of crisis, such as severe weather or natural disasters. In situations similar to Hurricane Katrina, communication is extremely improtant, often a matter of life and death. It is vital for backup systems to remain powered during such events.

Other companies, such as Vodafone, have also been exploring new ways of using fuel cells. Munich-based hydrogen fuel cell maker P21, has been developing fuel cells over the past decade in hopes of creating an efficient ecosystem for refilling fuel cell hydrogen tanks. The company looks to create a new hydrogen refueling model that is built around on-site refueling instead of the current practice of swapping out tanks.

With new advancements coming in the field of hydrogen fuel cells, it will only help that companies try and develop new ideas using this environmenatlly friendly approach. It would not only benefit the company by improving efficiency, but it would also be advantageous towards the nearby communties.

Fed Discount-Rate Move Signals End to Emergency Steps

This article, found at BusinessWeek.com, discusses how the Federal Reserve Board's move to raise the rate charged to banks for direct loans signals the end to emergency supply of liquidity to financial markets. According to Sung Won Sohn, former chief economist at Wells Fargo, the discount rate has been a tool used to signal the future course of monetary policy. With this latest move, the Fed is signaling that future rates will more than likely go up, rather than stay the same or go down. However, in the statement released by the Fed, the move was described as a "normalization" of lending that would have no impact on monetary policy. The move will also encourage banks to borrow in private markets instead of from the Fed. To many, including Alan Ruskin, the big surprise was the timing. Ruskin believes the move was made earlier than most expected as yet another sign showing that liquidity provisions provided during the crisis are being withdrawn.

Wal-Mart and the Paycheck-to-Paycheck Consumer

This article, found at BusinessWeek.com, discusses how the recent economic downturn would affect Wal-Mart compared to similar stores. Through the current depression, Wal-Mart has had many troubles, including the decline of same-store sales and a drop in market share. An improved economy would definitely take care of these problems, however the author questions how the recession will affect Wal-Mart's competitors. According to one statistic, same-store sales at Sam's Club rose, which shows that Sam's Club's higher end customers could afford to spend more, while Wal-Mart's lower end customers felt the pinch of the economy and were forced to make due with less. There is little Wal-Mart can do to recover except for wait out the storm, which they hope will end very soon.

President Obama Interview

The interview President Obama recently granted BusinessWeek.com focuses on how his Administration has been called anti-business by much of the business community. The President provides many valid arguements as to why this is an unfair assumption. Obama contends that much of the policies put in place over the last year have been done in order to provide American businesses with a stronger footing. He believes the steps that were taken were meant to break the back of the recession, put a floor under the economy and reduce a sense of panic that has grown in the United States. If one is looking for numerical facts, they can't help but agree with the President when he states that the economy was declining at a rate of 6 percent when he took office and now it is growing by 6 percent. The perception of the Administration being anti-business has also been spurred by some big issues, such as health reform, energy and financial regulatory reform. When asked if there was a specific CEO President Obama admired, he responded by mentioning Fed Ex CEO Fred Smith. The President described Smith as someone who is thinking long term and as someone who has special interests in finding a new energy policy for his company that is smart. BusinessWeek also discussed President Obama's proposed payroll tax for small business to boost hiring. According to Obama small businesses are the area where a targeted jobs credit would make the most difference. Big businesses already have more money and are in a better position to hire employees, so their decisions are based around whether or not there are enough customers out there to expand payroll. Now that the economy is starting to take a turn for the better, Obama believes a job credit can potentially speed up the decision for people who are thinking about hiring at some point. The next topic in the interview dealt with the issue of performance and pay, along with bonuses. Obama believes that the shareholders should have a chance to scrutinize the amount CEO's are getting paid, which would help align performance with pay. The President is also in favor of pay coming in the form of stock, which would require proven performance over a certain time period and is a much fairer way of measuring CEO performance. When asked about exports over the next five years, President Obama had much to say. He mentioned how his plan is to double exports over the next five years, especially with countries such as South Korea, Colombia and Panama. However, there has been different complications in getting deals completed with each of these countries. He also eluded to the well-known fact that the U.S. has gotten "it's clock cleaned" in the area of world trade over the last few years, which is why he believes what needs to be done is to align the interest of businesses, workers and the U.S. government. Another country which the President is concerned with is China, whose currency manipulation has interfered with the rebalancing of the global economy. Obama closed the interview by speaking out on marginal rates and the issue of deferrals and the multinational practice in terms of dealing with the tax code. His pro-business arguement centers around average businesses who are located in the U.S., invested in the U.S. and hire workers in the U.S.. These are the companies that are paying a 35 percent rate. Obama's goal is to level the playing field between companies investing in the United States and those who are operating overseas or across the border. Through this interview, one would have a hard time believing that the Administration has ever been viewed as anything but pro-business, however many still get this feeling. Obama and his staff believe and have said openly that they have every interest in American businesses succeeding.

How Detroit Can Gain From Toyota's Recalls

The article "How Detroit Can Gain From Toyota's Recalls", found at BusinessWeek.com, discusses how many auto companies in Detroit have the unprecedented opportunity to steal many of Toyota's customers after the Japanese carmaker was hit hard by recalls. Toyota, still a great company, will eventually recover, however this is a huge boost to automakers in Detroit.
After visiting Toyota, Ford's CEO Alan Mullaly, described the company as "the master" and later applied these same production techniques to another company of his, Boeing. Mullaly also urged Ford to create more sophisticated cars that would better Toyota's sedans. Over the past year, after Ford invested billions into the new Focus and Fiesta models, sales began to rise, while Toyota's decreased. Mullaly has also had a big impact on overall quality of the Ford brand, even garnering praise from auto editor of the magazine Consumer Report David Champion who believes Ford now has "world class reliability".
Although General Motors has improved the quality of its cars, the company must remain humble. Another added help to GM is the unveiling of the new Chevy Volt, which could give the company something to really brag about. The Volt will be four times as fuel efcient as Toyota's 2010 Prius, however Chevy will only make 10,000 of this model in 2010 as a way of establishing technological credibility among the comsumers. 2012 is the year Chevy could take the most away from Toyota Prius sales as this year marks the production of 60,000 Volts.
The third Detroit company, Chrysler, may have the hardest time prying Toyota customers away from the company due to their quality scores being extremely low. However, the Jeep brand may attract some.
The article then went on to discuss how the market share of both Ford and GM rose this past year, while Toyota's dropped. This has occured mainly because of Detroit's efforts to "woo" the Generation Y, which likes Toyota, but is less loyal than older consumers. Ford has the biggest opportunity,as it has focused on smaller, more compact cars, such as the Focus and Fiesta. However, Ford and GM aren't the only companies jockying for Toyota's customers. Companies such as Hyundai, Nissan and Honda are all ready to take advantage of the situation. As many will not forget, Toyota remains a top company in the auto industry and once the company comes out of the recall situation it can be counted on to start the comeback campaign. With Toyota employing 40, 000 Americans in six states, it has entrenched itself in the American culture. Toyota knows what type of cars Americans want and therefore the company will regain its strength sooner than later. According to Champion, "If you're going to grab market share from Toyota, you have to do it in the next nine months." If the Detroit companies find a way to convince Americans that their cars are of high qulaity and fun to drive, they just may have turned a streak of another companies bad luck into their own personal gains.