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2008/11/28

Cutting Costs to Increase Profits

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November 25, 2008
 

Insider Newsletter

A weekly summary of the best in BusinessWeek and BusinessWeek.com


NEWS  THIS WEEK'S TOP STORY

Cutting Costs to Increase Profits

Outfits like Gap and manufacturers like Dell have been able to post higher profits by slashing expenses in the face of declining revenues. Other companies may not be so lucky

Editor's Memo
As the traditional "Black Friday" approaches, the business world's eyes turn to retail. Will it be a Red Friday instead? In our Top Story, writer Ben Steverman looks at one strategy some of the nation's big-name chains are using: cutting costs. Some retailers are using the immediacy of the Internet to offer quick discounts and promotions. We talk to the businesspeople who are out there on the front line in "Small Retailers Push for Online Sales." And be sure to check out "Toy Shopping in Tough Times," for some straight-up advice on how to make your holiday dollars go further.

Less abrasive than Entourage's Ari Gold and probably more effective, Plentitube, is an online talent scout for the YouTube generation. The studios are listening. Read about it on our Technology Channel.

Where would you move for your dream job? Prefer the balmy breezes of Miami over the sleet and smog of New York? If so, you're in the minority. "Where Would You Relocate for a Job?" takes a look at the results of our survey. Check out the story and slide show.
—Katherine Davis


  FROM THIS WEEK'S ISSUE OF BUSINESSWEEK
NEWS
The Man Who Could Run GM
Fritz Henderson, groomed to replace CEO Wagoner, has a strong track record—and a way with unions

HEALTH
Hospitals X-Ray Patient Credit Scores
More and more are buying credit data to see if the sick can afford treatment

FINANCIAL CRISIS CRUNCH
Fighting the Global Slump: Less Is Dangerous
Amid a debt-deflation spiral, the governments' greatest risk is enacting stimulus measures that are too little to fight the slump

  FROM BW.COM'S TECHNOLOGY CHANNEL
INTERNET
Plentitube: Your Agent for Online Video
Plentitube aspires to be the middleman for the YouTube generation, helping online content creators find a way to pull in revenue

COMPUTERS
Microsoft to Google: Get Off of My Cloud
The world's top software maker plans to build about 20 state-of-the-art data centers as it tries to outpace cloud computing rival Google, BusinessWeek has learned

CONSUMER ELECTRONICS
'Tis the Season for LCD TVs
Consumers will be spending less this holiday season, but they're allocating more of their budgets to home entertainment devices

  FROM BW.COM'S SMALLBIZ CHANNEL

Small Retailers Push for Online Sales
The holiday outlook is gloomy, but online retailers can react faster than stores with discounts, free shipping, and other Web promotions

  FROM BW.COM'S ASIA & EUROPE CHANNELS
INSIGHT
Asia's Economic Lessons for the U.S.
The U.S. is mortgaging its future by outsourcing technological inventions in exchange for short-term cash

EUROPE
Is Britain's Stimulus Plan a Wise Move?
Britain is pulling out the stops to immediately shore up the badly shaken economy, but what it will mean for the longer term is unclear

  FROM BW.COM'S LIFESTYLE CHANNEL
REAL ESTATE LISTS
Where Would You Relocate for a Job?
A recent survey identifies the 20 cities where Americans would most want, and least want, to relocate

NEWS & FEATURES
Congress to Detroit: What's Your Plan?
If the Big Three automakers can't come up with a radical plan that will satisfy Congress, they can kiss the $25 billion bailout goodbye

PARKER ON WINE
Super Chateauneuf du Papes
The excellent 2006 Chateauneuf du Papes are now on the shelves. Here are some of the best of the vintage, including one that earned 98 points

  FROM BW.COM'S INNOVATION & DESIGN CHANNEL
DESIGN
Toy Shopping in Tough Times
There are plenty of options for gifts at all prices this holiday season. In fact, some say toys constitute a "recession resistant" category

  FROM BW.COM'S INVESTING CHANNEL
ECONOMIC FOCUS -- FROM ACTION ECONOMICS
Holiday Sales: Just How Bad?
Action Economics says this could be the gloomiest holiday season in decades for the retail industry

GENE MARCIAL'S STOCK PICKS
Marcial: Apple Is Ripe for the Picking
These days, Apple's beaten-down stock looks like an appetizing "value" play based on the company's potential for earnings and sales growth

INVESTING
Funds' Big Test: The Great Redemption Rush
As redemptions swell, some mutual funds are turning to new sources of liquidity in order to avoid forced selling that shrinks fund returns

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