Understanding finance begins by reading reputable articles in newspapers/magazines such as the Wall Street Journal, New York Times, Forbes, Fortune, US News and World Report, and other web based resources.
POST #1 Find an article that interests you and write 3 paragraphs. Your format should be:
INTRODUCTION: Briefly introduce the article (author, date) and the major financial topic it attempts to address (bankruptcy, merger, financial crisis, financial literacy, a specific company).
MAJOR TAKEAWAYS: Discuss the 3-5 points the article made about the financial topic.
CONCLUSION: What did you learn about finance and did the article address the question it posed?
Include APA CITATION at the end of the post.
POST #2 AT LEAST ONE MORE POST: Respond to another person’s post with an article or video reinforcing that post or extending the conversation. For example, you could say “Hi Cathy, I really enjoyed your post on Apple reaching $1 trillion this past week. Thank you for your research. I recently reviewed a short article which walks through the history of Apple’s financial success.Statista.com (Links to an external site.)Links to an external site. reports a wonderful chart on the history of Apple and its successes on the way to $1 trillion. Some analysts actually believe that when Petrochina launched its IPO in 2007, it surpassed the $1 trillion mark then. Thanks! Anne
Citation: Imbert, F. (2018, August 3). The first company to reach $1 trillion in market value got crushed. Retrieved from https://www.msn.com/en-us/money/topstocks/the-firs… (Links to an external site.)Links to an external site..
Find article Try to find something within the last 3 months or so. and Respond to another person’s post
respond to (The article I read this week was written by Scott Moritz from Bloomberg Businessweek. The article was written on November 5th, 2018 and addresses Verizon and it’s drastic internal restructuring it is taking under new CEO Hans Vestberg. The article discusses how there is a reorganization focused on three groups; consumers, business customers, and media. The company seems to have done this to focus on being the first company to come out with 5G technology in the U.S. marketplace. The article discusses Oath which was newly formed after Verizon acquired AOL and Yahoo. The media outlet is aiming to challenge giants such as Google and Facebook. The article closes up touching on old news talking about how the company is offering a buyout for over 44,000 employees. The company is aiming to start smaller in 2019.
The biggest thing that blew me away was how drastically different a company can become in a short amount of time with new leadership in place. Verizon’s old CEO, Lowell C. McAdam, had an aggressive approach to mergers and acquisitions. This is different from current CEO Hans Vestberg who is solely focused on internal change and development of 5G within the company. I found it interesting that company wanted to downsize. The company is trying to buyout close to a third of its workforce. This shows how serious that the new CEO is about cutting labor costs and focusing it on research and technological improvements. Lastly, the restructuring to create the three groups shows that the industry is changing and it also identifies who Verizon’s target audience is as well. It will be interesting to see how the leader network provider balances staying on top of food chain with the joint forces of T-Mobile and Sprint looming.
I learned that having a new CEO and leadership can lead to a huge change. In my mind initially, I thought there were checks and balances to prevent such a strong change in company structure. However, this goes to show that an aggressive approach can be taken with new leadership. I am curious to know how Hans Vestberg won over the board to create such a giant shift in downsizing and focus in audience. This applies to the class because all this information impacts the public. Mergers and acquisitions are strategies that companies taking to position themselves strongly in the market place and it shows how a company can do well with different such different approaches in leadership.
Moritz, S. (2018, November 5). Verizon Chief Hans Vestberg Restructures Around Three Businesses. Retrieved November 5, 2018, from https://www.bloomberg.com/news/articles/2018-11-05…