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EconNews Online is South-Western College Publishing's service to provide summaries of the latest economics news stories. Review the brief summaries and, for stories of interest, select the full summary. |
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A new form of competition
has erupted in the telecommunications industry - using current digital Internet
lines to transmit telephone calls, at little cost. (Updated October 17, 2003) |
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In a move to become
more competitive in the package-delivery industry, UPS has pledged to reduce
ground delivery time by at least one day. (Updated October 17, 2003) |
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Federated department
stores introduces amenities into its stores and reduces the number of human
interactions in its stores. (Updated September 10, 2003) |
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AT&T hopes to become
more efficient and more profitable by continuing to shed its workforce and
cut costs elsewhere. (Updated August 27, 2003) |
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Tractors guided by a
Global Positioning System enable farmers to place, space, water, and fertilize
crops optimally, thereby reducing costs and increasing yields. (Updated November 1, 2001) |
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The attack on the World
Trade Center has resulted in significant costs for airlines and other travel-related
businesses. (Updated October 1, 2001) |
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Employees who work out
of the office are increasingly communicating with headquarters through wireless
technologies. This makes employees more efficient, but wireless communication
will be limited by cost, worker resistance, and operational concerns. (Updated August 1, 2001) |
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The
major airlines are losing money. They are therefore cutting costs in ways
that they hope consumers do not notice. Fees are also being increased. (Updated June 1, 2001) |
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Ad sales are declining
rapidly. The cost of newsprint is increasing. Newspaper publishers are cutting
costs and increasing prices to maintain profit margins. (Updated May 1, 2001) |
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Three European steel
makers have agreed to merge. However, it is unclear how much over-capacity
will be reduced. Also, the company will still be a small player in the world
market. (Updated April 1, 2001) |
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On the surface, Disney
appears to be performing well, opening a new theme park, and experiencing
rising sales and profits. However, its theme park and resort business is
performing much better than its other divisions, including ABC, its stores,
and its Go.com portal. (Updated March 1, 2001) |
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Higher energy prices
in California are increasing producers' costs, reducing consumer demand,
and causing rolling blackouts. Profits are threatened, prices may rise,
and firms may shut down or move out of state. (Updated February 1, 2001) |
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Recruiting through the
Internet is superseding recruitment through newspaper advertising and hard
copy resumes. The benefits are speed, lower costs, and efficiency. (Updated January 1, 2001) |
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The world grocery retail
market is experiencing a takeover war. One reason is that size gives the
retailers more leverage with grocery manufacturers, thereby benefiting consumers
and investors. (Updated January 1, 2001) |
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Priceline.com, which
allows consumers to bid for airline tickets, is nearing profitability. However,
Priceline's WebHouse, which permits bids on groceries is closing down. (Updated November 1, 2000) |
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Many people were tempted
by lucrative compensation packages to join Internet companies. However,
the tumble in Internet stock prices has forced some companies to downsize
or close, and to lay people off. (Updated August 1, 2000) |
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Sawmills are now using
lasers and computers to determine how to cut logs so as to minimize waste
and maximize revenue. This is helping the economy prosper. Newer technology
promises even more gains for sawmills and the economy. (Updated June 1, 2000) |
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School districts are
starting to order supplies online through companies that act as intermediaries
between schools and vendors. The online marketplace reduces administrative
costs, permitting schools to save money and hire more teachers. (Updated May 1, 2000) |
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AutoNation is closing
its used car superstores because of high fixed costs, non-negotiable pricing,
and competition from new car sales. The core of its business, new car dealerships,
will remain in existence, aided by lower corporate costs. (Updated February 1, 2000) |
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Insurance companies
are increasingly giving doctors incentives to cut their spending on drugs
by limiting the amount of money they receive. If they overspend, their practices
may lose money. Doctors are torn between making money and behaving ethically. (Updated December 1, 1999) |
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eBay the online auction
company is performing better than expected. However, its profit is still
very small and may be endangered by computer upgrade spending designed to
prevent its website being down for long. The company is less concerned:
its growth and market share are impressive. (Updated December 1, 1999) |
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Kohl's department stores
are increasing and are taking market share from rivals such as Sears and
J.C. Penney. The reasons are that Kohl's stores have lower costs due to
their location, size, and staffing, and this allows them to sell brand-name
merchandise at lower prices. (Updated November 1, 1999) |
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NBC has canceled 'Homicide,'
a critically acclaimed police drama, after seven seasons. The economic reason
was that it would cost about $200,000 more per episode than a new show,
while ratings had slipped and syndication was already assured. Crew members
were devastated at the news. (Updated July 1, 1999) |
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Although movie stars
may make millions of dollars, they incur great costs, both year-round and
when they are filming. Some expenses may be covered by studios during film-making,
however. (Updated June 1, 1999) |
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European carmakers are
facing slightly lower sales and prices in 1999. The challenge is to bolster
profits. Three strategies are evident: cost-cutting, improving designs,
and increasing production of cars for which there is pent-up demand. (Updated May 1, 1999) |
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Ford is trying to cut
costs by $1 billion in 1999. GM is planning bigger cost reductions to boost
its lower return on sales. One development is the establishment of new plants
that will assemble modules built by suppliers. (Updated March 1, 1999) |
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China is seeking to
change its energy mix to rely less on coal and more on natural gas. However,
pipelines are operating at less than full capacity because most homes are
not hooked up for gas use. There are also concerns about the size of China's
gas reserves. (Updated October 15, 1998) |
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The labor dispute
between General Motors (GM) and the United Auto Workers is due to GM's refusal
to invest in new equipment. GM states that it has not broken any agreement
and is simply responding to uncompetitive work practices. (Updated August 18, 1998) |
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More companies are
offering wellness programs involving on-site fitness centers or subsidized
health-club memberships. Firms gain through higher productivity and lower
costs. The trick to maximizing the benefit for the firm is to convince sedentary
employees to exercise. (Updated August 12, 1998) |
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