Posts tagged with: business

Colonial Church of Edina

Colonial Church of Edina

Pastor Daniel Harrell had a heart for missions, so upon unexpectedly receiving roughly $2 million from a land sale, his Minnesota church was energized to use the funds accordingly. Though they had various debts to pay and building projects to fund, the church was committed to allocating at least 20 percent to service “outside of their walls.”

“The sensible way to spend the 20 percent would have been to find a successful service agency and write the check,” Harrell writes, in a recent piece for Christianity Today‘s This Is Our City.* “But I hated that idea. Surely we could leverage this money in a way that would let us get personally involved.”

The process proceeded as follows:

We had the money. We had the wisdom and experience, especially in fields related to business. What we lacked was our particular calling (or the energy to follow it through). What if we challenged young adults in our church and wider community to generate an idea that could become our calling?

I proposed we take $250,000 and sponsor a social entrepreneurial competition. We could invite innovators ages 35 and younger to submit project proposals with gospel values of grace, justice, love, redemption, and reconciliation. We’d ask that applicants affirm the Apostles’ Creed, because we wanted our effort to promote Christian faith. Our church would provide funding and expertise, networking, creative community, and acceleration toward successful launches. We’d use business acumen to make the projects sustainable and stress measurable outcomes. (more…)

“Detroit developed best when it was bottom-up,” says Harry Veryser, economist and professor at University of Detroit Mercy. “When small communities, small parishes, small schools were formed… that’s when Detroit prospered.”

In a recent discussion on what makes cities flourish, Chris Horst and I argued that cities need a unique blend of local community action, good governance, and strong business to thrive. Cities like Detroit have monstrous and complex problems, and the solutions will not come from additional top-down tweaking and tinkering. Rather, any such solutions will stem from complex networks of strong families, life-giving churches, healthy businesses, and intersecting institutions, all of which is furthered when governments rightly relate to their citizens. (more…)

Blog author: jballor
posted by on Friday, September 27, 2013

I’m not an aficionado of the show Extreme Couponing, but I have seen it a couple times, and have been amazed at the industriousness of the people on the show. It shouldn’t be surprising, perhaps, that in the midst of economic downturn more generally the practice of clipping coupons has become more widespread as well as more extreme.

It makes sense that when times are tight and you are looking to scrimp and save every penny in your budget that increased use of coupons can be a way to make each dollar stretch a bit farther. Companies originally offered coupons as incentives to try new products, and so it is appropriate to see coupons as a form of advertising. The first company to offer coupons was Coca-Cola, and here we can see the similarities between coupons and the free samples, which is part of what makes Costco so popular, as product promotion.

coca

But it never really occurred to me until I read this short profile of an extreme couponer that coupons should also really be seen as a kind of private welfare, reaching a high of roughly $4 billion in total savings in the US in 2011.
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I ran across this video yesterday (courtesy of ESA), which I thought presented some interesting challenges and issues:

The video was presented on Upworthy as an example of something “all white people could do to make the world a better place,” that is, use their white privilege to address injustices.

A number of economists, including Milton Friedman and Thomas Sowell, have written about the power of the market economy to overcome racism and discrimination, to put people into relationships on the basis of economic decision-making rather than skin color. As Friedman contended,

the preserves of discrimination in any society are the areas that are most monopolistic in character, whereas discrimination against groups of particular color or religion is least in those areas where there is the greatest freedom of competition.

But as a conversation I had with some others about the video also illustrates, there are times when (at least in the short run interests of the firm), something like profiling can seem to make some economic sense. The successful passing of one bad check can really hurt a store’s margins. Practically speaking the stores often take a complete loss.
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There’s a real business advantage to treating employees well, says Jim Sinegal, CEO of Costco Corporation, an international membership warehouse club. Boasting the lowest employee turnover rate in retailing, Costco pays 40 percent more than its closest rival, Sam’s Club, and provides health insurance to more than 90 percent of its employees.

“Wall Street is in the business of making money between now and next Tuesday,” Sinegal says. “We’re in the business of building an organization, an institution that we hope will be here 50 years from now. And paying good wages and keeping your people working with you is very good business.”

Chris Horst, Matthew Horst, Costco

For Matthew Horst, Costco has become much more than an employer.

And the advantages don’t stop at profit margins and good wages.

In an open letter to Sinegal and president Craig Jelinek, Chris Horst of HOPE International shares a beautiful story about how Costco gave his brother a career, a community, and much, much more: (more…)

prayer“How is religion related to entrepreneurial behavior?”

As Joe Carter pointed out last week, a new study by Baylor University sought to examine this very question.

Focusing specifically on American entrepreneurs, researchers Mitchell J. Neubert and Kevin Dougherty found that although entrepreneurs “appear no different than nonentrepreneurs in religious affiliation, belief in God, or religious service attendance,” they do “tend to see God as more personal, pray more frequently, and are more likely to attend a place of worship that encourages business activity.”

Baylor recently posted some interviews with the researchers to get their thoughts first-hand (HT). Dougherty, an associate professor of sociology, emphasizes that in a time of economic recovery, we should pay close attention to any area that might impact those looking to start a business:

We’re at a particularly important time for the promotion of entrepreneurship, coming out of a recession, not just in our country, but globally, so if there’s a time period where we need people engaging in new business creation, now is the time, and if religion has something to do with that, it’s important to know what that is and how that occurs.

Neubert, an associate professor of business and entrepreneurship, notes that although this particular study doesn’t get into why entrepreneurs pray more or what exactly they pray about, he hopes that future research will examine these areas more fully. (more…)

Blog author: jsunde
posted by on Wednesday, April 17, 2013

sale-sign1J.C. Penney recently gave up on last year’s strategy to abandon sales and coupons in favor of “everyday low pricing.” As an article in the New York Times points out, “simplifying pricing, it turns out, is not that simple”:

“It may be a decent deal to buy that item for $5,” said Ms. Fobes, who runs Penny Pinchin’ Mom, a blog about couponing strategies. “But for someone like me, who’s always looking for a sale or a coupon — seeing that something is marked down 20 percent off, then being able to hand over the coupon to save, it just entices me,” she said. “It’s a rush.”

Devoted coupon users like Ms. Fobes may be more frugal than the typical consumer. But most shoppers, coupon collectors or not, want the thrill of getting a great deal, even if it’s an illusion.

The article goes on to indicate  that this type of illusion-seeking and the corresponding “rush” are sometimes due to certain levels of conditioning:

Even Walmart, which actually does pull off the trick of “everyday low prices” in its domestic stores, is finding it hard to convert consumers to a single-price model in countries like Brazil and China, where retailers give deep discounts on a few main products, then mark up the rest, said Mark Wiltamuth, an analyst at Morgan Stanley.

The problem, economists and marketing experts say, is that consumers are conditioned to wait for deals and sales, partly because they do not have a good sense of how much an item should be worth to them and need cues to figure that out.

Just having a generically fair or low price, as Penney did, said Alexander Chernev, a marketing professor at the Kellogg School of Management at Northwestern University, assumes that consumers have some context for how much items should cost. But they don’t.

Yet as AEI’s Mark Perry notes, from a producer and seller’s perspective, such schemes come in response to the ever-evolving and unpredictable demands of the consumer—in this case, particular shopping preferences. This is “not an enviable position to be in,” Perry writes, “to be at the mercy of fickle and unpredictable consumers.” (more…)

If your next date night costs you more, you can thank Obamacare. Regal Entertainment Group, the country’s largest movie theater chain, has announced that it is cutting employee hours due to Obamacare related costs.movie tickets

One Regal theater manager told FoxNews.com the move has sparked a wave of resignations from full-time managers who have seen their hours cut by 25 percent or more.

“In the last couple weeks, managers have been quitting on a daily basis from various locations to try and find full-time work,” said the manager, who asked not to be named. “Regal up until now has never restricted anyone to anything below 40 hours.”

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“Is there a religious way to pump gas, sell groceries, or advertise for a craft store?”

In a new paper, “God and the Profits: Is There Religious Liberty for Money-Makers?,” Mark Rienzi asks the question. (HT)

Rienzi, an assistant professor at the Columbus School of Law at The Catholic University of America, writes in direct response to the federal government’s HHS contraception mandate, focusing on the religious liberty challenges faced by for-profit companies. As Rienzi argues, imposing such penalties requires “singling out religion for disfavored treatment in ways forbidden by the Free Exercise Clause and federal law.”

From the abstract:

Litigation over the HHS contraceptive mandate has raised the question whether a for-profit business and its owner can engage in religious exercise under federal law. The federal government has argued, and some courts have found, that the activities of a profit-making business are ineligible for religious freedom protection.

This article offers a comprehensive look at the relationship between profit-making and religious liberty, arguing that the act of earning money does not preclude profit-making businesses and their owners from engaging in protected religious exercise.

Many religions impose, and at least some businesses follow, religious requirements for the conduct of profit-making businesses. Thus businesses can be observed to engage in actions that are obviously motivated by religious beliefs: from preparing food according to ancient Jewish religious laws, to seeking out loans that comply with Islamic legal requirements, to encouraging people to “know Jesus Christ as Lord and Savior.” These actions easily qualify as exercises of religion. (more…)

PovertyCure was featured in Forbes Magazine last week. Alex Chafuen, one of Acton’s founding board members, featured PovertyCure in his article on champions of innovation. He writes:

A new multifaceted initiative, called PovertyCure, provides abundant materials and resources for those who want to create lasting solutions to poverty. The program is founded on the conviction that each human person can be a source of great creativity. It highlights the incentives needed to unleash the entrepreneurial spirit that fills the developing world.

Chafuen also calls attention to PovertyCure’s focus on the big picture:

Many intellectual entrepreneurs and some of their donors and “angel investors” tend to be single-product champions. They focus on only one element in the road to reduce poverty, e.g., women rights, property titles, vaccines. This could lead to neglect of the fundamental problems that impede successful outcomes in their area of work… A fruitful dialogue among participants in PovertyCure can increase the chances that poverty or “human flourishing” programs will be structured with the proper incentives.

Instead of focusing on what we can do to solve poverty, the real question is how do people in the developing world create prosperity for their families and communities.

Learn more about PovertyCure, their network of over 180 organizations, and order the new PovertyCure DVD-Series, a 152-minute documentary-style series that challenges conventional thinking and explores the economic and theological foundations of human flourishing.