June 11, 2010
General Motors is up for an initial public offering and this could be good news for the federal government which stands to gain back some of the bailout money it had extended to General Motors during the economic crisis. At present, the U. S. government owns 60.8% of the company. This initial public offering involves selling shares of stock to the public in order to raise more money. Morgan Stanly and JP Morgan Chase have expressed an interest in the offering.
This comes after General Motors reorganized the company and now shows signs of recovery after having lost money during the economic crisis of 2008, laying off workers, and taking outdated models off the market. President Obama ordered the company to downsize in view of its economic woes, after formerly enjoying a 51% market share.
General Motor’s problems began in 1962 when it failed to recognize the needs of the consumers and the Japanese were able to steal away some of its most loyal customers. It also failed to produce cars which were more economically suitable to customers in view of rising gas prices. GM”s strategic marking plan had failed.
Because of the Treasury Department’s involvement in this IPO, the GM underwriters will not make very much on this deal, as the U.S. may limit their fees. For any business owners who are involved in strategic planning for their companies, General Motors makes an excellent case study for the ramifications of marketing decisions and their effect on the company’s future.
December 1, 2009
Just when we thought small businesses were going to experience harder times than major retailers, Goldman Sachs comes to the rescue with a plan to educate and finance small businesses. Their impressive plan to funnel $500 million dollars to provide management education, mentoring, and access to capital to small businesses is the largest of its kind in history. Warren Buffet, who bailed out Goldman Sachs early in this economic crisis, will assist Goldman Sachs in providing theses resources to small businesses.
Major retailers have experienced a loss of funding due to CIT Bank having to eliminate their factoring loan program. Factoring loans were very popular around holiday time for financing Christmas inventory. Retailers now have to finance their own inventory.
Critics say that Goldman Sachs is using this opportunity to improve its image and bad reputation as a result of receiving bailout money and improving its financial position. It would help small businesses to know how to research grants and loans if they would like to take advantage of this opportunity to grow their businesses.
www.BostonCatalog.com – Others. Boston Catalog | largest Business Directory in Boston area MA
July 16, 2009
Another Bank Failure?
CTI announced yesterday that it has ended
negotiations with the Obama administration as it has been told that the U.S. will no longer extend monetary support to bail them out of an impending bankruptcy, despite the reliance of thousands of retailers upon the company.
CTI has been a provider of funding to small and medium businesses for over 100 years. Its current financial woes apparently stem from “venturing into risky corporate and consumer lending and heavy reliance on fickle investors for funds.”
The bank, unlikely to be sold at this point will be the largest bank to fail since Lehman Brothers.
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