The Week: Most Recent Business Giants

Walmart's strange online cash payment system: A guide

The Week — Fri, 27 Apr 2012 16:35:00 -0400

Walmart may be in the midst of a huge bribery scandal surrounding its Mexican operations, but business must go on. As such, the retail behemoth is rolling out an odd new program in the U.S. that will allow customers to use cash to buy products online. The only hitch is that customers will have to go to the store to pay up. It "may seem silly to some," but the program actually makes a lot of sense, says Laura Heller at Forbes. And it represents a "hopeful push" by Walmart to catch up with Amazon, which is leaps and bounds ahead of Walmart in the field of online retailing, says Sarah Perez at TechCrunch...

Walmart's Mexican bribery scandal: What's next for the retail giant?

The Week — Tue, 24 Apr 2012 12:10:00 -0400

Walmart is reeling from a New York Times report that outlines a massive bribery scheme that allegedly allowed the company to grease its way to the top spot in Mexico's retail industry. Worse still, the report alleges that top executives in the U.S. covered up the bribes when a whistleblower brought them to light in 2005, instead of coming clean to U.S. and Mexican authorities. Some of the executives involved have since risen to the top of the Walmart ladder, including CEO Michael Duke, who in 2005 was named the head of Walmart's international divisions. Here, a look at what Walmart faces in the...

Walmart's explosive Mexican bribery scandal: A concise guide

The Week — Mon, 23 Apr 2012 09:25:00 -0400

Walmart isn't just the largest retailer in the U.S. It's also a commercial powerhouse and the largest private employer in Mexico, the jewel of its global business empire. However, Walmart didn't come to dominate the Mexican market without spreading around a little shady cash, almost certainly in violation of U.S. and Mexican law, according to a lengthy, blockbuster report in The New York Times. After Walmart learned about The Times' inquiries in December, it informed the Justice Department and Securities and Exchange Commission that it was opening an independent investigation into foreign bribery...

Walmart vs. Amazon: Can brick-and-mortar stores hang onto shoppers?

The Week — Thu, 12 Apr 2012 13:33:00 -0400

"A mobile shopping revolution is under way, and brick-and-mortar retailers are worried," says Steve Henn at NPR. The phenomenon of "showrooming" — in which customers go to stores to eyeball and test products before buying them online at a cheaper price, often at Amazon — is taking its toll on Walmart, Target, Best Buy, and other giants in the retail industry. Can Walmart fight the trend and cling to its customers?

Walmart can't compete with Amazon's prices: These days, "half of shoppers who buy products online first checked them out in a traditional store," says Ann Zimmerman...

Goldman Sachs' 'muppet' probe: A serious effort to reform?

The Week — Fri, 23 Mar 2012 12:01:00 -0400

Goldman Sachs is scouring internal emails for the word "muppet" and other slurs its employees may have used to deride the blue-chip firm's clients, according to Reuters. The probe is a response to an op-ed in The New York Times in which former employee Greg Smith accused Goldman employees of "ripping their clients off" and contemptuously labeling them "muppets." The high-profile scandal is a stinging black eye for Goldman, which has long portrayed itself as a haven for wealthy clients' money. Will the "'muppet' hunt" convince Wall Street that Goldman is serious about reforming its "toxic" culture...

'Evolution Fresh': Can Starbucks rule the juice market?

The Week — Tue, 20 Mar 2012 13:05:00 -0400

The opening of yet another Starbucks store usually isn't cause for excitement, but the coffee giant's latest shop, Evolution Fresh in Bellevue, Wash., is turning heads. You won't find any "baristas" or "venti" cups here — instead, customers will be treated to fresh-squeezed fruit-and-veggie concoctions made by "juice partners." The store, possibly the first in a chain, will also carry bottled juices and healthy foods, part of an attempt to tap into a growing craze for stuff that's good for you. And with drinks like "Field of Greens" and "Coconut Zen," neither of which carries a molecule...

Will Goldman Sachs' CEO survive Greg Smith's 'devastating' rant?

The Week — Thu, 15 Mar 2012 11:20:00 -0400

In the banking equivalent of the shot heard round the world, Goldman Sachs executive Greg Smith announced his resignation Wednesday in a "devastating" New York Times op-ed that accused the firm of ruthlessly exploiting its clients for profit. Smith assailed Goldman for its "toxic and destructive" business practices and "morally bankrupt" culture, and placed the blame squarely on CEO Lloyd Blankfein. The controversial Goldman boss has already been blasted by lawmakers for his company's dubious deals, and has forked over millions of dollars to settle fraud charges brought by the SEC. And...

Greg Smith's 'devastating' Goldman Sachs resignation rant

The Week — Wed, 14 Mar 2012 15:49:00 -0400

Often-loathed investment bank Goldman Sachs is once again facing "devastating" criticism, this time from one of the firm's own executives, Greg Smith, who publicly quit his job Wednesday — via a New York Times column in which he branded Goldman as "toxic and dangerous." Smith alleges that Goldman doesn't care at all about its customers, and implores those remaining with the company to "weed out the morally bankrupt people" before the bank implodes. (Goldman refutes Smith's claims, saying they "don't reflect the way we run our business.") Here, five takeaways from Smith's "...

Walmart's violent Black Friday: 5 'grim' incidents

The Week — Mon, 28 Nov 2011 10:50:00 -0500

Black Friday violence at Walmart is rapidly becoming a new holiday tradition. From coast to coast, shoppers rioted and pepper-sprayed to get their hands on cheap waffle makers and Xboxes while, outside the stores, customers were shot over their loot. The goings on are being called a "grim reminder" of a Black Friday stampede in 2008 at a Walmart in Long Island, N.Y. that left one dead and sent a pregnant woman to the hospital. Here, a rundown of some of this year's bargain brawls:

1. The waffle maker riot
At a Walmart near Little Rock, Ark., a screaming mob of shoppers tussled over $2 waffle makers...

Starbucks closes its public bathrooms: The best wisecracks

The Week — Wed, 16 Nov 2011 15:07:00 -0500

Starbucks is undergoing a "'wee' change," says Josh Kosman at the New York Post. According to a source close to the java giant, Starbucks has decided that it "cannot be the public bathroom in [New York City] anymore" and will restrict restrooms at its 190 Manhattan locations to staff-use only. The problem: So many New Yorkers were wandering in to relieve themselves that employees had to wait in long lines just to take bathroom breaks of their own. Plus, upkeep costs for the heavily-trafficked loos had grown excessive. Though Starbucks is dismissing the Post's report as "not true," many commentators...

Will Starbucks' $30 million bet on juice pay off?

The Week — Mon, 14 Nov 2011 10:44:00 -0500

Starbucks is no stranger to strategy experiments, from testing the sale of beer and wine to simplifying its logo and dropping the "coffee" from the company's name. Its newest gamble: Paying out $30 million to acquire juice maker Evolution Fresh Inc. — part of a larger effort to expand past coffee and into grocery store aisles. Starbucks plans to offer Evolution juices (which Whole Foods and Costco already carry) both in their cafes and in a new chain of health and wellness stores it plans to launch next year. "We are not just acquiring a juice company," Starbucks CEO Howard Schultz says...

Warren Buffett and Jay-Z's 'awesomely dorky' financial literacy cartoon

The Week — Thu, 20 Oct 2011 18:16:00 -0400

The video: Four entrepreneurial teens learn financial lessons, money management skills, and receive business advice from the Oracle of Omaha himself, Warren Buffet in the new animated web series The Secret Millionaires Club. The goal is to teach young kids good financial habits at an early age by tackling relatable problems, such as a low-performing lemonade stand or a troubled bicycle shop. Sunday's premiere features a guest appearance by another high-profile mogul, hip-hop king Jay-Z, who briefly mentors the students: "As a team you can put your interest in business to good use," he says...

Goldman Sachs' $428 million loss: What does it mean?

The Week — Wed, 19 Oct 2011 13:53:00 -0400

On Tuesday, Goldman Sachs reported a $428 million loss for its third quarter, down from a $1.7 billion profit in the same three-month period a year ago. It marked only the second time the investment bank has reported a quarterly loss since it went public in 1999. Goldman did have "pockets of strength" last quarter, but those were more than offset by nearly $3 billion lost in the tumultuous stock and bond markets. The result? "The banking industry’s perpetual winner was this quarter's loser," says the Associated Press. What does it mean for Wall Street?

This signals a seismic shift: "Goldman...

Warren Buffett's divisive plea: 'Raise my taxes'

The Week — Mon, 15 Aug 2011 16:03:00 -0400

"Raise my taxes." That's the crux of Warren Buffett's message in his New York Times op-ed piece, "Stop Coddling the Super-Rich," published Monday. Concerned that mega-wealthy investors like himself aren't paying their fair share of taxes, Buffett writes, "While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks." He suggests an immediate raise in taxes for those earning more than $1 million — including income, dividends, and capital gains from investments — with an additional...

Should Starbucks pull the plug on laptop loafers?

The Week — Fri, 05 Aug 2011 17:24:00 -0400

On Friday, Starbucks made it official: The rumors are true, and some of the coffee behemoth's New York City franchises are indeed blocking power outlets to prevent customers from lingering all day with gadgets in tow. Is Starbucks justified in cracking down on parasitical laptop loafers?

No. Let them linger: One of the main functions of Starbucks is to offer an "oddly, slightly sticky armchair" for laptop users, says Zack Whittaker at ZDNet. After all, just last year, the company started providing free Wi-Fi. It's a place where you can work and enjoy coffee, a wonderful alternative for students...

Can Walmart topple Netflix?

The Week — Wed, 27 Jul 2011 12:15:00 -0400

Walmart is launching a new challenge to Netflix, just as the popular DVD-by-mail and video-streaming service is facing a subscriber revolt over a recent fee hike. Walmart is integrating the Vudu streaming service, which it bought in 2010, into its website, enabling customers to buy DVDs and Blu-rays, or watch streaming movies and TV shows, through Walmart.com. The retail giant's streaming service isn't subscription-based — viewers will pay between $1 and $5.99 to rent each movie. While many competitors have tried to knock Netflix off its throne, will Walmart be the one to finally succeed...