Business Fundamentals - Tormey - Video notes PDF

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Professor Tormey

Video Notes to accompany lecture for quizzes...

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Videos: Danny Meyer shake shack - wanted to make untraditional eating - took away tipping in the restaurant says bill covers all cost - Focused on hospitality - 15 different restaurants - It’s not just food - Experience on how you are made to feel - Hire intuitive and empathetic ppl - Boss at each table - Combat pay inequalities - Growing disparity over 300% - Increased base pay instead or share of weekly revenue - Bill raised 25% A visit into the cloud - David pogue - Always see ads for the cloud - In the beginning only kept your own stuff on your own computer - Data centers that stores all data that you can get whenever wherever you are - Can change things on two different devices but they are connected through the cloud - Goes from computer to data center to phone - Usually data centers can serve bug companies - Companies hire aws (Amazon web services) because they don’t want to manage their computer storage - Companies rent their space instead of hiring tech people in house to do it for them - Heavily guarded - Inside data center is full of computers - Backed up by batteries that can run for ten minutes then can be powered by massive generators infinitely if power outage - Could be target for terrorists - But data was backed up and redundant that info will go to another building if attacked - 96% of the time there is not a lot of info going in - They sign away half of their rights to data to sites like google - Aws groes at 40% a year - 7 new under construction now Luxxotica - ceo Andrea Guerra - One company controls a big chuck of the business - One would think that the prices would go down but luxxotica is the biggest eye company on earth - Was originally a small tool shop - Last year 77 million glasses and sunglasses

- Says they are expensive because they is a lot of work going into them but in reality it is a type of monopoly - Have all different brands of glasses - Once glasses became “jewelry” luxxotica raised prices - Glasses sell up to 20 times of what they actually cost to make - Best seller is ray ban, took them off the market then refurbished them and now it’s top selling - also own lens crafters - Makes them and sells them - Customers do not get a break - Also owns Pearle Vision - Runs target and Sears optical - Owns sunglass hut - Competitors tried to compete but they failed and then they bought them - Biggest competitor is Walmart and Costco and online companies like Warby Parker - Luxxotica is a price maker - Persuade people to pay 200 dollars when it costs 30 dollars to make - Luxxotica also owns eye med that covers eye exams and glasses - Allusion of choice Roomey khan - brought down the Galilean group the largest hedge fund after getting caught for insider trading - Obtaining confidential info from places like google on stock exchange’s - Made 1.1 million dollars - Shared tips with raj raj and made 7 billion dollar hedge fund - Gave raj info from intel - Used the fax machine to give the information - Raj offered to pay money to give him info to stay at intel - At height of her success her net worth was 50 million dollars - Had an informant in google - Made half a million off google - Raj made 8 million betting against google - The sec had an investigation against raj and then communications were found that he was predicting the stock - After 6 months of searching Toomey khan said don’t buy... Tormey decided to start drilling during this time - It was easy to connect her to the situation - So she decided to comply and inform on wall streets biggest players - Allowed them to record their phone conversations with her colleagues - Khan would also withhold information until jail was threatened and then she complied more - Wire tapped her - In one wire tapped raj bragged about getting insider information - 32 people were charged - In 2011 raj was convicted and sentenced to 11 years in prison - Khan still went to a year in prison for obstruction of Justice and insider trading

Tyco *not from video just own research, no access to video* - Leo Dennis kozlowski - Former CEO of Tyco - Convicted in 2005 of crimes related to his receipt of $81 million in unauthorized bonuses - Purchased art for $14.725 million and the payment by Tyco of a $20 million investment banking fee to Frank Walsh, a former Tyco director - Convicted on 22 counts of fraud etc - Started as an accounted and then worked his way up to a ceo - Began making insane amounts of money - Prosecutors saw that he wasn’t paying sales tax on his artwork - Evaded over a million dollars in sales tax - Tyco footed half the bill for his $2 million party - He says he is not guilty said that he repayed the loans - Said the only person that can help him is dead Bodega - family owned business usually - Spanish word for neighborhood store - Hard to prevent people that aren’t as healthy - Poor neighborhoods are known for unhealthy eating habits - Bodegas don’t carry many healthy foods - Working to educate foods that would be of value to them - Spanish owned usually - 14.4% of business owners are immigrants Steve Madden - Makes shoes - Went to university at Miami didn’t last long dropped out - First store in soho - Said don’t take short cuts - Went into business with j Belford - Went to prison - Knows the names of all of his shoes - Belford artificially inflated its stock price 1-800 got junk - Ryan scudamore - “Starbucks of trash” - High school dropout - Pick up people’s unwanted stuff and sell it - 5,000 phone calls on record days - Started with $700 and an old pick up truck

- Catchy phone number to help was originally the Idaho transportation number but 60 phone calls later he got the number - Keeps the cars clean despite trunk - Park cars in iconic places for free advertising - Getting a boost from hoarders - Helps out his employees

Tabasco - Every bottle has been made by the same family on their own private island for 5 generations - Tony Simmons is the 5th gen CEO - Farmers grow peppers all over the world and ship it to avery island - Ceo tastes every batch - All stock holders are family descendants - Won’t talk about financials - Tony Simmons is next in line to run the company “tuck” - Inspects pepper bushes himself - Key to taste is the seeds and keeps them in a vault - Aged in oak barrels have to put steel on the barrels because the peppers will eat through - Similar process to wine miking - Add vinegar to tank and stir it for 28 days - Sauce is then strained - 7,000 bottles a day - Spicy sauce is $1b dollar business - Not concerned about upcoming competition - Problems with saltwater intrusion for the island—> plan to replant fresh grass to combat problem - Leases land for oil gas and salt mining...