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COMMON-SENSE

BUSINESS

By Stan Rosenzweig

Jack Welch on leadership

There's no end ta th(^ numlxT of great business lessons you can learn from reading the b(x>ks by or about Jack Weich. Twelve are listed on An:ia2on.com. The newest, "Jack Welch and the 4K's of leadership. How lo Put GE's Leadership Formula to Work in Your Organbation," Is by Jelfrey A. Kramcs. Ihe best-selling author of "The Welch Way" and other award-winning books on leadership. Krames explains the Jack Welch 4Es of Leadership model and shows how you can apply it to y{)ur business. The 4 Es are:

linergy, "Love to go. go. go." Energizes, "Know how to spark oth- ers to perform." Edge. "Know how to make the really difficult decisions." Execute, "Know how to convert ener- gy into action and results." It sounds simplistic, but this lesson plan is anything but that. Detailed lessons include how to hire for passion, sunplify the organization, ait throu ^ complexity and red tape, and even how to jettison pn)du<1s and services that do not fit the vision for success. It details seven steps of dealing with change and links change with energy. Change, initiatives, focus, energy and the quality of the idea matter most, acrxirding in Welch, not the rank or posi- tion of the person with the idea. Welch changed the (iE environment and made training and learning the cx)merstones for growth. 'Ilie b(x)k is in two parts. Part 1 expltiins the 4Es ofleadership and how to us<^ them, with numerous examples and checklists, all of which are useM to any size business. Part 2 is every hit as inter- esting. Here. Krames follows Jeff Immelt as he replaces Welch at the hehn and then follows up with the GE senior man- agers who didn't get the job to see if Welch's methods transfer well. James McNemey went on to reinvent 3M based on the Welch playbook. Larry Bossidy took the Welch method to AUied Sigruil and then became chief executive officer and chairman of Honeywell. Robert Nardelli left GH to become CEO of Home Depot.

Stem Roscnziivig, presUh'nt of Office Tcchnotogy Consuming Inc., Stanford, Conn., can be reached through wwuxphonegunLcom or al (203) 323- 6070, exL 82409.

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WESTCHESTER COUNTY BUSINESS JOURNAL

SEPTEMBER 12.2005

 

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Covering the county's public companies

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Preventing the falleut frem Kaliina

By B.Z. K1L\SRU

bzk@westfairinc.com

With gasoline prices at record highs and economists predicting a definite cooling of the growth momentum in the next two quarters, if not an out- right recession, state officials need to act promptly to help the economy hy suspending gasolin<i taxes. Georgia has already sus- pended the 7.5 conLs-a-gallon gas tax and 4 percent sales tax on gaso- line until Oct. 1. State lawmakers in sev- eral states, including Oklahoma, Massachusetts and Pennsylvania, have either proposed or are considering doing the same. All 50 states apply a llat-rate tax on each gallon of gasoline sold, with an average of 21.8 cents per gallon, accord- ing to the American Petroleum Institute. That's in addition to state sales taxes, usually between 2 percent and 6 per- cent, and a federal tax of 18.4 cents per gallon. New York leads the nation with the highest state gasoline taxes, while Alaska has the lowest, the American Petroleum Institute said. On top of New York's state tax of 8 cents per gallon, it charges 8 percent state sales tax and a Petroleum Business Tax of 15.2 cents per gaHon. There is also a spill tax of 0.3 cents per gallon and a petroleum testing fee of 0.05 cent per gallon levied on gasoline. In New York and Connecticut, gaso- line prices hovered around $3.50 a gal- lon for regular unleaded as Katrina struck the Gulf Coast, causing serious disruptions to refineries. Although prices have dropped slightly since then, many businesses in the region say they have started passing on the higher costs to customers, a move that may push them to cut spending, causing further trouhle for the economy. Many economists believe that if prices at the pump continue trending upwards it would severely hurt the spending power of American consumers, especially low- and middle-income households.

"Unlike prior hurricanes such as Ivan. Katrina could inflict a lot of pain on the US economy, as a whole, because of the potential for extensive damage to oil and natural gas supplies in the Gulf of Mexico, as well as to the many refineries in Louisiana," pre- dicts Nariman Behravesh, I hief economist with Giobai Insight Inc., an economic con- sulting firm. His hest-case scenario:

Oil a t $70 to $75 a barrel for a couple of weeks;, gasoline prices above $3.00 for a couple of months; and the economy takes a small hit (between 0.5 percent and 1 percent on growth in tbe third and fourth quarters). And. his worst-case Scenario: Oil at $100 a barrel for a month; gasoline prices at $3.50 a gallon for a few months; and the econo- my closer to a recession by the fourth quarter He notes that early estimates suggest that the worst-case scenario is unlikely to happen, but we still need to do all we can to prevent the worst.

Khssru

IBM ACQUIRES DWL

IBM Corp. of Armonk announce d it has finalized the agreement to acquire OWL, a privately held company based in Atlanta and Toronto. Einancial terms were not disclosed. With thi s acquisition . IBM will pro - vide clients with customer data integra- tion software that enables a single, inte- grated view of customer information spread across multiple product and busi- ness silos. This capability allows busi- nesses such as banks, insurance compa- nies, retailers and manufacturers to quickly and consistently leverage their customer data to help address business challenges such as regulatory compli- ance, optimizing customer relationships, or integrating data from mergers and acquisitions. The acquisition strengthens IBM's information management software port- folio, which includes the company's existing product information manage- ment software and enterprise data inte- gration software. IBM can now offer one of the most advanced, real-time, transactional cus-

tomer data integration solutions in the market today, addressing the key chal- lenge of delivering relevant customer information, hoth internally and exter- nally. The acquisition also extends IBM's leadership in master data management solutions by huiiding on the company's existing enterprise data integration and product information management soft- ware, a key part of IBM's Information on demand strategy.

GABELLI CONSIDERS NEW MONEY MARKET FUNDS

Gabelli Asset Manajrement Inc. of Rye said it is considering the launch of state specific tax-exempt money market funds, which would be tax-free at both the state and federal level to residents of a particular state. Gabelli Asset Management beiieves that the market for state specific tax-exempt portfolios is an attractive option for customers. Any offering will be made only by means of a prospectus and this notice does not constitute an offer of any secu- rities for sale.

PEPSI BOnUNG CONFIRMS EARNINGS GUIDANCE

Pepsi Bottling Group Inc. (PBG) of

Somers affirmed its forecast for third- quarter diluted earnings per share and projected that its results are likely to reach the high end of its guidance range of 76 cents to 78 cents For the full year, diluted earnings per share are projected to be $1.82 to $1.88. with worldwide volume growth of about 3 percent and a net revenue per case increase of 3 percent. During the third quarter ended Sept. 3, PBG's constant territory worldwide physical case volume grew 5 percent. (Constant territory calculations assume all significant acquisitions made in 2004 were made at the beginning of 2004 and exclude all significant acquisitions made in 2005.) Physical case volume both in the United States and Canada grew 4 percent in the quarter. PBG's businesses in Europe and Mexico each had robust volume growth in the third quarter, up 8 percent and 7 percent, respectively.