TWEETS MATTER

China Has an Apology Playbook. The NBA Has Another Idea. – The Wall Street Journal

Operating in global markets can be difficult. Each side may have completely different cultural and social values that conflict. Traditionally, many global businesses seek to engage in global markets by avoiding topics that may lead to strong emotional or political reactions in the home of the target market.

Americans value freedom and democracy and support the global push for these values. In contrast, China is not a democracy and its government controls the level of freedom its citizens are allowed to enjoy. Companies dealing with China tiptoe this delicacy in order to protect access and revenue.

For the NBA, one tweet may have created irreparable damage to a decades old relationship that helps make basketball a global attraction. Adam Silver is put in an unenviable position, but one that comes with the territory, in having to restore this relationship.

Silver must not further damage with China, while avoiding abandoning our strongly held domestic values. Protect Darryl Morey’s freedom of speech, but avoid connecting his sentiment on China with the NBA’S interests.

Political and economic tensions between the United States and China will undoubtedly create more of these type of conflicts. But, our businesses should not kiss the ring of a foreign leader. They should also aim to not offend.

 

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UBER WORK

New Uber App to Pair Gig Workers With Employers (WSJ)

UBER is adding another useful tool to its portfolio for people operating in the gig economy. First, it allowed people to earn compensation for driving people around on their spare time. Then UBER allowed people to earn income by delivering food. Now, UBER is prepared to help people find temporary work.

UBER Work will connect people seeking temporary employment with employers offering such positions. UBER Work will compete with other tech startups in this space as well as the network of staffing and temp agencies that market these type of roles.

This venture could help add revenue when its core business faces great challenges.

HEALTH & BUSINESS

Juul CEO Exits; Altria, Philip Morris End Merger Talks in Vaping Fallout – The Wall Street Journal

Tobacco companies are going to need to brace for the fallout from government regulations on e-cigarettes and vaping products. Because these products continue to find their way into the hands of teens, governments are taking action to prevent more preventable deaths.

Banning a product that some should be able to purchase seems like an overreaction.Adults that understand and accept the risk should conceivably be allowed to exercise that freedom. There can be a balance approached in affording access to legal purchasers and restricting access to minors.

There is an argument that both government and businesses can work together to improve methods that prevent teens from accessing these products. More should be done to make people understand there are risks associated with smoking, whether traditional tobacco products or e-cigarettes.

Companies selling tobacco products will need to meet the challenge of addressing the dangers of their products. A start could be advocating against chain smoking, which is more dangerous.

BUYER BEWARE

HOUSE FLIPPING (PHILADELPHIA INQUIRER)

 

There always is issues when one party is more educated about a transaction than their counterpart. Real estate is a complex market, where realtors and other market participants have an asymmetric information advantage than people only entering the market infrequently. Especially on property not lived in or used often.

The person or entity seeking to attain the asset does not have a vested interest in ensuring their counterpart is well informed. Keeping the cost down is a significant factor in any purchase. Especially if the purchase requires additional investment or cost. While one may look at purchase and resale price, the cost of making the property market ready can be significant.

If a person is willing to sell their property, that person should do the research needed to get a clear picture of the value before selling. The seller controls the timeline and has the power of yes and no. Buyers want a quick decision, but sellers should take their time.

It makes perfect sense that people might pay more attention to values of properties they occupy than property they inherit, especially when their is either no urgency to sell or selling while in grief. In any transaction, people should understand the party operating in the industry has more knowledge of the value of the underlying asset. Be weary to accept the initial offer.

Too many people are averse to negotiating because it requires confrontation. But, when money is involved, do not be afraid to ask for your full value. The worst that will happen is you get a no. Always counter. Always know the value of the asset.