This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.
As we undertake a hasty exit from the tumult of 2008 and plunge headlong into the mysteries of 2009, we might find it interesting to consider some business entities that could benefit from a little "freshening up." Four familiar names; Kmart, Playboy, Starbucks, and Wall Street, are each in need of a timely makeover, to varying degrees. But if you could chose just one of these big name operations to fix up for 2009, which one would it be, and how would you fix it?
First let's consider Kmart, the adopted son of Sears Holdings Corp. (NASDAQ: SHLD). What are the changes that Kmart might need to remain competitive going into 2009? Should the company try playing the boutique angle, which failed to work for Wal-Mart Stores Inc (NYSE: WMT)? Should the company tighten up and consolidate, while pursuing a deeper product value play, or should it attempt to spread out its market coverage and work over its wholesale vendors, while engaging Wal-Mart in a game of cut-throat retail price points? If you were CEO of Kmart, what would you change?
Next, let's take a look at Playboy Enterprises Inc. (NYSE: PLA). Who could argue against the value of doing something to buff up that operation? The company's majority owner, Hugh Hefner, seems to think that his media company can continue to pay its bills by selling cheesecake to its adoring fans. Someone needs to tell dear Hef about the multitude of darling college girls and boys who operate some very personal web-cams. Do you think that perhaps a deeper thrust into product merchandising might reawaken the dreamy eyed company? Or do you suspect that Playboy could stay in the black by leaning more towards the pink?
I would like to suggest that a makeover is needed by Starbucks Corp. (NASDAQ: SBUX) The company has admitted that 2009 shall be challenging. What can Starbucks do to meet that challenge? Perhaps Starbucks' future success lies in the realms of atmosphere or on-site entertainment? Coffee houses of the '60s did quite well by providing havens of expression for self-proclaimed poets and their associate bongo drum players. Could Starbucks be revived by becoming the next cult fad incubator?
Last but not least, I insist that a makeover is badly needed on Wall Street. In fact, I've already registered my opinions here about the practice of short selling. For 2008, Wall Street's narrative read more like an account of a running gun battle than an overview on capital investment. I will take the risk of asserting that half of the investment capital decline this year was brought on by investors who acted more like horse players in plaid sport coats than professional business people investing in growth. In reality, it's probably not Wall Street that needs the makeover. It is the minds of several thousand business-sense-challenged, capitalists that really need a good working over. Wouldn't you agree?
Which of these four big names do you think is most in need of a makeover?
Share the reasons for your makeover pick in the comments, or let us know about any contenders we overlooked. Also be sure to see the rest of the Best & Worst in Money 2008.
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Reader Comments (Page 1 of 1)
12-05-2008 @ 1:59PM
barbara said...
I think Starbucks could do better if they
had certain times they lowered ther prices. Like once a month, given the current state of the economy.