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Post by Planet Asia on Dec 27, 2005 4:14:17 GMT -5
This thread dedicated to proving a positive alternative to the negative racist perceptions of blacks in this forum. Pay attention, you will learn something and see a different side of black people thats suppresed.
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Post by Planet Asia on Dec 27, 2005 4:15:16 GMT -5
NEWSPOINTS Power Player Thompson Named McDonald's COO By Tamara E. Holmes Don Thompson, 43, has been promoted to chief operations officer for McDonald's USA. "I am extremely excited about the new role," says Thompson. "My focus will be on intensifying our already aggressive focus on operational excellence and leadership marketing to bring an even higher level of quality, service, cleanliness, and value to all of our guests. By working with the great employees, entrepreneurial franchisees, and innovative suppliers across the system, we will achieve our goal of being our customers' favorite place and way to eat." Thompson now oversees the company's U.S. field operations. Previously, he was executive vice president and innovation orchestration leader for McDonald's Restaurant Solutions Group. McDonald's has been forced to make major management changes due to the recent deaths of CEOs Charlie Bell and Jim Cantalupo. "Don's 15 years in the McDonald's system and his most recent leadership position in the global business prepared him well for this expanded leadership role here in the U.S.," stated Jim Skinner, chief executive officer of McDonald's. Thompson's promotion also shows the company's commitment to diversity, says Reggie Webb, chair of the National Leadership Council, which represents McDonald's U.S. franchises. " [His appointment] as the first African American chief operations officer demonstrates that McDonald's truly values diversity and understands it as an essential business driver." www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/04/0405-04.htm
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Post by Planet Asia on Dec 27, 2005 4:22:50 GMT -5
NEWSPOINTS Power Player Food Industry Veteran Has It His Way Chuck James seals whopper deal, becomes Burger King's largest black franchisee By Latif Lewis Food industry veteran Charles H. "Chuck" James III is now Burger King's largest African American franchisee. In a deal announced in November, James, who is CEO and managing owner of C.H. James Restaurant Holdings L.L.C., purchased 37 stores in the greater Chicago area. James created C.H. James Restaurant Holdings, an affiliate of C.H. James & Co., in 2003 by leveraging a partnership with Goldman Sachs' Urban Investment Group. Franchising wasn't how the 46-year-old entrepreneur envisioned growing his fourth-generation family business. But after unsuccessful attempts at identifying large acquisitions in the food processing industry, James was urged to consider the quick service restaurant model. When 26-year veteran franchisee Sheldon T. Friedman announced plans to retire, James and Goldman Sachs jumped at the offer. "We liked the positive momentum that Burger King was experiencing and saw a good opportunity with the 37 stores in Chicago," says James. October marked the ninth consecutive month of positive U.S. same-store sales for the fast-food chain. After looking at several transactions, Kevin Jordan, managing director of the Urban Investment Group, agreed that Burger King (one-third of which is owned by Goldman Sachs) made the most sense. The firm expressed confidence in James' ability as an operator based on his industry experience as a supplier. Jordan also says the deal "was particularly attractive because it was a great geographic cluster of stores, all within reasonable proximity to one other, in … one of the top markets in the country." (For a list of James' Chicago-area locations, visit www.blackenterprise.com/ bkstores.) An undisclosed amount in equity financing from Goldman Sachs and Bank of America Restaurant Financing Group was used to close the deal on Nov. 1, 2004, making it the second largest Burger King franchise in the region. James believes this deal alone will bring in $50 million for calendar year 2005. Now primarily focused as a holding company, C.H. James & Co. still provides food distribution services to Darden Restaurants (Red Lobster and Olive Garden) and recently concluded a distribution contract with Wendy's. Over the years it has serviced some of the top names in the industry, including McDonald's and YUM! Brands, which includes Kentucky Fried Chicken, Pizza Hut, and Taco Bell. James hopes that having more minorities involved in purchasing decisions will help increase opportunities for minority suppliers. This is a key focus of Burger King's Minority Franchise Association, headed by Valerie Daniels-Carter, president and CEO of V and J Holding Cos. Inc. (No. 38 on the BE INDUSTRIAL/SERVICE 100 list with $90 million in sales), who owns 35 restaurants in Milwaukee and Detroit. This isn't the only recent acquisition of a large number of Burger King franchises by an African American; in July, former NBA star Magic Johnson bought 30 existing franchise stores in Atlanta; Birmingham, Alabama; Dallas; and Miami. And Burger King says it has more plans for diversity among its franchisees. "We know that our consumer base is very strong from an African American standpoint," says Clyde Rucker, senior vice president of Burger King Corp. "We want to continually strive to reflect our consumer base." Currently, there are about 50 African American franchisees who own about 300 of the more than 11,000 Burger King franchises -- a number Rucker insists Burger King is committed to growing. www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/02/0205-03.htm
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Post by Planet Asia on Dec 27, 2005 4:25:50 GMT -5
ENTERPRISE Making it Popping Perfection How one businessman's gourmet popcorn became a recipe for success By Zakiyyah El-Amin Popcorn has never tasted so good to Lavonne Sanders, an entrepreneur who has turned popping golden kernels of corn into a lucrative business venture. As president and CEO of Popcorn and More Inc., Sanders' keen sense of taste and his passion for doing his best have propelled his company to new heights. Popcorn and More has created a name for itself with its prepackaged MixMatch Gourmet Cheese and Caramel Popcorn. The snack is sold in a number of venues including Marshall Field's, Walgreens, Jewel-Osco, and Loews Theatres. Incorporated in 1996, the firm made $2 million in revenues in 2004, up from the previous year's number of $1.7 million. Prior to starting Popcorn and More, Sanders worked at the ICEE Co. in Quality Control Development & Sales, where he is credited with formulating syrups used in the ICEE machines. Inspiration to go into popcorn came quite unexpectedly to Sanders one day while attending a sales call in downtown Chicago. "I noticed a long line of people waiting to enter a local popcorn shop and from that moment on, I knew that popcorn would be in my future," recalls Sanders. He immediately went to work developing a formula for his gourmet popcorn. Although Sanders, 66, knew very little about popcorn, he did possess the gift of formulation, "I can go on taste alone to determine what ingredients I need to get the flavor I want." Sanders continued to work full time at ICEE during the first three years of business, before taking an early retirement. After six months, his recipe was complete. He took a $50,000 loan against his house, borrowed $10,000 from family and friends, and used $4,000 of his savings to purchase equipment, supplies, and raw materials -- popcorn, oil, cheese, and sugar. The Dolton, Illinois-based company started out in a small storefront and successfully sold its popcorn in bulk. However, after 9-11, sales plummeted 70% when customers began to fear purchasing nonpackaged foods. Sales quickly rebounded when Sanders packaged the popcorn in individual, clear bags and began manufacturing it for distribution to other retailers. However, increasing demand for the cheese and caramel combo made it difficult for the small operation to fill the numerous orders. It was a challenge for the popcorn manufacturer to get the money needed to support the company's growing pains. Sanders had to apply to three banks before he was finally offered a $150,000 line of credit and a $100,000 loan. The business mogul used these funds toward working capital to purchase new equipment and additional supplies. He also moved into a larger, 8,000-square-foot facility, where his staff of 40 currently operates. The turning point for the company came in 2002 when Sanders received a call from Walgreens, a national retail pharmacy chain, requesting an appointment to discuss his product. Shortly thereafter, Walgreens became one of Popcorn and More's largest accounts and a major catalyst for subsequent business. Today, the snack can also be found in casinos, hospitals, convenience stores, and shopping malls throughout the Chicago area. The company has profitable contracts in the pipeline and anticipates reaching $3 million in revenues in 2005. Sanders concludes, "I am proud of the number of e-mails and phones calls I get praising my popcorn." Popcorn and More Inc.; 14737 S. Greenwood Rd., Dolton, IL 60149; 708-201-0009 www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/02/0205-13.htm
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Post by Planet Asia on Dec 27, 2005 4:28:59 GMT -5
Husband and wife team build on Baltimore's housing market By Zakiyyah El-Amin Kevin and Annie Byrd have taken Baltimore's housing revitalization market and turned this hot commodity into a lucrative business venture -- Signature Management & Realty L.L.C. Signature Management is a residential property and management firm that owns and manages multifamily dwellings in the Greater Baltimore—Washington, D.C. area. The firm uses digital documentation and a customized, property software management program to provide its clients with state-of-the-art service. Signature Management, which posted revenues of $250,000 in 2004, offers real estate investors an array of services including leasing, management, maintenance, and construction. In addition, the Byrds educate investors about real estate opportunities under their parent company, Fortress Investment Group L.L.C. The seven-employee firm works with a roster of subcontractors who specialize in electricity, plumbing, and roofing. Fortress' client base consists primarily of professionals who have an interest in purchasing investment property, but lack the time or expertise needed to manage the properties. Prior to moving to Maryland, Annie was an administrator at Harvard University's W.E.B. DuBois Institute, while Kevin worked as an insurance agent. In 2001, the Boston natives uprooted to Baltimore. The duo realized that despite many of Baltimore's impoverished areas, the city still had potential for growth and revitalization. "We saw the possibility of Baltimore becoming a 'comeback city,'" says Annie, 37, the firm's president. Relying on faith, the couple resigned from their jobs, put their house up for sale, and relocated to Maryland. Kevin, 48, was soon hired as an inspector for the Housing Authority of Baltimore. He worked in this capacity for a year and a half prior to his current role as senior vice president of operations for the firm. A few months later, the couple took $18,000 from their 401(k) plan and used the money to buy their first property in Southeast Baltimore. The next year, they sold the property for $50,000, nearly three times its original price. To familiarize herself with the industry, Annie studied aggressively and became acquainted with Maryland's real estate laws. By the end of 2001, Signature Management had 25 properties under management. The company's motto is, "How your property is managed TODAY will determine its value TOMORROW." Determining ways to manage the company's rapid surge in growth has been a challenge. Like many entrepreneurs, the couple is responsible for all aspects of their business. However, in order to sustain and promote growth, they quickly realized that they must relinquish some of their duties and delegate more responsibility to their staff. Over the years, the firm has built strong alliances with personnel and staffing agencies in an effort to attract, hire, and maintain qualified employees capable of handling the rigorous demands of the business. The firm also provides its staff with ongoing training and mentoring programs to keep them abreast of industry changes. Today, Signature Management has more than 175 properties under management. Within the next five years, the Byrds plan to take their company national by opening additional offices in other major metropolitan cities. Signature Management & Realty; 3222 Belair Rd., Baltimore, MD 21213; 410-563-0400; www.signaturemanage.comwww.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/01/0105-12.htm
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Post by Planet Asia on Dec 27, 2005 4:32:16 GMT -5
Philadelphia construction entrepreneur thrives in a competitive market By Glenn Townes Bidding for construction projects in Philadelphia is a competitive and time-consuming process for local contractors. But Michael Barnes, owner of RPM Contractors, is on the fast track. His award-winning approach to the construction business is garnering lucrative contracts from the city of brotherly love. Barnes was awarded the Excellence in Construction award in December 2004 by the African American Chamber of Commerce of Pennsylvania, New Jersey, and Delaware. The prestigious award capped off a year chock full of awards, including the Outstanding Demolition Contractors Award and the Minority Enterprise Development Week Committee's 2004 Public Works Award. After spending nearly 20 years working for Tony DePaul and Sons Construction Co. in Philadelphia, Barnes started RPM in February 2002 and revenues for the growing construction firm stood at $1.9 million last year. "I was frustrated working for someone else," says Barnes, who wanted to experience the control of implementing his own ideas and business strategies. "I saw that there were countless opportunities for a black-owned construction company in Pennsylvania -- particularly in the Philadelphia area -- and I decided to go for it." Having no experience with managing his own business, Barnes joined the African American Chamber of Commerce Emerging Contractors program in early 2004. Among other things, the program offers management training, resources for finding access to capital, and guidance to minority-owned businesses in Philadelphia. When Barnes graduated from the program last year, he received the award for Outstanding Field Exercise. The award recognizes entrepreneurs who demonstrate excellence and expertise while working on projects in the field. Barnes, 40, used about $50,000 in personal savings to start RPM and managed to secure a number of small projects. "Fortunately, after 20 years in the construction business, I was able to call on business contacts and get small pilot projects," recalls Barnes, who is married with two children. Initially, the company only provided milling and paving services on highways, roadways, and parking lots. Working out of his home in the early stages, Barnes was able to expand his business to include demolition services. Eventually, he rented office space from his former employer. A turning point for RPM came last year when Barnes partnered with Gracie Corp., a demolition company in New Jersey, to win a $700,000 contract with the city of Philadelphia for several road and demolition projects. Securing the project enabled Barnes to purchase additional equipment and increase his staff. Currently, RPM employs about 35 employees and a number of outside subcontractors and vendors. "The contract with [Philadelphia] and a few others allowed me to increase my bonding capacity and helped me expand my business," says Barnes, who was able to guarantee the financial performance of his contract work. In less than a year, the bonding capacity for RPM increased from $100,000 to $400,000. "RPM does excellent work," says Tom Woods, a Philadelphia Regional Port Authority construction engineer who worked on at least two projects with RPM. "They are easy to work with, and Barnes always checks to see that his team does a good job and high quality work." Barnes says keeping track of his paperwork is the most tedious part of running his business, but it's also one of the most important aspects. "Keeping track of everything you do [in] your business is crucial to the success or failure of your business. It keeps your employees and clients happy." RPM General Contractors, 218 E. Washington St., Norristown, PA 19401, 484-322-0520 www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/10/1005-15.htm
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Post by Planet Asia on Dec 27, 2005 4:45:12 GMT -5
By investing in his education and business, K. Clyde Vanel is reaping tremendous returns By Nicole Lewis K. Clyde Vanel, the son of haitian immigrants, learned how to manage money from watching his parents stretch their resources to raise him and his nine siblings in Queens, New York. Vanel's mother, who cleans offices, and father, who drove a taxi and now works as a porter, were able to pay for eight children to attend Catholic school. All 10 children graduated high school and went on to college. Vanel, 31, is now a talented intellectual property attorney. Because he went to a private Catholic school, Vanel realized the value of a quality education early on. When his parents couldn't pay for his last two years of high school, he worked part time to pay for it himself. Vanel made the connection between education, business, and one's ability to generate wealth. That is why he has adopted Declaration of Financial Empowerment principle No 8: to support the creation and growth of profitable, competitive black-owned enterprises. When he was ready for law school, Vanel conducted his search like a savvy consumer. First, he made sure he scored well on his LSAT exam to attract scholarship money, then he focused on finding a school that would help him out the most financially. "A number of factors went into my decision, but it was important to me to find a school that would offer me the most scholarship money," says Vanel. When Boston University agreed to pay $18,000, or half of his tuition for each of the three years he'd spend in law school, Vanel decided to go there. For two years, the university paid his room and board because he was a resident advisor. This saved him about $10,000 a year. He also won two highly paid summer internships. His first summer in law school, he made between $6,000 and $8,000 working for the Air Force Judge Advocate General's office. He spent his second summer working for intellectual property law firm Fish & Neave, and made about $30,000. At the end of his internship, the New York-based firm offered him a job upon graduation. He accepted it, with a starting salary of $125,000. By the time he graduated law school in 2001, Vanel owed about $60,000 in student loans but he also had about $60,000 saved as a result of the scholarships he had, being a resident advisor, and his summer internships. And instead of moving back to New York and getting his own apartment, he moved back into his parents' home and shared space with seven of his siblings. "What I was doing was saving," Vanel explains. His first financial goal was to invest in a home. He put $40,000 down on a $280,000, five-bedroom home in Queens in 2001. Today the house is worth $500,000, well worth the sacrifice of sleeping on his mother's couch for a few months. "A lot of the people I worked with lived in Manhattan and their rent was more expensive than my mortgage," he recalls. Having a home with a garage was just what Vanel needed to accommodate his next business investments. An admirer of classic cars, he purchased a 1983 Porsche 911 SC Targa for $9,000 in 2001 and sold it two years later for $19,000. He also purchased a 1972 Rolls Royce Silver Shadow for $5,000 in a 2002 estate sale and later sold it for $22,000. With the money from the sale of the cars, personal savings, and two lines of credit amounting to $50,000, Vanel decided he had enough to establish his own law firm. He spent the two years he worked at Fish & Neave attempting to bring in profitable clients, but watched as other attorneys managed them. "I felt that I could do just as good a job as anybody else handling those cases, and now that I have my own firm, I'm doing just that," he says. In fact, Vanel is determined to build his wealth through businesses, whether freelancing by fixing and selling cars or running his own law firm. Since opening The Vanel Law Firm P.C. in 2003, he has traveled the country developing his practice. Last year, the firm posted $80,000 in revenues, and Vanel says some of his clients have been so impressed with his work, that they've asked him to partner with them in other businesses. He currently has ownership stakes in a workforce development firm and a food distribution business. Lending his legal expertise in exchange for a stake in a growing business is the kind of investment Vanel likes. For him, ownership matters. He notes: "As a partner in the business, I get a piece of the whole business." He also takes on the risk of ownership but prefers the hands-on decision making power a partner has in building a business over the volatility of stock market investing. "I'd rather invest in something that I know, something I'm sure of," Vanel says, "So I invest in my company; I invest in myself." Vanel suggests the following if you want to use businesses to build wealth: Approach your education like you're buying a product. Search for the best opportunity and pursue grants and scholarships with vigor. "Currently, I have $70,000 in student loans outstanding," Vanel says. "But had I not pursued scholarships, I probably would have at least $30,000 more in student loans." Control your spending. In a business, There are fixed costs that can't be reduced and variable costs that can. Vanel parks his car half a mile away from his office to cut down his parking bill from $450 a month to $235 a month. He'll also go to a fast-food restaurant "while my colleagues spend about $30, $40 a day on lunch." Reinvest in your company. Vanel says investments should produce solid gains, but to do that, you must place money back into the firm. Vanel has placed all his extra income into building the companies he owns a part of. "I'd rather invest, in my company, in my education and in my assets," he says. www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/08/0805-31.htm
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Post by Planet Asia on Dec 27, 2005 5:46:12 GMT -5
Some great news from South Africa Black incomes could boost consumer boom Rapid growth in black incomes could give consumer boom fresh impetus. The black middle class has grown by 30% in the past 12 months, adding another 421,000 black adults to SA's middle-income layer and ramping up the black population's share of SA's total middle class to almost a third. The inexorable march of black families up the income ladder is evident from the 2005 Amps data, released last month by the SA Advertising & Research Foundation (Saarf). It shows that far from slowing down, as some analysts have feared, the growth of the black middle class appears to be speeding up in line with the acceleration in economic growth. This means that the current bout of consumption growth is likely to be more sustainable than anything SA has experienced in past business cycles. "This data provides one of the most quantitative verifications that there has been a structural change in the SA economy," says Massmart CEO Mark Lamberti, who has for the past four years strategically repositioned the mass market retailer, with brands such as Makro, Dion and Game in its stable, to capitalise on this trend. The FM defines the black middle income group as blacks in LSMs 7-9. This correlates roughly to average monthly household incomes ranging from R6,444 to R11,864. However, LSM categories are not a direct surrogate for income groups. Each LSM includes a wide range of incomes. What they measure is the possession of durable products and the associated buying behaviour. The most striking findings are : In the period between 2001 and 2004, there were only 300,000 new black entrants to the middle class, but in just the past 12 months another 420,000 have joined. This is growth of 30% in 12 months. Blacks now make up almost a third of SA's total middle class. Over the past 12 months, LSM 8 experienced the biggest percentage growth in black members for any LSM category - 42,6%. Over the same period, LSMs 1-3 experienced a total decline of 802,000 blacks. This equates to 3,4% of the entire black population moving out of these low-level categories in just 12 months. LSM 10 experienced a total increase of 18,000 blacks (17,6% growth) in 12 months. However, the total number of blacks in LSM 10 in 2005 was still only 120,000 people or 0,07% of all blacks, whereas a third of all whites (1,3m) are in LSM 10. Political analyst Lawrence Schlemmer says the LSM data shows rapid growth in consumer lifestyles among the black population - "which is good news". "If interest rates don't rise and economic growth at the current rate continues, the black middle class will enlarge very quickly, doubling every two years or so. This means that in five years' time the black LSM 10 group will be around half the size of the white LSM 10 group - a dramatic change in our socio-economic composition." The data also shows that blacks' share of the total middle class is rising while that of whites is falling. Assuming the FM's definition of the middle class as being all people in LSMs 7-9, blacks have raised their share of the total middle class from 28,4% (1,46m blacks) in 2003/2004 to 32,6% (1,88m blacks) in 2004/2005. Over the same period, whites' share of the total middle class fell from 45,4% (2,33m) to 41% (2,36m). Schlemmer disagrees with the FM's definition of the black middle class. In order to filter out blacks with the occupational, income and living standard levels equivalent to those of the established white middle class, he tends to define those in LSM 9 and below as the "lower middle class" and uses only those in LSMs 9-10 with incomes above R12,000/month as a rough surrogate for the "core middle class". In percentage terms, LSM 10 has experienced the fastest growth in new black members of any LSM category since 2001 - an increase of over 200% or a total gain of 81,000 people. LSM 9 has also experienced very rapid growth of 141% or 204,000 more black people over the same period. But LSM data tells only half the story. Given low interest rates over the past year, the mushrooming of credit and the huge drop in prices of imported semi-durables, durables and electronic goods, it is quite possible that families have shifted into higher LSM categories without in fact becoming any wealthier. It is, therefore, necessary to examine income data as well. Fortunately, the picture of a burgeoning black middle class conveyed by the LSM data is borne out by the rapid growth in the number of black families entering higher income bands. Over the past 12 months, there was a 31% increase in the number of black adults with average household incomes of R12,000 or more a month. There was also a 31% increase in the number of blacks with average household incomes ranging from R7,000-R11,999/ month and a 20% increase in the number of blacks in the R4,000-R6,999/month category. In total, 831,000 blacks moved up into these income bands over the past 12 months. At the same time, LSMs 1-3 experienced a total decline of 802 000 black members (3,4% of the entire black population), suggesting a huge flight from poverty, though there are many without any income at all. These results are a little less impressive if the changes are studied solely by income group. Using this approach shows that about 600,000 black people (or 2,6% of the entire black population) moved out of the R2,499 or less a month income band over the past 12 months. Of these, nearly all (533,000) moved off the lowest rung - households earning under R899/month. This suggests that social grants are what is making the difference at this level. The result of black households increasingly entering income ranges that were once almost exclusively white has been a dramatic increase in the black consumer base in various product types. Between 1993 and 2003, though the demographic composition of the population remained more or less the same, black households' contribution to total household expenditure increased from 36% to 46%, making blacks the country's biggest consumer base. By far the biggest contributor to total black earnings between 2001 and 2003 was the black middle class, contributing 60% - or R16bn of the R27bn - earned by blacks over this period. With earnings a good proxy for expenditure, it is fair to say that the emerging black middle class is largely responsible for the huge surge in expenditure attributed to black households over the past few years. A Deutsche Bank report shows that between 2001-2004, the number of black people in LSMs 7-9 who bought satellite TV (DStv) more than doubled while there was no change for other race groups. Black middle class purchases of new furniture were up 97%, compared with less than 40% among the rest of population, and the number who bought a cellphone was up 54%, compared with only 36% more among the rest. Retailers have been observing this phenomenon first hand. In its latest annual report, Edcon noted that "an increasingly affluent black consumer has emerged through the normalisation of society as a result of employment equity and black economic empowerment initiatives. As a consequence, retailers have benefited from the upward mobility and aspirational spending of the previously disadvantaged." Edcon executive manager (investor relations) Tessa Christelis feels that this trend "still has a long way to run". Together with the shift of people out of lower, subsistence-level LSM bands into consumer bands, the aspirational spending is part of a structural change to the economy that will underpin Edcon's growth over the next few years. Edcon expects the rate of retail sales growth to slow next year (mainly because of base effects), but still forecasts growth to be positive, provided there are no external shocks to the economy. Merrill Lynch economist Nazmeera Moola also believes the Saarf data has positive implications for economic growth and the continuation of the consumer spending boom. She notes that "a large chunk of SA's overall GDP growth is currently due to consumer spending, and the Saarf data shows that it is more than just a debt binge that is driving this growth." "Yes, debt levels have risen sharply," she says, "but interest rates have also fallen a great deal. The more interesting story is that income levels are also rising sharply. This makes the current bout of consumption growth more sustainable than we have seen in past economic cycles." The main risk to this growth is a sharp rise in interest rates since the new black consumer has probably taken on debt in order to accumulate a number of assets in a short space of time. However, a surge in rates is increasingly unlikely. Lamberti is also bullish : "My confidence is unwavering: the SA economy and consumer are in great shape." www.suntimes.co.za/zones/sundaytimesNEW/business/business1134652412.aspx
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Post by Planet Asia on Dec 27, 2005 10:27:31 GMT -5
John Rogers' slow and steady strategy has enriched millions of African Americans By Derek T. Dingle At 46, John W. Rogers Jr. is a master wealth builder. At such a young age, you might think this shrewd fund manager is unworthy of being called an investment legend. But his entrepreneurial roots run deep. In the 1910s, Rogers' grandfather J.B. Stradford owned a 65-room hotel, a savings and loan firm, and other real estate in Tulsa, Oklahoma -- a thriving community dubbed the "Black Wall Street." During the Tulsa Race Riot of 1921, roughly 10,000 armed whites looted and burned down this early model of black affluence. Almost a century later, his grandson is one of the most powerful blacks on Wall Street. In 1983, Rogers' asset management firm, Ariel Capital Management, launched the first family of equity mutual funds managed by African Americans. Along the way, Rogers developed a novel brand of value investing that produced blockbuster returns for millions of institutional and individual investors. And this visionary didn't stop there. He created the first and only survey, in partnership with Charles Schwab & Co., to compare investing habits of African Americans and whites. Over the past two decades, Rogers has boosted his clients' net worth through a philosophy based on an old Aesop fable: Slow and steady wins the race. That attitude and some rather astute stock picking -- identifying out-of-favor or undiscovered small and mid-cap companies that became investment gems -- has taken Ariel from a newsletter to the No. 1 firm on the BE ASSET MANAGERS list with more than $16 billion in assets under management. And throughout the years, Rogers has maintained his laser-beam focus on performance. As of Oct. 31, 2004, his flagship funds, Ariel and Ariel Appreciation, received four-star ratings from Morningstar and gained recognition from Lipper Analytical Services in the areas of capital preservation and total return. As of Sept. 30, 2004, the average annual five-year returns for Ariel Fund and Ariel Appreciation Fund were 14.70% and 11.14%, respectively. Rogers has been a student of the financial markets since the age of 12. On his birthday, his father converted him into an active investor through the gift of stock. For the next six years, while his friends received the usual birthday and Christmas presents, the budding asset manager obtained securities. By 18, he was fully managing his holdings. After college, Rogers worked as an analyst for a Chicago brokerage for two years before launching Ariel. Only 24 at the time, he was ready to take the entrepreneurial plunge. In 1983, he developed a newsletter, The Patient Investor, which described his stock picks, and arranged for several clients to invest $500,000 in the Ariel Fund. By 1986, it had grown to $2 million. Rogers brought on Calvert Group Inc., a financial services company, to serve as the distributor and transfer agent. But eight years later, in a bold move to gain independence, he paid $4 million as part of a separation agreement with Calvert and assumed responsibility for all of the fund's operations. "We went from managing $2.3 billion to $1.1 billion over a short period of time, and it was extraordinarily uncomfortable and frightening," says Rogers, whose employees all own shares of the fund. Rogers' dedication to investment performance and financial literacy enabled Ariel to compete against juggernauts such as Fidelity, Vanguard, and Citigroup -- companies that handle trillion of dollars in assets. Ariel has also proven successful in its expansion of individual investors and in attracting market segments largely ignored by other Wall Street firms. In fact, a number of African Americans became first-time investors by placing their hard-earned dollars in one of Ariel's funds. For Rogers, no investor is too small or too young. Through the Ariel Education Initiative, his firm teaches public school students about the mechanics of the stock market. Consider it the second phase of his wealth-building mission -- creating the next generation of black investors. As part of our 35th anniversary salute, BLACK ENTERPRISE presents Ultimate Wealth Builders -- a monthly series profiling entrepreneurs, financiers, and corporate chieftains. Through innovative thinking, these men and women have had an immeasurable impact on the wealth-building potential of black Americans. For profiles of all of our Ultimate Wealth Builders, go to www.blackenterprise.com. www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/01/0105-31.htm
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Post by Planet Asia on Dec 27, 2005 10:33:05 GMT -5
B.E.100s Bridgewater Interiors Closes $400m Deal By Tamara E. Holmes Detroit-based auto supplier Bridgewater Interiors L.L.C. (No. 22 on the BE INDUSTRIAL/SERVICE 100 list with $167.4 million in sales) continues to break new ground. The firm secured a $400 million contract from Chrysler Group, a division of DaimlerChrysler, which marks the largest deal ever awarded to a minority business by the American automaker. Bridgewater made history a year ago when it snared a $500 million annual contract with Ford Motor Co., the largest contract ever awarded to a minority auto supplier by an automobile manufacturer. Bridgewater's contract with Chrysler is for work to be completed over a period of five years. Bridgewater will supply the overhead systems for Chrysler's 2005 Jeep Grand Cherokee and for a future Chrysler vehicle that has yet to be named. "Chrysler looks for a supplier who can deliver on quality, cost, technology, and delivery," says Jethro Joseph, Chrysler's senior manager for diversity supplier development. Bridgewater's consistent recognition for quality work, coupled with the automobile industry's desire for diversity, has fueled the company's success, says Bridgewater President and CEO Ronald Hall. "[In] the automotive industry, [there is] tremendous competition," says Hall. "So there is a tremendous amount of interest by the OEMs to have minority content in their cars. Not only is it the right thing to do socially but it makes a lot of economic sense -- empower people economically and then, hopefully, they'll turn around and buy American cars." The deal underscores the success of minority suppliers in recent years, says Harriet R. Michel, president of the National Minority Supplier Development Council. "Deals of this size demonstrate that minority supplier development works," she says. www.blackenterprise.com/ArchiveOpen.asp?Source=ArchiveTab/2005/01/0105-02.htm
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Post by aroundtheworld on Dec 27, 2005 12:44:10 GMT -5
cool. Now if these people can just spread the positivity, everything will be okay.
There are lots of positive black in my town but they are overwhelmed by the majority of the gold-teeth, braided-haired men scaring the bejeesus out of old ladies walking around the mall shouting, "Tear da club up Nigga, Tear da club up!". OMG!
they are an embarassment. For every black that is educated and tries to do well in life there are 10 idiots to mess things up. It's sad really.
Anyhoo, on a positive note there is this old black school teacher who never had kids and saved over $400,000 to set up a scholarship fund for kids. That is cool. She is the granddaughter of a slave.
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Post by Planet Asia on Dec 27, 2005 12:54:35 GMT -5
cool. Now if these people can just spread the positivity, everything will be okay. There are lots of positive black in my town but they are overwhelmed by the majority of the gold-teeth, braided-haired men scaring the bejeesus out of old ladies walking around the mall shouting, "Tear da club up Nigga, Tear da club up!". OMG! they are an embarassment. For every black that is educated and tries to do well in life there are 10 idiots to mess things up. It's sad really. Anyhoo, on a positive note there is this old black school teacher who never had kids and saved over $400,000 to set up a scholarship fund for kids. That is cool. She is the granddaughter of a slave. Positivity doesn't need to be spread so much, it needs to be given more attention instead of focusing on the negative that blacks do. much more media is devoted to showing white people as good as opposed to bad, which has lead so people to believe that whites are better than other races.
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Post by Mike the Jedi on Dec 27, 2005 13:02:21 GMT -5
Come on, nobody gives a shit about white people. Why? Because they're the plain jane default. They're the white paper you color on.
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Post by Planet Asia on Dec 27, 2005 13:04:20 GMT -5
Come on, nobody gives a shit about white people. Why? Because they're the plain jane default. They're the white paper you color on. What are you talking about?
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Post by Mike the Jedi on Dec 27, 2005 13:09:12 GMT -5
You said much more media is devoted to showing white people as good as opposed to bad. I don't believe that. Media by its very nature focuses on the negative aspects of everything. Race need not apply. If they can go after something, they will.
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