Iraq: Under Worse Management

The country’s huge challenges following the U.S. withdrawal, including corruption, new waves of violence and crippled infrastructure:

“The end of the U.S. military’s long, bloody adventure in Iraq signals the start of a new, highly uncertain chapter in the country’s development. In the scenario conjured by optimistic U.S. and Iraqi officials, an Iraq free of tyranny, terrorism, and foreign occupation will transform itself into a modern and open economy in the heart of the Arab world. That vision recedes a bit more every day as sectarian tensions reemerge, corruption hinders development, and the country’s political leadership moves against its opponents and flirts with autocracy. Iraqis are reluctant to ask aloud if the most recent attacks represent the deadly half-life of war, or, as Abdel Sadeh and many others I spoke to during four weeks in December and January say they fear, another meltdown.”

Source: Businessweek
Published: Jan 20, 2012
Length: 16 minutes (4,084 words)

The Greatest Running Shoe Never Sold

Lessons from inventor Lenn Rockford Hann’s negotiations with companies over a carbon-fiber shoe he patented in 2004:

“When it came time to talk price with New Balance, Hann set his offer sky-high. He says he meant it as a starting point, but company executives closed discussions. Hartner remains a supporter of the shoe, but says Hann blew the negotiation. ‘He would be way better off with an agent to represent him,’ says Hartner. ‘He’s the inventor-scientist guy, you know it from movies. But in real life they sometimes end up shooting themselves in the foot, and it’s hard to watch. They’re not as good at the people thing.'”

Author: Bob Parks
Source: Businessweek
Published: Jan 14, 2012
Length: 8 minutes (2,061 words)

The King of All Vegas Real Estate Scams

An FBI spokesperson says that for the time being the agency is not commenting on the case. But already the investigation has provided a window into yet another layer of corruption that took place amid the national housing boom and its subsequent hangover—a period that saw a surge in real estate malfeasance of every imaginable variety, including false loan applications, predatory lending schemes, illegal property flipping, equity skimming, and “air loans” (loans for property that doesn’t exist). According to FBI data, the number of suspicious activity reports related to real estate fraud filed by financial institutions jumped to 67,190 in 2009 from 6,936 in 2003.

To this history, Las Vegas has managed to add another florid chapter. So far, prosecutors have reached plea agreements with 10 co-conspirators. Many more are expected to appear in front of judges in the coming months. Says Murray: “We’re all going to be sitting in the front row, watching.”

Source: Businessweek
Published: Dec 8, 2011
Length: 18 minutes (4,639 words)

Palantir, the War on Terror’s Secret Weapon

Depending where you fall on the spectrum between civil liberties absolutism and homeland security lockdown, Palantir’s technology is either creepy or heroic. Judging by the company’s growth, opinion in Washington and elsewhere has veered toward the latter. Palantir has built a customer list that includes the U.S. Defense Dept., CIA, FBI, Army, Marines, Air Force, the police departments of New York and Los Angeles, and a growing number of financial institutions trying to detect bank fraud. These deals have turned the company into one of the quietest success stories in Silicon Valley—it’s on track to hit $250 million in sales this year—and a candidate for an initial public offering. Palantir has been used to find suspects in a case involving the murder of a U.S. Immigration and Customs Enforcement special agent, and to uncover bombing networks in Syria, Afghanistan, and Pakistan. “It’s like plugging into the Matrix,” says a Special Forces member stationed in Afghanistan who requested anonymity out of security concerns. “The first time I saw it, I was like, ‘Holy crap. Holy crap. Holy crap.’”

Source: Businessweek
Published: Nov 22, 2011
Length: 15 minutes (3,912 words)

What Is Sony Now?

There’s more to Sony’s problems than acts of God and currency traders. The maker of the Walkman and the Trinitron hasn’t driven pop culture for years. Sony thrived in an era of stand-alone electronics. When the Internet arose and digital began to mean connected, iPods became the center of people’s entertainment lives, then smartphones and tablets—which Sony was late to produce. Even the quintessential Sony product—the TV set—has become a millstone. Sony has lost nearly $8.5 billion on TVs over eight years and expects to keep losing at least into 2013. Samsung, Vizio, and other upstarts have driven prices so low that one Sony executive says the company charges less for some TVs than it cost to ship them a few years ago.

Source: Businessweek
Published: Nov 17, 2011
Length: 14 minutes (3,562 words)

Why Americans Won’t Do Dirty Jobs

In the weeks since the immigration law took hold, several hundred Americans have answered farmers’ ads for tomato pickers. A field over from where Juan Castro and his friends muse about the sorry state of the U.S. workforce, 34-year-old Jesse Durr stands among the vines. An aspiring rapper from inner-city Birmingham, he wears big jeans and a do-rag to shield his head from the sun. He had lost his job prepping food at Applebee’s, and after spending a few months looking for work a friend told him about a Facebook posting for farm labor.

The money isn’t good—$2 per basket, plus $600 to clear the three acres when the vines were picked clean—but he figures it’s better than sitting around. Plus, the transportation is free, provided by Jerry Spencer, who runs a community-supported agriculture program in Birmingham. That helps, because the farm is an hour north of Birmingham and the gas money adds up.

Durr thinks of himself as fit—he’s all chiseled muscle—but he is surprised at how hard the work is. “Not everyone is used to this. I ain’t used to it,” he says while taking a break in front of his truck. “But I’m getting used to it.”

Source: Businessweek
Published: Nov 9, 2011
Length: 13 minutes (3,414 words)

David Graeber, the Anti-Leader of Occupy Wall Street

Graeber’s arguments place him squarely at odds with mainstream economic thought, and the discipline has, for the most part, ignored him. But his timing couldn’t be better to reach a popular audience. His writing provides an intellectual frame and a sort of genealogy for the movement he helped start. The inchoate anger of the Occupy Wall Street protesters tends to cluster around two things. One is the influence of money in politics. The other is debt: mortgages, credit-card debt, student loans, and the difference in how the debts of large financial companies and those of individual borrowers have been treated in the wake of the 2008 financial crisis.

Source: Businessweek
Published: Oct 26, 2011
Length: 14 minutes (3,543 words)

The Green Bay Packers Have the Best Owners in Football

The Green Bay Packers are a historical, cultural, and geographical anomaly, a publicly traded corporation in a league that doesn’t allow them, an immensely profitable company whose shareholders are forbidden by the corporate bylaws to receive a penny of that profit, a franchise that has flourished despite being in the smallest market in the NFL—with a population of 102,000, it would be small for a Triple A baseball franchise. Of all the original NFL franchises—located in places like Muncie, Ind., Rochester, N.Y., Massillon and Canton, Ohio, and Rock Island, Ill.—Green Bay is the only small-town team still in existence. The Packers have managed not merely to survive but to become the NFL’s dominant organization, named by ESPN in 2011 as the best franchise in all of sports.

Source: Businessweek
Published: Oct 20, 2011
Length: 16 minutes (4,218 words)

Scott Forstall, the Sorcerer’s Apprentice at Apple

In many ways, Forstall is a mini-Steve. He’s a hard-driving manager who obsesses over every detail. He has Jobs’s knack for translating technical, feature-set jargon into plain English. He’s known to have a taste for the Mercedes-Benz SL55 AMG, in silver, the same car Jobs drove, and even has a signature on-stage costume: black shoes, jeans, and a black zippered sweater. (He favors Reyn Spooner Hawaiian shirts for normal days at the office.) Forstall is like Steve in one other important way: He can be, in what some of his co-workers might call an understatement, a polarizing figure.

Source: Businessweek
Published: Oct 12, 2011
Length: 16 minutes (4,075 words)

The Omnivore

Jeff Bezos is channeling Steve Jobs. It’s mid-September and the wiry billionaire founder of Amazon.com is at his brand new corporate headquarters in Seattle, in a building named “Day One South” after his conviction that 17-year-old Amazon is still in its infancy. Almost giddy with excitement, Bezos retrieves one by one the new crop of dirt-cheap Kindle e-readers—they start at $79—from a hidden perch on a chair tucked into a conference room table. When he’s done showing them off, he stands up, and, for an audience of a single journalist, announces, “Now, I’ve got one more thing to show you.” He waits a half-beat to make sure the reference to Jobs’ famous line from Apple presentations hasn’t been missed, then gives his notorious barking laugh. With that, Bezos pulls out the Kindle Fire, Amazon’s long-anticipated tablet computer—and the first credible response to the Apple iPad.

Author: Brad Stone
Source: Businessweek
Published: Sep 28, 2011
Length: 16 minutes (4,239 words)