Microsoft raises dividend, sets new $40bn share buyback

Microsoft Corp (MSFT.O) raised its quarterly dividend to 28 cents per share and authorized a new share buyback program on Tuesday, two days before investors quiz the software giant on its next chief executive and a bold foray into mobile devices. The 5-cent increase in the dividend, worth about $400 million a quarter, is about 3 cents per share more than many analysts had expected. Microsoft shares rose about 1 percent on the Nasdaq. The company also announced a share repurchase program of up to $40 billion, which has no expiration date, to replace a $40 billion program set to expire on September 30. “We view this as a further indication that things are changing at Microsoft with respect to corporate governance that we believe could benefit shareholders over the next six to 12 months,” Nomura Securities analyst Rick Sherlund said in a note. A hotly anticipated investor meeting on Thursday will give Microsoft shareholders their first chance to press management on its plans to replace Chief Executive Steve Ballmer, who last month announced plans to retire within a year. Ballmer made the announcement just weeks after he unveiled a ‘One Microsoft’ grand plan for the company to focus on hardware and cloud-based services. But poor sales of the new Surface tablet, on top of Microsoft’s years-long failure to make money out of online search or smartphones, have cast doubt on the plan. This month, Microsoft announced it would buy Nokia’s (NOK1V.HE) phone business and license its patents for 5.44 billion euros ($7.2 billion), a foray into mobile devices that brings potential CEO Stephen Elop back into the fold. For years, investors have called on Microsoft to return cash to shareholders rather than invest in peripheral projects and limit its focus to the vastly profitable Windows, Office and server products. Activist investor ValueAct Capital Management LP, whose recent lobbying of the company may have played a role in Ballmer’s decision to retire earlier than he planned, is thought to favor such an approach. In the last two years alone, Microsoft has lost almost $3 billion on its Bing search engine and other Internet projects, not counting a $6 billion write-off for its failed purchase of online advertising agency aQuantive. Some analysts said the increase in the dividend, payable on December 12 to shareholders of record on November 21, was more than they had expected. “Most people were expecting a little less, so this was a pleasant surprise,” Morningstar Inc analyst Norman Young said.

Sharpen These 4 Small Business Management Skills

Running a small business in today's economy -- where the Great Recession has leveled the playing field for so many companies -- requires more than just forward-thinking owners and managers working tirelessly to keep the ship afloat. Company owners who master crucial management and leadership skills better position themselves to realize full value out of key employees and to Four Must-have Management Skills If you've earned a degree in business management, you may have a cornucopia of leadership skills and techniques to call upon when needed. If not, if you're new to leadership or if you want to brush up on some vital basics, these four principles should get your started: 1. Understand Team Dynamics This is the first step to helping your employees become highly effective workers. Strive for balance in skill sets, personalities and viewpoints. And don't be afraid to shake things up once in a while. A little uncertainty can show you which employees thrive during tough times, and which ones don't. 2. Develop Key Employees This management skill plays off the team concept. You can increase the overall strength of your team by giving responsible workers additional duties and training, either through mentoring or by providing access to higher education. The more your employees know about and understand your business, the better they can contribute to its bottom line. 3. Delegate and Motivate These skills can be as important to your company as its fiscal health. A strong business is more than just a team of talented workers. Trusting vital functions to proven managers frees up your time and allows those employees to grow along with your business. Also, provide feedback on their performance through quarterly or semi-annual reviews. You not only can track their progress more effectively, but you can get a feel if they are truly interested in contributing to the team. 4. Make Informed Decisions Of course you want to act quickly, but never hesitate to seek the advice of your managers or other key employees, even if it involves cutting payroll, reducing hours, acquiring a competitor or seeking financing to stay in business. If you've laid the foundation through proper development and motivation, your team can provide critical ground-floor insight you might have overlooked.

Lagos pays 185 retirees N943.14m

Lagos State government has paid 185 of its retirees the sum of N943.1m. The payment was made recently during a retirement bond certificates presentation ceremony a statement said on Sunday. During the presentation, the Director-General, Lagos State Pension Commission, Mr. Adekunle Hussain, said the ceremony was organised for local government service employees, who recently retired from the state public service under the Contributory Pension Scheme. Hussain was quoted as saying, “About 185 retirees will be receiving their retirement bonds, which amount to N943.14m. This amount of money had already been remitted into the Retirement Savings Account of every beneficiary of this mini-ceremony.” He noted that since the inception of LASPEC, its watchword had been a total commitment to ensuring a better and fulfilling retirement life for the employees of the state. “We have seriously worked towards the fulfilment of our mission statement, which is to provide exceptional services on pension matters to employees in the Lagos State public service, deploying world class technology and utilising well-motivated workers to ensure financial freedom for Lagos State retirees,” he said. According to him, the Babatunde Fashola administration in Lagos State has continued to show a great commitment to the welfare of workers and retirees. Under this CPS, he added that the Lagos State government had ensured the payment of a total sum of N18bn. He said the commission was preparing for the ninth batch of the presentation, which was usually organised to celebrate its retirees. By this, he added that they would be joining the existing 3,304 retirees to enjoy retirement benefits in the state under the CPS. A retiree, Mrs. Ogundijo Oluwaranti, expressed appreciation to the state for making their benefits available to them at retirement. Another beneficiary, Mr. Olagoke Joseph, who was excited to have collected his benefit, said he was interested in using his benefit to take the life annuity product.

Toyota repeats US vehicle recall on suspension worries

Toyota is recalling 780,584 vehicles in the US for a second time to address a suspension defect that may not have been fixed after a recall last year.The rear suspension arm in affected vehicles may rust, leading to eventual failure, if nuts are not tightened properly during service. The US safety watchdog said this could "cause a loss of vehicle control, increasing the risk of a crash". The models affected are the RAV4 sport utility vehicle and the Lexus HS 250h. The RAV4 models covered by the recall were manufactured between 2006 and 2011, and the Lexus vehicles affected are the ones made between October 2005 and September 2010. Inadequate inspections Toyota first recalled the vehicles in August last year to carry out repairs on the affected parts. However in a letter sent to dealers, which was posted on the safety agency's website, Toyota said that it had received reports "indicating that some vehicles experienced symptoms of the recalled condition after being inspected or repaired". "Upon investigation, it was discovered that some inspections were not adequate and portions of the repair procedure may not have been performed correctly," it added. As part of the new inspection it has asked its dealers to replace suspension arms if any rust is found on them. "After the inspection or replacement, the rear suspension alignment will be set and the arms will be sealed with an epoxy," it said. The carmaker said it would then apply labels on the arms to indicate that they are no longer adjustable. The recall comes just as Toyota has been trying to rebuild its image after a spate of recalls due to safety concerns in the past few years.

Identify Stress Drivers To Get New Customers

Customers make buying decisions every day. 

Some are difficult because brands all seem the same.

Other buying decisions seem to bring them a sigh of relief.

One reason why has to do with the attributes of products or services. Customers have a list when they make buying decisions.

Some attributes that they rate as most important if you asked them.

However they may buy products or services that do not rate as highly on these attributes.

The reason is they look at other attributes and often they are related to stress or things going on in their lives.

For example convenience and time saving attributes may be key considerations and for open up ways to get new customers in a competitive market.

As more customers are seeking brands that help simplify their lives having this as an attribute it provides your business with opportunities. You have to know your potential customers well and look past the usual demographics or areas related to the market.

The good news is much of this is common sense if you think of their lives in total and not only regarding your products or services. Think of what could be causing stress and how your products or services can help.

For example it appears that eating cereal at the breakfast table is declining. However people know that missing this meal is not good for their health. This also applies to parents with children. Currently two large manufacturers are launching a range of liquid breakfasts that can be consumed on the go.

If you can discover the stress drivers you can build the attributes that provide relief into your products or services.

For example if you target small business owners then you know they wear many hats, even if they have employees and often money is tight. That is why some businesses offer simple website designs based on templates at a reduced price as a base option. This helps the small business and the company gets new customers.

Simplicity has many advantages and can differentiate your products or services to help you get new customers.

Over to you: have you considered building in simplicity based attributes for your products or services? Have you bought brands that have these attributes?

 

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Should You Discount Prices To Get Customers?

Some of you will say never to discount price. 

Getting your pricing right is an important element of marketing. And to get the extra sales boost you may want to consider price promotions.

One of these is offer a price discount that can be an effective tactic to get more customers.

This article is not about reducing your price to get a one off sales and hope extra business will someday follow.

It is about using discounting in a smart and simple way to get your business new customers and increased sales in short term.

When you are launching in a competitive market.

If you offer a discount price in the initial period, it can reduce the purchase risk for customers. And it can help them to switch from competitors to try your product or service.

However caution should be made if the market is full of commodity products or services. Or if you know your competitors will retaliate with reduced prices, as you do not want to get into a price war.

If there are going to be ongoing repeat sales

This is an old and proven way to get customers to trial your product or service. It can be effective if your business sells subscriptions, ongoing service, software etc.

As a lead in price

You often see this type of price discount when a business knows they can add other products or services to the purchase. You see this type of promotion in the travel industry.

If your product or service is bought on a regular basis.

If they are bought on a regular basis it can attract new customers and reward current customers.

A key factor is to think of price reductions as a short term reward and not one that you have to rely on to attract customers to your business.

Does it fit in with your marketing strategy?

If it doesn’t then this tactic should not be considered, as it will not help you grow your business. having a marketing strategy helps you avoid the marketing tactic smorgasbord. 

Do your sums

This is to see how much extra volume of product or services you need to break even. Before you jump in look at the different rates of discounts, you could offer to see how much volume you need. This is important because if you do not get the volume you will affect the margin and potentially the profitability of the brand.

Will it affect your current customers?

If you decide to offer a discount for new customers, then consider if your current customers who paid the full price will react. A way around this is to ensure you have a customer care program in place so they do not feel upset.

Does this tactic have a good fit with other tactics?

The combination of tactics is what matters to get cost effective results. Otherwise it costs your business time and money.

Don’t use this tactic because your business is desperate for more customers and sales. There are better ways and tactics than reducing prices.

However if you have always said never maybe this is a tactic you might want to reconsider to grow your business.

Over to you. As always, I would love you to share your thoughts about using this tactic to get new customers.

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How to Use Content to Attract Prospects and Keep Customers Coming Back

It is your job to know all there is to know about your business. Your livelihood depends on it. Your customers and prospects are different. Most don’t know the intimate details about your company, products, services, processes, and policies. They do know when they have a problem that needs solving. It’s up to you to provide the education they need in the right language at the right time.

Doing this sounds easy because you know your company’s service and products well. All that you have to do is share it. And that’s when the problems start. When people ask, “How does this work?” what they really mean is “How will this work for me?” or “Does this solve my problem?” Asking a few questions before answering saves time and reduces frustration. The first step in good communication is starting on the same page.

The ability to ask questions is limited in the self-service marketplace we call “Internet.” Your answers have to be readily accessible to the people seeking guidance. If you do it well, you’ll receive some search engine benefits as well. Sears Parts department is a good example of how to provide answers before the questions are asked.

Our dishwasher stopped working a few months ago. There were two issues. The first one was that the cut-off switch didn’t work intermittently and flooded the kitchen. The second was a broken piece on the tray. People who know me well understand that a broken dishwasher is a huge problem in my house. My theory is that dishwashers were invented so I don’t have to wash dishes. With very few exceptions, if something can’t be washed in the dishwasher, I don’t want it in my kitchen.

There are two wonderful features about dishwashers: they wash dishes and are relatively simple in their design. A Google search for schematics took me to Sears Parts Direct. They have everything you can imagine including drawings. After reviewing the information available, I unassembled the water intake valve and found that the filter was clogged. (Note to engineers: When designing products all filters should always be easily accessible. Having to dismantle the intake valve is ridiculous.)

Cleaning the filter resolved the overflow issue. The next step was to replace the broken part. A few keystrokes and a credit card took care of it. In the future, I’ll start with Sears when there are appliance repairs needed in my house.

The knowledge and experience you have with your company can interfere with more than customer communications. It can also cause you to drop profitable products, services, and promotions because you are bored with them and presume your customers feel the same way.

Before making changes to your offerings, review the data to insure that they are warranted. You see these things every day. What looks stale and dated to you may be fresh and new to your customers and prospects.

To attract and convert prospects:

Always make sure that you understand what your customers and prospects mean before answering questions. They may not ask the right question.Educate your customers and prospects about your products, services, processes, and policies. The more they know, the easier it is to communicate.Use technology to improve your communications. Anticipate questions and provide answers throughout the shopping process.Confirm conversations and provide additional answers with follow-up emails. It opens the door to a relationship while serving well.Use analytics to guide marketing, merchandising, and service decisions. Your opinion doesn’t matter if your customers don’t agree.Don’t presume that your customers and prospects know how things work at your company. Ask them what they need so you can provide the right answers.Remember that your website is an excellent place to share information. Create pages for distributing information. They will improve your natural search rankings and serve your visitors.The more you know, the better you serve. Always seek to learn more about your business, products, and customers.

 

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