Strategic Thought Transformation - The IIPM Think Tank

It’s the sound of music...
Vivendi’s Universal Music has finally struck the right notes by agreeing to buy Bertelsmann’s BMG music publishing for $2.1 billion. This
will make Universal the world’s largest seller of recorded music and also the leader in music publishing. The merger is subject to the
approval of the US and European regulators. BMG owns more than one million copyrights for recording of various artists. This deal also
sees the settlement of a legal dispute for Bertelsmann, who was sued by Vivendi over the Napster issue. Vivendi has agreed to settle the
dispute though.
An all new window for MS
The war between the two IT titans, Microsoft and Google, continues to rage. In an answer to Google’s launch of free news archive service
that allows internet users to explore articles printed centuries ago, Microsoft has gone a step ahead and launched its new search engine
named Windows Live, which will supplement the old MSN Search. The new Windows Live Search is known to be more advanced and
user-friendly and is being launched in 47 markets worldwide. This is also Microsoft’s weapon to battle competition in the field of online
advertising from Google, which has a substantial hold over the market.
Vodafone bundles itself to get better
Vodafone – the world’s largest cellular service provider – has now decided to foray into the competitive fixed-line broadband
market in the UK. It has also signed a deal with the telecom giant British Telecom’s wholesale wing. Vodafone aims
at providing its customers with the advantage of availing the bundled packages including mobile and broadband services.
Vodafone hopes to float the new service by the end of this year. Upon entering the highly competitive bundled services market,
the mobile giant should ready itself to face stiff competition from O2, Orange and Virgin Mobile.
OPEC decides to sustain the yield
Staying on guard, the Organisation of the Petroleum Exporting Countries (OPEC) confirmed that it would keep pumping crude at
the existing levels. However, the eleven member group clarified that plummeting oil prices could force it to cut down production.
OPEC will maintain its output quota at 28 million barrels per day. The cartel reasoned out saying that supplies are more than
adequate to meet world demand. Including Iraq, which does not fall under the quota system, OPEC’s daily production (present)
is almost close to 30 million barrels. The group, which is responsible for producing 40% of the world’s crude requirements, has
wisely kept its options open – allowing space for changes during their next meeting in the month of December 2006.
Lockheed Martin Corp. that engages in aeronautics, electronic systems, IT Services and space systems, has decided to downsize
its commercial space business. It now wants to concentrate on greater profit yielding government space projects. This
decision will narrow down options for companies that are willing to purchase or launch satellites. Lockheed also plans to sell
its stake in two Russian rocket-launch joint ventures to concentrate on Pentagon space programs.
Downsizing for rightsizing profits!
Intel made its plans public, to cut 10,500 jobs which accounts for upto 10% of its employee strength globally. The job cut
that is to conclude by mid-2007 has been termed to be in accordance with a restructuring plan and is supposed to help bring
down costs by a whopping $6 billion over a span of three years. The move will propel Intel’s profitability, taking it a step
ahead of rival chip maker AMD. Intel hopes to save $1 billion this year, $2 billion in 2007 and $3 billion in 2008, through the
move. Majority of the job cuts are likely to occur in management profiles, the chip maker’s marketing departments and various
other IT related job areas. Around 5,000 jobs have already been cut at Intel.
Alan drops-off from Boeing to Ford
Former Boeing Executive, Alan Mulally, has been appointed as the new Executive President and Chief Executive Officer of the
American auto giant, Ford. This appointment came after Bill Ford gave up his post as a CEO; after struggling for five years
to keep the wobbly auto company intact. Aged 61, Mulally has handled the posts of President and CEO at Boeing
Commercial Airplanes since 2001. He has been associated with the aircraft manufacturer for the past thirtyseven
years. Ford chose upon Mulally looking at his art to keep his customers satisfied, handling labour
problems with ease and managing supplies. However, Bill Ford, who took charge as a CEO in October
An IIPM Intelligence Unit Publication STRATEGIC INNOVATORS 105