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WESTCHESTER COUNTY BUSINESS JOURNAL SEPTEMBER 12.

2005

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By Stan Rosenzweig
COMMON-SENSE
BUSINESS
/ j1
1 1 Covering the county's public companies
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Jack Welch I I I I I I I I I I I I I I I

on leadership
There's no end ta th(^ numlxT of
great business lessons you can learn from
reading the b(x>ks by or about Jack
Weich. Twelve are listed on An:ia2on.com.
The newest, "Jack Welch and the
Preventing the falleut frem Kaliina
4K's of leadership. How lo Put GE's
By B.Z. K1L\SRU "Unlike prior hurricanes such as Ivan. tomer data integration solutions in the
Leadership Formula to Work in Your
bzk@westfairinc.com Katrina could inflict a lot of pain on the US market today, addressing the key chal-
Organbation," Is by Jelfrey A. Kramcs.
economy, as a whole, because lenge of delivering relevant customer
Ihe best-selling author of "The Welch
With gasoline prices at of the potential for extensive information, hoth internally and exter-
Way" and other award-winning books on
record highs and economists damage to oil and natural gas nally.
leadership.
predicting a definite cooling of supplies in the Gulf of Mexico, The acquisition also extends IBM's
Krames explains the Jack Welch 4Es the growth momentum in the as well as to the many leadership in master data management
of Leadership model and shows how you next two quarters, if not an out- refineries in Louisiana," pre- solutions by huiiding on the company's
can apply it to y{)ur business. The 4 Es right recession, state officials dicts Nariman Behravesh, existing enterprise data integration and
are: need to act promptly to help the I hief economist with Giobai product information management soft-
linergy, "Love to go. go. go." economy hy suspending gasolin<i Insight Inc., an economic con- ware, a key part of IBM's Information on
Energizes, "Know how to spark oth- taxes. sulting firm. demand strategy.
ers to perform."
Georgia has already sus- His hest-case scenario:
Edge. "Know how to make the really Khssru Oil at $70 to $75 a barrel for GABELLI CONSIDERS NEW
pended the 7.5 conLs-a-gallon
difficult decisions." a couple of weeks;, gasoline prices above MONEY MARKET FUNDS
gas tax and 4 percent sales tax on gaso-
Execute, "Know how to convert ener- $3.00 for a couple of months; and the
line until Oct. 1. State lawmakers in sev- Gabelli Asset Manajrement Inc. of
gy into action and results." economy takes a small hit (between 0.5
eral states, including Oklahoma, Rye said it is considering the launch of
It sounds simplistic, but this lesson Massachusetts and Pennsylvania, have percent and 1 percent on growth in tbe state specific tax-exempt money market
plan is anything but that. Detailed lessons either proposed or are considering doing third and fourth quarters). And. his funds, which would be tax-free at both
include how to hire for passion, sunplify the same. worst-case Scenario: Oil at $100 a barrel the state and federal level to residents
the organization, ait t h r o u ^ complexity for a month; gasoline prices at $3.50 a of a particular state. Gabelli Asset
All 50 states apply a llat-rate tax on
and red tape, and even how to jettison gallon for a few months; and the econo- Management beiieves that the market
each gallon of gasoline sold, with an
pn)du<1s and services that do not fit the my closer to a recession by the fourth for state specific tax-exempt portfolios
average of 21.8 cents per gallon, accord-
vision for success. It details seven steps of quarter He notes that early estimates is an attractive option for customers.
ing to the American Petroleum Institute.
dealing with change and links change suggest that the worst-case scenario is Any offering will be made only by
That's in addition to state sales taxes,
with energy. unlikely to happen, but we still need to means of a prospectus and this notice
usually between 2 percent and 6 per-
Change, initiatives, focus, energy and cent, and a federal tax of 18.4 cents per do all we can to prevent the worst. does not constitute an offer of any secu-
the quality of the idea matter most, gallon. rities for sale.
acrxirding in Welch, not the rank or posi- IBM ACQUIRES DWL
New York leads the nation with the
tion of the person with the idea. Welch PEPSI BOnUNG CONFIRMS
highest state gasoline taxes, while IBM Corp. of Armonk announced it
changed the (iE environment and made
training and learning the cx)merstones
Alaska has the lowest, the American has finalized the agreement to acquire EARNINGS GUIDANCE
Petroleum Institute said. OWL, a privately held company based in Pepsi Bottling Group Inc. (PBG) of
for growth.
On top of New York's state tax of 8 Atlanta and Toronto. Einancial terms Somers affirmed its forecast for third-
'Ilie b(x)k is in two parts. Part 1 cents per gallon, it charges 8 percent were not disclosed. quarter diluted earnings per share and
expltiins the 4Es of leadership and how to state sales tax and a Petroleum Business With this acquisition. IBM will pro- projected that its results are likely to
us<^ them, with numerous examples and Tax of 15.2 cents per gaHon. There is vide clients with customer data integra- reach the high end of its guidance
checklists, all of which are useM to any also a spill tax of 0.3 cents per gallon and tion software that enables a single, inte- range of 76 cents to 78 cents For the
size business. Part 2 is every hit as inter- a petroleum testing fee of 0.05 cent per grated view of customer information full year, diluted earnings per share are
esting. Here. Krames follows Jeff Immelt gallon levied on gasoline. spread across multiple product and busi- projected to be $1.82 to $1.88. with
as he replaces Welch at the hehn and ness silos. This capability allows busi- worldwide volume growth of about 3
In New York and Connecticut, gaso-
then follows up with the GE senior man- nesses such as banks, insurance compa- percent and a net revenue per case
line prices hovered around $3.50 a gal-
agers who didn't get the job to see if nies, retailers and manufacturers to increase of 3 percent.
lon for regular unleaded as Katrina
Welch's methods transfer well. quickly and consistently leverage their During the third quarter ended Sept.
struck the Gulf Coast, causing serious
James McNemey went on to reinvent disruptions to refineries. Although prices customer data to help address business 3, PBG's constant territory worldwide
3M based on the Welch playbook. Larry have dropped slightly since then, many challenges such as regulatory compli- physical case volume grew 5 percent.
Bossidy took the Welch method to AUied businesses in the region say they have ance, optimizing customer relationships, (Constant territory calculations assume
Sigruil and then became chief executive started passing on the higher costs to or integrating data from mergers and all significant acquisitions made in 2004
officer and chairman of Honeywell. customers, a move that may push them acquisitions. were made at the beginning of 2004
Robert Nardelli left GH to become CEO of to cut spending, causing further trouhle and exclude all significant acquisitions
The acquisition strengthens IBM's
Home Depot. for the economy. made in 2005.) Physical case volume
information management software port-
Many economists believe that if folio, which includes the company's both in the United States and Canada
Stem Roscnziivig, presUh'nt of Office prices at the pump continue trending existing product information manage- grew 4 percent in the quarter. PBG's
Tcchnotogy Consuming Inc., Stanford, upwards it would severely hurt the ment software and enterprise data inte- businesses in Europe and Mexico each
Conn., can be reached through spending power of American consumers, gration software. had robust volume growth in the third
wwuxphonegunLcom or al (203) 323- especially low- and middle-income IBM can now offer one of the most quarter, up 8 percent and 7 percent,
6070, exL 82409. households. advanced, real-time, transactional cus- respectively.