Bidding Battle for Pep Boys

In an upset Icahn Enterprises LP's offer of $16.50 in cash topped Bridgestones Corp's $15.50 standing offer to purchase Pep Boys. With 800 locations in 35 states they create natural advantages for Fireestone's 2000 store chain and Icahn's AutoPlus parts chain. Of course Pep Boys stocks shot up $1.09 to $16.85 on the news.

Who wins?

Pep Boys current stockholders are going to be the clear winners in any bidding war. An analysis of target companies found that target markets receive abnormal returns 2 months prior to the announcement, during the announcement and even after the announcement (Soongswang, 2009). Pep Boys is showing consistency with this analysis.

The winning bidder is likely to capitalize on their large distribution network in a way that will complement existing supply lines.  Sometimes companies that work in a battery of stock owned companies enhance each others positions while at other times the operations are integrated as quickly as possible into more successful lines.

Selling tires and selling parts enhance the overall operational output creating greater efficiencies and outlets.  Bridgestone might seek to integrate the two companies while Ican Enterprises could seek to find an investment outlet that fits well with their existing business holdings. In both cases, once bought Pep Boys will need to make some changes to justify the higher cost figures.


Soongswang, A. (2009). Market reactions tender offers: an analysis of target companies. IUP Journal of Applied Finance, 15 (8).

Why Business Should Partner with For-Profit Education

Relationships between industry and adaptable higher education are ripe for exploration. For-profit education has been hit hard in recent years due to the wholesale assault on its reputation despite the poor actions of a few bad actors. In today's market, for-profit education might be ripe for partnership and investment with major industry leaders and organizations.

It is first important to understand that a few bad actors make it easy to categorize all for-profit universities into the same frying pan. The problem is that just like no two people are the same, no two companies made up of those people are the same either. Some for-profit universities are exceeding the expectations and performance of traditional schools but not getting recognition for it because of the long shadow of public criticism.

This would seem like bad news but ultimately it can be seen as very good news for industries that want an education that is directly relevant for their needs. Depressed stocks will someday rise as public spotlight moves and for-profit universities adjust to meet regulatory challenges. Companies that invest heavily into a promising for-profit university today may not only find their ROI on their stocks rise significant in the future but also have the chance to make higher education more relevant.

There has been a lot of talk about gainful employment and the need to have greater connections to higher education. For-profit education affords an opportunity to create a direct connections to industry leaders, partner with them, and adjust their education to make it most relevant to the market. This means that universities are directly focused on graduating people with applied skill sets.

A growing gap between graduates skills and employer needs has become an important issue when discussing higher education reform. There is an opportunity to significant reduce that gap and fuse business and education together in a way that lowers costs for hiring companies, raises industry knowledge, and improves national competitiveness. Much of it is an act of opportunity and perspective.

For-profit universities are more streamlined than traditional schools and can adjust their educational content relatively quickly when compared with non-profits that have complex bureaucratic structures. Industry information can be quickly implemented and applied in a way that enhances the curriculum of the university and further fulfills the needs of participating employers. Win-win scenarios between industry, government, higher education, and graduate cost/benefit needs are not impossible; it just depends on how we approach the problem.

Stressed? Listen to it!

Modern life is busy. There are deadlines, family, events, friends and obligations. If you feel a little stressed you might want to take a moment and listen to it!

So what does stress feel like?

A little tightness in your chest, a headache, sore eyes, frustration and sometimes agitation.

All of this is saying something. What it says needs some exploration. 

Think of stress as a mound of cluttered garbage that keeps piling up unless we remove it through better understanding and making changes that put the garbage to its proper place. Sometimes these are simple changes while at other times it can be more life altering.  

Considering that stress is the #1 contribution killer in the world it is important to not let it fester. Don't try and avoid it and don't try to fight with it. 

Just sit back, listen, engage in stress reduction strategies and explore the message. 

If you spend some time reflecting you might find that you are doing things you don't enjoy, need to focus more on a project, or need to adjust your efforts for better results. Exploration means finding the source of stress and its contributing factors. 

Good Economies Lower College Enrollment- Something More?

Improving economies often bring with it a lack of interest in higher education while a slowing economies often push people to return to school. According to the National Student Clearinghouse Research Center enrollments in 4 year for-profit institutions declined 13.7%, 2 year public institutions 2.4% and 4 year non-profit .03%. Enrollments for 4 year public rose 2.3%.

Total decline for all higher education institutions was approximately 2.3%

When the economy improves people don't feel as though their jobs are under threat and naturally they don't rush to turn that bachelor's degree into an MBA. Alternatively, when the economy turns sour people become more insecure in their employment and feel they must compete.

This is the problem with the higher education market. People get secure and are not motivated and when times get tough they want to adapt and brush up on their skills. Education is seen as very practical in the sense that a new degree leads to higher pay and performance. A one to one relationship occurs in people's minds.

There maybe something else going on as well. People are seeking alternative forms of education. Certificates, MOOCs, seminars, and personal study may be popular options to going back. Students may be seeking alternative forms of education and could be turned off by the cost propositions. Millennials seem to avoid high debt and traditional ways of doing things.

Critical Thinking as an Aspect of Psychological and Logical Forces

Critical thinking can have a huge impact on our lives influences what we believe and how we act on those beliefs. In a world where things are complex and people are flooded with lots of information critical thinking become a critical skill in developing greater knowledge. To understand how our thoughts are influenced we should be able to discern our emotional response from our logical response.

Everyone is subject to emotional and logical arguments. The personality of the individual which determine whether they are more influenced by one or the other. Where some are more reactive to emotional stimuli another might be more reactive to logical points. Having a solid balance between both can be helpful for making the best decisions.

Consider a friend who calls you a name. You react emotionally and call them 20 names in response. Naturally your friendship breaks down and you no longer enjoy each others company. Your friend was wrong but your reaction to it created additional problems. Now you resent each other and are unlikely to mend the break.

Your emotional reactions kicked in and you responded without thinking logically about what will happen. Instead of ensuring your friend squarely was responsible for their behavior you engaged in an emotional display which also make you responsible. If the ability to be logical was present you would have been able to take charge of the situation and had a better outcome.

Now lets assume your emotional and logical thinking skills are in tune with each other. Your friend says a nasty comment. You are naturally upset because they are projecting their issues onto you. Instead of calling them names you logically know it isn't your problem and you question the person while showing an appropriate enough emotion to let them know you are serious.

Two examples:

Psychological and Logical Forces in Alignment: "It seems like you are having a bad day but that doesn't give you the right to call me names. When your in a better mood and can apologize give me a call".

Psychological and Logical Forces not in Alignment: "Who do you think you are? Your nothing, rude, a jerk, and not worthy to be my friend! I don't want to see your ugly face again!"

Understanding the psychological and logical forces will help you respond and make better decisions in about every aspect of your life. You will be able to discern between strong and weak arguments while ensuring that you are better protected from manipulation.

Whether you are at work or at home your ability to think logically and critical is important for enhancing your life. Furthermore, the ability to use emotion appropriately to respond to stimuli and events in your environment will ensure you don't become your own worst enemy. The next time someone tries to "pull the wool over your eyes" make sure you use all of your thinking skills to understand the arguments.

Ethical and Human Development through Utilitarianism-Ensuring Integrity

Utilitariaism argues that ethics is based upon its utility to maximum good. Discussed in by John Stuart Mill in significant detail he explains that most human beings are focused on relatively simple animalistic type beliefs and therefore have little value in their hedonistic behaviors. As people develop they are capable of engaging in more complex morality and fostering greater good.

It isn't necessarily a bad thing to gain short-term pleasures from life. This is a little bit of a spice. Yet the utility of such actions should not necessarily do any harm to others. Simple gain doesn't mean it should take from someone else. Enjoying a sweet piece of pumpkin pie should not come from theft of that pie that takes from someone else.

Some people think beyond their biological urges and more into the greater good of society. We find examples of heroes and martyrs in history that help us redefine ethical and moral behavior. They have developed to a point where they take action and sacrifice for a greater cause to ensure that the maximum amount of people benefit.

That requires a level of human development beyond rudimentary understandings focused on self-gratification. It requires thinking beyond our own needs and this is based in more abstract knowledge and reflective thought processes. This is something that is closely associated with developmental capacity, environment, and intelligence.

Sometimes our developmental level and our responsibilities are on two different levels. Let us assume you are an authority figure like a police officer, judge, or public official and have a larger responsibility to society. Yet your decisions are based in hedonistic pleasures related to arrests levels, feelings of power that groom self-perceptions or making outlandish statements to gain re-election.

One would have to question the potential damage such individuals cause if their development isn't at a level that ensures they can truly fulfill the needs of their position with integrity. If their activities are more focused on their own pleasures and advantages than the needs of the people they have authority over then, such individuals should be stripped of their power.

The best in society are the ones who can think about their own needs but put them in relation to the benefits to society. Good police officers, judges and politicians are capable of thinking about the long-term transactional trust that society is based on and ensure their authority is used appropriately to raise that trust to maintain good order in society.

All systems should encourage good behavior by review and remove mechanisms that help support positive pro-social behaviors that encourage development. Those who act in self-serving or anti-social behaviors must have some mechanisms that will help expose and remove such violators or risk the integrity of the system.

All positions are capable of being compromised by the individuals who reside in them. It doesn't matter what type of positions were are talking about because human beings are inherently flawed. Religious, government, social, business, and any other system is based upon the beliefs of the people who engage in them. When people stop believing the system, it begins to dissipate and break down.

Promotion and advancement of individuals in society to higher level of responsibility should have at least some ethical aspect to ensure maximum benefits to others. Because human beings are sometimes promoted based upon other factor not associated with their capacity to handle responsibility there must always be working cross mechanisms to maintain the integrity of the position.

Why Supporting Ethics is Good for Business

All business is based in social interactions. Social expectations constitute the core of transactions that occur between people. These same transactions also constitute expectations between business. It makes no difference if we are discussing trade and barter between two people or millions of dollars moving through institutions. When ethics are not supported and reinforced through other institutions the fundamentals of economic activity can be damaged.

Few would want to work with another person who is known to cheat, steal, lie and act in an unethical manner. Because money is a socially constructed term of value based upon an amount of effort being cheated out of money by another is a grave violation of social norms and the fundamentals of economic life. Lawsuits, retaliation, lost business and other actions occur when unethical activity takes place.

The problem is that today's society is extremely complex and law and rules can be easily circumvented by people who have more knowledge on these affairs. There are entire industries that help companies get around what is ethical and not ethical making the trust factors of society relatively low. Just look at the polls that show trust between each other, business, and government is declining.

It doesn't have to be. To build strong ethics means that companies should reward employees who act ethically, fire employees who don't, and encourage greater levels of accountability. The Justice System should protect the innocent and ensure violators are held responsible for their behavior. Complexity doesn't need to mean that people do what they want, when they want, without any accountability.

When people have this trust economic activity increases. People believe that if they put effort forward they will get rewarded. They are deterred from acting unethically because they will be punished through poor reputation, lost jobs, lost business, or even legal problems. The long-term end game should never look good for those who do not act ethically yet society doesn't always work that way.

Unfortunately, there are many people in society that have forgotten the value of ethics and think that all things come down to how much they can put in their pockets. Such people sell out their own values as well as the values of society. Still....they often walk unpunished. They have attorneys, right and wrong is lost in legal manipulation, people stay silent, and general confusion of values abounds.

Supporting business means supporting the fundamentals of business that relate to how we value and treat each other. It isn't some wishful thinking...it simply is a fact that people who trust each other are willing to trust working with each other. Trust is built on mutual reciprocity and social expectation that the two people will seek a win win situation. When this doesn't happen we all lose because the precedence set is that ethics is a commodity to be bought and sold depending on its value.