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| COURSE CONNECTOR |
| ARTICLE SUMMARIES AND QUESTIONS |
"It's Ralph's World . . ." pp. 64-74: In many ways, Ralph Lauren is a man of contradictions. He is one of America's premier designers, but he doesn't sketch and he never attended fashion school. His tastes are clearly patrician, but he grew up the son of a house painter in the Bronx. And though he's worth about $3.4 billion, with several estates and a car collection to die for, he maintains he's "no Richie Rich." Having to earn everything on the strength of his own vision and moxie has taught Lauren a thing or two about management, and that has helped his company, Polo Ralph Lauren Corp., become an internationally renowned luxury brand. What sets Lauren apart from his competitors is his ability to appeal to consumers up and down the economic scale, and deliver excellent products at every price point. His latest venture — the American Living line for J.C. Penney — will debut in stores in February. The new brand's 50 merchandise categories, from apparel to home furnishings, are designed to tap the large market of consumers who have good taste but moderate means. Insiders predict it will be another winner for Ralph Lauren and his iconic company. This article reveals how Ralph Lauren has turned his personal pursuit of a sophisticated lifestyle into a business empire. Discussion Questions:
"Oh, The People You'll Blame!" pp. 118-124: With the subprime mortgage crisis shaking up Wall Street now and likely for some time to come, the blame game is being played throughout the land. And from the looks of it, there's more than enough blame to go around. Borrowers caught up in home-flipping fever lost their common sense and took on more debt than they could handle. Of course, they couldn't have done it without the consent of the lenders themselves, who threw away traditional risk-assessing practices in favor of making big-time profits. Mortgage brokers and real estate appraisers tagged along for the ride, giving lenders the numbers they needed to make the shaky deals. Then there was Wall Street, which enabled the profits by bundling all the shoddy mortgages into bonds and selling them off to investors. And where were the ratings agencies, such as Standard & Poor's and Moody's? Apparently they were asleep at the wheel when they gave the bonds investment-grade ratings. Perhaps the lion's share of the blame belongs to the Federal Reserve, whose former chairman Alan Greenspan used monetary policy to drive up home prices. This practice encouraged the expanded use of adjustable-rate mortgages and new loan products, such as subprime loans. Tsk, tsk! Students examine the lax policies, lapses in judgment and financial alchemy that led to the subprime mortgage collapse. Discussion Questions:
"Mission Impossible," pp. 138-150: Paul Brinkley has one of the most unenviable jobs in Iraq, and that's saying something in a hot, war-torn land where thousands of U.S. troops labor to quell a fierce insurgency. A deputy undersecretary of defense, Brinkley thinks he understands the Iraqi problem. Most of Iraq's half-million industrial workers lost their jobs when coalition forces toppled Saddam Hussein's regime four years ago. Desperate and angry, many have joined the insurgency. Brinkley's solution to the problem is simple enough — give these people decent jobs again and they'll be less likely to plant roadside bombs. Unfortunately, his strategy has proven to be more difficult to implement than anyone ever expected. Money to restart factories has been hard to come by, as are buyers for Iraqi goods in the United States. And that's on top of the security issues related to working in a war zone. What makes Brinkley's task even more formidable, however, is that his fellow U.S. citizens disagree with his philosophy and his tactics. Though he admits that his progress to date has been disappointing — 16 of 200 factories restarted, employing only about 5,000 workers — Brinkley isn't ready to give up on "Iraq Inc." anytime soon. In this article, students read about the Defense Department's efforts to revitalize Iraqi industry under the management of Paul Brinkley. Discussion Questions:
"The Old Guy Sure Can Pick 'Em," pp. 152–158: No one looks less like a web-media guru than Alan Patricof. With his disheveled mop of salt-and-pepper hair, oversized glasses, and loose-fitting suits, the 72-year-old venture capitalist readily admits he's not the most tech-savvy guy in the room. But despite that, Patricof's New York-based Greycroft Partners is one of the hottest VC firms around. Why? Because tech-oriented VCs that are rich in dollars but poor in media connections are unable to foster the flood of web-media businesses that have sprung up around online advertising. These firms generally require less capital than traditional tech startups but need contacts to broker distribution partnerships and acquisitions. Enter Patricof. After decades in the media business, Patricof has a Rolodex that would make any social networker salivate. He also loves to haggle, an important talent for anyone dealing with messy, early-stage media companies. To fortify his own impressive skill set, Patricof has cherry-picked three partners from the worlds of media, tech and venture capital — Dana Settle, Drew Lipsher and Ian Sigalow — and together they've snapped up stakes in 15 startups over the past year. Not too shabby for a guy who still keeps a Dictaphone in his office. Students take a closer look at how Alan Patricof and his newly assembled team of venture capitalists are making a mark on web media. Discussion Questions:
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