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Full Table of Contents
Cover Story
The Future of Tech
SmallBiz - February/March 2007
Up Front
Up Front -- Analyze This
Readers Report
Media Centric
Technology & You
Business Outlook
The Business Week



News & Insights
Global Business
The Corporation
Investigations
People
Info Tech
Finance
Innovation
Managing
Marketing
Executive Life
Executive Life -- Parker on Wine
Personal Finance
Inside Wall Street
Figures of the Week
Ideas -- Books
Ideas -- Face Time with Maria Bartiromo
Ideas -- The Welch Way




FEBRUARY 26, 2007
Readers Report

What Also Matters At Mickey D's: The Folks Behind The Counter

An important aspect of McDonald's performance ("McDonald's 24/7," Cover Story, Feb. 5) is the human factor.

Employees are the backbone of every company or franchise—and McDonald's has an increasingly multicultural workforce. In large cities a sizable percentage of its workers on the front lines are Hispanic. These workers face a language barrier and low pay, yet they overcome these obstacles by demonstrating discipline, a strong work ethic, flexibility, and the ability to learn the dynamics of food preparation and service.

They are also a part of the fast-food giant's success.

Wilther R. Santamaria
Centreville, Va.


Doctor's And Big Pharma: It's A Two Way Affair

I can relate to "The doctor won't see you now" (News & Insights, Feb. 5). Three years ago, I was kept waiting in my urologist's office while, in my presence, the doctor discussed menu choices at an exclusive San Francisco restaurant with a Big Pharma rep. The drugmaker was hosting a thank-you dinner for doctors, and I was enthralled to learn that it would be bringing in a noted after-dinner speaker from the industry so that any out-of-pocket expenses incurred by the doctors during the evening could be written off as research expenditures.

Three years later, I was gratified to receive a substantial payment from the settlement of a class action against this same company for overcharging cancer patients for the drug prescribed by my doctor.

Doctors are not blameless in this relationship.

Jerry C. Danzig
Santa Cruz, Calif.


You think the hard sell to physicians is bad? How about direct advertising to patients, who often demand inappropriate therapy? Cutting that would go a long way toward slashing drug costs.

Babak Roboubi, MD
Chevy Chase, Md.


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What Ethanol Can And Can't Do To Save The Planet

The figures quoted in "Food vs. Fuel"(Environment, Feb. 5) require some scrutiny. It notes that producing 10 gallons of ethanol consumes the energy equivalent of 7 gallons of gasoline. What is not mentioned is that a gallon of gasoline contains 126,000 British Thermal Units of energy, while a gallon of ethanol contains just 85,000 BTUs. Therefore, 10 gallons of ethanol contains the energy equivalent of just 6.75 gallons of gasoline.

If the 10-to-7 ratio is correct, 10.38 gallons of gasoline will produce enough ethanol to deliver as much energy as contained in 10 gallons of gasoline. Even this ratio is probably optimistic, as it is difficult to fully account for how fossil fuels are used for farm machinery, transport, and ethanol processing, let alone production of fertilizer, pesticides, and herbicides.

The article states that by 2030, 49 million acres of farmland could produce 139 billion gallons of ethanol. This would equal 2,836 gallons per acre, which is two to three times the current ratio for even the most efficiently converted crops, such as switchgrass and miscanthus.

Finally, the idea of cutting down pine trees, or any tree, to make ethanol is as sensible as burning down forests in Malaysia to plant oil palm for biodiesel. Has anyone considered just building wood-burning power plants? This would probably extract more energy from the wood, and emissions-control technology is probably more cost-effective than converting the wood to ethanol.

Brian Gavin
Sammamish, Wash.


The ethanol bandwagon rolls on despite solid evidence that the production and distribution of ethanol actually consumes more fossil-fuel energy than it returns when used in vehicles. The unattributed energy-balance relationship cited in your article is wildly optimistic. The agriculture lobby has been made absolutely giddy by the agricultural equivalent of cold fusion. We should temper our enthusiasm for biofuels through careful analysis of the applicable science.

Ron Smith
Bend, Ore.


Increasing the cost of food in order to "grow" fuel is a scary proposition. Too many families are already hard-pressed to pay for their daily bread.

The justification that increasing food prices would be beneficial in terms of reducing food consumption, and therefore obesity, is scandalous. Some people will do anything to make a buck.

Tom Sloan
Hollywood, Fla.


I was surprised that your story made no mention of how large amounts of government subsides have created artificial demand for ethanol in gasoline. It would have been a real story if the conflicting ethanol demands were being driven by a free market, but instead they're being artificially stoked by taxpayer-supported subsidies.

Jim Van Alstine
Fairfield, Conn.


Your article highlights what environmentalists dare not say aloud: That is, any solution to problems surrounding energy use (or all human consumption issues, for that matter) and the environment that does not involve a substantial reduction in global population is doomed. No matter which way we turn, such as replacing fossil fuels with biofuels, one problem is alleviated and another is created because the fundamental calculus of human demand and the inexorable growth of our numbers remain unchanged.

In my opinion it is far too late to avoid the agonizingly painful measures that must be taken to avoid a "soylent green" future. Maximum sustainable population for this planet was reached about a century ago. Yet population growth remains unabated and affects the poorest and least efficient societies the most. The horrific images of starvation and death brought to us daily from places like Darfur are going to become far more common than any of us imagines. The nightmarish logic of Thomas Malthus, while postponed thanks to technology, has not been abrogated.

Your article merely points out why billions will suffer and die because we cannot use our minds to control our instincts.

Geoffrey K. Wascher
Aurora, Ill.


Back to Top

Rural China Gets Better Cell Service Than California?

I live in the foothills of the Sierra Nevada Mountains at approximately 1,250 feet. If the woman at 10,000 feet in "China Mobile's hot signal" (Global Business, Feb. 5) gets reliable cellular service from China Mobile (CHL ), why can't I get the same from Cingular (now AT&T's wireless unit), Verizon (VZ ), or Sprint Nextel (S )? All of those companies charge at least four times as much as China Mobile, and they have competition.

Robin Robar
Paradise, Calif.


Back to Top

Why Goldman Doesn't Belong In The Ad Business

While the Goldman Sachs (GS ) plan to combine separate advertising agencies, research firms, and festival producers may indeed create "fiestas," it also risks fiascos ("It's fiesta time at Goldman," Up Front, Feb. 5).

The challenge in creating a successful agency is to be totally client-centric. Great results are the direct benefit of an integrated, experienced team practiced in delivering a unique competitive edge. Goldman's piecemeal approach brings together separate disciplines without a unified vision or focused leadership, which is critical to building iconic brands. Where does the client benefit?

Companies that venture haphazardly into the nuanced and diverse Hispanic market usually get poor results and don't return to that audience for at least five years. Yet those taking an integrated, analytic, and holistic approach typically recapture their investment within six months.

Wall Street buys concepts, and for the inexperienced, this one sounds great.

No, gracias.

George L. San Jose
San Jose Group
Chicago




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