Strome Business Minute With Dr. Jeff Tanner

The Coronavirus has already affected the global economy and Jeff Tanner, Dean of the Strome College of Business at Old Dominion University, explains why the impact will be felt for some time to come.

As Black History Month comes to a close, it is timely to ask - how far have we come in the business sector?

The Hampton Roads Chamber hosts a Diversity Forum twice a year to examine the business case for diversity, equity, and inclusion. In the February 2020 forum, the Chamber began an examination of metrics to assess how the 757 is doing, and how we can make inclusion a regional, competitive advantage. Here's a snapshot of where we are based on research by the Strome College of Business. 42 percent of organizations in Hampton Roads align diversity with business goals and objectives. 40 percent have strategies to ensure diversity in suppliers and contractors, but only 16 percent hold managers responsible for diversity outcomes. Where does your business stand? Is it willing to develop goals and strategies to help create a regional inclusion advantage for the 757?

Can the Coronavirus disrupt the Logistics Supply Chain in Hampton Roads?

Virginia Beach based Optima Health continues to improve member care management through innovative solutions.

Much has been made over the trillion dollar valuations of Google, Amazon and Apple, but less about the valuation of BlackRock and Vanguard. These two mutual fund companies control more than 10 times the value of any one of those companies, and more than twice of all of them combined.

Online reviews matter, and can make or break a purchase.

With the start of a new decade, predictions about the future of marketing abound.

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. I thought it was just the loud rock n roll in my old ’66 Mustang that deafened me but there are quite a few restaurants I don’t like because I can’t hear any conversation. Turns out, I’m not alone and it’s due to the hard walls and ceilings in their design. And there’s an entrepreneur with a solution. Not the soft fabric wall coverings and ceiling tiles that deaden sound, it’s a high tech solution that allows for a loud environment but one in which you can hear your date. Like a cone of silence made out of sound, it’s called Comal Constellation. You feel like you’re in a party but you can still converse, which leads to higher sales and happier customers. To learn more, visit odu.edu/business. This has been a Strome Business Minute, presented by the Strome College of Business at Old Dominion University.

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Norfolk Southern’s fourth quarter earnings declined five percent but that was less than expected by Wall Street. Revenues also declined nine percent, or about what was predicted. The better-than-expected profit decline suggests that the railroad’s better scheduling is yielding cost-saving efficiency at a faster than expected rate. One by-product has been the ability to idle a large number of locomotives, particularly less fuel efficient older models. Norfolk Southern also refurbishes locomotives to gain better fuel efficiency and lower maintenance. But the company has struggled to diversify from its dependency on coal shipments, which are declining. Slowing global trade reduces shipments through the port, but the company could see a shift back to trains from trucks as companies look to reduce their carbon footprint. To learn more, visit odu.edu/business. This has been a Strome Business Minu

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. The Strome College of Business’s Dragas Economics Center recently held its 25th Forecasting Project luncheon and presented a ho-hum forecast for the Port of Virginia due to global headwinds in trade. Our port was constrained by construction which is now complete but our exports declined while Savanah and Charlotte gained. Some products, like automobiles, are now exported through ports closer to manufacturers, not our port. Our port has also been hurt by the trade wars, resulting in declines in exports of soybeans and grains, poultry, and forest products. While the recent Phase One deal with China may help increase exports, we also have to capture business away from Charleston, Savannah but do so when the forecast for exports is weak overall. To learn more, visit odu.edu/business. This has been a Strome Business Minute, presented by the Strome College of Business at Old Dominion University.

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Vinod Agarwal of the Strome College of Business’s Dragas Economics Center expects a robust year for housing sales. Our market’s median price is under $250,000, and fifty seven percent of houses sold in Hampton Roads are also under $250,000. While most of the recent and forecasted increase in median price is at the lowest price level, the percentage of home sales in higher price categories is creeping up, and the total homes sold has also risen. Average monthly rent is now greater than average monthly house payments, and with growth that should follow the shipyard’s ramping up of its workforce to fill its carrier and submarine contracts, the market is moving toward a seller’s market for existing and new home sales. To learn more, visit odu.edu/business. This has been a Strome Business Minute, presented by the Strome College of Business at Old Dominion University.

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. The Strome College of Business’s Dragas Economics Center recently held its 25th Forecasting Project luncheon. Generally, the expectation for our region is good, with economic growth outpacing the nation’s for this year. Key to our expansion is federal spending, particularly on defense. Of course, Newport News Shipbuilding has carrier and submarine contracts that will support growth for a decade or longer. Overall, defense spending contributes forty percent to our economy, whether directly or indirectly. There are two ways to respond to this opportunity. The first is most likely to happen and that is to sit back and enjoy it. The second, which I prefer, is recognize that elections have consequences and take this opportunity to expand and diversify before defense budgets are cut. To learn more, visit odu.edu/business. This has been a Strome Business Minute, presented by the Strome College of

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Dollar Tree’s stock was downgraded by Bank of America from buy to neutral over concerns that changes to the Family Dollar stores will hurt margins. Family Dollar sells more discretionary products with higher margins while Dollar Tree’s product mix is made up of lower-margin supplies. As the merger continues, Family Dollar’s product mix, according to BOA analysts, is shifting to more of the lower margin products. They also cite leadership changes that put Dollar Tree execs in charge of merchandising for Family Dollar stores, a factor that will accelerate margin loss. Couple that with margin pressure from higher supply chain costs and the analysts are predicting continued margin decline this year. The stock is down over six percent since the first of the year. To learn more, visit odu.edu/business. This has been a Strome Business Minute, presented by the Strome College of Business at Old Domi

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Vegans and the lactose-intolerant may find themselves without products called milk if delegate Barry Knight has his way. He’s introduced a bill that only allows milk from an animal with hooves to be called milk in Virginia. Producers of soy milk, rice milk, almond milk, and other forms of milk would have to come up with a new name. The bill requires eleven other states to also adopt similar legislation before it can go into effect but we’d be first. His argument is that dairies are closing or struggling and need protection from confused consumers. Changing the name doesn’t mean those who want plant-based products will change their purchasing habits. Similar protections for animal-based meats were overturned in court, which is where this would end up. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.

Michelle Carpenter has a recap of the Super Bowl commercials and its advertisers.

Don’t underestimate the power of consumer sentiment. When consumers as a group view the economic future as positive, we spend more, which then becomes a self-fulfilling prophecy as that spending then drives the economy forward. Flip that, and when we think the future is bleak, we spend less, and the economy suffers. A study just released by Roanoke College says Virginia consumers believe the housing market will be good this year but the numbers are down slightly from last summer. The index shot up last spring and then slowly declined but are still very positive, whether from a buyer’s or seller’s point of view. While better than a year ago, the index is still below the highs of 2014 and 2015. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Last Friday, the Strome College of Business and the Society of Human Resource Management released the results of the first Hampton Roads Workforce Summit Survey at the sold out Workforce Summit. Nearly 60% of regional HR managers expect their company to grow in the next five years, with one third expecting to accomplish that growth by including both project-based workers and independent contractors. Yet, a key finding in the study is that Hampton Roads companies are behind national averages in taking a strategic approach to Human Resources. Given the challenges of finding talent in this tight labor market, this limitation does not bode well for Hampton Roads companies. They also found that local companies fail to offer the benefits most desirable to millennials. To learn more, visit odu.edu/business. This has been a Strome Business Minute, presented by the Strome College of Business at Old

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. Norfolk-based medical device manufacturer Embody Inc. received a 2 point 5 million dollar federal grant for the second phase of development for its proprietary Microbrace ACL technology for anterior cruciate ligament repair of (ACL) injuries. This follows a nearly twelve million dollar DARPA grant for the first phase. Microbrace for ACL is a medical device restoring mechanical stability to the knee. It’s created from the biofabrication of collagen. Biofabrication is the automated production of tissues — often by 3D printing —combining cells and fibers into a device that can replace diseased or injured tissue. Embody is a Norfolk-based privately-held company founded in 2014 and develops implantable medical devices to be used for orthopedics such as Achilles tendon, rotator cuff and knee ligament repair. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the St

I’m Jeff Tanner, Dean of the Strome College of Business at Old Dominion University and this is a Strome Business Minute. InMotion Hosting bought the Stratford University building in Virginia Beach to consolidate its local offices from 280 to 330 employees. The company is investing over twelve million dollars here and plans to grow. InMotion has offices in Los Angeles, where it began, and Denver, with this office opening in 2004 when partner Dan Cunningham moved here to follow his then wife. Since then, the company has found the workforce needed here by hiring people willing to work and providing them the technical training they need. Chenelle Harris, HR Director, says this gives them a uniquely inclusive culture. The company provides website design and hosting services, and is just one of the stories of our strong IT sector. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.