NMSU Business Outlook: January 2012

The Utilization of Various Product and Market Development Strategies by Small Business

Robin T. Peterson, Professor, New Mexico State University

One very important sphere of strategic decision making relates to the products and the markets on which the company will focus. The choice of products is of obvious significance: poor choices have led to the extinction of many small enterprises. Likewise, selecting markets which are inappropriate can have equally disastrous results. We look at how small businesses are addressing decisions relating to products and markets and the conditions that they have found to favor the strategies used.

Complete Article: The Utilization of Various Product and Market Development Strategies by Small Business

The Razor’s Edge: Unfunded Liabilities and the New Mexico Employee Retirement Board

Tom McGuckin, Professor of Economics, New Mexico State University

By state law, the Educational Retirement Board (ERB) manages public educational employee pensions in New Mexico. The ERB is self-funded state agency, which means its operating budget is generated by the return on investment to contributions in the name of covered employees. Unfortunately, current contributions are insufficient to cover all promised payments. As of 2011, the ERB had $5.9 billion of unfunded liability. Fund assets only cover 62% of liabilities, which is the present value of future pension payments. Since 2000, the current unfunded liability (UFL) has increased considerably. This article discusses some methods for covering the ERB’s unfunded mandate.

Complete Article: The Razor’s Edge: Unfunded Liabilities and the New Mexico Employee Retirement Board

Talking Points

Christopher A. Erickson and James Libbin

The economy remains in the doldrums. Statewide sees some job gains, but at a slow pace. Meanwhile, here in Las Cruces, the private sector experienced job growth but the city still suffers job loss thanks to losses in government jobs.

Complete Article: Talking Points


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