CFO Studio Magazine - Curt Allen, CFO, Subaru

Find more peer-to-peer insights and interviews on our website www.cfostudio.com ? The comments made by these executives are their own and may not reflect the opinions of their companies. Mercedes’ growth plan rests on two elements: new products (10 new models, including the all-new AMG GT sports car, S600 Maybach, and the all-new sport utility vehicles, the GLE Coupe and GLC) and further improvements to the customer experience at dealer points. “We were pleased to see confirmation of our efforts by earning the No. 1 ranking in the J.D. Power Sales Satisfaction Index (SSI) in November.” Financial Services & Business Equipment In a sign that HP would refocus on consumer business in the post-PC era and bank on flexibility to help its enterprise business continue to grow, the company announced in October 2014 that it would split into two separate NYSE-listed organizations, effective November 2015. Rothman commented: “All things being equal it’s not going to affect HP Financial Services significantly…The difference is that we’ll be providing customer finance and asset-management solutions in support of two separate companies, Hewlett- Packard Enterprise and HP Inc.” Citing a “very strong” balance sheet, “fantastic customer loyalty,” and a great fourth quarter, Rothman says, “I think we’re going to do very well.” Almost every company is in transformation today with respect to their IT infrastructure, and that’s both a business strategy for Hewlett Packard Enterprise and a potentially enhanced risk for HP Financial Services, which sees customers in need of greater operating flexibility. Thus, usage or consumption models are likely to take on increasing importance. Rothman cited the need for risk-mitigation initiatives that will include, among other things, more in the way of asset-management efficiencies and more conservative accounting treatments. Although all HP Financial Services sales regions hit their goals in 2014, Rothman says currency headwinds could become a factor in 2015. “If you’re in the globally deployed financial services business and commit to a plan and then currency moves, it’s a little bit of a whipsaw.” A continuing strengthening dollar against European currencies could mean projections will be under pressure. Sports and Entertainment “From an economic perspective, we always view ourselves as an entertainment vehicle,” says Friedman, of the Jets. “We’re not a necessity — although some people think we are.” People’s spending on entertainment is easier to forgo than, say, rent, he points out. But football is something consumers plan for in advance. “People look to make commitments to come to games much as they would think about going on vacation.” Dollars from individual ticket holders and from corporate spend on brand-building are both dependent on the same factors: consumer confidence and consumer spending. The Jets’ growth opportunities lie in “im- proving what the customer experiences and what fans are doing and how they’re interact- ing with our organization,” says Friedman. The team will create “new avenues for fans to experience the Jets, all of which will result in new revenue sources.” Wireless Technology From 2008 to the present, Verizon Communications’ consumer business has been hardly impacted by a struggling, barely growing economy. “Our consumer business has just continued to progress, and part of that is because wireless is the new technology,” says Shammo. People will do away with other things and spend on wireless, he says. Going into 2015 Verizon’s growth plan is twofold, around the consumer FiOS product, and around wireless. Shammo sees “huge” growth opportunities in tablets and in the Internet of Things (healthcare, wearables, energy). “That is still a maturing business, so that’s where our growth is going to come from,” he says. Verizon will launch a product in 2015 that will be an over-the-top (OTTor value- added) application for mobile. When created by a third party, this type of app erodes the revenue from voice and messaging on smart phones. Verizon is hoping to recapture that revenue. C 1st QUARTER 2015 WWW.CFOSTUDIO.COM 15 Fran Shammo, Verizon