European Stars and Stripes (Newspaper) - October 01, 1989, Darmstadt, Hesse                                Page 18 the stars and stripes sunday october 1,1989 business news g-7 action should hold Buck Down Dollar watchers won t have much to watch Over the next few weeks if they re waiting to Sec the Dollar climb above the 1.90 Mark Barrier currency traders in Europe say. The effects of inst weekend s meeting of Finan Cial leaders from the seven leading Industrial nations commonly called the g-7 were Swift and sure in controlling what has been a bullish Buck. By monday in Frankfurt West Germany concerted Central Bank intervention had yanked the Dollar from Fri Day s rate of 1.9495down to 1.9057, putting the military Rale at 1.88. The intervention one of the most determined Lowed warning issued by the Western financial leaders that an overvalued Dollar threatens the world Economy. Although the Market still tends to be positive about the Dollar Central Banks will probably have no trouble holding the Dollar in the 1.80 to 1.90 Range said Yvan Weill an assistant vice president and foreign Exchange manager for merchants National Bank and Trust co. In Frankfurt. When the Market pushes the Dollar up into the upper half of the 1.80 Mark to 1.90 Mark Range Dollar watchers can expect to Sec intervention. The question remains however As to what it will take to spoil the appetite of Dollar hungry traders who arc attracted to the currency by relatively High . Interest rates. One Frankfurt trader speculated that a statement from . Federal Reserve boar chairman Alan Greenspan might do the trick in turning the Market sentiment around. So far the . Federal Reserve is the Only Central Bank among the group of seven nations the United states. West Germany Canada great Britian Italy Japan and France that has not released a statement about where it believes the Dollar should stand on the currency markets the trader said. If Greenspan formally blesses the 1.80 Mark to 1.90 Mark Range it would probably slow eager Dollar buyers he said. Overall the trading week was described As nervous and Rumor filled. Many of the rumours entered on whether the Bundesbank would raise key interest rates by half a percentage Point a move that could pressure the Buck Down further possibly to 1.85, by attracting investors to the West German currency. An overview of the trading week shows the Dol Lar going from 1.9057 monday Down slightly to 1.89 tuesday to 1.882 on wednesday an thurs Day and to 1.8725 Friday. For service members in West Germany the Dol Lar will buy 1.84 Marks at military Banks through monday. The Dollar showed a similar downward trend against other foreign currencies throughout the week. A look at late rates from last Friday before the saturday meeting of g-7 leaders in Washington compared with this Friday s showed 1.6205 Swiss francs Down from 1.689 6.3355 French francs Down from 6.5925 2.1095 dutch guilders Down from 2.19 1,365.30 italian lire Down from 1,407.50 1.176 Canadian dollars Down from 1.1808 2,224.18 turkish lire Down from 2,235.20 in London Friday the Dollar fell against the British Pound. It Cost 1.6195 to buy one Pound compared with $ 1.5755 a week earlier. But Dollar watchers should t lose Hope. One japanese trader thought the Market was getting accustomed to the intervention noting that by the end of the week it was t responding As much to Dollar Selling by the government  Sun it a pm after half Century of Success sex Salesman Carlson retires Bojoh Cunniff a business analyst new York Curt Carlson was a Salesman in 1938. In 1988 he sat atop an almost fully owned personally assembled Empire with sales of More than $5.3 billion a year one of the biggest companies in America. Today in Minnetonka. Minn., he Steps away from Day to Day operations of Carlson companies employer of 55,000 people worldwide and operator of More than 200 hotels and 400 restaurants in just one of its smaller Divi Sions. It was built from within by shrewd and intensive management and from without by equally shrewd purchases and considerable franchising and by setting what appeared to be impossible goals that were always achieved. In the Early years Carlson sometimes doubled his com Pany s sic in a year. Between 1938 and 1978, the first billion Dollar year growth averaged about 33 percent a year. Since then the goal has been to double every five years. In the first year of the latest five year plan the goal growth of about 15 percent a year was exceeded. This year the company is right on target. No reason says Carlson notto expect sales of $9.2 billion in 1992. He admits to pinching himself. We he and wife arc in appreciate How Lucky we arc. Time and again some Little thing happened that was Lucky. Sometimes i think it was divine intervention. I wonder. But he also thinks that entrepreneurial opportunities arc even greater today because Banks arc easier to Deal with there arc tax advantages and franchising greatly reduces the risk of starting a business. Carlson s Saga began in the great depression when he founded Gold Bond trading Stamps sold the idea to a grocery store put up his pennants and promotional paraphernalia and invited arc in his Fiance to View the scene. We went Down there the night before in the darkness with a flashlight he said and i told her that if it worked i could sell them All meaning every grocery store. Gold Bond became one of America s largest stamp companies. As Stamps saturated the retail Market Carlson spotted other growth areas structured the company into marketing hospitality and travel groups and using internally Gener ated profits and borrowings penetrated those areas. The marketing operation is now the largest provider of corporate incentive training programs. The hospitality group runs 223 Radisson hotels and resorts 260 country kitchens and 152 Tai Friday s outlets. The travel group is North America s largest travel agent with 1,000 offices under names such As ask or. Foster p. Lawson travel and Neiman Marcus travel. Now All this becomes the Domain of chief executive officer Edwin skip Gage a 20-year Veteran of the marketing group which now provides two thirds of volume and profit. He is Carlson s son in Law. Curt Carlson seated takes a Coffee break with his son in Law Edwin skip Gage in Minneapolis. I know that some people because he is my son in Law have said things Carlson said last week. But Gage he says has earned the Job been tested under fire and perform dwell. Carlson 75, in t Likely to err at in is Point. Confident in his Choice he dismisses notions that his decision in t Good business. I think of president Kennedy s remark when he named brother Robert attorney Gener Al that nepotism in t bad if you keep it in the family. He is determined to avoid interfering because i know that if i m bold enough to Slick my nose into something then i have to stay with  at this stage of life he says that in t what he seeks. I want to be free to do what i want to vacation and read something other than the business magazines and the Wall Street  he sounded determined but could he keep his distance if the company shows signs of deserting its culture and experimenting i m not going to interfere if we break from tradition abit he said. But we cannot deviate and fail to hit the figures. I la go along for two or three years and then Well  he said he was removing himself. I be got Good intentions and lots of other things to do he said. No. 2 Pepsi plans reorganization to create six overseas divisions new York up1 Pepsico. Inc., trailing rival coca cola co. In International sales said it plans to restructure its overseas soft drink operations into six autonomous divisions. Pepsi whose foreign soft drink revenues account for just under $ i billion or about one fifth of its $5 billion total soft drink sales annually said the divisions each with its own president will be Able to make decisions about marketing sales and technical operations based on the needs of the regions they serve this is not so much a competitive response As it is a response to an evolving worldwide marketplace said Pepsi spokesman Ken Ross from the company s Headquarters in Somers . We believe that a business spanning 150 countries and countless cultures is most effectively served from the Field he said. Coke s International soft drink revenues currently amount to about $4.9 billion roughly five times the size of Pepsi s. Analysts who noted that Pepsi has grown significantly overseas despite Coke s dominance applauded the move. Decentralization globally is crucial because of Dif 1 problems and opportunities in different parts of orld said Roy d. Burry of Kidder Peabody & Ferent the world,1. Co. They have grown enough overseas so that they have a big enough mass to decentralize he said. The new organization which will have divisions for Western Europe latin America the Middle East and Africa Asia China and Canada is to be headed by Christopher a. Sinclair a longtime Pepsi executive. Pepsi said in a press statement the reorganization which mirrors a move the company made for its Domestic soft drink division last year underscores the company s commitment to accelerated growth in its overseas  the International soft drink business is fairly Satu rated with few markets that have yet to be tapped. In order to increase its International revenues Pepsi must therefore gain Market share in countries it already serves. Ross said one notable exception however is India where Pepsi plans to beat Coke to the punch by marketing its products there in the near future. While Coke and Pepsi now both sell soft drinks inthe soviet Union Pepsi is the Market Leader having introduced its products behind the Iron curtain As Early As 15 years ago Ross said