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Castlegar News

‘July 17, 1985

BLUEBERRIES & |Granby stakes Nevada claim

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A mining company activa

in the Greenwood area has acquired, claim. groups in Nevada. . Granby Resources Ltd... which announced plans to start work this week on its Greenwood gold-silver prop- erties, staked two separate claim groups in the area of Eureka, Nevada, to cover gold potential prospects.

President Angus MacDon- ald reports that prior to acquiring the properties, Granby conducted a program to review the regional-geol- ogy. plus reconnaissance Soil

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which yielded “en-

couraging values in'an area of favorable alternation’ and “structure.” =

The first group of 36 claims

is in White -Pine Country,

eight miles east of Eureka while the second group of 46 claims is some 15 miles west of Eureka. It is planned to start a program of geological mapping and soil sampling as soon'as possible. - MacDonald said Granby is seeking additional capital with which to accelerate its Greenwood and Nevada pro- grams,-as well as expand its regional programs.

Investment aided

SEATTLE (AP) — New

incentives for foreign invest--

ment in’ British Columbia could help Washington-based companies, say Don Phi trade minister. for British Columbia.

Phillips met privately Monday with representatives of Boeing, Weyerhaeuser and other companies to discuss

Companies have already taken advantage of the pro- gram, he said, with con- struction of large plants pro- ducing chemicals, fertilizers and mineral extraction pro- ducts.

Phillips said British Col- umbian products are better able to compete in developing countries in China and other

the i ive p

Phillips outlined changes in the province's bidget to aid new business, including. low- cost power and tax breakes. He said. many incentives can benefit industry already in the province.

BUCKLE UP! CAN)

g countries. because Canada also is a developing, country.’

The lower value of the Canadian dollar also makes Canadian products more att-

iP: not trying to lure business away from Washington but wanted to explain the incentive pro- gram.

“Many of your companies are already doing business in British Columbia,” he said.

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MAY HAVE HAPPY ENDING

NEW YORK (Reuter) — The saga of new Coke could be the marketing blunder that begat millions of dollars in new: profits for one of, the world's most profitable > enterprises. ; s x

_Or so some experts are saying as they try to analyse Coca-Cola's decision to change the formula that made it famous and then, under bombardment from diehard Coke loyalists, bring back old Coke in new bottles. 3 _ The experts agree the decision to change the Coke formula, announced last April, was on the scale of Ford's decision to make the Edsel, the biggest flop in the history of the car industry, and IBM's decision to market the now discarded _PCjr.

But they add, Coke’s story may have a much happier ending than. the Edsel, which became a national code word for failure, because of Coke's aggressive move to counter the negative publicity that followed its formula change. =

“They have fallen into one of the biggest marketing coups of. the century,” said. Harvard Business School professor Mark Albion, who ‘also noted:

“Coke screwed up (by changing its formula). Coke is an institutional name. You don't mess around with that sort.of thing. They've done something to themselves that Pepse could never have done.” =

He forsaw ‘new formula Coke and old formula Coke now winning shelf space on thé nation’s supermarkets but says it will take 10 years, long after the nevelty has worn off, to see if the marketing ploy worked. -

WINS SHELF SPACE a

David Gardner, a~professor of marketing at the

University of Illinois and a past president of the ation for C fh, is, much . more

optimistic. *.

: “There's a good chance they'll come ‘out. ahead. Not

| only are they going to get more shelf space, but they've

ie e oe ae e Decisions rai By JOHN CUNNIFF NEW YORK (AP) — A lot

“made recently that have aroused the curiosity not

positioned a new brand with a following,” said Gardner. . He said the decision to market Coca-Cola Classic (old Coke) would creatéa new cola_markét. “This is an ‘offensive move to satisfy more customers and sell more gallons of soft drinks.” i

Some experts, however, wonder whether by making

several different types of Coca-Cola, the company had dangerously segmented itself and no longer able to say that a single style of Coke “is it.”

But, according to the University fo Chicago's Harry

Davis, an expert on marketing: “There are more things | on the positive side than the negative. First of all their | ‘stock price is up, so the market is sending a very strong.

signal of belief in the company. PEPSI LOSES

“I find it intriguing that for the past five years the! | big event in cola advertising was the Pepsi challenge. Wf

seems'to me that what you wind up with is Pepsi less a part of the popular discussion.”

But as Donald Keough, president of the Coca-Cola Corp. said, the decision to remarket old Coke was not

planned because Coke underestimated the passion of — ‘Coke drinkers. Coca-Cola thought the new taste of Coke

would be accepted and it still”thinks s

Coke has 21.7 per cent of the $23 billion a year U.S.

soft drink market and 37 per cent of the $50 billion a year world market, according to the newsletter Beverage Digest. : ‘New formula Coke will continue to be marketed as Coca-Cola and old Coke will have the new name.

_ According to Keough, trying to sum up his company's-experience in the last few days:

“Some critics say Coca Cola. made a marketing

mistake. Some cynics say we planned the whole thing. The truth is that we are not that dumb and not that smart. It has been a humbling experience.”

Coke blunder an Edsel!

AR FSR

reorganization? How could so many other banks be man-

tions point, that most funds go to support their bureaucracies

of folks are asking why officials of Coca-Cola Co. decided to retire a success- ful product with a century of tradition and growing sales —a decision based on sur- veys known to be of ques- tionable reliability.

The question is especially pertinent when the best market research of all was available to management: the bottom line or net income derived from rising sales and improved market share.

There is a vast difference, marketing people often point out, between what people say in surveys and what they put their money on. And Ameri- cans and others had been putting their money on ori- ginal formula Coke.

But the Coca-Cola decision,

only of management authori- ities but of the general public.

“Why, “for example, did a high official of Christie's, the big auction house, choose to

mislead the art world and the -

public in general about art sale results, thus endanger- ing its international repu- tation?

How could E. F. Hutton, the securities firm, engage in widespread, «illegal . cheque overdrafts, blame middle- level managers, fail to pro- vide documents to prosecu- tors, and then concede senior management might have been involved.

BANKS IN TROUBLE

Why did officials of Con- tinental Illinois National Bank-~-allow — such~ slipshod

now rescinded, is only one of many management decisions

lending methods to- destroy its reputation and force its

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aged so badly that they had to be rescued?

Did William Agee, Bendix

chairman, know what he was doing when he tried to buy out Martin-Marietta and be- came the target instead of an attempt by Martin-Marietta to buy out Bendix? Did he consider the potential dam- age to Bendix, which later disappeared into Allied Corp. and left Agee looking for work? Questionable management has a long tradition in American corporate history — and in governmental, aca- demic, labor and non-profit activities too.

How could the federal gov vernment allow itself to get so deeply into debt? How could so many municipalities, including New. York, allow themselves to go to the edge of financial disaster before discovering how~ badly_ off they were?

Many union members to- day ask how union power became dissipated, in some instances to the point that union management cannot be certain that workers will listen to or follow them.

NOT IMMUNE

And in,the non-profit area, some charities. have long been. mismanaged to the

July

-1#'s Happening In

_ Colville

19&20

rather than the people de- pendent on them. And every- one knows that many hos- pitals are still badly run.

The irony of all this is that most management skills were developed in the United States and taught to the rest of the world. American bus- iness schools became the model of schools only re- cently established in other countries. -

More recently, business . schools have come in for a share of criticism, among the most telling being that they teach students how to effec- tively occupy niches in big corporations but until re- cently ignored entrepreneur- ship.

Whatever the reasons for the spate of questionable management decisions, they will be - fodder for many discussions and examinations over the rest of the year, not just-by management author- ities but by“ laymen too.

U.S. losing revenue

VANCOUVER (CP) — A United States forestry con- sultant says the American lumber . industry believes Canadian firms are over- cutting and will be unable in the long term to keep pro- duction at present levels.

“In the Pacific Northwest, we are losing the revenues we need- to plow into our timberlands because of the increased volume of imported~

| lumber that comes from that overcutting,” said. Paul Ehin- ger, an Oregon _ forestry. consultant.

Ehinger told a forest pro- ducts conference that Can- adians have “overdone a good thing” and that while Can- adian exports are up eight

per-tent—U:S—p i down.

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QUEEN CANDIDATE ; .

«Sheryl Lee, Miss Rotary (cen-

tre), in Friday night's queen pageant is seen with

chaperone Bev Pongracz ai

ind Rotary president Jack

Chern meeting,

ff during last Tuesday's

Rotary club dinner — Costews Phaie by Jack CHorters

Miss Rotary visits club |

Sheryl Lee, University, Transfer student at_ Selkirk College and Miss Rotary in Friday night's Miss Castlegar pageant, was the _ special gue: t last Tuesday's Cast- legar Rotary club dinner meeting.

She was accompanied by Bev Pongracz, her

intensive interview with each candidate and the mark assigned is placed in a sealed envelope.

Other marks are assigned on the basis of poise, posture, dress and skills, with final judging to take place at Stanley Humphries Second-

well as the valuable training given to the candidates. He joined with other members of the club in suggesting that both sponsors and candidates might benefit if information on the pageant and its aims were made more widely known and thanked

ary. School aud fol-

and the pageant coordinator who, at the request of the club members, explained the steps involved in the selec- tion and _ presentation * of pageant candidates.

There are seven candi- dates and seven sponsors this year, she said, as well as five out-of-town judges. Candi- dates and sponsors are matched_by lot: 35 percent of the final mark is based on an

lowed by a Queen's Ball on Saturday. A good turnout to both events is essential, the co-ordinator said, to a successful Miss Castlegar pageant. : President Jack Chernoff ex pressed surprise at the amount of preparatory and administrative effort invol- ved in mounting the pageant, and satisfaction in the public relations value to the city as

Pongr for an presentation.

The Rotary club will again host the traditional SunFest pancake breakfast in the SuperValu parking lot, under the direction of Hugo Smecher. Preparations for the breakfast are “off and running, he said, 7-11 a.m. on Saturday and 8-11 a.m. on Sunday.

The club is again entering afloat in the SunFest parade. Chairman Quinto Maida has

Recreation news

d that it will feature as many of our exhange students as possible in this Rotary Year of Youth.

YOUTH PARTY

If the hot weather is gett- ing you down, plan to attend the youth party tonight. All the activities get underway at the Bob Brandson Pool at 8:30. p.m. Challengé your friends to an innertube race or just splash around and dance to the top 40. Prizes will be given throughout the evening. The cost of all this fun is just $1.

SUNFEST

Sunfest weekend is just a few days away, so plan to take in all the action: On Friday we start off the festivities with the senior Citizens Picnic. There will be lawn bowling, bingo, horse- shoes, card games and en-

é S.

SUN RUN

Start your day off on the right foot this Saturday by participating in the Sun- flower Run. Participate in either the four-kilometre or 10-kilometre routes and help out the Kootenay Society for the Handicapped by receiv- ing pledges for the run. Brooks .tote bags will be available to the first 100 that register. The run starts at 8:30 a.m. at the Community Complex and the registration fee is $5. 3 WORKSHOP

forget about the

Workshop — being held Friday, July 26 at Kins- men Park. Join Elaine Campbell in folding paper

to a wide variety of shapes

Don't Origami

di birds,-rabbits~and—

4 P Y

picnic lunch and come on up to Kinnarid Park. The picnic starts at 10:30 a.m. and runs till 2 p.m, Refreshments will . be served.

puppets. Exciting Japanese folk stories will be told during this interesting day of art. The workshop runs from 10 a.m.till 2 p.m.

Student gram chairman Ron. Ross reported that Julie Higgins has just returned home after

pro-

a_—year's study in Tokyo, Japan and—Chris Bullock from Norway. In. the .mean- time Kamiko Mitoba our exchange Tokyo is spending the summer at the home of Mr. and Mrs. D. McDowell in Robson, while Castlegar stu- dent John Walton is-making preparation to go to Durban, South Africa and Tammy Sorenson leaves on Monday to Denmark. s

Some indication of the close ties established in the student exchange program was given when, after the meeting, host families of former. exchange student Adrianna Leon-Magana gathered to phone her in Celeya, Mexico and wish her a happy birthday and con- gratulations on her gradua- tion. Earlier this year other sponsoring families held a birthday party to honor former exchange Ruth Henderson phone birthday wishes at her home in New Zealand.

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