MBA ZoNe - MBA BulletPoint

Guessing the Costs of IFRS Conversion

"U.S. companies believe they will spend more than European ones did to adopt the global rules, according to an Accenture survey...

U.S. executives expect to pay more than their European counterparts did to convert to International Financial Reporting Standards. Depending on company size, they estimate they’ll spend between 0.1% and 0.7% of annual revenue to move from U.S. GAAP to the global rules, an endeavor publicly traded companies in Europe undertook four years ago at an average cost of 0.05% of revenue..."
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Source: CFO

Try, Try, Again or Maybe Not - Study on Failure of Entrepreneurs by Harvard

"IF at first you don’t succeed, it doesn’t matter that you tried.That seems to be the message of a working paper prepared recently by a team at Harvard Business School. The study found that when it comes to venture-backed entrepreneurship, the only experience that counts is success..."
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What do you think about this study?

Source: BizDeansTalk | NY Times

How Much Is That Toxic Asset in the Window?

"Can Treasury’s attempt to create a working marketplace for banks’ so-called toxic assets succeed? It depends on whether those assets can be legitimately valued — and whether the entire plan frees up lending...

In U.S. Treasury Secretary Timothy Geithner’s latest strategy for fixing the economy, he has returned to the concept his predecessor initially floated: buy up the troubled, mortgage-backed securities that are weighing down banks’ balance sheets. This time, the government — and taxpayers — won’t be the only purchasers or risk takers. Under the new plan, called the Public-Private Investment Program, the government will try to create marketplaces for banks’ mortgage-backed securities and loans that they have been either unable to offload or unwilling to sell at prices they could fetch today..."
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Source: CFO.com

Lost and Foundering? Why we (probably) won't repeat Japan's infamous "lost decade."

"To a growing number of observers, the current recession is beginning to look like something much worse than 1973 or 1981. It shares key hallmarks of the recent Great Stagnation in Japan — the "lost decade" of the 1990s, an economic slump and financial crisis that actually lasted longer than 10 years. The U.S. economy, many fear, may be on the verge of its own lost decade.  The basic outline of Japan’s lost decade is familiar. Japan’s "bubble economy" of the 1980s saw an astronomical run-up in the values of stocks and property. Famously, the land under the Imperial Palace in Tokyo was said to be worth more than the entire state of California...."
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Source: CFO

The Snowball - Warren Buffett and the Business of Life

Warren Buffett is “everyman” as multibillionaire. Despite his vast wealth, he has always eschewed ostentation. He pays himself about $100,000 annually, which in today’s U.S. economy places him in the upper-middle-class. He lives in the same simple Omaha, Nebraska, house that he bought in 1958 for $31,500. He prefers an old gray suit to expensive London tailoring. In Buffett’s early days, when he was only a multimillionaire and not a multibillionaire, he walked around with holes in the soles of his shoes. To Buffett, wardrobe doesn’t matter; what matters is making money. He is better at this pursuit than anyone else in the world. In 2008, Forbes magazine ranked him as the globe’s richest man, with a net worth of $62.3 billion. Author Alice Schroeder does a masterful job of chronicling Buffett’s improbable, inspiring life. As a former superstar research analyst, Schroeder uses her expert knowledge of finance and commerce to detail Buffett’s investment philosophy and business activities. getAbstract praises Schroeder’s remarkable skills as a researcher and writer. Her book is packed with fascinating details and trenchant observations about the “Oracle of Omaha.” One of the best business biographies available, this book shows how the world’s greatest investor amassed the world’s greatest fortune, while staying true to his essential self.
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Oust the SEC as Sole Accounting Watchdog?

"Are you ready for the FAOB? New House bill would install instead a five-member oversight board made up of heads of Treasury, the Fed, FDIC, and PCAOB, along with the SEC chair...

Politics are creeping into accounting once again. This time it’s through a proposed law that would replace the Securites and Exchange Commission as the sole overseer of accounting standards, and turn that role over to a high-level group that would let bank regulators have a say in approving accounting rules..."
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Source: CFO.com

The Layoff - HBS Case

"If Astrigo Holdings is to remain competitive, 10% of its workforce must be cut. Who goes, and who stays?

“Why aren’t layoffs taught as a subject at business school?” Robin Astrigo asked himself. “Boards expect executives to do them well, but nobody knows how.” He leaned his forehead against the cold window and stared out at the building across the street. The wind was whipping tiny, icy flakes sideways through Chicago’s alleys of skyscrapers. Robin couldn’t see through the dark glass windows of the offices of the big consulting firm opposite him, but he wondered whether the atmosphere in there was freezing too..."
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Source: HarvardBusiness

Word-of-Mouth Marketing - Finding the First Mouth

"Call it viral, buzz or word-of-mouth advertising: Getting customers to spread the word about a new product through their social or professional networks is a hot strategy in the marketing world.  Its proponents insist that the technique -- whether online or face-to-face-- is sure to boost a company’s return on investment (ROI).

But how can companies find the right individuals to deliver the message? Marketers may wonder if they are finding the best "seeding points" -- that is, well-connected people at the hub of social networks who will latch on to a product and promote it widely among the people they know..."
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Source: Knowledge@Wharton

Great Entrepreneurs' Secret: Smarts, Guts, and Luck

"As venture capitalists, my partners and I meet dozens upon dozens of entrepreneurs pitching their ideas and dreams. We love them - especially when their passion comes with capabilities and a good idea. I have been fascinated in understanding the "DNA" of great entrepreneurs in an effort to identify traits and markers that can serve as early clues for future success. I have come to conclude that great entrepreneurs share and need SGL: Smarts, Guts, and Luck..."
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Source: HarvardBusiness

Simplicity: The Next Big Thing

"The next big trend is simple: to simplify...

This is not news to anyone who’s been around the track a few times. An emphasis on focus, speed, streamlining processes,and finding common platforms has characterized the best companies for years. The Internet has helped cut out intermediaries and enabled direct connections, instant feedback, and more information transparency. In design, sleek looks have replaced ornamentation..."
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Source: HarvardBusiness