Are Boring Businesses Resilient or Risky? Pitfalls and Opportunities in Europe and Asia. Bamboo Innovator is featured in, where value investing lives

Bamboo Innovator is featured in, where value investing lives:

  • Are Boring Businesses Resilient or Risky? Pitfalls and Opportunities in Europe and Asia, July 17, 2013 (BeyondProxy)


Short-Term Shareholders, Bubbles, and CEO Myopia

Short-Term Shareholders, Bubbles, and CEO Myopia

John E. Thanassoulis University of Oxford – Department of Economics

July 1, 2013

This paper analyses the real economy effects of firms having some shareholders with a short investment horizon on their shareholder register. Short-term shareholders cause management to be concerned with the path of the share price as well as its ultimate value. Such shareholders in an economy lead to bubbles in the prices of key inputs, to the misallocation of firms to risky business models, and to increased costs of capital. For individual firms short-term shareholders induce the Board to reduce deferred incentives in CEO pay prompting CEO myopia and reduced investments in the long-run capabilities of the firm.

Do General Managerial Skills Spur Innovation?

Do General Managerial Skills Spur Innovation?

Claudia Custodio Arizona State University – W. P. Carey School of Business

Miguel A. Ferreira Nova School of Business and Economics; European Corporate Governance Institute (ECGI)

Pedro P. Matos University of Virginia – Darden School of Business; European Corporate Governance Institute (ECGI)

July 4, 2013

We show that firms with chief executive officers (CEOs) that gather general managerial skills during their lifetime work experience produce more innovation. Firms with generalist CEOs invest more in R&D and produce more patents than those with specialist CEOs. Generalist CEOs also create more diverse and original patent portfolios. We address the potential endogenous CEO-firm matching bias using firm fixed effects and the variation on the enforceability of non-competing agreements across states and time as an instrument for general managerial skills. Our findings suggest that generalist CEOs spur innovation because they have skills that can be applied elsewhere should risky innovation projects fail. We conclude that an efficient labor market for executives can promote corporate innovation by acting as mechanism of tolerance for failure.

China’s Richest Man Considers IPO for Department Store Business

China’s Richest Man Considers IPO for Department Store Business

Zong Qinghou, China’s richest man who is worth an estimated $11.3 billion, is considering an initial public offering of his department store businesses.

There is no specific timeframe for the share sale, Zong said at a press conference in Beijing today. The billionaire controls food and beverage conglomerate Hangzhou Wahaha Group Co., which plans to have 100 malls in China in the next three to five years, according to a statement from the closely held company today. Read more of this post

Beers Of The World

Beers Of The World [MAPS]

MEGAN WILLETT JUL. 16, 2013, 3:46 PM 6,867 10

Who needs a flag when your country can be represented by its most popular brand of beer instead? At least, that’s what the geniuses at thought when they put together this “World Beer Map” that features over 80 lager beers from around the world. Not all the choices are without controversy, however — we’re guessing a few German beer-ophiles won’t be too pleased that Germany is represented by Oettinger, an infamous low-budget beer.

largebeermap Read more of this post

Is being an entrepreneur really a viable option? It is essentially cultural dogma that the only viable option is to go to college, get good grades, and become a doctor, lawyer, or some other respectable professional

Is being an entrepreneur really a viable option?

ON JULY 16, 2013

Following last week’s post about the importance of establishing entrepreneurship as a self fulfillingcultural norm, several people asked me what I thought was the key to jump starting this process. As I thought about the belief system of entrepreneurs vs. non-entrepreneurs, I remembered a conversation I had with an old roommate that perfectly captured the difference. In 2000, I was starting a new company and trying to raise some angel money. One Saturday afternoon, my roommate “Joe” asked me what I had planned for the day and I told him I had to work on my business plan. He said to me, “I don’t understand. Why do you work on this stuff? It’s not like you get anything out of it.” For Joe, launching a business was simply not a viable possibility. In his mind, I may as well have told him I was training to be the quarterback of the 49ers or some other unattainable pipe dream. More than anything, the belief that starting a company is a viable option is what separates entrepreneurs from non-entrepreneurs. Most people simply aren’t taught to think this way and don’t have accessible role models to show them the possibilities. It is essentially cultural dogma that the only viable option is to go to college, get good grades, and become a doctor, lawyer, or some other respectable professional. How many of you have had to explain to your parents why you were leaving your viable career in order to pursue what they viewed as the nonviable path of entrepreneurship? More than a few, I’m sure. Read more of this post

True Story: How to Combine Story and Action to Transform Your Business

True Story: How to Combine Story and Action to Transform Your Business [Hardcover]

Ty Montague (Author)

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Publication Date: July 16, 2013

Is your company a storyteller—or a storydoer?
The old way to market a business was storytelling. But in today’s world, simply communicating your brand’s story in the hope that customers will listen is no longer enough. Instead, your authentic brand must be evident in every action the organization undertakes.
Today’s most successful businesses are storydoers.
These companies create products and services that, from the very beginning, are manifestations of an authentic and meaningful story—one told primarily through action, not advertising. In True Story, creative executive Ty Montague argues that any business, regardless of size or industry, can embrace the principles of storydoing. Indeed, our best-run companies—from small start-ups to global conglomerates—organize around a coherent narrative that is then broadcast through every action they take (from product design to customer service to marketing). Montague shows why storydoing firms are nimble, more adaptive to change, and more efficiently run businesses.
Montague is a founder of the growth consultancy co:collective and the former president and CCO of J. Walter Thompson, the largest advertising agency in North America. He brings his depth of creative business experience to the book and provides a clear framework and proven process for bringing you and your customers together in the creation of your brand story.
Montague introduces five critical elements—what he calls the “the four truths and the action map”—that are the foundation of storydoing:
• the participants (your customers, partners, and employees)
• the protagonist (your company today)
• the stage (the world around your business)
• the quest (your driving ambition and contribution to the world)
• your action map (the actions that will make your story real for participants)
The book is filled with examples of how forward-thinking organizations—including Red Bull, Shaklee, Grind, TOMS Shoes, and News Corporation—are effectively using storydoing to transform their organizations and drive extraordinary results. Read more of this post

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