Week 1 Flashcards
Verizon buys yahoo
Verizon bought yahoo in 2008 for 4.8 billion dollars a depreciated value in comparision to the 45 billion dollars it was offered by microscoft earlier. Yahoo believed it could rise in value but profits dropped dramaticly as money was wasted on tumbler, staff and mozilla default search engine. Verizon is now using yahoo along with AOL to generate revenue from advertisments to supplement it’s struggling mobile phone business and compete with google and facebook.
Businesses roundtables new york
A group of businesses had gotten together at the business round table to declare for the first time that it would no longer soley focus on delivering profits to shareholders but also on protecting the environment, correcting income equality, and selling proper products. However skeptics argue that further legislation, and investor demands are needed to make this a reality.
CEO’s can’t save us
This article argues that CEO’s must put financial returns to shareholders over protecting social ethics. The reason for this is because a large number of CEO’s are losing stock by trying to implement mission statements that will improve society but cost investors and the organization loss in profits.
Making big decisions
For more complex decisions that require more than just a simple pros and cons list there are three options:
- Ranking alternatives into weird, better and worse
- Imagining in the months to come that the decision has failed and deconstruct why it has
- list all of your values and rank them form 0-1 based on their importance to you and then match them up to a number between 1-100 in how they are being fufilled with each alternative. Multiply both values and add them up and then compare them to one another.
Stragety is an Art of Sacrifice
In order to make proper decisions you must decide what you are not going to do, you must the alternatives and prioritize which ones you should do based on the most important and eliminate the ones that are least important. You should define your competitive advantage or the reason why a customer will buy from your organization and not someone elses and then choose to provide services that fullfill this competitive advantage while ignoring all other potential service options.
Big Businesses, shareholders, What are the companies
Businesses all already focusing on protecting environmental and social health as competition and demands of employees, and investors increase. Instead of executives pushing for protection of social ethics and environmental protection owners can do so by focusing on what will satisfy the businesses longterm profits.
5 business fundementals I learned at wharton
- Finance accounting-cash flow is all that matters- cash flow must always be positive. You should always have more cash placed in today than you have had yesterday
- See the world through the customers point of view-this will help you better understand the price of how much things are worth to the customer
- Choose the market and industry that is high in value and economically profitable
- Leadership it’s all about having the right team-Be prepared to lead a diverse group of people who are willing to share their ideas and work together.
- Be aware and familiar with your business partners cultures-know the language, customers and ideas of your foreign business partners
Larry Fink calls on businesses to lead
Larry Fink an executive manager at the investment firm black rock calls on businesses to protect social and environmental ethics and take positions on major social, political and environmental issues. Fink claims this is important as investors and employees in future years will be of a younger generation who will value these issues and control corporate politics. The organizations is even refusing to place investments in tobacco and coal companies and is shunned by CEO’s who say that Fink has no position to do this or that companies should stay out of political and social issues.
