Tuesday, November 25, 2014

3Q Economy Picks Up Speed-Offering New Economic Investment Opportunities

Gross Domestic Product (GDP) in the third quarter (3Q) of 2014 grew to an abundant  3.9%. It is always nice to see the economy grow, unemployment decline, housing recover, and consumer spending rise. What is the icing on the cake is the increased business investment that can tell us a lot about how big money is viewing the economy and its prospects. The reemergence of the American economy offers some new opportunities that were not possible in the past.

The global economy may be slowing, China and Europe are propping up their systems, but the U.S. has for a short time been clear from such programs. The slowing world economy should have investors worried but it hasn't. The sour international market may just provide investors a silver lining in the U.S.

The U.S. is not isolated from the global economy and certainly will have some challenges. However, as manufacturing parity improves and infrastructure strengthens the U.S. is in a better position to help investors take their capital and turn it into higher value products with international appeal. The right policies can encourage people to invest.

New investments impact two different aspects of society at once. Investment in declining manufacturing centers that have retained their infrastructure not only offers the best medium for economic development but can also  radically change the financial positions of residents, often minorities, that live in such areas and will benefit from new high paying jobs and ecological improvements.

We can't forget the growing income disparity in the nation and allowing investors to improve upon the lives of city residents while still earning significant profit cannot be underestimated as an important factor. Of course this requires pro-business investment environments that places businesses and residents in win-win situations. Policy makers need to look long-term and make the adjustments now to raise economic growth and better manage their budgets down the road.

As the investment environment falters in previous hot spots the U.S. is starting to look like a good place to invest again. It offers political stability, a growing market, strong infrastructure, and an educated workforce. Cities, that once stood as manufacturing centers, are ready for reinvestment in hub development at bargain prices. Investment brings jobs and jobs bring higher wages and better environments thereby raising the standards of those who live in these economically suppressed areas.

Monday, November 24, 2014

Are U.S. MBA Schools Losing their Positions?

U.S. schools have long been known as a place where higher education excells. Over the past decade European and Asian MBA schools have started to take preference and superseded many American schools. A study by Collet & Vives (2014) discusses how the face of the American university has changed and why European and Asian schools are starting to reach top spots in business education.

Business schools have not always been part of the American landscape like many other programs. By the 1980’s MBAs were in hot demand and graduates could expect to earn around 2X what the average person earned in the country. The MBA is, and was, a significant sign of achievement among academics, and holding a degree from one could lead to faster promotion and higher pay.

As the interest on MBA grow so did the interest of business oriented media that desired to rank the schools for their readers. Publications like the Financial Times used three criteria to rank Global MBA schools by 1. Faculty demographics; 2. Publications faculty product; and, 3.) the amount of international students.  Each measurement lends some support to the interest and quality of the school.

Faculty publications help understand what is being produced within a school and how it is contributing to the intellectual capital within its field. When faculties are publishing new findings and material they are growing and developing the intellectual knowledge of their related interests of study.  Students are naturally attracted to producing faculty.

The other measurement is the amount of foreign students attracted to particular schools. As an MBA increases in market value international students are drawn to such colleges in order to give themselves the best advantage they can within the market. A strong reputation furthers that interest and draw interested parties through its high quality degree programs.

The authors found that the U.S. is losing its prestige in business education.  More Asian and international students are migrating to Europe to earn their degrees. Graduates of these schools are earning high wages compared to the general population. This is occurring despite the higher economic growth rates within the U.S. that should be a draw for students seeking an education and an opportunity.

Collet, F. & Vives, L. (2013). From preeminence to prominence: the fall of U.S. business schools and the rise of European and Asian business schools in the Financial Times Global MBA Rankings. Academy of Management Learning & Education, 12 (4).

Sunday, November 23, 2014

Interview Tips to Land Your Dream Job

Interviews are the gateway to landing a new job and all the perks that go with it. The interview is a primary selection tool hiring managers use to find the candidates they need. Dressing in your best business outfit and standing in front of a person, or persons, who are going to read into every word you say can be a nerve racking event. However, with a little preparation you can increase your chances and lower your anxiety.

Preparation 1: Build a Strong Resume

The best preparation for an interview is to ensure that your resume is accurate and reflective of your skills. Hiring managers use these resumes to determine which candidates they want to take the time to talk to and discuss potential positions. Having a strong resume will not only improve your chances of getting an interview but will also show how your skills are aligned to the job position.

The resume should provide a snap shot of your experience with enough detail to provide insight into the nature of your work. The positions earned and the specific functions of the job can be beneficial for managers that want to understand what you can do. As always, make sure it is easy to read and functional.

Preparation 2: Understand the Job and the Company

If you received the recruitment call it becomes important to ensure that you have a thorough understanding of the position and how it operates within the company. The hiring manager is likely to ask questions revolving around the position and the company to test your knowledge. Having a wider background of information will help you focus your answers to his/her needs.

Managers want to know if you have an understanding of the position you are applying for and whether or not hiring you can improve their company performance. This is why it is important for you to complete enough research to apply your answers to the company. It shows both motivation and thoroughness while allowing the manger to picture you in the position.

Preparation 3: Prepare and Practice Responses

Knowing that managers are going to ask you questions it is beneficial to prepare your responses in advance. Think about other interview you have had, search on line for common questions, and try and develop your battery of basic responses. Writing out the question and a few responses for each can be beneficial in solidifying your thoughts.

There may be some difficult questions that were not previously thought about. The best way to deal with an unknown question is to define your overall work philosophy. Understanding how you solve problems and your personal beliefs about the workplace will help you fall back on these core beliefs if needed to provide a consistent response.

Preparation 4: Dress Your Best

First impressions can mean a lot. The way we dress helps a person sum up the overall impression they will have with us. Traditional colors with a tie and shinny shoes will show them that we are serious about the position and prepared to take on important responsibilities. Since it is the visual image they have of us it is important to make it the best you can by wearing the right clothes and preparing them in advance.

 Interviewing is not always easy but you can better prepare yourself by following appropriate steps that get you ready to present yourself well and answer the questions the hiring managers is likely to ask you. Practicing will also be confident which can lead to higher positive ratings in the interview. Ensure that you know your stuff, look great, and know what you want. Above all communicate. Good luck!

Saturday, November 22, 2014

China Stimulates Economy to Keep Deflation at Bay

Experts predicted the Chinese economy to slow down for the last five years but it never happened-until now. Instead, the economy continued to grow and develop moving from copying technology to inventing some of their own. As the world’s No. 2 economy it has recently recognized that significant slowing in Asia and Europe may be hampering its own growth and it is taking precautionary measures to prop up its position. 

In an attempt to support development and investment it slashed interest rates at the time when American’s have weaned themselves off easy money policies. By injecting credit into their financial system they hope that their banks will lend more money and encourage higher levels of investment. The interest rate on the one-year loan has been reduced to 5.6% while the rate of pay on a one-year savings rate is now 2.75%. 

A low interest and saving rate combination incentivizes borrowing money for growth while discouraging the hoarding of cash by more profitable businesses. Through keeping the money flowing in and out of large banks it sparks higher levels of economic activity. It is believed that lower lending and borrowing rates will spark higher levels of investments. 

China’s economy has been growing through cheaper production costs and higher levels of investment. As the world experiences a slowdown and major nations are stimulating their economies China has decided to jump onboard.  Only the U.S. is projected to keep growing. 

With a growth rate of 7.3% and a decline in housing value the Chinese economy slowed. It is still an impressive number and the Chinese sought to weather into more sustainable growth pattern but a global slowdown has them on edge. China must continue to export at significant levels or risk moving into a deflationary position.

Friday, November 21, 2014

Call for Papers: Advances in Business-Related Scientific Research Conference

Dates:  March 25th to 27th, 2015
Location: Venice, Italy
Website: http://www.absrc.org
Enquiries: chair@absrc.org

ABSRC is an important international gathering of business and business-related sciences scholars and educators. In addition to scientific papers, the focus is on various best practices and solutions, which are important for business activities.

ABSRC is a global conference. Researchers and practitioners from 50 different countries participated at the past ABSRCs.

Business and business-related issues are covered including the following topic groups:
Business strategy
Change management and organizational development
Conflict management
Critical management
Economic growth
Gender, diversity and social issues
Human resource management and career development
Humanities and arts and business
Industry, area or region specific studies
Industrial organization
International business
Language in organizations
Law and business
Management consulting
Management education, training and development
Managerial and organizational cognition and psychology
Marketing and consumer behavior
Natural sciences and business
Organizational behavior
Organizational information and communication systems
Organizations and financing
Production and operations management
Research methods
Social sciences and business
Technology and innovation management