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.
The blog discusses current affairs and development of national economic and social health through unique idea generation. Consider the blog a type of thought experiment where ideas are generated to be pondered but should never be considered definitive as a final conclusion. It is just a pathway to understanding and one may equally reject as accept ideas as theoretical dribble. New perspectives, new opportunities, for a new generation. “The price of freedom is eternal vigilance.”—Thomas Jefferson
Tuesday, November 25, 2014
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 excels. 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.
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!
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.orgLocation: Venice, Italy
Website: http://www.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
Entrepreneurship
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
Macroeconomics
Management consulting
Management education, training and development
Managerial and organizational cognition and psychology
Marketing and consumer behavior
Microeconomics
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
Improving Multi-Channel Outcomes in Online Marketing
Companies don’t always exist
exclusively in the real or virtual world and neither should their marketing
campaigns. Some consumers prefer buying products through physical channels
while others prefer online channels. Companies find themselves managing the
complexity of both broad channels to improve sales. These sales may not be
based in a single marketing channel and may be more associated with the use of
multiple marketing channels working together.
An article in the Journal of
Marketing Research offers greater insight into cross-channel effects on
traditional, online display and paid search advertising. They found that a
single marketing channel cannot account for the total purchase rate of
products/services (Dinner, Van Heerde, & Neslin, 2014).
Consumers may have a particular on
or off line preference for purchasing but regularly use the Internet to search
out and research their chosen items. The totality of both online and offline
purchases is a combination of using different marketing channels and should be
measured as such.
Think about how a consumer processes
information. They see or hear about a product that relates to their self-image
and develop an internal need for that product. If the product has value they
may search out its benefits and detractors online. When a decision has been
made they will either purchase online or from a ground store.
In today’s marketing world it is
important not to evaluate marketing effectiveness in a silo. Even though the
success of each marketing channel should be considered like the success of each
purchasing channel it is still important to consider the total marketing
effectiveness.
Different forms of exposure from
multiple events create the total impression and experience for the consumer.
Sometimes it may take multiple exposures from varying channels to grab their
selective attention and finally make a decision to purchase.
Marketing is more than simply having
customers see images and impressions on a webpage. There is a lot of competition
out there in the cyberspace and the physical world that leads to advertising
overload. A single marketing channel is unlikely to draw significant interest
and improve market position.
To improve upon exposure companies
will often use paid search positions. As consumers search out information on a
product the paid search engine sites come up first. Usually it is the home
company that reaches the top based search algorithms. In many cases there are
multiple companies competing for the top position.
Paid search positions have less
effect than originally thought. No one is sure why this is the case other than
the click-thru rates decrease over time making the marketing method less
effective. Mitigating factors could include the search engines, competition
within specific industries, and the sensitization to these ads.
As the different channels work
together it was found that they push potential customers into certain
purchasing behaviors. Using multiple channels to direct customers to successful
purchasing channels may be beneficial for raising the overall conversion rate.
Channels then become augmentation and support for preferred channels that work
the best.
Dinner, I., Van Heerde, H. &
Neslin, S. (2014). Driving online and offline sales: the cross-channel effects
of traditional, online display, and paid search advertising. Journal of Marketing Research, 51 (5).
Thursday, November 20, 2014
Positive Outlook and Proactivity Leads to Positive Business Outcomes
There is
nothing wrong with a little optimism in your life; especially if that positive
outlook ends with good things. Optimism can lead to promotion through positive
interactions with others and a willingness to handle workplace challenges using
a level of grace. When you are positive you are less likely to wait for
problems to raise their head making you more proactive in handling issues. The
very way in which we view the world may determine what type of fruit we can
pick from it.
When one is
reasonably optimistic about life they have something called a positive orientation.
Positive orientation is a basic disposition to view life and experiences from a
positive disposition that leads to higher self-esteem (Alessandri, et. al.
2012). A positive orientation leads to higher in-role job performance and
self-evaluations.
Those who
view life positively outperform pessimists within the workplace. They not only
attract people to their cause but were also able to whether the daily grind
better than others. A positive outlook adds up to higher levels of performance
over time through many smaller actions.
Having a
positive outlook also creates greater connectivity and influence in one’s
environment. Networking ability, interpersonal influence, and social astuteness
mediated relationships between proactive personality and in-role performance
(Shi, et. al. 2011). People who have confidence in engaging others and their
personality are more likely to accomplish their career goals.
Having a
positive outlook is more than simple positive psychological outlook and can
have real benefits for your career and life. Positive people are easy to like
and more able to influence others around them. They have more confidence with
problems that arise and are more likely to tackle problems that haven’t arisen
yet. Proactive and positive outlook on life adds up to a great career.
Alessandri,
G. et. al. (2012). The utility of positive orientation in predicting job
performance and organizational citizenship behaviors. Applied Psychology: An International Review, 61 (4).
Shi, J. et.
al. (2011). Testing differential mediation effects of sub-dimensions of
political skills in linking proactive personality to employee performance. Journal of Business & Psychology, 26
(3).
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