ECONOMICS & MACRO MARKET
In the week just past, the Dow Jones Industry Average (DJIA) dropped over 1,000 points during the trading session. The decline indicates a significant profit taking, which could no longer be compensated by the new entrants. The lack of significant improvement in unemployment figure and the news about street battles by those who should have been working on the credit issue of their nation triggered the free fall of the price. The profit taking does not seem to be finished and any negative news in the future could lead to further decline of stock prices, sending DJIA back down to 6,500.
STRATEGY & MARKETING
Back to the City
Business success depends highly on discovering and seizing opportunities. Opportunities, on the other hand, are associated with events, changes and trends. If someone tells you that he is going to move to an urban area, it is not an isolated incident (event); it actually represents a change in mentality and a trend of urbanism. Young workers and retiring Boomers are actively seeking to live in densely packed, mixed-use communities that don’t require cars – that is, cities or revitalized outskirts in where residences, shops, schools, parks, and other amenities exist close together. Prudent executives are adjusting their strategies and market focuses accordingly…
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Why Consumers Spend Their Precious Resources on Lavish Purchases during Recession?
Feeling powerless is an aversive psychological state that people try to eliminate or diminish. Behaviors such as associating oneself with figures of power, wealth and fame and emulating what they do are driven by the desire to build status and compensate their feeling of lack of power, although they usually leads to decline in self-confidence. Researchers found that, in a time of economic downturn, consumers are more likely to feel powerlessness and, therefore, spend beyond their means to purchase status-related items. Their experiments showed that subjects who experience a sense of low power 1) were willing to pay a higher price to acquire status-oriented items, like silk ties and fur coats, but not regular products like minivans and dryers; 2) expressed increased willingness to pay for a picture of Northwestern University, but only when it was portrayed as an exclusive item providing high status, rather than a mass-produced item available to anyone; 3) were more likely to perceive status-oriented products as providing a sense of power. As marketers determine target market segment and develop persona, they need to take the compensatory consumption into consideration…
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Five Steps for Consumer Brands to Earn Social Currency
Consumer brands can earn social currency. Launching promotional campaign using social media is, however, just the beginning. Effective social media campaigns are achieved by acting upon five key fundamental themes: 1) advocates trump followers – building promotions around turning real people into online celebrities and then endorsers; 2) the social context during consumption matters – creating relevance in consumer's daily life; 3) not every brand should be social – distinguishing those which can have upside in social currency, 4) social tools are a means, not an end – converting viewers into evangelists; and 5) gimmicks marginalize trust – focusing on present true values to consumers…
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INNOVATION IN BUSINESS & TECHNOLOGY
Intel launches First Smartphone Chip
Recently, Intel announced its long-awaited entry into the smartphone market with the launch of the Atom Z6xx series processor – codenamed Mooretown – which is the first Intel processor low-power enough to be used in handheld devices. While innovative products such as iPhone, Android and iPad are selling well, people are wondering whether we really should have multiple devices. Intel’s Atom Z6xx can turn smartphones into mini PCs, potentially eliminating the needs for PCs – you can have a docking station and external monitor at home and work…
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iPad DJ Rana Sobhany Gets in Touch with Music’s Future
iPad is cool, Right? Take a look at this video. The touch screen of the tablet allows you to do way more than you could imagine…
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New Blood Tests for Early Diagnosis of Osteoarthritis
Arthritis is a common category of diseases. In some cases, chronic joint inflammation may lead to destruction of the structure and crippling. Scientists at King’s College London discovered biomarkers associated with osteoarthritis, allowing early diagnosis and monitoring the progress of the condition…
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LEADERSHIP & ORGANIZATION
Empowering Your Employees to Empower Themselves
Many executives are used to provide directions or instructions to his or her subordinates. Research shows that executives’ opinions are not all right. Even the opinions that are right on are not all worth it. More importantly, employees follow executives in details, they become passive. Here are the things that leaders can do to build an environment that empowers people: 1) give power to those who have demonstrated the capacity to handle the responsibility; 2) create a favorable environment in which people are encouraged to grow their skills; 3) don’t second-guess others’ decisions and ideas unless it’s necessary; 4) give people discretion and autonomy over their tasks and resources…
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Discover Your Leadership Blind Spots
When I read a research article published several decades ago, I found interesting observations that worth to mention here. Researchers conducted a survey among managers of organizations to uncover motivational factors relevant to the performance of R&D employees. In this survey, the respondents rated the importance of relations with subordinates at 2.7 while that of relations with superiors at 3.7 (maximum score at 5.0), indicating that managers tend to put more weight on their relations with their superiors and fail to see their subordinates’ desire to build good relations with them. Too often, leaders demonstrate behavior that sabotages their success and undermines both their team and their organization. To succeed as a manager, an author suggests, you need to learn how to recognize your blind spots and overcome them…
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Pimco’s Battling Brains
Mutual fund giant Pacific Investment Management Co. has $1 trillion under management. The company credits its outstanding performance to an environment where its staff is constantly expected to challenge each other's investment ideas and assumptions. This article highlights how you regularly need to evaluate and challenge business assumptions to ensure their continued relevance and to force the necessary discussions around them. You better be philosophical and have a thick face…
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