Archive for February/2009

IE and AIESEC extend their global partnership and agree on a innovative scholarship scheme. Details on the scholarship program like application process, deadlines you can find on the dedicated web.

AIESEC, the world’s largest student organization, is the international platform for young people to discover and develop their potential so as to have a positive impact on society.

The IE – AIESEC Scholarship Program is offered by the IE Foundation in Spain and comprises eight (8) scholarships, each of which covers up to 40% of program tuition fees. The total annual budget for IE  AIESEC Scholarships in 2009 is 100.000, so apply now to increase your chances of selection.

These scholarships will be awarded on an annual basis to AIESEC members interested in pursuing one of the following programs:

- Master in Management, (for recently graduated professionals):

* Master in International Management
* Master in Marketing Management
* Master in Telecom and Digital Business

- Master in Finance (for recent graduates)
- Master in International Legal Practice (for recent law graduates)
- Master en Asesoría Jurídica de Empresas  LL.M (for recent law graduates and offered in Spanish)
- Master in International Relations (for recent graduates)

The term recent graduate refers to all persons with a university degree and less than three years work experience.

Moving to a new country can be a challenging experience. Apart from learning a new language, experimenting exotic dishes and discovering cultural and artistic treasures, it also involves a lot of practical issues such as housing and visa support.

Consistently accredited by leading publications (FT, Business Week, The Economist), IE is one of the leading European higher education institutions. Through our Master programs, we are committed to developing cosmopolitan managers and future leaders who embrace change, focus on innovation and lead with human values whose commitment to education is driven by a belief in innovation, academic excellence, diversity and an entrepreneurial spirit.

IE has more than 35 years experience helping students move to Spain and wants to make this change as pleasant as possible for all our new guests.

We would like to invite you to join this Virtual Insight Session and meet one of our representatives from our Student Office. This is a great opportunity to find out more about the following services available to our student community:
�    Visa & residency card support
�    Housing in Madrid
�    Support for accompanying partners
�    Spanish language courses
�    IE Clubs
�    Social Networks
�    Sports clubs and competitions
�    Leisure activities
By joining us for this virtual insight session you will have the opportunity to have your questions answered in real time.

Wednesday, February 18, 2009
11:00-12:00 (Madrid local time GMT +1)
Register here

After registering we will e-mail you the access link one day before the event.

January 2009 | By Rafael Pampillon, Professor at IE Business School

Spain has the same symptoms as those that preceded the Great Depression. And just like then, the only way forward is to facilitate loans and increase public spending.

My colleague and friend Pedro Schwartz published an article (“Is Pampillón wrong?â?) here on 31 October in which he expressed his disagreement with the economic policy measures I propose for putting this economic crisis behind us. How does he differ?

1. Professor Schwartz disagrees with the diagnosis, and this is most important since a realistic diagnosis is fundamental if the right policies are to be applied. He considers that, although we are experiencing an ebb of the cycle, we are not on our way to a depression like that of the 1930s.

My diagnosis is different, since I consider that the Spanish economy is in crisis owing to an insufficient aggregate demand of unknown proportions and that, if we do not apply the right measures, we will very soon enter a long, deep recession.

We must remember that the Great Depression of the 1930s came from a fall in demand, which led to high levels of unemployment, negative economic growth and deflation. To overcome that crisis, expansive aggregate demand policies were applied, together with increases in public spending. Read more…

January 2009 | By Max Oliva, Professor at IE Business School

Business schools are playing a crucial role in the evolution of social responsibility. Having proved how important it is, they now face the challenge of how to develop it further.

CSR has evolved considerably in recent years. It has gone from being a stand-alone concept to being more and more aligned with business, with clear added value. Now that the “CSR, yes or no” debate has finally been won, we are in the “how” phase, rather than still talking about Friedmanâ??s theories (1.)

Business schools play a key role, from the dissemination and evolution of the concept, to involvement in the various conversations, how it should be integrated in the business strategy, how it should be gauged and managed, which parameters should be used, etc.

All this without losing sight of the role they play in putting talent in contact with the business world. On the one hand, business is interested in CSR as a strategy; 70% of businesses consider it a way to stand out from their competitors (2.). As far as talent is concerned, the increase in the number of people searching for work that not only satisfies economic and professional career requirements but that also offers the potential for contributing to society has increased by more than 70% over the last five years (3.) Read more…

January 2009 | By Manuel Alonso Coto, Program Director of the Master in Digital Marketing

Publicity and marketing is going through its worst crisis since the Great Depression. But not every aspect is suffering, given that online publicity is seeing enormous growth, driven in part by needs emerging from the economic crisis.

If we analyse the figures used by specialist agencies, the crisis that is heavily affecting almost every business sector could become an opportunity for digital advertising. In fact, it is already happening; it is the only sector that has grown (almost 20% so far this year) as everything else is shrinking. The cuts in marketing budgets mean that agencies are seeking channels with lower investment requirements than traditional GRPs, which are very expensive for the current budget. Thus, many firms that had not previously tried the digital medium as an advertising channel are taking their first steps and, in most cases, with good results. Hence digital advertising is growing. The crisis means that budgets that are far from negligible are moving online, and it is money that will not easily return to traditional media.

However, investments in the traditional advertising market in Spain could be reduced by 9.2% this year, the biggest fall of the last 30 years. Certain things occur with the arrival of a bearish economic cycle: individuals fist start saving by not buying long-lasting products, while businesses cut back on training and advertising. This reduction in investment in advertising brings the challenge of obtaining the same leads (or, if possible more leads, since the crisis will lower the sales-conversion ratio) with less impact; so they have to be of higher quality, more in line with the target. And that is where the great capacity for segmentation of digital advertising can be very helpful. Online segmentation techniques, such as behavioural targeting, should be given more consideration than ever. Read more…

hinese Premier Wen Jiabao arrived here Friday for an official visit aimed at further bolstering bilateral political ties and cultural exchanges between China and Spain.

Read more…

January 2009 | By Gayle Allard, Professor at IE Business School

Exceptional times require exceptional measures, such as deploying an arsenal of fiscal measures. Itâ??s the only way to combat the current economic crisis.

The tax incentive of 1.1% of the GDP approved today by the Cabinet of Ministers might be considered irresponsible at any other time; however, in the unsettled waters of today´s global economy, it is an appropriate move. What are missing are measures for correcting the structural problems that will make this crisis such a serious one for Spain.

The government is facing domestic recession and the almost certain first global recession since 1982. The monetary policy has made its move and the response has not been encouraging. Given this scenario, the European Commission has requested tax incentive packages and Zapateroâ??s government has responded by announcing new expenditure totalling â?¬11,000 million in 2009: â?¬8000 on public works through local authorities and smaller amounts for the car industry, the environment, R&D, the Dependence Act, the refurbishment of buildings and tourism. According to the president, the move will create around 300,000 jobs.

First of all, this package is necessary. At the present time, we should not waste time discussing its effect on the deficit before we proceed. The recession looks to be worse than any known by most of us and normal solutions would be particularly shy. Read more…